Interactive Brokers has been in the business of providing financial services since 1977. The company is known for its low costs, global access, premier technology, and strength and security. With 150 markets in 33 countries and 26 currencies, IBKR provides a robust suite of advanced trading technologies designed to optimise speed and efficiency. Clients can also take advantage of free trading tools, comprehensive reporting, and speciality trading platforms.
In this review, we will dive into the specifics of the Interactive Brokers platform and assess whether it lives up to its reputation.
Interactive Brokers Pros & Cons
Pros
- Wide Range Of Assets From Which To Choose
- Strong Tools And Research
- Access to 150 markets in 33 countries, with trading available in 26 currencies
- Comprehensive research and news offerings from over 200 free and premium providers
- Highly Regulated, Financial strength
- Competitive margin rates and interest earnings on cash balances
Cons
- Currency conversion fees may apply when trading assets denominated in multiple currencies
- May be overwhelming for beginners due to the wide array of features and tools available
Who Is Interactive Brokers Recommended For?
Interactive Brokers is an excellent broker for traders of all experienced levels. Though, as listed above, it has won accolades for being a great service for experienced and professional traders, that does not mean novices are left out. Interactive Brokers has a lot of research and tools to guide new traders on their industry journey.
Active traders can take advantage of Interactive Broker’s flagship Trader Workstation trading platform while allows offers access to over 100 order types and algos, powerful charting tools and real-time monitoring. In addition, IBKR offers a web-based platform, Client Portal, as well as various mobile apps – its signature IBKR Mobile app as well as IBKR GlobalTrader, a simplified mobile app for global investors, and IMPACT, an ESG focused mobile app for those seeking socially responsible investing opportunities.
Interactive Brokers offers two pricing plans, IBKR Lite and IBKR Pro. IBKR Lite provides clients in the US with commission-free trades in US exchange-listed stocks and ETFs. IBKR Pro, which is available globally, gives clients access to IB SmartRoutingSM that helps support best execution by searching for the best available prices for stocks, options and combinations across exchanges and dark pools.
Additionally, the broker provides a wide range of educational materials via IBKR Campus that give investors the opportunity to learn about trading, financial markets, IBKR’s trading tools and stay on top of current events. IBKR Campus is free of charge for both clients and non-clients and offers the following resources:
- Traders’ Academy. This Academy has free online courses (with quizzes and notes) for educators, students, investors, and traders.
- Traders’ Insight. Traders’ Insight provides up-to-date information and news about what is happening in markets around the world.
- These free webinars are sourced from leading companies and researchers around the world, and they cover topics such as trading live events, current stock market trends, world finance, and more.
- Student Trading Lab. The Lab’s educational resources are perfect for educators looking to teach students about trading and economics. This free, online resource blends both computer science/finance classwork and real-world experience.
- Traders’ Academy. IBKR’s Traders’ Academy has over 60 free online courses (with quizzes and notes) for educators, students, investors, and traders.
- Traders’ Insight. Traders’ Insight blog provides up-to-date information and news about what is happening in markets around the world.
- IBKR Webinars. IBKR’s free webinars, both pre-recorded and live, are sourced from leading companies and researchers around the world, and they cover topics such as trading live events, current stock market trends, world finance, and more.
- Student Trading Lab. The Lab’s educational resources are perfect for educators looking to teach students about trading and economics. This free, online resource blends both computer science/finance classwork and real-world experience.
- IBKR Quant. A blog for quantitative professionals with an interest in programming, deep learning, API, AI, Blockchain and other transformative technologies.
- Traders’ Insight Radio. A new podcast series featuring discussions on topics that impact global market and trading.
