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Interactive Brokers Review 2024: Is It Legit?
Swen Keller
- URL: https://www.interactivebrokers.com/
- KYC: Yes
- Maximum Leverage: 1:30
- Maximum Leverage: 1:500
- Platform App: Desktop, Mobile, Web
- No. of Tradable Symbols: 50,000+
- Available Based Currencies: GBP, USD, AUD, CAD, EUR, ILS, CZK, RUB, SGD, NZD, SEK, HKD, KRW, INR, CNH, DKK, NOK, JPY, PLN, ZAR
- Withdraw Method: Bank transfer
- Payment Method: Wise, Bank transfer SEPA, Wire transfer, Direct ACH transfer, Link your bank account via ACH, Online Bill Pay, Bank transfer Faster Payments/CHAPS/BACS, Electronic Funds Transfer, Online BPAY
- Trading Fees: Commission fee of USD 0.0035 to USD 0.05
- Headquarter: Greenwich Connecticut, United States
- Licenses: FINRA, SIPC, IIROC, CSSF, CBI, MNB, ASIC, SFC, MAS
- Year Founded: 1977
- Promotion: N/A
Interactive Brokers Review: Our Take
Based on our team’s first-hand experience with Interactive Brokers we can confirm that the Forex broker is highly suited for casual and advanced traders looking for a trading platform with low transaction fees and many supported trading platforms.
Interactive Brokers has a staggering selection of all asset types that numbers over 50,000 and provides adequate tools for advanced and professional traders.
Advanced traders will also enjoy the complex features of the Interactive Brokers desktop app.
Concerning the broker’s cons, Interactive Brokers has a stressful and drawn-out account opening process, which may discourage users. Also, some supported trading platforms like the desktop app of the broker appear intimidating and too complex for beginners.
In addition, getting in touch with customer service can be difficult as the support team is highly understaffed.
Important Risk Warning: Investing in and/or trading CFDs, financial instruments, commodities, and other assets involves a significant level of risk. There is a possibility of losing all the funds you have deposited. Prior to engaging in any such activity, it is essential that you fully understand and acknowledge the associated risks. Please be advised that Skrumble.com does not offer investment or any other form of advice. The information provided in our review should not be construed as financial advice in any way.
An Overview of Interactive Brokers
Interactive Brokers is an American brokerage firm that was founded in 1977. The multinational broker is headquartered in Greenwich, Connecticut, the United States but offers its trading services to users from around the world.
Interactive Brokers Group Inc has branches in Canada, the United Kingdom, Switzerland, China, Hong Kong, India, Japan, Australia, and Singapore.
Interactive Brokers is regulated by the following regulatory bodies: the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, the New York Stock Exchange, the Commodity Futures Trading Commission, the National Futures Association, the Chicago Mercantile Exchange, and other self-regulatory organizations.
The current chairman of Interactive Brokers is Thomas Peterffy and the CEO is Milan Galik.
Users have direct market access to trade options, Forex, bonds, cryptocurrencies, mutual funds, futures, stocks, and ETFs.
Interactive Brokers conducts its broker-dealer business on more than 150 global markets. The trading platform and its affiliates execute an estimated 1.9 million trades daily.
Pros
- Large number of supported assets
- Well regulated
- Long-term industry reputation
- Users can hedge funds using the securities lending dashboard
Cons
- The platform is confusing to navigate
- Poor customer service
Key Features of Interactive Brokers
Client Portal
The Interactive Brokers client portal is an intuitive platform where users can manage their accounts. It acts as a one-stop resource for trading, monitoring account balances, managing account information, checking quotes, and reviewing global market data and news.
The Client Portal has a simplified trading interface that enables you to open a trade ticket, preview, and place orders with just a click of a button.
Also, the Client Portal gives you access to a range of features such as the Portfolio Analyst, a tool for consolidating and analyzing your financial portfolio, and the Fundamentals Explorer for accessing market-moving news and research as well as an expanded events calendar of market activities.
