Interactive Brokers (IB) is a global brokerage firm known for low trading fees. You can trade stocks, futures, options, ETFs, bonds, funds, cryptocurrencies, futures options, and forex on their platform. This IBKR review covers costs, available assets, trading commissions, and account types to help you decide if it suits your needs.
Interactive Brokers review
What is Interactive Brokers (IBKR)? Interactive Brokers (IBKR) is a leading global brokerage firm that serves as a gateway to the world’s financial markets. It is established in 1993, it has grown into a major securities firm with a strong emphasis on technology and automation.
IBKR provides individuals, institutional clients, and traders access to a wide range of financial instruments across global markets.
Where is Interactive Brokers located? IBKR is headquartered in Greenwich, CT. They also have offices in the Canada, Japan, Switzerland, Hong Kong, Australia, UK, US, and other locations worldwide. This extensive network positions IBKR as a truly international brokerage firm.
Interactive Brokers regulatory bodies
Interactive Brokers is regulated by prominent top-tier regulators. So is interactive brokers safe there are including:
- The Securities and Exchange Commission (SEC)
- Financial Industry Regulatory Authority (FINRA)
- The Financial Conduct Authority (FCA)
- New York Stock Exchange (NYSE)
- The Swiss Financial Market Supervisory Authority (FINMA)
- Commodity Futures Trading Commission (CFTC)
- Securities Futures Commission (SFC)
- Monetary Authority of Singapore (MAS)
- Central Bank of Ireland (CBI)
- Investment Industry Regulatory Organization of Canada (IIROC)
- Japanese Financial Services Authority (JFSA)
- Markets in Financial Instruments Directive (MiFID)
The company’s adherence to global regulatory standards ensures the safety and security of client funds and transactions.
Awards own by Interactive Brokers
IBKR has received numerous awards and accolades; IBKR’s recognition underscores its commitment to providing top-tier services and innovative solutions to its clients. These awards affirm IBKR’s position as a market leader in the financial services industry.
- Rated 1 for professional trading
- Best online broker
- Rated 1 for best online broker 5/5
- Best online broker for advanced trading
- Best broker for advanced trading options
Interactive Brokers financial instruments
What financial instruments does IBKR offer? With access to over 150 markets in 27 currencies, IBKR enables users to trade and invest globally, making it a versatile platform for diverse investment strategies. Interactive Brokers also offers a comprehensive range of financial instruments, including:
- Funds
- Options
- Forex
- Futures
- EFPs
- Bonds
- Stocks
- Futures options and more
Interactive Brokers forex
Interactive Brokers (IBKR) is a popular online brokers known for clear pricing and diverse investment products, including forex trading.
Traders benefit from narrow spreads, real-time quotes, and access to over 100 currency pairs through the streamlined FXTrader interface.
With low and transparent commissions (0.08 to 0.20 bps), the platform supports various order types, emphasizing customization.
Additionally, IBKR provides Interactive Brokers forex leverage, ranging from 10.1 to 50.1, allowing traders to control larger positions with less capital, but it’s crucial to use leverage wisely due to associated risks.
Interactive Brokers options trading requirements
You can trade options all around the world on more than 30 market centers. There are professional trading platforms and advanced tools specifically for options trading. The cost for trading options varies, starting from USD 0.15 to USD 0.65 per US option contract for global markets.
Interactive Brokers exchange rate
The exchange rate at Interactive Brokers refers to the value of a country’s currency relative to other nations. In forex terms, it is used to convert the exchange rate for buying a currency to the exchange rate for selling a currency, or vice versa, by dividing the known rate by 1. This rate is relevant for transactions involving different currencies in trading activities.
Interactive Brokers account types
Interactive Brokers offers a range of account types to meet the requirements of various experienced investors.
- Individual and joint brokerage accounts: Regular trading accounts for individuals or joint ownership.
- Retirement accounts: Various options like traditional, Roth, rollover, and inherited IRAs for retirement savings.