Regulated By
- The Financial Conduct Authority (United Kingdom)
- Financial Market Supervisory Authority (Switzerland)
- Central Bank of Ireland (Ireland)
- Central Bank of Hungary
- U.S. Commodity Futures Trading Commission (United States)
- Financial Industry Regulatory Authority (United States)
- National Futures Association (United States)
- Securities Investor Protection Corporation (United States)
- Investment Industry Regulatory Organization of Canada (Canada)
- Financial Services Commission (British Virgin Islands)
- Options Clearing Corp. (OCC)
- Securities Exchange Commission (SEC)
- Australian Securities and Investments Commission (Australia)
- Monetary Authority of Singapore (Singapore)
- The Securities and Futures Commission (Hong Kong)
- Securities and Exchange Board of India (India)
- Kanto Local Finance Bureau (Japan)
- Japan Securities Dealers Association
- The Commodity Futures Association of Japan
Top Interactive Brokers Features
There are a lot of great features with this broker, and we chose to list the ones that stood out to us and set Interactive Brokers apart.
- Low Margin Rates. Interactive Brokers has margin rates that are up to 66% lower than the rest of the industry.
- Interest Rates. You can earn up to USD 4.08% on uninvested cash.
- IB SmartRoutingSM. This feature helps you get the best execution, as it lets you search for the top available prices for options, stocks, and combinations across dark pools and exchanges.
- IBKR GlobalTrader. Their new simple mobile trading application for investors to trade stocks around the world. With a streamlined design, the app is easy for novice investors to use, and powerful enough for experienced stock traders. Investors can open an account in minutes and start trading stocks on over 90+ stock exchanges in North America, Europe, and Asia. Investors can easily scan and trade global stocks from their phone or tablet, and you can even test it for free with instant access to $10,000 in a simulated trading environment. It’s fast to get started, you can trade stocks worldwide, and you can even trade fractional shares.
- GlobalAnalyst. This new tool that lets investors compare the relative valuations and financial metrics of stocks globally. Investors looking for international portfolio diversification may discover undervalued companies that may have greater growth potential. Recognizing that it can be challenging for all-level investors to evaluate the relative merits of stocks traded in different currencies, Interactive Brokers created a simple yet powerful tool to compare any number of stocks by various metrics in one of 27 currencies of the user’s choice. Similarly, users may buy and sell and follow these stocks in the currency of their choice, all in one account on one screen. It works great on the IBKR GlobalTrader app., and there is even a great video to learn step-by-step how to scan for stocks around the world.
- Analytical Services. There is wealth of analytical services at Interactive Brokers, including IBKR GlobalAnalyst, which lets you scan the worldwide market for undervalued stocksand identify new investment opportunities. PortfolioAnalyst, on the other hand, tracks, analyzes, and consolidates your portfolios, offering you information, benchmarks, and support about your investment patterns.
- Stock Yield Enhancement Program. The Stock Yield Enhancement Program allows you to earn extra income on fully-paid stock shares that you hold in your account. Interactive Brokers can borrow shares from you, and, in exchange, you get cash or U.S. Treasuries as collateral. This feature sets Interactive Brokers apart from other companies like it.
- Probability Lab. Another highlight worth mentioning is the Profitability Lab. Education is key in this industry, and this Lab teaches traders how to think about options, minus all the complicated mathematics. Topics discussed include profitability distribution, stock prices, how to calculate PD, and more.
- Mutual Fund Marketplace. Interactive Brokers offers you access to over 46,000 funds including over 18,000 no-transaction-fee funds from over 520 fund families. You can also use the Mutual Fund Search tool to identify funds by a number of categories including fund type, fund family, country of resident or commission charged.
- Bond Marketplace: You can access over 1 million bonds globally and use the Bond Search Tool to compare yields against those of other brokers.
Financial Strength & Stability
When placing your money with a broker, you need to make sure your broker is secure and can endure through good and bad times. The financial statements of Interactive Brokers LLC are available on their website for your review.