The Client Portal dashboard displays a summary of your portfolio performance, account balances, real-time market activity, and breaking news.
From the dashboard, you can track and analyze your complete portfolio including non-IBKR accounts like checking, annuity, brokerage, savings, incentive plans, and credit cards. Here, you can also generate account statements and other reports, optimize taxes, and access supplemental tax information and reporting.
You can further access over 100 technical indicators and 70 drawing tools that you can use to create comprehensive charts.
Aside from managing your accounts, the client portal also allows to easily fund your account with 27 currencies, transfer funds, and manage direct deposits and bill payments. It has a Market Scanner that scans over 150 markets in 33 countries and allows you to create watchlists and track all supported assets.
Client Portal features accounting tools including Flex Queries can be used to create an analysis of your account, evaluate returns, perform cost analysis, and generate reports to measure risk.
Paper Trading Account
The Interactive Brokers paper trading account is a simulated trading account available to approved and funded accounts.
The paper trading account lets you test your trading strategies using the full range of IBKR trading facilities in a simulated environment mirroring real market conditions. Trades made in the paper trading account are simulated and not executed on any exchange but the price of executions are determined by real market sizes and prices. The paper trading account has a username and password that’s different from the live trading account.
All new accounts on Interactive Brokers automatically have paper trading accounts created for them. You can use the paper trading account activity in IBKR’s application Program Interface or Trader Workstation (TWS). Traders who are not yet registered clients on IBKR can also open a free trial account.
While the paper trading account has a lot in common with the Live account, there are still some differences.
The paper trading account does not support some order types like RFQ, Passive Relative, Auction, Market with Protection (for Futures directed to CME), and Pegged to Market.
It also offers limited combo trading and does not support Penny trading for US options.
Mutual Funds trading is not supported in the paper trading account.
Tradable Assets on Interactive Brokers
Interactive Brokers has access to over 150 markets and support the trading of several products including Options, Futures, FOPs, Warrants, SSFs, Structured Products, Currencies, Indices, Metals, Fixed Income, Mutual Funds, Stocks, and ETFs.
Stocks
Interactive Brokers supports over 17,500 global stock CFDs.
Available stocks on Interactive Brokers include AAC TECHNOLOGIES H-UNSPON AD, AFTERMATH SILVER Ltd, AIA GROUP LTD-SP ADR, ASTRA AGRO LESTARI-UNSP ADR AAGRY, ARMADA MERCANTILE Ltd, ADAPTIVE AD SYSTEMS INC, AMRO BANK NV-UNSP ADR, ADVANTAGE ENERGY Ltd, ASCEND WELLNESS Holdings-A, AUBURN BANCORP Inc, ABB LTD-SPON ADR, ABRASILVER RESOURCE Corp, AMBASE Corp, ATHENA BITCOIN Global, AMERICAN BILTRITE Inc, AIRBOSS OF AMERICA Corp, AB&T FINANCIAL Corp, AMERICANN Inc, ANNABIDIOL Corp, ACCOR SA-SPONSORED ADR, AIR Canada, ACORN ENERGY INC, AGRICULTURAL BANK-UNSPON ADR, ALLIANCE CREATIVE GROUP Inc, ARCH BIOPARTNERS Inc, ARCELIK AS-UNSPONSORED, ATCO LTD -CLASS I, DSV A/S, Coloplast-B, ASSA ABLOY AB-B, KUAISHOU Technology, CSPC PHARMACEUTICAL GROUP LT, CHINA RESOURCES LAND Ltd, CHINA RESOURCES MIXC LIFESTY, AIA GROUP Ltd, ZHOU HEI YA INTERNATIONAL HO, POSTAL SAVINGS BANK OF CHI-H, GEELY AUTOMOBILE HOLDINGS LTD, INNOVENT BIOLOGICS Inc, etc.
