Founded by Thomas Peterffy, Interactive Brokers has grown to become a huge securities firm with over $12.2 billion in equity capital. As of July 2023, Interactive Brokers has over 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, and more from a single unified platform. Clients can fund and trade accounts in up to 26 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 for five consecutive years.
- 2023 Investopedia Awards: Rated 4.6 out of 5 stars overall, “Best Broker for International Trading” and “Best Online Broker for Advanced Traders”
- 2023 ForexBrokers.com Awards: #1 Offering of Investments: #1 Professional Trading, #1 Institutional Clients, #1 ESG Offerings, 5 out of 5 stars Overall, 5 out of 5 stars Commissions & Fees, 5 out of 5 stars Offering of Investments, 5 out of 5 stars Platforms and Tools, 5 out of 5 stars Research, 5 out of 5 stars for mobile trading apps, Trust Score of 99/100. Interactive Brokers finished Best in Class for its Offering of Investments, Platforms & Tools, Mobile Trading Apps, Education, Research, Commissions & Fees, Crypto Trading, Professional trading, Trust Score and Overall.
- 2023 StockBrokers.com Awards: Rated 5 out of 5 stars for offering of investments, 5 out of 5 stars for research, 5 out of 5 stars for mobile trading apps, #1 for professional tools, #1 for professional futures trading, #1 for offering of investments, #1 for international trading, and IB is cited for its “industry-leading commissions, including the lowest margin rates across all balance tiers.”
- 2021 Preqin Service Provider Awards: Rated “Top Hedge Fund Prime Broker” and “Top Hedge Fund Custodian”
Interactive Brokers Pros and Cons
Pros
- Wide Range Of Assets From Which To Choose
- Strong Tools And Research
- 19,000+ No-Transaction-Fee Mutual Funds
- Lowest Margin Loan Rates
- Highly-Regulated, Financial strength
- Available In 200+ Countries and Territories
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 gives 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.
- IBKR Podcasts. A new podcast series featuring discussions on topics that impact markets and trading globally.
Regulated By
- Interactive Brokers LLC Is a member NYSE, FINRA, SPIC and regulated by the Securities Exchange Commission and the Commodity Futures Trading Commission
- Interactive Brokers Canada Inc Is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and Member – Canadian Investor Protection Fund.
- Interactive Brokers (U.K.) Limited Is authorised and regulated by the Financial Conduct Authority.
- Interactive Brokers Ireland Limited Is regulated by the Central Bank of Ireland, and registered with the Companies Registration Office and is a member of the Irish Investor Compensation Scheme (ICS).
- Interactive Brokers Central Europe Zrt. Is licensed and regulated by the Central Bank of Hungary
- Interactive Brokers Australia Pty. Ltd. Is licensed and regulated by the Australian Securities and Investments Commission and is a participant of ASX, ASX 24 and Cboe Australia.
- Interactive Brokers Hong Kong Limited Is regulated by the Hong Kong Securities and Futures Commission, and is a member of the SEHK and the HKFE.
- Interactive Brokers India Pvt. Ltd. Is a trading member of NSE, BSE, and depository participant of NSDL.
- Interactive Brokers Securities Japan Inc. Is regulated by Kanto Local Finance Bureau (Registration No.187) and is a member of Japan Securities Dealers Association and The Commodity Futures Association of Japan.
- Interactive Brokers Singapore Pte. Ltd. Is licensed and regulated by the Monetary Authority of Singapore (Licence No. CMS100917).
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 50% lower than the rest of the industry.
- Interest Rates. You can earn up to USD 4.58% on instantly available cash balances.
- 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 and options 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 and options worldwideIt’s fast to get started, you can even trade fractional shares or swap stocks you own for stocks you would like with a single tap.
- IBKR GlobalAnalyst. This new tool 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 with 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 stocks and 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.
- Cash Management Solution. An all-in-one cash management service lets you manage all of your finances in one account
- Overnight Trading Hours. Overnight trading Hours available for over 10,000 US Stocks and ETFs enabling you to react immediately to market-moving news and conveniently trade at almost any time.
