Online Trading

Interactive Brokers Review

Founded by Thomas Petterfy, Interactive Brokers has grown to become a huge securities firm with over $10.4 billion in equity capital. As of July of 2022, Interactive Brokers works with nearly two million active clients. It has over forty years of experience in the industry, and this award-winning broker provides many great features that both new and professional traders will appreciate. 

This broker conducts business in over 150 market destinations around the world, and it and its affiliates execute more than two million trades every day. Clients from over 200 countries and territories can trade stocks, options, futures, currencies, bonds, funds, crypto and more from a single unified platform. Clients can fund their account in 24 currencies and have access to low commissions and advanced trading technology.  Listed below are some of the awards that Interactive Brokers has won:

  • 2022 Barron’s Awards:  Rated #1 “Best Online Broker,” 5 out of 5 stars
  • 2022 Investopedia Awards: Rated 4.6 out of 5 stars overall, “Best Broker for International Trading” and “Best Online Broker for Advanced Traders”
  • 2022 ForexBrokers.com Awards: Rated 5 out of 5 stars overall, 5 out of 5 stars for commissions & fees, 5 out of 5 stars for offering of investments, #1 for offering of investments, #1 for innovation, and #1 for institutional clients
  • 2022 StockBrokers.com Awards: Rated 5 out of 5 stars for offering of investments, 5 out of 5 stars for research, #1 for professional tools, #1 for futures trading, #1 for offering of investments, #1 for international trading
  • 2021 Preqin Service Provider Awards: Rated “Top Hedge Fund Prime Broker” and “Top Hedge Fund Custodian”
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Interactive Brokers Pros & Cons

Pros

  • Wide Range Of Assets From Which To Choose
  • Strong Tools And Research
  • 17,000+ No-Transaction-Fee Mutual Funds
  • Highly-Regulated
  • Available In 200+ Countries

Cons

  • Some (NerdWallet) Find The Website Too Difficult To Navigate

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 1.83% 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 45,000 funds including over 17,000 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.

Interactive Brokers Overview

  • Type of Broker Non-Advisory/Executionary Broker
  • Regulation & 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

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 a lot of different organizations. Please see the “Regulated By” section above for a complete list. You can find regulatory reports and financial information at: https://investors.interactivebrokers.com/ir/main.php.

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. You can find the list of commissions at https://www.interactivebrokers.com/en/pricing/commissions-home.php.

Interactive Brokers offers among the lowest margin rates in the industry and charges margin loan rates from USD 2.83 – USD 3.83%. You can find additional information at  https://www.interactivebrokers.com/en/trading/margin-rates.php

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. Lastly, there are no maintenance or inactivity fees with Interactive Brokers accounts. More information about interest rates can be found here: https://www.interactivebrokers.com/en/accounts/fees/pricing-interest-rates.php

Service Details

  • Supported Languages English, Chinese
  • Customer Service Hours 9:00am-5:00pm (Weekdays, EST)
  • Email Response Time Within 24 Hours
  • Telephone Orders Yes
  • Personal Account Manager Yes

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 has some of the best ratings out there from consumer aggregate sites. Here are some of these ratings and their sources (as you can see, they trend positively):

  • Investopedia: 6/5
  • NerdWallet: 5/5
  • Bankrate: 5/5
  • Fool: 4/5
  • TrustPilot:8/5
  • Forbes:4/5
  • Business Insider:6/5
  • ForexBrokers: 5/5
  • Investor Junkie:8/5
  • AskTraders: 4/5
  • The College Investor:5/5

Final Thoughts on Interactive Brokers

This broker is excellent for traders of all experience levels. They have a wide range of assets from which to choose, and their pricing is generally lower than the industry. Interactive Brokers is a secure, regulated company with high-tech platforms, educational tools and resources, and a lot of other trader-centric features that will appeal to anyone looking to kick-start their trading career.

Trading Platform Screenshots

  • Image of the key markets that are covered by Interactive Brokers’ asset offerings. In total, the broker covers 33 countries and 23 currencies.
  • Image of the different account types offered by Interactive Brokers. The broker offers six account types to its customers.
  • Image showing Interactive Brokers' platform and its key features. The platform is fully compatible with both Android and iOS mobile devices.
  • Image of the Interactive Brokers interfacedisplaying useful information about one of the key features offered by the broker.
  • Image of the Interactive Brokers website highlighting the key benefits that clients are invited to enjoy after joining the ecosystem.

Contact Info

laptop Website: www.interactivebrokers.com
laptop Email: Not Permitted, Use Message Center For Formal Inquiries, or https://www.interactivebrokers.com/en/index.php?f=3869
call Telephone: 1 (877) 442-2757
location_on Company Address:
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 at https://ndcdyn.interactivebrokers.com/Universal/Application 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.

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