Interactive Brokers Review 2024

Quick Links

• Our Review Method

• What is Interactive Brokers

• Interactive Brokers Pros and Cons

• Awards

• Is Interactive Brokers Safe or a Scam?

• Margin Trading

• Accounts

• Products

• Commission

• Trading Hours

• Deposits and Withdrawals

• Trading Platform

• Customer Support

• Education

• Conclusion

Our Review Method ▲

In crafting this comprehensive review, our team utilized a robust methodology, meticulously examining and comparing Interactive Brokers against a field of 1000 brokers. This in-depth analysis covered a wide range of metrics, including fees, spreads, regulatory compliance, platform features, customer service, and much more, to ensure a reliable and unbiased assessment.

What is Interactive Brokers ▲

Interactive Brokers stands as a premier trading broker globally, renowned for its sophisticated and cutting-edge trading technology. Since its inception in 1977 by Thomas Peterffy, the firm has evolved significantly, now offering its brokerage and dealer services across more than 120 market destinations worldwide. Interactive Brokers, also known as IB, is celebrated for its competitive, client-focused offerings, characterized by transparent policies, low commissions, and superior price executions, all supported by the highest level of trading technology. The company’s headquarters are located in Greenwich, Connecticut, with additional offices spanning the globe.

Interactive Brokers Pros and Cons ▲

Pros

• Offers one of the most technologically advanced trading platforms in the industry

• Provides access to a wide array of trading instruments, including stocks, futures, and forex

• Known for competitive commissions and low spreads

Cons

• The platform's advanced features may be overwhelming for beginners

• Higher deposit requirements for certain accounts, making it less accessible for casual traders

Awards ▲

Over the years, Interactive Brokers has achieved a remarkable track record of success, underscored by its execution of over 800,000 trades daily and its role as a trusted partner for countless clients and global companies. This excellence has not gone unnoticed, with the broker receiving numerous awards and recognitions, highlighting its significant impact and esteemed position within the trading industry.

Is Interactive Brokers Safe or a Scam? ▲

Interactive Brokers is far from being a scam; it is a highly regulated broker, ensuring a secure trading environment through stringent compliance with international regulatory standards. The company’s extensive global presence is matched by its adherence to the highest safety measures, offering traders peace of mind.

Is IB legit?

Interactive Brokers is a legitimate entity, operating under a plethora of trademarks and regulated by top-tier authorities worldwide. With licenses from the SEC, FINRA, NYSE, FCA, ASIC, IIROC, among others, IB demonstrates its commitment to maintaining the highest standards of regulatory compliance, thereby ensuring its reliability and the safety of its client's investments.

Is Interactive Brokers available in the UK?

Yes, Interactive Brokers is authorized and regulated by the FCA in the UK, allowing it to offer its services and products to clients in the region. However, it is advisable for potential clients to verify the specific offerings and conditions applicable to their jurisdiction before registration.

How are you protected?

Adherence to regulatory guidelines ensures that Interactive Brokers operates with the utmost integrity in all aspects of its business, from fund management to trading execution. Clients can thus trade with confidence, knowing their investments are safeguarded by robust protective measures and the long-standing reputation of Interactive Brokers as a reliable financial service provider.

Margin Trading ▲

Interactive Brokers offers margin rates that are consistent across the board, but it's important to note that in certain jurisdictions, local regulators impose different or higher margin requirements. When this is the case, the margin rates dictated by local regulators will take precedence. Additionally, the leverage available to traders varies by the financial instrument and the trader's country of residence due to regulatory limitations on high-risk leverage trading. To assist traders in navigating these variables, Interactive Brokers provides an online tool for checking applicable margins, ensuring traders can optimize their trading conditions. The leverage options at Interactive Brokers vary according to the instrument and the trader's region, including 1:5 on Cryptocurrency CFDs in Europe, a maximum of 1:30 for Forex in Australia and Europe, and up to 1:40 for US Forex traders. International and professional traders may access leverage as high as 1:500.

Accounts ▲

Interactive Brokers caters to a diverse range of client needs with its broad selection of account types, including Individual, Joint, Trust, IRA, and UGMA/UTMA Accounts. Beyond just offering a variety of account types, Interactive Brokers integrates investment management features, allowing for a comprehensive financial management experience that encompasses borrowing, earning, spending, and investing globally. The platform offers both IBKR Lite and IBKR Pro trading conditions, designed to suit the needs of both experienced traders and those seeking commission-free trading opportunities, which ranks among the best online trading experiences available.