Interactive Brokers Overview
- Type of Broker Non-Advisory/Executionary Broker
- Regulation and Licensing The Financial Conduct Authority (United Kingdom), Financial Market Supervisory Authority (Switzerland), Central Bank of Ireland (Ireland), Central Bank of Hungary, U.S. Commodity Futures Trading Commission (United States), Financial Industry Regulatory Authority (United States), National Futures Association (United States), Securities Investor Protection Corporation (United States), Investment Industry Regulatory Organization of Canada (Canada), Financial Services Commission (British Virgin Islands), Options Clearing Corp. (OCC), Securities Exchange Commission (SEC), Australian Securities and Investments Commission (Australia), Monetary Authority of Singapore (Singapore), The Securities and Futures Commission (Hong Kong), Securities and Exchange Board of India (India), Kanto Local Finance Bureau (Japan), Japan Securities Dealers Association, The Commodity Futures Association of Japan, and various additional exchanges where Interactive Brokers are members.
- Clients Accepted from 200+ Countries
- Assets Offered Stocks, ETFs, Options, Futures, Currencies, Bonds, Mutual Funds, Cryptocurrency. Access to Cryptocurrency trading is available to clients in over 100 countries through Paxos Trust Company
- Platforms Available Web, Desktop, Mobile
- Mobile Compatibility iOS, Android
- Payment Types Accepted Bank Wire, ACH Transfer, Mail
Interactive Brokers Account Types
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IBKR Pro (Individual, Trust, Joint, and Org Accounts) |
IBKR Lite (Individual, Trust, Joint, and Org Accounts) |
|
Features |
$0 Maintenance Fee, Benchmark Minus 0.5% Interest Paid on Idle Cash Balances, Benchmark + 1.5% Interest Charged For Margin Loan, Stock Yield Enhancement Program |
$0 Maintenance Fee, Benchmark Minus1.5% Interest Paid on Cash Balances, Benchmark + 2.5% Interest Charged for Margin Loan (Lower Rates For Higher Loan Values), Stock Yield Enhancement Program, FDIC Promontory Program |
|
Account Currencies |
24 Currencies available including USD |
USD |
|
Available Leverage |
Varies |
Varies |
|
Minimum Deposit |
$0 |
$0 |
|
Commission Per Trade |
Fixed Or Tiered Pricing on Stocks/ETFs, Options, Futures, Fixed Pricing on Mutual Funds, and Tiered Pricing On Currencies and Bonds |
Commission Free on US Exchange Listed Stocks/ ETFs Fixed Or Tiered Pricingon , Options, Futures, Fixed Pricing on Mutual Funds, and Tiered Pricing On Currencies and Bonds
|
|
Decimal Pricing |
Up to 7 |
Up to 7 |
|
Trading Instruments |
Stocks, ETFs, Options, Futures, Currencies, Bonds, Mutual Funds.
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Stocks, ETFs, Options, Futures, Currencies, Bonds, Mutual Funds. |
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Min. Lot Size Per Trade |
N/A |
N/A |
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Spreads |
No Added Spreads |
No Added Spreads |
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Demo Account |
No (Free Trial Available) |
No (Free Trial Available) |
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Swap/Rollover Free |
No |
No |
|
Copy Trading Support |
No |
No |
Trading Platforms
- IMPACT
- IBKR GlobalTrader
- Client Portal
- IBKR Mobile
- Trader Workstation
- IBKR APIs
Trading and Investment Tools
- One Click Trading Yes
- Trade off Charts Yes
- Email Alerts Yes
- Mobile Alerts Yes
- Stop Order Yes
- Market Order Yes
- Trailing Stop Order Yes
- OCO Order Yes
- Limit Order Yes
- 24hr Trading No
- Charting Package Yes
- Streaming News Feed Yes
Interactive Brokers Compliance & Regulation
Interactive Brokers is regulated by several bodies, worldwide. Please see the “Regulated By” section above for a complete list.
Fees & Commissions
- Rollover Fee Based on Asset
- Margin Interest 0.75% Charged On Margin Loans (Minimum Floor, Subject To Change), link
Interactive Brokers Pricing
There are a few different things to note with Interactive Brokers when it comes to this company’s pricing. Commissions vary based on asset, though there are no commissions on stocks and ETFs through IBKR Lite, one of the company’s pricing plans.
