Interactive Brokers is one of the world’s largest electronic brokers, listed on Nasdaq. Indian residents can open an account with it to invest in US and other global markets, funded through the Liberalised Remittance Scheme. Here is how the process typically runs.
1. Apply online
Start the application on Interactive Brokers’ India website and choose an individual cash account with access to international markets. You will enter your PAN, name, date of birth, address, occupation, income and investment experience. Answer the experience questions honestly; they decide which products you can trade.
Meridian Capital clients open the account through our onboarding link, so the account is connected to us for planning from day one. The account is always in your own name.
2. Submit KYC documents
- PAN card
- Proof of identity and address. Make sure the address matches exactly across documents, including the PIN code.
- Bank proof: a cancelled cheque or bank statement
- A photograph
Mismatched addresses are the most common reason applications stall.
3. Sign Form W-8BEN
This IRS form certifies that you are not a US person. It is signed electronically during the application. With it on file, US withholding on dividends falls from 30% to the treaty rate of 25% for Indian residents.
4. Fund the account through LRS
Once the account is approved, Interactive Brokers shows wire instructions. At your bank, submit Form A2 for overseas investment and send a USD wire to those details. Cards and UPI are not accepted.
- Funds usually arrive in two to three business days.
- TCS of 20% applies above ₹10 lakh in a financial year.
- Your bank’s exchange rate usually includes a spread over the market rate. It is worth comparing banks on this.
5. Log in and invest
You can use the Client Portal on the web, the mobile app, or Trader Workstation on a computer. Meridian Capital clients see their holdings, trades and statements directly in their own Interactive Brokers login, at any time.
What to know about costs
For cash accounts, Interactive Brokers does not charge an account minimum or a monthly inactivity fee. US share trades on its tiered or fixed plans cost fractions of a cent per share, with a minimum per order. Check the current schedule on its website before you trade, as pricing changes.
Common mistakes
- Buying US-domiciled ETFs without thinking about US estate tax above $60,000.
- Remitting large amounts in one go without planning for TCS cash-flow.
- Forgetting Schedule FA in the next income tax return.
- Treating a brokerage account as a trading app rather than a long-term portfolio.