Products ▲

Interactive Brokers stands out for its extensive range of trading products, enabling traders to engage with a wide array of markets. These include Stocks, Options (including Futures Options), Futures, Forex, CFDs, Warrants, Combinations, Bonds, Mutual Funds, Structured Products, Physical Metals, and Inter-Commodity Spreads. While certain jurisdictions may impose restrictions affecting available offerings, Interactive Brokers consistently provides a broad market range, including real asset trading and excelling in Futures and Indices trading. This extensive market range has earned Interactive Brokers a top score of 5.0 out of 5.

Commission ▲

Interactive Brokers' fee model is highly competitive, with commissions for trades varying by product. The fee structure is comprehensive, encompassing commissions, funding fees, inactivity fees, platform fees, and more, all of which contribute to Interactive Brokers being recognized for its low and competitive fees. In comparison to over 1000 other brokers, Interactive Brokers' fees score an impressive 4.5 out of 5. The broker offers both Fixed and Tiered commission structures, allowing traders to choose between a fixed rate including all regulatory fees or a volume-based tiered rate that can offer rebates.

Pros

• Competitive margin rates

• Wide variety of account types

• Extensive range of trading products

• Competitive fee structure

Cons

• Complexity of the fees system may be confusing for some traders

Trading Hours ▲

Interactive Brokers follows standard market hours but also offers extended trading hours, providing traders with the flexibility to trade beyond the traditional market opening and closing times. This feature is particularly beneficial for traders who wish to react to market news outside of regular trading hours or those in different time zones seeking to trade on major markets. With its global presence and commitment to transparency, Interactive Brokers ensures traders have access to substantial liquidity and competitive pricing at all times.

Deposits and Withdrawals ▲

Deposits and withdrawals are crucial factors to consider when choosing a forex broker. Interactive Brokers (IB) accepts a wide variety of payment methods, including bank wire transfers, ACH transfers, checks, and online bill payments, among others. IB also offers a unique feature in the form of the Interactive Brokers Debit Mastercard, which allows users to directly spend and borrow against their brokerage account. We rate IB's funding methods as excellent, with a score of 5.0 out of 5. The minimum deposit requirement varies by account type, with individual accounts typically requiring a $2,000 deposit, while the Friends and Family Advisor account only requires $200. This is considerably lower than the industry average, making IB accessible to a wider range of traders. Withdrawals are straightforward, with one free withdrawal allowed per month. Subsequent withdrawals within the same month may incur fees, depending on the method used.

Pros

• Wide range of funding methods

• One free withdrawal per month

Cons

• Fees for additional withdrawals within the same month

Trading Platform ▲

Interactive Brokers offers its own highly regarded trading platform, the IBKR Trading Platform, designed with professional traders in mind. The platform is known for its powerful capabilities and flexibility, providing access to over 120 markets worldwide. Desktop TWS, IB's flagship platform, has won numerous awards for its advanced features and tools. The IB WebTrader and IBKR Mobile app extend the platform's reach, allowing traders to access their accounts and trade from virtually anywhere. Although the lack of the widely-used MetaTrader suite is noted as a drawback, IB's platforms are still rated highly with a score of 4.5 out of 5.

Pros

• Access to over 120 markets worldwide

• Award-winning desktop platform

Cons

• Lack of MetaTrader platform

Customer Support ▲

Interactive Brokers offers comprehensive customer support, with services tailored for both individual traders and institutions. Support options include phone, live chat, and a variety of online resources. Our testing of IB's customer support yields a high satisfaction rate, earning a score of 4.5 out of 5. The professionalism and availability of IB's support team are notable, providing traders with the assistance they need to navigate the platform and markets effectively.

Pros

• Multiple support options

• High level of customer satisfaction

Cons

• None significant identified

Education ▲

Interactive Brokers provides an extensive range of educational materials and resources through its Traders Academy. The broker offers courses on trading tools, investment products, and risk analysis, along with webinars, videos, and insights from traders. The quality and breadth of IB's educational offerings are exceptional, earning a perfect score of 5.0 out of 5. This makes IB an excellent choice for traders seeking to enhance their knowledge and skills.

Pros

• Comprehensive educational resources

• Collaborates with international trading education providers

Cons

• None significant identified

Conclusion ▲

In conclusion, Interactive Brokers stands out for its competitive commission rates, advanced trading technology, and comprehensive educational resources. The broker's global regulation across numerous financial centers and its commitment to technical development make it a strong choice for a wide range of traders. Whether you're a beginner or a professional, Interactive Brokers offers a powerful platform, a variety of trading tools, and excellent research capabilities to meet your trading needs. Our extensive review, based on research from over 1000 brokers, leads us to recommend Interactive Brokers for traders interested in direct market access, futures, real stock, and currency trading, among other strategies. With its high scores across the board, Interactive Brokers is well-suited to traders seeking a technically advanced and reliable trading partner.