Client Account Types and Choosing the Right One

Before initiating a new client application, it’s important to select the appropriate account type for your client. IBKR supports a range of account structures to fit individual and entity clients. Choosing the right type ensures the account is set up with the correct ownership, tax, and regulatory settings from the start. Below is a summary of common client account types available to advisors and their typical use:

Account Type	Description (Ownership & Structure)	Typical Use Case
Individual	Single account owned by one person (one primary holder)	Most common for an individual investor client.
Joint	Single account owned by two people (e.g. spouses or partners). IBKR supports Joint Tenants WROS, Tenants in Common, etc.	For two individuals with shared ownership (married couple, etc.). Both owners can have equal access.
Trust	Account for a legally established trust, controlled by one or more trustees on behalf of one or more beneficiaries. Trust assets are held in the account.	For family trusts, revocable or irrevocable trusts, and other fiduciary arrangements. Requires trust documents during application.
Retirement (IRA)	Tax advantaged individual retirement account (Traditional, Roth, etc.). Assets held for retirement savings; subject to retirement account regulations.	For U.S. clients’ retirement funds. IBKR provides IRA accounts for eligible individuals (or similar retirement accounts in certain jurisdictions).
Custodial (UGMA/UTMA)	Account managed by a custodian (adult) for a minor child until the child reaches legal age. The assets belong to the minor. (Available to U.S. residents.)	For minors’ investments, managed by a parent/guardian. The custodian controls the account until the child is of age, at which point assets transfer to the child.
Entity Accounts (Corporate, LLC, etc.)	Account owned by a legal entity such as a corporation, partnership, LLC or other organization. Assets are held in the entity’s name. Authorized individuals (officers) act on behalf of the entity.	For business clients, corporate investment accounts, family offices, or other institutional clients of your advisory firm. Typically requires entity formation documents and resolutions.

Table 1: Client account types and their key characteristics. Each type has specific documentation and regulatory requirements (see next section for documentation). For most advisors, Individual and Joint accounts will cover the majority of retail clients. Trust and IRA accounts are common when managing client retirement assets or family trusts, and Entity accounts come into play if you manage investments for a business, charity, or other organization. Always choose the structure that matches the client’s situation: for example, if managing a couple’s joint portfolio, opt for a Joint account; if managing a revocable trust’s assets, use a Trust account, etc.