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About Interactive Brokers
Interactive Brokers is a highly trusted multi-asset broker with an extensive offering of tradeable global markets. It delivers competitive fees and high-quality research and education, as well as a modern, institutional-grade trading platform suite. Professional traders will enjoy its advanced trading tools and sophisticated order type configurations – though these features may be overwhelming for beginners, and MetaTrader is not available as an alternative platform option.
Interactive Brokers (IBKR) is highly recommended for those seeking all-round great services at low fees. It has an unrivaled selection of all asset types from exchanges across the globe. Its trading platforms offer great functionality and advanced research. However, the size and complexity of IBKR’s services is also behind its drawbacks. Account opening is long and tedious, platforms may be too complex for novice traders, and customer service can be busy. For a more streamlined experience, check out the IBKR GlobalTrader app to trade stocks, options and crypto for similar fees. In all, IBKR is the highest-rated broker at BrookerChooser.
Interactive Brokers at a glance
| Fee Per Share | $0.005 |
| Platform | TWS |
| Trading Fees | Low |
| Founded Year | 1977 |
| Publicly Traded (Listed) | Yes |
| Bank | Yes |
| Mobile App | No proprietary app currently available |
| Customer Support | Phone, email and live chat support 24/7. In person at local branches. Support also available via text, Facebook Messenger, Twitter direct message, Apple Business Chat and Amazon Alexa. |
| Minimum per order | $1 |
| Official Website | Click Here To Visit |
How To Create Account At Interactive Brokers
Interactive Brokers offers many different account types with no minimum deposit requirements, which means US citizens of all financial backgrounds can sign up.
- Go to the Interactive Brokers website at www.interactivebrokers.com.
- Click on the “Open Account” button located in the top right-hand corner of the website.
- Choose the type of account you want to open. Interactive Brokers offers several account types, including individual, joint, retirement, and trust accounts. Select the type of account that best fits your needs.
- Enter your personal information, including your name, address, and Social Security number or Tax ID number. You will also need to provide your employment status and annual income.
- Answer a series of questions about your investment experience and risk tolerance.
- Choose the type of trading platform you want to use. Interactive Brokers offers several trading platforms, including their own proprietary platform and third-party platforms such as MetaTrader.
- Review and agree to the terms and conditions of the account agreement.
- Fund your account by transferring funds from your bank account or by depositing a check.
- Once your account has been funded, you can start trading. Interactive Brokers offers a wide range of investment products, including stocks, options, futures, and currencies.
Note that Interactive Brokers has a minimum deposit requirement for account opening. The amount varies depending on the type of account you are opening and your country of residence, so be sure to check the current requirements on their website.
Commissions and Fees
Interactive Brokers does appear to offer competitive pricing; however, it is difficult to make a precise comparison as Interactive Brokers does not publish its average spreads for forex. That said, we were able to obtain a sample of one week’s worth of average spread data for the EUR/USD, which ended up coming to a total of 0.6 pips after commission.
Minimum charge per trade: Given the minimum commission of $2 per side, trading anything less than 100,000 units of currency becomes proportionally more expensive. The minimum charge by Interactive Brokers for forex is similar to Saxo Bank’s $3 per-order fee charged when trading less than 50,000 units of currency.
Commissions and execution method: For forex traders, Interactive Brokers aggregates prices from 17 of the world’s largest interbank forex dealers. Instead of marking up spreads, Interactive Brokers charges a commission per trade, which ranges from $16 to $40 per million round turn ($8 to $20 per side). This pricing is comparable to brokers that offer commission-based forex trading with agency execution.
Trading Platforms
IBKR Mobile
The IBKR Mobile app is the most feature-laden of IBKR’s mobile app suite. From lightning-quick streaming data to full-featured order entry and portfolio management, IBKR Mobile includes almost everything professionals require to trade on the go.
Global Trader:
Beginners and investors in foreign stock will find a very friendly experience at the new-in-2022 Global Trader app, which allows fractional stock trades, options trading and convenient access to foreign shares. The layout is convenient and the design is friendly. We prefer Global Trader to many of the other beginner-focused brokers. They think Interactive Brokers has a winner here and hope this app will be fleshed out with additional features over time.