Exchange Traded Funds (ETFs)
Interactive Brokers users can access over 150 ETFs on the platform.
Available ETFs include: ARK Innovation ETF, Innovator U.S. Equity Ultra Buffer ETF, Xtrackers FTSE Developed ex US Multifactor ETF, Return Stacked US Stocks & Managed Futures ETF, ProShares UltraShort FTSE China 50, VanEck Short Muni ETF, High Yield ETF, iShares Global Consumer Discretionary ETF, iShares Russell 3000 ETF, Direxion Daily Technology Bear 3X Shares, Franklin Systematic Style Premia ETF, AltShares Event-Driven ETF, Brookstone Active ETF, Vanguard Intermediate-Term Corporate Bond ETF, Xtrackers MSCI Germany Hedged Equity ETF, iShares USD Green Bond ETF, ATAC US Rotation ETF, iShares iBonds Dec 2026 Term Treasury ETF, IndexIQ ETF Trust IQ U.S. Small Cap ETF, Cboe Vest Fund of Nasdaq-100 Buffer ETFs, ProShares Ultra Russell2000 UWM USD CVSE Calvert US Select Equity ETF, Vanguard Small-Cap Growth ETF, etc.
Forex
Interactive Brokers supports over 24 currencies and more than 100 trading pairs.
Available FX trading pairs include:
AUD.CAD, AUD.CHF, AUD.CNH, AUD.HKD, AUD.JPY, AUD.NZD, AUD.SGD, AUD.USD , AUD.USD, AUD.ZAR, BGN.USD, CAD.CHF, CAD.CNH, CAD.JPY, CHF.CNH, CHF.CZK, CHF.DKK, CHF.HUF, CHF.JPY, CHF.NOK, CHF.PLN, CHF.SEK, CHF.TRY, CHF.ZAR, CNH.HKD, CNH.JPY, DKK.JPY, DKK.NOK, DKK.SEK, EUR.AED, EUR.AUD, EUR.CAD, EUR.CHF, EUR.CNH, EUR.CZK, EUR.DKK, EUR.GBP, EUR.HKD, EUR.HUF, EUR.ILS, EUR.JPY, EUR.MXN, GBP.AUD, GBP.CAD, GBP.CHF, GBP.CNH, GBP.CZK, GBP.DKK, GBP.HKD, GBP.HUF, GBP.JPY, GBP.MXN, KRW.AUD, KRW.CAD, KRW.CHF KRW.EUR, KRW.GBP, KRW.HKD, KRW.JPY, KRW.USD, MXN.JPY, USD.AED, USD.BGN, USD.CAD, USD.CHF, USD.CNH, USD.CZK, USD.DKK, USD.HKD, USD.HUF, USD.ILS, etc.
Metals
Interactive Brokers supports the trading of just 3 metals: London Silver XAGUSD, London Gold XAUUSD, and US Gold USGOLD.
Cryptocurrencies
Interactive Brokers users can trade selected cryptocurrencies on Interactive Brokers courtesy of Paxos Trust company or Zero Hash LLC.
Supported cryptocurrencies are Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
Interactive Brokers Review: Fees and Spread
Interactive Brokers charge commissions on Shares with no spreads, ticket charges, trading platform fees, or account minimums. The commissions differ per region, monthly volume, and account type:
For instance, for a monthly volume less than or equal to 300,000 US dollars Interactive Brokers charges a commission fee of USD 0.0035 on Interactive Brokers Pro Tiered account. But on the Interactive Brokers Pro and Lite account, the trading platform charges 0.005 USD and zero commissions respectively irrespective of the monthly volume invested.
Interactive Brokers also charges other fees like exchange and regulatory fees. It also charges clearing fees, and pass-through fees on the Interactive Brokers Pro Tiered account. However, the regulatory fee only applies to the Pro and Lite accounts.
This fee includes an SEC fee of 0.000008 USD value of aggregate sales and a FINRA trading activity fee of 0.00145 USD quantity sold.