- Options Wizard: A simple tool that can help you learn about options and how to trade them
- 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 48,000 funds including over 19,000 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.
- Discover Tool. Discover ideas and new markets for potential investment ideas. This tool supports content from Trading Central and lets you select the third-party data they want to view and features display tabs with data such as Market Buzz, Technical Insight, Technical Views and Featured Ideas.
- Recurring Investments. Easily schedule investments by simply choosing a start date and pick from flexible schedule choices, including daily, weekly, monthly, and more. This service uses fractional shares trading so you can invest even small amounts of cash.
- Fractional Shares Trading. Buy and sell fractional shares of eligible US and European stocks and ETFs, providing a simple way to build a balanced portfolio and invest in shares regardless of the share price.
- Fundamentals Explorer. With over 30,000 companies covered worldwide and over 300 data points per company, Fundamentals Explorer offers you comprehensive worldwide fundamentals data and lets you quickly view the most important information about a company and its competitors.
- 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: https://www.interactivebrokers.com/en/general/financial-strength.php
Interactive Brokers Overview
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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 and territories -
Assets Offered
Stocks, ETFs, Options, Futures, Currencies, Bonds, Mutual Funds, Cryptocurrency. Access to Cryptocurrency trading is available to eligible clients 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
|
|
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 |
Up to 26 Currencies available to fund accounts and trade, 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
Access to Cryptocurrency trading is available to eligible clients through Paxos Trust Company |
Commission Free on US Exchange Listed Stocks/ ETFs Fixed Or Tiered Pricing on, Options, Futures, Fixed Pricing on Mutual Funds, and Tiered Pricing On Currencies and Bonds
Access to Cryptocurrency trading is available to eligible clients through Paxos Trust Company |
|
Decimal Pricing |
Up to 7 |
Up to 7 |
|
Trading Instruments |
Stocks, ETFs, Options, Futures, Currencies, Bonds, Mutual Funds,
|
Stocks, ETFs, Options, Futures, Currencies, Bonds, Mutual Funds, |
|
Min. Lot Size Per Trade |
N/A |
N/A |
|
Spreads |
No Added Spreads |
No Added Spreads |
|
Demo Account |
Yes |
|
|
Swap/Rollover Free |
No |
No |
|
Copy Trading Support |
No |
No |
Trading Platforms
- IBKR GlobalTrader
- Client Portal
- IBKR Mobile
- Trader Worksation
- IBKR APIs
- IBKR EventTrader
- IMPACT
Trading and Investment Tools
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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 Orders
Yes -
Limit Order
Yes -
24hr Trading
Yes -
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
BM+ 0.5%-BM+2.5% for IBKR Lite 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 US 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 5.580 – 6.580%. You can find additional information at https://interactivebrokers.com/en/trading/lp-margin.php
Interactive Brokers pays interest directly to client brokerage accounts eliminating the need for sweeps accounts, funds or programs and enabling cash to be instantly available. The market interest paid by Interactive Brokers is calculated using the Fed Funds rate as the reference rate for USD minus 0.5%. 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.
More information about interest rates can be found here: https://www.interactivebrokers.com/en/accounts/fees/pricing-interest-rates.php.
Lastly, there are no maintenance or inactivity fees with Interactive Brokers accounts.
Service Details
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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 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: 4.6/5
- NerdWallet: 5/5
- Barron’s: 5/5
- Bankrate: 5/5
- Fool: 4/5
- TrustPilot: 3.8/5
- Forbes: 4.4/5
- Business Insider: 4.6/5
- ForexBrokers: 5/5
- Investor Junkie: 3.8/5
- AskTraders: 4/5
- The College Investor: 4.5/5
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
Contact Info
Website:
Email:
Not Permitted, Use Message Center For Formal Inquiries, or https://www.interactivebrokers.com/en/index.php?f=3869
Telephone:
1 (877) 442-2757
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.