How e-Residents can open an Interactive Brokers account for their Estonian business

Estonia’s e-Residency program offers entrepreneurs the opportunity to establish and manage a business within the European Union remotely. A key aspect of operating such a business is efficient financial management, and Interactive Brokers (IBKR) provides a robust platform tailored for this purpose.

More and more international companies are opening a business accounts with Interactive Brokers (IBKR) and taking advantage of the digital capabilities of one of the world’s financially strongest investment houses. 

A strong equity base, conservative balance sheet structure and automated professional risk management protect Interactive Brokers clients and investors.

E-residents have the opportunity to invest their capital internationally and engage in professional cash management through IBKR. Hedging, investing and foreign exchange transactions are thus possible at low cost and quickly, regardless of location. Due to its 100% digital approach, IBKR is one of the best solutions for e-Residents looking for a brokerage account for their business.

Advantages of Using Interactive Brokers for Estonian Businesses:

1. Global Market Access: IBKR grants companies access to major stock exchanges worldwide, facilitating international investment opportunities.
2. Comprehensive Reporting: The platform offers detailed reporting and evaluation tools, essential for informed decision-making.
3. Credit Facilities: IBKR provides credit lines to support trading activities, enhancing financial flexibility.
4. Advanced Trading Technology: Designed for both traders and investors, IBKR’s technology ensures efficient and effective trading experiences.
5. Educational Resources: Through the Trader Academy, IBKR offers online educational materials to help users enhance their trading knowledge.

Admittedly, the opening process for a corporate account is a bit more extensive than for a personal account. This is also true for IBKR but should not deter you from taking advantage of IBKR.

Silva Hunt has done a webinar with Thomas Heyden about the benefits of IBKR, watch to go more in-depth.

The following guidelines should help to make the opening process as quick and uncomplicated as possible.
Please keep in mind that the authorized person of the account might differ from the account holder especially if the company name is different from founders name.

In advance, have all the documents of the persons who are authorized to access the account for the company ready for uploading and you are ready to go.

Required Documentation for opening IBKR account:

1. Proof of Identity of the authorized person of the account: A valid passport, ID card, or driver’s license of the authorized account user. In case of residence abroad, the valid residence permit is needed
2. Proof of Residence/Address: Documents such as a bank statement, credit card statement, current insurance policy, government-issued letter (not older than 12 months), or a recent tax certificate displaying the authorized person’s name and address.
3. Company Information:
   • Extract from the commercial register.
   • Proof of the company’s address.
   • Details on the source of initial capital.
   • Information about the company’s assets, income, investment objectives, and trading experience.
   • Bank account number and details of the reference bank.
4. Additional Considerations:
   • Determine which markets and trading permissions are needed.
   • Select the most suitable commission structure for your company.

E-residents have the opportunity to invest their capital internationally and engage in professional cash management through IBKR. Hedging, investing and foreign exchange transactions are thus possible at low cost and quickly, regardless of location. Due to its 100% digital approach, IBKR is one of the best solutions for e-Residents looking for a brokerage account for their business.

This information is requested by all banks and is a requirement of the supervisory authorities in order to get a realistic picture of the account holder and to avoid money laundering.

In the case of e-residents, the reasons why the entrepreneur’s place of residence and the company’s registered office may differ are also asked. Reasons for this may be the international orientation of the company, the international clientele, the efficient digital possibility of setting up and running a company in Estonia for example.

Once you have your company set up, we will appoint you to Systrade AG who will help you with the IBKR account opening. Systrade AG is one of the largest cooperation partners for IBKR in the field of corporate, professional and institutional business in the EU. If you have any further questions, don’t hesitate to ask Thomas from Systrade AG.