Archimedes Finance

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Account opening process

Lesson in Course: Investing basics (beginner, 3min )

We're ready to open a brokerage account. What do we need?

The account opening process

Overall, opening an account takes about 15min or less online. Most brokerages require us to be at least 18 years old; however, some brokers now allow teenage investors to open an account before they are 18 if their parents already have a brokerage account with them.

Know Your Customer

Know your customer, or KYC, is a series of questions and the identification processes that brokerages ask every new user. The required information includes:

  1. Social Security Number (often a picture of your Social Security Card is required)
  2. Drivers license / State Id/ Passport
  3. Bank account statement or other proof of fund and address
  4. Proof of Permanent Residency Card (if you are not a US citizen)
  5. Employment status including annual income and net worth and if you work for another brokerage
  6. Are you or a family member a senior executive, or 10% shareholder at a public company
  7. Are you or a family member a current or formerly politically exposed person or public official

Collecting this information is necessary for brokerages to comply with FINRA regulations, and we should be ready to provide it. Many modern brokerages will use Plaid to connect directly to our bank accounts for step 3 so that we don't need to provide paper statements.

FINRA Regulations

 

Anti-money laundering

Anti-money laundering, or AML, are restrictions placed on financial institutions to do their part in preventing money laundering and moving money around for criminals. Regulations place limits on the deposit of funds from a bank account into a brokerage account and then withdraw money into a different bank account. Certain brokerages have their own restrictions. (Robinhood requires 60 days before a withdrawal can be made into a different account.) Keep this in mind if we have multiple accounts and plan on funding a brokerage account.

Minimal deposit amount

Certain brokerages require minimal deposit amounts. Most of the time, these amounts are small; however, there are many great brokerages out there that do not require any minimums to open an account.

To be compliant with KYC and AML requirements, brokerages will need a few days to approve our account—we won't be able to invest on the same day we decide to open an account. Let's get a head start by opening an account today.

Glossary

What is Know your customer (KYC)?

A series of questions and the identification processes that brokerages ask every new user.

What is Anti-money laundering (AML)?

Restrictions placed on financial institutions to do their part in preventing money laundering and moving money around for criminals.

At Archimedes, our goal is to make investment literacy accessible and free for everyone.

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