High Grade Features Which Offer By Interactive Brokers
Low trading Fees
Interactive Brokers is known for offering some of the lowest trading fees in the industry. The company charges a flat fee of $0.65 per options contract and $0.005 per share for stocks and ETFs.
Wide range of investment products
Interactive Brokers offers access to a wide range of investment products, including stocks, options, futures, bonds, mutual funds, and more.
Advanced trading tools
The platform provides advanced trading tools for experienced traders, such as algorithmic trading, conditional orders, and more.
Global market access:
Interactive Brokers provides access to markets around the world, including exchanges in North America, Europe, and Asia.
Margin lending
The company offers margin lending to eligible clients, allowing them to borrow money to invest in securities.
Robust research and education
Interactive Brokers offers a range of research and education tools, including market commentary, analyst ratings, and webinars, to help investors make informed decisions.
Mobile trading
Interactive Brokers offers a mobile trading app for iOS and Android devices, allowing investors to trade on the go.
Customer service and support
Primarily an online brokerage, Interactive Brokers doesn’t have a large branch footprint like many of the largest retail discount broker firms. That said, it offers support 24 hours a day by phone, chat, or a secure message through its account center.
Interactive Brokers Pros & Cons
Pros:
- Competitive pricing: Interactive Brokers offers some of the lowest commissions and margin rates in the industry, making it an attractive option for active traders.
- Wide range of tradable assets: The broker offers access to a broad range of markets, including stocks, options, futures, forex, bonds, and more.
- Advanced trading tools: Interactive Brokers offers a suite of advanced trading tools and features, including algo trading, risk management tools, and market scanners.
- User-friendly platforms: The broker offers a variety of platforms, including the web-based Trader Workstation (TWS) and mobile apps, which are user-friendly and customizable.
- International presence: Interactive Brokers operates in numerous countries around the world, making it an accessible option for traders in many locations.
Cons:
- Steep learning curve: Due to its advanced trading tools and complex platforms, Interactive Brokers may not be the best option for novice traders who are just starting out.
- High account minimums: The broker requires a minimum deposit of $1,000 to open an account, which may be a barrier to entry for some traders.
- Inactivity fees: Interactive Brokers charges an inactivity fee of $10 per month if you do not make any trades or have less than $100,000 in your account.
- Customer service: Some users have reported difficulties in accessing customer support and have cited long wait times and unresponsive representatives as issues.
- Limited research and educational resources: While the broker offers some research and educational resources, these are not as extensive as those provided by some other brokers.
Interactive Brokers Conclusion
Interactive Brokers is a well-established online broker that offers a wide range of trading instruments and advanced trading tools. The broker’s competitive pricing, customizable platforms, and global presence make it an attractive option for active traders. However, Interactive Brokers may not be the best option for beginners due to its steep learning curve and high account minimums. Additionally, some users have reported issues with customer service and limited research and educational resources. It is important to carefully consider your individual trading needs and preferences before choosing a broker and to conduct thorough research to ensure that a broker is the right fit for you.
Frequently asked questions
Is Interactive Brokers a safe broker?
Interactive Brokers is considered a safe broker as it is regulated by several authorities worldwide and has a strong reputation in the industry. The broker also provides various security measures to protect clients’ funds and personal information.
What is the minimum deposit to open an account with Interactive Brokers?
The minimum deposit to open an account with Interactive Brokers is $1,000. However, this amount may vary depending on the account type and location.
What markets can I trade with Interactive Brokers?
Interactive Brokers offers access to a wide range of markets, including stocks, options, futures, forex, bonds, and more. The availability of markets may vary depending on your location and account type.
What trading platforms does Interactive Brokers offer?
Interactive Brokers offers several trading platforms, including the web-based Trader Workstation (TWS), mobile apps, and the IBKR API. The broker also offers a platform for professional traders called IBKR Pro and a simplified trading platform called IBKR Lite.
What are the fees and commissions for trading with Interactive Brokers?
Interactive Brokers charges commissions and fees based on the product and market you are trading. The broker offers some of the lowest commissions and margin rates in the industry. However, there may be other fees such as inactivity fees, withdrawal fees, and currency conversion fees.
