Interactive Brokers Alternatives

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Contributor, Benzinga
January 31, 2024

If you're looking for an alternative to Interactive Brokers, you can find several options. Interactive Brokers is a brokerage platform that offers a wide range of investment options, including stocks, bonds, exchange-traded funds (ETFs) and mutual funds. You might be looking for an alternative because of higher fees, limited trading tools or a need for more educational resources. In this article, Benzinga explores five Interactive Brokers alternatives and their pros and cons to help you make an informed decision.

Quick Look: Best Interactive Brokers Alternatives

  • Best for Traders of All Levels: Moomoo
  • Best for Desktop Trading: E*TRADE
  • Best for Beginners: Robinhood
  • Best for Intermediate Traders and Investors: Webull
  • Best for Stock Research: Fidelity

Best for Traders of All Levels: Moomoo

Moomoo is an intuitive investment and trading platform with easy-to-use and professional tools, data, and insights that equal a pro-level trading experience for all traders, no matter their level of expertise. 

When you open a brokerage account with Moomoo Financial Inc, features will include:

  • Real-time Level 2 stock and options market data for funded accounts
  • Advanced technical indicators 
  • Unique charting tools
  • Advanced options orders
  • Full extended trading hours from 4 AM to 8 PM EST 
  • Multi-market quoting
  • Low fees, $0 commission on U.S. Stocks and ETFs plus $0 on equity options contract fees 
  • 5.1% APY in the Cash sweep program and a 3.0% boost for qualified customers

Users can reach out to the Moomoo customer support team by phone during trading hours or via email. FAQs in the Help Center can also answer specific questions.

The site and app also helps users learn with a nice educational offering and a community with more than 20 million users worldwide.

Pros

  • Commission-free trading 
  • A competitive 6.8% margin rate
  • 5.1% APY in the Cash Sweep program for new and qualified customers
  • Free Level 2 data for funded brokerage accounts
  • Advanced charting tools with 100+ indicators, 37+ drawing tools and 20 candle patterns
  • Extended trading hours for all users and 24/7 chat support
  • No minimum deposit to open an account

Cons

  • No fractional stocks 
  • No crypto
  • No support for mutual funds or retirement accounts

Best for Desktop Trading: E*TRADE

E*TRADE is a brokerage platform that offers a wide range of investment options, including stocks, bonds, ETFs and mutual funds. Here are some pros and cons to consider.

Pros

  • No account minimums: E*TRADE has no account minimums, making it an excellent choice for new investors who want to start small.
  • Excellent educational resources: E*TRADE offers extensive educational resources for its users, including webinars, articles and video tutorials.
  • Wide range of investment options: E*TRADE offers a wide range of investment products, including stocks, bonds, ETFs and mutual funds.

Cons

  • Higher fees: E*TRADE has higher fees compared to some other brokers.
  • Limited forex trading: E*TRADE has limited options for trading forex.
  • Limited cryptocurrency trading: E*TRADE has limited options for trading cryptocurrencies.

Best for Beginners: Robinhood

Robinhood is a brokerage platform that offers commission-free trading for stocks, options, ETFs and cryptocurrencies. Here are some pros and cons to consider.

Pros

  • Commission-free trading: Robinhood offers commission-free trading for stocks, options, ETFs and cryptocurrencies, making it an excellent choice for cost-conscious investors.
  • Easy-to-use platform: Robinhood's platform is easy to use.
  • Fractional shares: Robinhood offers fractional shares, allowing users to invest in companies they might not be able to afford otherwise.

Cons

  • Limited investment options: Robinhood has limited investment options compared to some other brokers.
  • Limited research and educational resources: Robinhood's research and educational resources are not as extensive compared to some other brokers.
  • Limited customer service: Robinhood's customer service can be slow to respond and limited in its support.

Best for Intermediate Traders and Investors: Webull

Webull is a brokerage platform that offers commission-free trading for stocks, options and cryptocurrencies. Here are some pros and cons to consider.

Pros

  • Commission-free trading: Webull offers commission-free trading for stocks, options and cryptocurrencies, making it an excellent choice for cost-conscious investors.
  • Advanced trading tools: Webull offers advanced trading tools such as real-time market data, technical indicators and charting tools that can be beneficial for experienced investors.
  • Excellent mobile app: Webull's mobile app is user-friendly and provides users with advanced features like paper trading and customizable alerts.

Cons

  • Limited investment options: Webull has limited investment options compared to some other brokers.
  • Limited research and educational resources: Webull's research and educational resources are not as extensive compared to some other brokers.
  • Limited customer service: Webull's customer service can be slow to respond and limited in its support.

Best for Stock Research: Fidelity

Fidelity is a brokerage platform that offers a wide range of investment options, including stocks, bonds, ETFs and mutual funds. Here are some pros and cons to consider.

Pros

  • No account minimums: Fidelity has no account minimums, making it an excellent choice for new investors who want to start small.
  • Wide range of investment options: Fidelity offers a wide range of investment products, including stocks, bonds, ETFs and mutual funds.
  • Excellent educational resources: Fidelity offers extensive educational resources for its users, including webinars, articles and video tutorials.

Cons

  • Higher fees: Fidelity has higher fees compared to some other brokers.
  • Limited cryptocurrency trading: Fidelity has limited options for trading cryptocurrencies.
  • Limited forex trading: Fidelity has limited options for trading forex.

Final Thoughts on Interactive Brokers

Several Interactive Brokers alternatives are available that offer a wide range of investment options and features. TD Ameritrade, E*TRADE, Robinhood, Webull and Fidelity are brokerage platforms that you may want to consider. Each of these alternatives has its pros and cons, so it's important to do your research and evaluate your needs before choosing a broker. Consider factors such as fees, investment options, educational resources and trading tools before making a decision. With the right research, you can find a broker that meets your investment needs and preferences.