The clearing fees are NSCC DTC fees of USD 0.00020 per share and pass-through fees of 0.000175 USD and 0.00056 USD for NYSC and FINRA respectively.
The broker charges commissions for cryptocurrency by trade value. 0.12% to 0.18% of trade value*, with a minimum per order of USD 1.75 but no more than 1% of trade value.
Paxos Trust charges a commission on every trade of 18 bps of trade value, subject to a USD 1.75 minimum commission on any executed order. IBKR receives a portion of that commission as a referral fee from Paxos. Above the monthly volume tiers shown above (or for any order charged a commission exceeding 1% of trade value), customers will also receive rebates from IBKR of a portion of the referral fee, such that the customer’s effective commission rate will be the lesser of the commission shown above or 1% of the trade value.
IBKR charges the following commissions for Spot currencies. The fees vary based on tiers. The tiers are based on the combined Monthly Trade Value of Spot Currency trades. Commissions for currency trades are calculated off the trade value and then converted and charged to the base currency of the account.
Monthly Trade Value (USD) Tiered
≤ 1,000,000,000 0.20 basis point Trade Value
1,000,000,000.01 – 2,000,000,000 0.15 basis point Trade Value
2,000,000,000.01 – 5,000,000,000 0.10 basis point Trade Value
> 5,000,000,000 0.08 basis point Trade Value
Payment Methods
Interactive Brokers supports different payment methods based on the region you’re opening an account from.
Supported payment methods for several countries include the following: Transfer from Wise Balance, Bank transfer SEPA, Wire transfer, Direct ACH transfer, Link your bank account via ACH, Online Bill Pay, Bank transfer Faster Payments/CHAPS/BACS, Electronic Funds Transfer, Online BPAY, Automated Transfer Online Notification, Direct Rollover Notification.
Beyond depositing funds to fund your Interactive Brokers trading account you can also transfer positions from other brokers as well as rollover or transfer a retirement account if you are a user from the United States or Canada.
In Canada, for example, this is done through the Automated Transfer Online Notification method that enables the transfer of client portal accounts between Canadian financial institutions.
The Automated Transfer Online Notification system supports the transfer of Canadian stocks, Canadian cash, US stocks, US Options, US cash, US warrants, and Canadian Options.
You can use your Interactive Brokers login to initiate a transfer request from your broker or bank account.
Expert traders can also use the Free of Payment Transfer of Global Securities method to transfer assets from financial institutions that are based largely outside the United States.
Interactive Brokers will coordinate with your European, Middle Eastern, Canadian, or Asia Pacific financial institution to transfer structured products, Fixed Income, Global Equities, and Options on a free-of-payment basis.
However, users will have to instruct their brokers separately for them to match their settlement instructions.
Interactive Brokers Review: Security
Our team’s hands-on experience with Interactive Brokers has shown that it is a secure broker, regulated in several countries, and has several security measures in place to ensure the security of user’s funds.
Interactive Brokers has been rated by Barron’s as a Top Online Broker for 13 Consecutive Years.
Interactive Brokers was the first broker-dealer approved by FINRA to calculate its client reserve obligation (under Rule 15c3-3) daily, as opposed to the industry standard of performing this calculation on a weekly or monthly basis. Also unlike most brokers, IBKR applies real-time risk margin requirements to client accounts.
The Interactive Brokers platform also segregates cash daily to cover securities owed to clients.
Clients’ funds on IBKR are protected by the Securities Investor Protection Corporation (“SIPC”) for a maximum coverage of $500,000.