- Custodial accounts: Designed for minors under the Uniform Gifts to Minors Act (UGMA) and Uniform Transfer to Minors Act (UTMA).
- Trust accounts: Accounts designed for trusts.
For individuals
- Family office accounts: Tailored for family offices managing finances.
- Small business accounts: It is available for corporations, partnerships, LLCs, and unincorporated legal structures.
- Advisor accounts: This account is designed for financial advisors managing client investments.
- Hedge and mutual fund accounts:Specialized accounts for hedge funds, and mutual funds.
- Institutional accounts: It is geared towards institutional investors.
Whether you’re an individual investor or part of a professional entity, Interactive Brokers has a suitable account type to meet your specific requirements.
Interactive Brokers trading platform
Several platforms enable trading in options, currencies, stocks, futures, funds, and bonds on over 150 markets worldwide.
IBKR trader workstation (TWS) – Beginner to intermediate
- A desktop platform designed for experienced and active traders. It offers a wide range of integrated tools, advanced analysis features, market scanners, and customizable charting options.
IBKR desktop – Beginner to intermediate
- It is user-friendly platform for a smooth experience with an easy interface, competitive pricing, efficient order execution, and comprehensive research and market data services.
IBKR global trader – Beginner to intermediate
- It is streamlined platform for trading ETFs, stocks, and options worldwide. Start with as little as $1, trade in fractions. And its features a simulated trading account for practice, ensuring ease of use and access to global markets.
IBKR mobile – Intermediate to advanced
- It is user-friendly desktop platform with an intuitive interface, competitive pricing, efficient order execution, and comprehensive research and market data services.
IBKR client portal – Beginner to advanced
- The user-friendly web platform allows easy viewing, trading, and account management with a single login—no downloads needed. It encompasses access to essential functionalities and a user-friendly interface.
IBKR APIs
The platform provides diverse APIs (Excel, FIX, TWS) for different experience levels, allowing users flexibility to programmatically connect and interact.
To trade fractional shares on Interactive Brokers, find the option on the platform that lets you choose the dollar amount or number of fractional shares you want. It’s there to make trading more accessible.
Fees structure
Interactive Brokers provides a comprehensive fee structure encompassing commissions, monthly fees, option fees, and other charges.
Interactive Brokers charges
Interactive Brokers has two main programs for charging Interactive Brokers brokerage fees: IBKR Pro and IBKR Lite. IBKR Lite caters to individual investors, offering unlimited commission-free trading for U.S. stocks, ETFs, and specific mutual funds.
On the other hand, IBKR Pro is aimed at professional and institutional investors, and it charges commissions using both fixed and tiered pricing options.
Interactive Brokers’ commissions
IBKR Pro charges fixed fees for stock trades at $0.005 per share with a minimum of $1 and a maximum of 1% of the trade value. High-volume traders can opt for tiered pricing, with fees decreasing as trading volume increases. This structure also applies to options, bonds, forex, and mutual funds on Interactive Brokers.
Interactive Brokers monthly fees
Interactive Brokers doesn’t list specific monthly fees in the information given. However, inactive accounts with low balances may incur fees if they stay dormant for too long. It’s worth mentioning that other account fees are generally low, including a $10 charge for outgoing wire transfers.
Interactive Brokers option fee
When you trade options with Interactive Brokers Pro, you’ll encounter fees structured in tiers. The cost per options contract varies, ranging from $0.25 to $0.65, depending on the premium amount. There’s a minimum commission of $1, and there’s no specified maximum for options trades.
Interactive Brokers account fees
Interactive Brokers keeps account fees to a minimum. They charge a modest $10 fee for outgoing wire transfers, and inactivity fees might apply to accounts with low balances that stay inactive for a while.
Importantly, Interactive Brokers doesn’t impose certain common fees, like those for security reorganization or mutual fund redemption, which are charged by some other brokers.
