Are you an active trader looking for an advanced trading platform with a wide range of assets to choose from?
Let me tell you about interactive brokers, an exceptional brokerage service with meager margin rates.
It offers commission-free trades of stocks and also ETFs. You can benefit from Interactive Brokers’ robust trading platforms, advanced execution, and rock-bottom pricing.
|Trading Platform||Interactive Brokers Review|
|Year of establishment||1993|
|Rating out of 5||3.3 on Play Store|
|Trading platform||Web, Desktop, and Mobile platforms|
What Are The Interactive Brokers?
Interactive Brokers (aka “IBKR”) is an American multinational brokerage firm.
It has a streamlined approach that emphasizes low costs, broad market access, and also superior trade execution.
The company trades in stocks, futures, options, ETFs, forex, funds, and bonds in 135 markets across 33 countries.
The company was founded in 1993. It is the leading subsidiary of the brokerage group Interactive Brokers Group, Inc., the most prominent digital trading platform in the U.S.
Interactive brokers provide the finest brokerage services for professional investors. It also provides active traders willing to benefit from a robust set of tools and global reach to a wide assets.
In late 2020, the company introduced its Impact Dashboard. It aids you in evaluating assets with a socially responsible investing (SRI) lens.
Interactive brokers accept traders from more than 220 nations and territories. With workplaces in Canada, U.S., U.K., Hong Kong, Australia, Japan, Russia, Hungary, China, India, Estonia, Singapore, and Ireland.
How To Use Interactive Brokers?
It’s easy to open an Account; get started in the following manner below:
- Create a username
- Write the password
- Confirm your email address
- Complete the application
Information required for account opening:
- Personal and also contact information.
- Information on trading experience and objectives
- Income and tax residency information.
- Bank account information.
Once your account is open, you have access to 4 trading platforms:
The web application works as a one-stop destination such as to place trades, check quotes, see account balances, funding, reporting, and more.
The flagship desktop platform is designed for active investors and also for traders who trade various products and require flexibility and power.
The mobile app provides easy trading and monitoring of the IBKR account from your iOS or Android device.
From their easy-to-use Excel API to their industrial strength FIX API, IBKR offers something for every experience level.
Why Choose Interactive Brokers?
Wide Range of Offerings
Interactive Brokers offers a wide range of financial assets (including stocks, forex, futures, options, funds, and bonds) on 135 markets across 33 countries.
Superior Order Execution
Interactive Brokers’ “SmartRouting” software offers clients the best price execution in the market.
It explores the best firm stock, option, and combination prices accessible when you place an order and look for immediately executing your order.
Excellent Trading Tools
IBKR’s Trader Workstation (TWS) platform is potent enough for skilled traders but also intended for retail traders and investors. There are tons of technical and social market analysis tools.
Low Margin Interest Rates
IBKR’s margin interest rates are considerably lower than the industry average. The firm uses a blended rate based on tiers.
Fees Of Interactive Brokers
Interactive Brokers’ pricing structure is complicated.
- The fixed per-share pricing of $0.005 is traded with a $1.00 minimum and a maximum of 1% of the trade value. Inclusive of all exchange and regulatory charges.
- Tiered per-share pricing is built on monthly order activity. If the trade volume is 300,000 shares per month, the price is $0.0035 per share. If the trade volume is more than 300,000 shares per month, the fee is $0.0005 per share, with a minimum of $0.35 per trade—exclusive of all exchange and regulatory fees.
- The IBKR Lite program offers free trades for the ETFs and listed equities (via the Client Portal and IBKR Mobile). Hence trades are directed to generate payment for order flow.
- Trading a single contract costs $1.00. Trading 50 contracts cost $32.50.
- No fees to transfer or close an account.
- Users can send one wire per month for free; each subsequent wire sent will be charged $10.00. There’s no fee to receive a wire.
- Users can send one paper check per month for free; also each subsequent check sent will be charged $4.00.
- Foreign exchange trading costs between 0.20 and 0.08 basis points, depending on the trade volume.
Features Of Interactive Brokers
IBKR Mobile features include:
- Accessibility to real-time quotes and also charts
- Email notification of Real-time Alerts
- BookTrader Trading Tool
- Real-time Market Scanners
- Support for trading stocks, forex, futures, and options worldwide
- The facility to route orders using IB’s SmartRouting℠ technology hunts for the best price and also vigorously routes and re-routes your order to achieve ideal execution.