Supported Countries
Interactive Brokers is available to users in 33 countries. Supported countries include:
Albania, Algeria, Argentina, Australia, Austria, Azerbaijan, Bahamas Barbados Belgium Belize, Benin, Botswana, Brazil, Cameroon, Canada, Croatia, Ecuador, Egypt, Eritrea, Ethiopia, France, Georgia, Germany, Ghana, Hungary, Israel, Italy, Jamaica, Japan, Lebanon, Lesotho, Luxembourg, Mauritius, Mayotte, Mexico, Micronesia, Federated States of Monaco, Niger, Philippines Qatar, Republic of Korea (South Korea), Saudi Arabia, Senegal, Serbia, Seychelles, Uganda, Ukraine, United Arab Emirates, United Kingdom, Zambia, etc.
Licenses Held by Interactive Brokers
- Interactive Brokers LLC is a member of NYSE and regulated by FINRA and SIPC.
- Interactive Brokers Canada Inc. is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and a member of the Canadian Investor Protection Fund.
- Interactive Brokers (U.K.) Limited is authorized by the Financial Conduct Authority.
- Interactive Brokers Luxembourg SARL is regulated by the Commission de Surveillance du Secteur Financier (CSSF) and a member of The Luxembourg investor compensation scheme (Système d’indemnisation des investisseurs, SIIL).
- Interactive Brokers Ireland Limited is a member of the Irish Investor Compensation Scheme (ICS) and is regulated by the Central Bank of Ireland (CBI).
- Interactive Brokers Central Europe Zrt. is licensed and regulated by the Central Bank of Hungary (Magyar Nemzeti Bank)
- Interactive Brokers Australia Pty. Ltd. is licensed and regulated by the Australian Securities and Investments Commission and is a member of the Australian Financial Complaints Authority
- 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 Australia Pty. Ltd. is licensed and regulated by the Monetary Authority of Singapore (Licence No. CMS100917).
Opening an Interactive Broker Account
Opening an Interactive Brokers account is quite stressful and complicated when compared to other similar Forex brokers. That said, to open an account go to the Interactive Brokers website https://www.interactivebrokers.com.
Next, tap on the open account button.
On the page that opens you’ll see options to choose the type of account you want to open such as individual trader or institutional account.
Institutional accounts are organizations such as proprietary trading groups or hedge funds.
Next, you need to choose your account type which is either Interactive Brokers Lite or Interactive Brokers Pro.
If you are a retail investor the Interactive Brokers Lite plan is best suited for you.
Tap on the Start Application button.
You need to enter your email address, choose a username, and create a password, as well as select your country of residence.
Note that the password you created cannot have your username in it.
Once you’re done tap on the Create Account button.
Go to your registered email address and tap on the verify email button and the message sent from Interactive Brokers to verify your email.
Next, you will need to log into your client portal to finish up the application using your just-created username.
Once you log in to the client portal you can finish your application by undergoing KYC regulatory requirements where Interactive Brokers will request you to input your financial data and employment status
After this, you will need to verify your identity by uploading valid identity documents such as your International Passport, driver’s license, or National ID card.
You will then need to go through the terms and conditions of Interactive Brokers and if you agree check the box to proceed.
Note that the verification process isn’t immediate and the Interactive Brokers team may request additional documents if needed.
That’s all! Once the Interactive Brokers team goes over your application they will decide whether it is successful or not based on your data entered.
Different Types of Accounts on Interactive Brokers
Interactive Brokers offers 2 primary account types: the Interactive Brokers Lite and Interactive Brokers Pro.
The Interactive Brokers Lite trading account is commission-free on US exchange-listed stocks and Electronic Traded Funds. For other stocks, Options, Futures, and Electronic Traded Funds the interactive Brokers Lite plan uses a fixed pricing model.
The account supports all available trading technology on Interactive Brokers including the Client Portal, Interactive Brokers mobile app, Trader Workstation, paper trading, and much more.
However, it does not support the Interactive Brokers APIs.
The Interactive Brokers Lite is meant for retail investors including financial advisors that trade on behalf of their retail clients.
Interactive Brokers Pro is an account type for professional and experienced traders.
It offers fixed or tiered pricing for Options Futures, Currencies, Bonds, Mutual Funds, Stocks, and ETFs.
