Interactive Brokers Review

Interactive Brokers Ratings at a Glance

Advanced Trading Tools: Interactive Brokers offers powerful tools, including customizable charts, advanced order types and algorithmic trading. These features are designed for professional traders who require precision and flexibility in their trades.

Global Market Access: With IBKR, you can trade over 135 markets in 33 countries, all from a single account. This global reach is unmatched by most competitors, allowing investors to diversify their portfolios across various regions and asset classes.

Comprehensive Reporting: The platform provides detailed reports on your trades, performance and portfolio, helping you easily track your investments. Whether you’re managing multiple accounts or just a single portfolio, IBKR’s reporting tools are thorough and easy to customize.

Interactive Brokers is ideal for professional traders, active investors and those with a strong understanding of global markets. While it’s not the most beginner-friendly platform due to its complexity, experienced traders will appreciate the wealth of tools and resources available. The platform is particularly suitable for those who need access to a broad range of asset classes and international markets.

Interactive Brokers offers a competitive and flexible pricing structure designed to meet the needs of different types of traders. The platform provides two main pricing plans: IBKR Lite and IBKR Pro.

• IBKR Lite offers commission-free trading on U.S. exchange-listed stocks and ETFs, making it ideal for U.S. residents who trade primarily in these markets. However, for trades in non-exchange-listed U.S. stocks (like pink sheets and OTCBB), ETFs, warrants and other non-qualifying products, IBKR Lite users are subject to the Fixed Pricing model.
• IBKR Pro: Offers tiered and fixed pricing options depending on your trading volume and preferences.
• Tiered Pricing: For stocks and ETFs, the rate ranges from $0.0005 to $0.0035 per share, with lower rates for higher trading volumes. Options contracts cost between $0.15 and $0.65 per contract, while futures contracts cost between $0.25 and $0.85 per contract.
• Fixed Pricing: Stocks and ETFs are priced at $0.005 per share, with a flat rate of $0.65 per options contract and $0.85 per futures contract. This plan is ideal for traders who prefer predictable costs regardless of trade size.
• Spot Currencies: Trades cost between 0.08 to 0.20 basis points multiplied by the trade value per order, with spreads as narrow as 1/10 PIP.
• Bonds: Priced at 10 basis points multiplied by the face value per order.
• Mutual Funds: Standard mutual fund trades cost 3% of the trade value, up to a maximum of $14.95 per transaction. There are no fees for No Transaction Fee Funds.

This flexible pricing structure allows traders to choose the plan that best fits their trading style and volume, ensuring that they can minimize costs and maximize returns. Whether you're an active trader looking for tiered pricing benefits or a casual investor interested in commission-free trading, IBKR has a plan tailored to your needs.

Interactive Brokers offers access to a wide range of assets, including:

• Stocks and ETFs: Over 135 markets worldwide.
• Options and Futures: Global access with advanced tools.
• Forex: 24 currencies available for trading.
• Bonds: Access to 1.4 million bonds globally.
• Cryptocurrencies: Trade popular cryptos via futures contracts.

This extensive range makes IBKR a versatile platform for diversified portfolios.

The Interactive Brokers mobile app is solid, offering features like:

• Advanced Order Types: Place complex trades directly from your mobile device.
• Real-Time Data: Access to real-time quotes and charts.
• Secure Login: Two-factor authentication ensures your account’s security.

Due to its advanced features, the app can be overwhelming for new users and mastering them might take some time.

Interactive Brokers is powerful but complex, with a steep learning curve that might be challenging for beginners. The platform’s interface is packed with features, which can be both a blessing and a curse. While experienced traders will appreciate the depth and breadth of tools available, newcomers might find navigating difficult. Sign-up is relatively straightforward, but mastering the platform will take time and effort.

Interactive Brokers offers several unique features, including:

• Paper Trading: Practice your trading strategies without risking real money.
• Lending Program: Earn extra income by lending your fully paid stocks.
• Fractional Shares: Invest in high-priced stocks without needing large sums of money.

These benefits make IBKR appealing to many traders, especially those looking to maximize their investments.

Interactive Brokers excels in research and education, providing:

• IBKR Campus: A comprehensive educational platform with webinars, tutorials and articles.
• Research Tools: Access to market research, analysis and news from over 100 providers.
• Market Data: Real-time market data and financial news available directly on the platform.

These resources are invaluable for novice and seasoned traders looking to enhance their knowledge and strategies.

Interactive Brokers offers multiple customer support channels, including:

• Live Chat: Available 24/5 for immediate assistance.
• Phone Support: Accessible during market hours for urgent queries.
• Email Support: Typically responds within 24 hours.

While IBKR’s support is reliable, the platform's complexity means that more specialized assistance may be required, which can lead to longer wait times.

Interactive Brokers takes security seriously, with measures including:

• Two-Factor Authentication: Adds an extra layer of protection to your account.
• SSL Encryption: Ensures secure data transmission.
• SIPC Insurance: Protects client assets up to $500,000.

With these security protocols, users can feel confident that their information and assets are well-protected.

Interactive Brokers is known for its transparency, providing clear information about its fees, services and regulatory status. While there have been issues, such as occasional platform outages, IBKR has consistently addressed these concerns and maintained open communication with its users.

Interactive Brokers is strongly rated for its extensive features, low costs and global market access. While it may not be the easiest platform for beginners, its advanced tools and comprehensive asset offerings make it an excellent choice for professional and active traders.

Interactive Brokers vs. Competitors

Let’s take a closer look at how Interactive Brokers compares to some of its main competitors in the industry. Here’s how IBKR stacks up against Charles Schwab, TradeStation, NinjaTrader, Fidelity and Tastyworks.

Interactive Brokers vs. Charles Schwab

Interactive Brokers offers lower fees for active traders and more extensive access to international markets than Charles Schwab, making it ideal for global investors. Schwab's platform is more beginner-friendly, with a streamlined interface and customer support, catering well to those who prefer a more intuitive experience.

Interactive Brokers vs. TradeStation

Professional traders favor both Interactive Brokers and TradeStation, but IBKR stands out with its lower margin rates and broader global market access. TradeStation excels in offering advanced trading tools and is particularly strong in catering to active traders focusing on U.S. markets.

Interactive Brokers vs. NinjaTrader

Interactive Brokers offers a more comprehensive range of assets and global market access, making it suitable for traders seeking diversification. NinjaTrader, on the other hand, specializes in futures and forex trading and focuses on advanced charting and automation tools, making it ideal for day traders and scalpers.

Interactive Brokers vs. Fidelity

Fidelity offers a more user-friendly experience with extensive research tools and no account minimums, making it great for long-term investors and beginners. In contrast, Interactive Brokers is better suited for active traders and those seeking lower trading costs, especially for international trading.

Interactive Brokers vs. Tastytrade

Interactive Brokers offers a wider range of asset classes and international market access than Tastytrade, which primarily focuses on options trading. Tastytrade provides a more specialized and user-friendly platform for options traders, with lower commissions for options trades and a community-driven approach.

Frequently Asked Questions