Interactive Brokers margin rates
Interactive Brokers has much lower margin rates compared to most competitors. While many brokers charge over 10% on the first dollar of margin, Interactive Brokers offers margin loans at half the cost.
Their margin rates are up to 49% lower than the industry average, making it a cost-effective choice, especially for investors with large margin balances over time.
It offers different Interactive Brokers interest rates for IBKR Pro and IBKR Lite:
- For IBKR Pro, the IBKR interest rate on a USD 10,000 margin is 4.83%.
- For IBKR Lite, the interest rate on a USD 10,000 margin is 3.83%.
These rates represent the cost associated with borrowing funds on margin, and they contribute to the overall expenses for investors using margin trading services.
Interactive Brokers minimum deposit
- The minimum deposit at Interactive Brokers is $0.
- Interactive Brokers futures minimum deposit charges $0 for deposits.
- Traders can deposit as little money as they wish to start trading.
- There is no minimum deposit to open an account, making it an ideal choice for starting your investment journey.
- To start trading with IBKR Lite, you need at least $100. If you want to use leverage, you must deposit at least $2,000.
- There is no inactivity fee applied.
Interactive Brokers demo account
Interactive Brokers offers a free demo account with a default margin setting. Users receive $1,000,000 in virtual funds for risk-free trading and have access to all trading tools and platforms. When ready, users can easily switch to live trading.
Interactive Brokers customer service
Interactive Brokers offers customer service through email, chat, and telephone. For current customers, use the authenticated chat service in Account Management or email. Prospective customers can email for support. Telephone service is available 24/7 for various regions.
- Email: help@interactivebrokers.com.
- Contact no: 1 (877) 442-2757
Conclusion
Interactive Brokers (IBKR) is a global brokerage firm that lets people and businesses trade various financial things around the world. They’re known for having low fees, different types of accounts for different needs, and a strong platform for trading.
They follow rules from top authorities, have won awards, and provide different ways to trade. Whether you’re an individual or part of a big group, Interactive Brokers has good choice for you.
Pro Tip
In line with the exemplary services offered by Interactive Brokers, enhancing your trading success further can be achieved with our trusted Forex brokers. Stay informed and ahead in the fast-paced world of CFDs, forex, stocks, and cryptocurrencies. By utilizing authentic broker reviews, you gain valuable insights, enabling you to make intelligent and strategic trading decisions. This combination of Interactive Brokers’ global platform and our reliable Forex brokerage insights offers a powerful toolkit for any trader seeking to excel in the financial markets.
Frequently Asked Questions
1. Are Interactive Brokers beginner-friendly?
No, Interactive Brokers is not considered beginner-friendly. The platform is better suited for experienced or advanced traders due to its complex features, fee structure, and potentially less user-friendly account opening process.
2. Can you trade crypto on Interactive Brokers?
In addition to stocks, ETFs, options, bonds, forex, and mutual funds, Interactive Brokers also provides crypto trading. You can trade various cryptocurrencies on the platform, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
3. Are Interactive Brokers safe?
Yes, Interactive Brokers is considered a reliable broker and can be considered safe. It is regulated by at least one top-tier regulator, which is a positive sign for reliability and oversight.
4. Are Interactive Brokers good for beginners?
Interactive Brokers may not be ideal for beginners. While its web and mobile platforms are user-friendly and it offers educational materials, there are areas for improvement. The account opening process is not very user-friendly, customer service is considered slow, and there are limitations in deposit/withdrawal options.