Interactive Brokers offers among the lowest margin rates in the industry and charges margin loan rates from USD 5.08% – USD 6.08%.
Interest rates depend on your account value. Accounts that have a net asset value of $100,000 or more get the full interest rate for which they are approved, while those below an N.A.V. of $100,000 receive proportional rates. The larger your cash balance, the better your interest rate.
Service Details
- Supported Languages English, Japanese, Cantonese, Mandarin, Russian, Hungarian, Italian, German, French, Spanish+
- Customer Service By Interactive Brokers
- Customer Service Hours 08:00 – 20:00 (Mon – Fri) (America/New York) 13:00 – 19:00 (Sun) (America/New York), Chat: IBKR offers online chat services to current clients. The Chat Room function is available 24 hours from Monday – Friday at 1 pm – 7 pm Eastern Time. Additional Support: Clients of Interactive Brokers can also use the IBot powered FAQ browser to find answers to common questions. To access the IBot FAQ browser, clients simply enter a question or phrase into the IBKR website search box. IBot understands natural-language text commands and provides immediate results without the need for special syntax or financial jargon.
- Email Response Time Same Day (generally)
- Telephone Orders Yes
- Personal Account Manager No
Interactive Brokers Reliability & Security
As you can see from the list a few sections above, Interactive Brokers is highly regulated. And, as you can imagine, this company takes fund security seriously. Not only are their financial reports, privacy policies, and SOC reports available online, they segregate client funds with a buffer and client securities accounts at Interactive Brokers LLC are protected by the Securities Investor Protection Corporation (“SIPC”) for a maximum coverage of $500,000 (with a cash sublimit of $250,000).
Your login is protected with the Secure Login System (SLS) that is available at no extra charge and offers access to Two-Factor authentication. IBKR Mobile Authentication can be found within IBKR Mobile and provides a digital solution for Two-Factor Authentication. This is vital to prevent hackers from accessing your account if they have acquired your login and password.
Interactive Brokers User Experience
Interactive Brokers’ suite of technology is second to none. Its flagship desktop platform, Trader Workstation (TWS), is designed for active traders and investors who trade multiple products and require power and flexibility. The platform offers over 100 order types – from limit orders to complex algorithmic trading – helping investors execute any trading strategy.
Interactive Brokers also offers a range of speciality trading platforms that cater to different investor experience levels. For example, IBKR EventTrader is a web-based platform for trading Event Contracts that makes it easy for investors to trade on their knowledge or opinion about a specific question with a “yes” or “no” outcome.
Overall, the user experience with Interactive Brokers is highly regarded by thousands of people worldwide. With its vast offerings, Interactive Brokers is an excellent choice for all types of investors.
Final Thoughts on Interactive Brokers
Interactive Brokers’ competitive pricing structure sets it apart from other brokers in the industry. Its low commissions with no added spreads, ticket charges, platform fees, or account minimums make it an attractive choice for investors who are looking to minimise costs and maximise returns.
One of the standout features of Interactive Brokers is its premier technology, which helps investors optimise trading speed and efficiency and perform sophisticated portfolio analysis. The platform’s powerful suite of trading tools and research and news providers make it easy for investors to discover new investment opportunities and make better decisions.
Overall, Interactive Brokers is a secure and reliable broker that offers a great user experience and competitive pricing. Its global access to a wide range of assets makes it an attractive choice for investors who are looking to diversify their portfolio beyond their home country.
Trading Platform Screenshots
Contact Info
1 Pickwick Plaza, Greenwich CT 06830
Interactive Brokers FAQs
Q: What are the customer support methods of Interactive Brokers?
A: There are a lot of resources for customer service. In addition to a detailed FAQ page, you can also phone them, chat with a live representative, and access a community forum.
Q: Are withdrawals free?
A: With this broker, you get one free withdrawal request each month.
Q: How can I open an account?
A: You can start your online application easily on Interactive Brokers website, and go through the verification and registration process. The first step is to create a username/password. Then, confirm your email. After those two steps, you can start the actual application.