If you’re searching for an in-depth Interactive Brokers review, you’ve come to the right place. Interactive Brokers (IBKR) is one of the most popular online brokerage platforms, known for its low fees, advanced trading tools, and global market access.
In this detailed review, we’ll cover:
- Interactive Brokers overview
- Pros and cons
- Account types & pricing
- Trading platforms & tools
- Who should use Interactive Brokers?
By the end, you’ll know whether Interactive Brokers is the right choice for your trading needs.
Interactive Brokers Overview
Interactive Brokers (IBKR) is a well-established online brokerage founded in 1978. It caters to both active traders and long-term investors, offering access to stocks, options, futures, forex, bonds, and funds across 150+ global markets.
Key Features of Interactive Brokers
✔ Low trading fees – Competitive commissions and margin rates.
✔ Global market access – Trade in 33 countries and 23 currencies.
✔ Advanced trading tools – Powerful platforms like Trader Workstation (TWS).
✔ Strong regulatory compliance – Regulated by top authorities like the SEC, FINRA, and FCA.
✔ High liquidity & tight spreads – Ideal for day traders and professionals.
Interactive Brokers Pros and Cons
✅ Pros of Interactive Brokers
- Low-Cost Trading
- Stocks & ETFs: As low as $0.005 per share (with volume discounts).
- Options: $0.15 to $0.65 per contract.
- Futures: As low as $0.25 per contract.
- Wide Range of Investments
- Stocks, ETFs, options, futures, forex, bonds, mutual funds, and even cryptocurrency futures.
- Powerful Trading Platforms
- Trader Workstation (TWS): Advanced charting, algorithmic trading, and risk management tools.
- Mobile & Web Platforms: User-friendly for casual investors.
- Global Market Access
- Trade on major exchanges like NYSE, NASDAQ, LSE, HKEX, and more.
- High Interest on Idle Cash
- Up to 4.83% APY on uninvested cash (as of 2024).
❌ Cons of Interactive Brokers
- Complex for Beginners
- The platform can be overwhelming for new traders.
- Inactivity Fees (For Some Accounts)
- $20/month if account balance is below $100,000 (waived if commissions exceed $20).
- No Fractional Shares for All Markets
- Fractional shares only available for US stocks and ETFs.
- Customer Support Can Be Slow
- Some users report delays in live chat and phone support.
Interactive Brokers Account Types & Pricing
1. IBKR Lite vs. IBKR Pro
| Feature | IBKR Lite | IBKR Pro |
|---|---|---|
| Commission (Stocks/ETFs) | $0 | $0.0005 – $0.0035 per share |
| Options Fees | $0.65 per contract | $0.15 – $0.65 per contract |
| Margin Rates | Higher (~6.83%) | Lower (~5.58%) |
| Interest on Cash | Lower | Higher (up to 4.83%) |
| Best For | Casual investors | Active traders & professionals |
Note: IBKR Lite is only available for U.S. residents.
2. Account Minimums
- No minimum for individual accounts (but $100 recommended).
- $10,000 minimum for margin accounts.
3. Other Fees
- Inactivity fee: $20/month (waived if commissions exceed $20).
- Data fees: Market data subscriptions cost extra (~$4.50/month for U.S. stocks).
Interactive Brokers Trading Platforms
1. Trader Workstation (TWS) – Best for Advanced Traders
- Algorithmic trading (Auto-trade with custom strategies).
- Advanced charting (100+ indicators).
- Risk management tools (Stop-loss, trailing stops).
2. IBKR Mobile & Web – Simpler for Casual Investors
- Easy-to-use interface for basic trading.
- Real-time quotes and news.
3. APIs for Automated Trading
- Developers can connect their own trading algorithms.
Is Interactive Brokers Right for You?
👍 Best For:
✔ Active traders (day traders, swing traders).
✔ International investors (access to global markets).
✔ Professionals (hedge funds, advisors).
✔ Cost-conscious investors (low fees & high interest on cash).
👎 Not Ideal For:
✖ Beginners (complex platform).
✖ Fractional share investors (limited availability).
✖ Those needing extensive customer support.
Final Verdict: Is Interactive Brokers Worth It?
Interactive Brokers is one of the best online brokers for serious traders and investors. With low fees, global market access, and powerful tools, it’s a top choice for professionals. However, beginners might find it overwhelming.
Rating: 4.7/5
✔ Strengths: Low costs, advanced tools, global trading.
❌ Weaknesses: Steep learning curve, inactivity fees.
Alternatives:
- Beginners: Charles Schwab, Fidelity.
- Fractional Shares: Robinhood, eToro.
Open an Interactive Brokers Account
Ready to start trading? Sign up for Interactive Brokers here.