5. What are Interactive Brokers fees and commissions?
The fees and commissions for both IBKR Pro and IBKR Lite are as follows:
| Fee/commission | IBKR Pro | IBKR Lite |
|---|---|---|
| Stock trades | Fixed: $0.005 per share (min $1, max 1%) | Unlimited commission-free trading for U.S. stocks and ETFs |
| Options | No base commission; 65 cents per contract | No base commission; 15 to 65 cents per contract |
| Mutual funds | Certain mutual funds are commission-free | Certain mutual funds are commission-free |
| Margin rates | Range: 0.75% to 1.6% | Flat: 2.6% for all margin trades |
| Other fees | Withdrawal Wires: $10 | No commission fees for certain transactions |
| Payment for order | Not paid for on IBKR Pro | May receive payment for order flow, impacting order processing competitiveness |
6. What is the minimum balance required to trade in an Interactive Brokers account?
To start trading with Interactive Brokers, no specific minimum balance is required. Consider an initial deposit of USD 10,000, covering trading fees for the first 8 months. Aim for monthly trading fees of at least USD 2,000 afterward to avoid maintenance fees.
Be cautious of inactivity fees; if total trading fees exceed the required minimum, no charges apply, but with an account below USD 1,000 and fees below USD 1.00, a prorated inactivity fee of USD 1.00 may apply.
7. Is opening an account at Interactive Brokers worth it?
Whether opening an account at Interactive Brokers is worth it depends on your trading needs.
- For individuals: If you’re an active trader or investor seeking advanced tools and global market access, opening an account at Interactive Brokers may be worthwhile.
- For institutions: Interactive Brokers offers tailored account structures for institutions like registered investment advisors and hedge funds, making it worth considering based on specific needs.
8. Other brokers similar to Interactive Brokers
If you want a broker like Interactive Brokers:
- Saxo bank: Danish investment bank with a sophisticated trading platform and solid research.
- DEGIRO: German-Dutch discount broker recommended for execution-only traders and investors.
- TD Ameritrade: A U.S.-based stockbroker recognized for thorough research and a feature-rich desktop trading platform.
- Charles Schwab: US discount broker offering commission-free stock and ETF trade with low fees and great customer service.
9. Do Interactive Brokers have instant deposits?
No, Interactive Brokers doesn’t offer instant deposits. You need to use a bank transfer, and it usually takes 2-3 days.
10. Can I use PayPal to fund Interactive Brokers?
No, you cannot use PayPal to fund your Interactive Brokers account.
11. Can I use a debit card with Interactive Brokers?
Yes, you can use a debit card to fund your Interactive Brokers account, but this option is only available to US customers who open an Integrated Investment Management account.
12. Are Interactive Brokers good for long-term investment?
Yes, Interactive Brokers is good for long-term investment. It offers low trading fees, a wide range of products including stocks, ETFs, options, and futures, and provides access to global markets. The platform may seem complex for beginners, but the powerful tools it offers make it worthwhile for long-term investors.
13. What is the rating of Interactive Brokers?
The overall rating of interactive brokers is 4.5/5 and based on the criteria are:
| Aspect | Rating |
|---|---|
| Web trading platform | 4.3/5 |
| Account opening | 3.1/5 |
| Markets and products | 5/5 |
| Deposit and withdrawal | 3.3/5 |
| Mobile trading platform | 4.3/5 |
| Education | 5/5 |
| Customer service | 3.4/5 |
| Platforms & tools | 5/5 |
| Research | 5/5 |
14. Is IBKR stock a good buy?s
Yes, IBKR stock appears to be a good buy based on factors like strong earnings and revenue growth, lack of debt, positive analyst outlook, and technological advancements.
15. Can you day trade on Interactive Brokers?
Yes, Interactive Brokers (IBKR) is a great choice for day trading because it provides a wide variety of things you can trade, and it charges low fees and interest rates compared to other brokers. This makes it an excellent option for people who want to engage in day trading activities.
16. How do I withdraw money from Interactive Brokers?
Log in to your account, and click on “transfer & pay” and then “Transfer Funds” and “Make a withdrawal. Choose the type of withdrawal you want, such as:
- Wire
- ACH (for US accounts)
- Check (for US currency and US mailing address only)
- Transfer to wise balance
- Canadian EFT transfer (for Canadian accounts)
- SEPA (Single Euro Payments Area)
- Low-value payments for specific currencies.
Follow the on-screen instructions to complete the withdrawal process, providing necessary details like withdrawal amount and destination.