Just like the Interactive Brokers Lite plan the minimum balance is zero and it has a lower interest paid on instantly available cash balances.
Trading Experience
Our hands-on experience with this broker revealed that it offers a trading experience that is best for experienced traders. Navigating the platform is confusing for beginners and even intermediate users.
The platform also does not offer popular trading platforms like MetaTrader or TradingView rather all supported trading platforms are proprietary. This may be an issue for traders who want familiar trading platforms.
That said, advanced traders will find the trading platform useful as it offers advanced charts technical indicators, and professional training tools.
Different Platforms Used to Trade
Interactive Brokers offers a large selection of proprietary trading platforms.
It does not support popular third-party trading platforms like MetaTrader 4 or 5 or cTrader.
Here are a couple of trading platforms supported:
Interactive Brokers Trader Workstation
This is Interactive Brokers flagship desktop platform built for active traders and advanced traders who trade multiple products and need power and flexibility.
Interactive Brokers clients can trade Stocks, Options, Mutual Funds, Futures, Currencies, Bonds, and Funds on more than 150 markets globally from the Trader Workstation.
Unlike other trading platforms offered by Interactive Brokers the Trader Workstation isn’t for beginners as it has a complex and confusing interface.
Interactive Brokers Desktop Trading Platform
This is Interactive Brokers newest desktop trading platform and it is targeted at clients that require a streamlined interface. It is easier to use than the Trader Workstation and is best for beginners and intermediate traders.
Interactive Brokers Mobile
This trading up from Interactive Brokers is targeted at intermediate and advanced traders that require the power to trade stocks, Options, Futures, currencies, bonds, and more across over 150 markets on the go. It features advanced order types and trading tools.
Interactive Brokers Global Trader
This trading platform from Interactive Brokers is targeted at beginners and intermediate traders as it offers a streamlined experience to trade Electronic Traded Funds, Options, cryptocurrency, and stocks.
It allows users to start investing with as little as $1 and trade in fractions. You can also open demo trading accounts in seconds using the app.
Interactive Brokers Client Portal
The client portal is targeted at beginners, intermediate users, and advanced traders.
It allows you to access all the platform’s features via the web.
Using this trading platform there is no need for downloads and you can manage your account using a login.
Customer Service
Interactive Brokers offers customer support via phone, email, the Block Desk, and the Chat Room.
The chat room is open 24 hours from Monday to Friday.
Phone support is also available 24 hours via regional Client Services.
All password, account login, and security device issues are resolved via phone only.
That said, information on the Interactive Brokers website shows that the quickest way to find answers to common questions is by checking the Knowledge Base.
Customer Satisfaction
Drawing from our in-depth analysis of this broker, we noticed that it is best for advanced traders.
Beginners may find the platform and available information overwhelming.
That said, the customer support is not satisfactory as the support team appears to be understaffed.
Does Interactive Brokers Offer Education?
Yes, Interactive Brokers offers various education programs such as Traders Academy which features free online courses, and the Learn and Earn program targeted at beginners.
That said, the Learn and Earn program is only offered to individuals.
Is Interactive Brokers Right for You?
Interactive Brokers is right for advanced traders and experienced users looking for a professional platform with expert trading tools.
Final Thoughts
Interactive Brokers offers a large selection of trading platforms and tradable instruments. That said, the broker is complex to navigate and targets primarily advanced users.
It also has a confusing fee structure that isn’t clear to most users.
Interested in how this broker stacks up against others? Dive into our detailed Saxo Bank Review for more insights.
FAQ
Most frequent questions and answers
Yes, the broker has been on the scene since 1977 and is fully regulated in many regions.
No, IBKR is best for advanced traders.
Yes, the broker charges commissions and regulatory fees.
The minimum deposit is $0.
We always try to provide the most accurate information available, and make sure our team follow through.
If you want to know more about our Crypto Exchanges Review Methodology follow the link below
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