- Quick access to the portfolio, trade reports, and account information
- The facility of Secure login
- Reach to Daily IB Market Briefs
- Free customer support
Types Of Trading Available At Interactive Brokers
Here’s a list of IBKR’s offerings:
- Stocks long and short
- Futures and futures options
- Mutual funds
- Single-leg and also multi-leg options
- Forex (23 currencies and 115 trading pairs)
- Fractional shares
- IPOs, single stock futures, and warrants
- Cryptocurrency (Bitcoin, Litecoin, Ethereum, Bitcoin Cash)
- Cryptocurrency futures, ETFs, and Indices
What makes Interactive Brokers from others?
Here are the features that make Interactive Brokers different from other similar services:
- It offers active trading with a low per-sharing price
- It is an advanced trading platform
- You can do foreign stock trading with quite low margins on Interactive Brokers
- This trading platform has now introduced IBKR lite with no commission rates
- You will get access to 135 markets from your IBKR account
Our experience with Interactive Brokers
Using this application has always been a painful experience. First, setting up this application has been a great task for me.
It took almost two weeks before my first trading money got transferred to my wallet. So, overall, this app has been quite an onerous experience for me, at least.
Interactive Brokers Comparison
Let’s compare Interactive Brokers with similar services.
Interactive Brokers vs. Degiro
Degiro is a discount broker that merged with flatex Degiro bank AG, and now the German financial regulator supervises this trading platform.
At the same time, Interactive Brokers is a US discount broker, and several authorities, including FCA and the SEC, regulate this trading platform.
Degiro has been recommended for investors and traders that are looking for execution-only, but traders looking for broad market access need to use Interactive Brokers.
Interactive Brokers vs. TD Ameritrade
People looking for broader trading market access need to use Interactive Brokers, whereas TD Ameritrade is recommended to those traders who are looking for a well-equipped trading platform where they can do all their research about the trading world. It is more of a beginner traders application.
Read TD Ameritrade
Interactive Brokers vs. Etoro
Etoro is a global trading broker, and UK FCA, Australia’s ASIC-type top-tier authorities, supervise this broker platform.
It has been recommended to those traders who are more interested in social trading.
Whereas Interactive Broker is for those who know to trade and looking for bigger opportunities.
Read Is eToro Safe ?
Interactive Brokers Customer Service
IBKR is working hard to improve its customer service. A couple of years ago, they added a feature of an IBot service supported by an artificial intelligence engine.
IBot answers query asked in plain English. This service is available throughout the trading platforms and also saves you from long waiting hours. It directs customers to FAQs and resources.
Toll-free telephone service is available 24 hours a day, & also six days a week for your assistance.
The callback service allows you to request a call back if you need to hang up.
Online chat and also secure message services are available from the website or within the trading platform.
Interactive Brokers Customer Reviews
Gabe Espinoza gave a review on the play store on December 9, 2021
“I’ve been using this app for a while, and I believe it’s terrific overall. It has some twists, though.
A major thing I’d like to see enhanced is the speed at which options chains load. For some stocks, it takes 20-30 seconds for data loading.
The options scenario simulator is usually sluggish to load. Lastly, I want to choose the routing destination myself for stock trades.
It bothers me that it is only done through IBot when a humble dropdown menu would do.”
Keith Buck gave a review on September 12, 2021
“Works well, loading time is long, sometimes refuses to load at night. Some account management tasks are clumsy in the app, and also I use the website to complete them.”
Interactive Brokers offers a great deal in products, technology, and also tools.
Overall, IBKR is best for professional users and sophisticated, active traders who wish to benefit from a robust set of tools and worldwide access to various assets.
It’s worth noticing that you can trade financial assets from a single, integrated account, with ease.
Do interactive brokers charge any fee for opening and maintaining an account?
There are no fees for opening and for also maintaining an account with interactive brokers.
Can you lie on Interactive Brokers?
It’s your own choice. But if you lie about your risk tolerance or investment experience, you could run into problems afterward.
How long does the Interactive Brokers verification process take?
This process typically takes 2-3 weeks.
Shefali Jain is a Content Editor & Writer at National Planning Cycles.
After completing her graduation in hospitality, Shefali decided to follow her passion and started writing. Shefali has been writing for two years now and contributes to our website as a skilled editor and content writer with strong research skills. Writing product and service reviews, biographies, and book reviews are some of her key areas, among many others in which she specializes.