Interactive Brokers (also known as IBKR) is a well-established and highly reputable online broker, owned and operated by Interactive Brokers Group; a publicly-traded company, listed on the NASDAQ index. IBKR provides access to a wide range of financial instruments including forex (spot currencies), ETFs, options, futures, cryptocurrencies, metals, stocks, fractional shares, bonds, mutual funds, and hedge funds.
Interactive Brokers is an ideal broker for experienced traders seeking exposure through different derivatives. The broker is known for its extensive market access, advanced trading technology, and competitive pricing. However, IBKR low-cost trading is more beneficial to high-frequency traders and those who trade large volumes, due to its tiered pricing structure.
Interactive Brokers also offers two brokerage plans, the IBKR Lite and IBKR Pro. The IBKR Lite plan serves less active traders with a simplified trading experience via its proprietary trading platforms, Client Portal, IBKR Mobile, and Trader Workstation. The IBKR Pro plan, on the other hand, is designed to serve active traders and sophisticated investors with a more advanced trading experience, via a full suite of premier trading technology.
Suitable For – Active traders, professionals, advanced traders, high-volume traders, investors, and institutional clients (including registered investment advisors, prop traders, hedge funds, money managers, family offices, introducing brokers, compliance officers, small businesses, fund administrators, hedge fund managers allocators, and hedge managers educators).
Interactive Brokers Features
| Broker | Interactive Brokers |
|---|---|
| Established | 1978 |
| Head Office | One Pickwick Plaza, Greenwich, CT 06830 USA |
| Regulations | CFTC (United States), IIROC (Canada), FCA (United Kingdom), CSSF (Luxembourg), Central Bank of Ireland (Ireland), Central Bank Hungary (Europe), ASIC (Australia), HKFS (Hong Kong), KLFB (Japan), Mas (Singapore). |
| Publicly Listed | Yes |
| Broker Type | ECN, MM |
| Product Offering | Forex (Spot Currencies), Stocks/ ETFs, Fractional Shares, bonds, mutual funds, hedge funds, options, Futures/ FOPs, cryptocurrencies, and metals. |
| Trading Platforms | Trader Workstation, IBKR Mobile, IBKR APIs |
| Minimum Deposit | $0 |
| Account Currencies | USD, AUD, GBP, CAD, CNH, CZK, DKK, EUR, HKD, HUF, ISL, JPY, KRW, MXN, NZD, NOK, PLN, RUB, SGD, ZAR, SEK, CHF and TRY. |
| Maximum Leverage | 1:200 |
| Pricing Model | Spreads and Commissions |
| Account Payment Options | Bank Wire Transfer, US Automated Clearing House (ACH), Check, Online Bill Payment, BPay, Direct Deposit, Canadian Bill Payment, Canadian Electronic Fund Transfer (ETF), Direct Rollover (Trustee-To-Trustee, Late Rollover, Employee/ Employer SEP Contribution, Recharacterization, Roth IRA conversion). |
| Demo Account | Yes |
Pros of Interactive Brokers
- Strong regulatory framework.
- Over 40+ years of excellent industry experience.
- Listed on the stock exchange, which creates more transparency and trust.
- Large selection of financial instruments including forex (spot currencies), ETFs, options, futures, cryptocurrencies, metals, and more.
- Access to a range of global markets.
- Professional grade proprietary trading platforms, available in web, desktop, and mobile versions.
- A comprehensive range of over 100+ order types, including conditional orders and advanced algorithmic trading options.
- Fast trade execution speeds.
- Secure deposit and withdrawal methods.
- Provides clients with over 23 account base currencies.
- Offers a volume-tiered pricing structure which keeps trading costs low for high-frequency traders and traders who trade large volumes.
- An extensive knowledge base of quality educational materials suitable for all levels of traders, including videos, courses, and webinars.
- Accepts resident from the U.S.
Cons of Interactive Brokers
- Minimum account balance required for certain account types.
- Can be overwhelming for beginners due to its advanced trading platform.
- Its tiered pricing structure is less favorable for low-volume traders.
- The demo account is available only after the regular trading account has been approved and funded.
- Offers limited deposit and withdrawal methods.
- Card and electronic payment options are not available.
- The customer support service can be improved.