Interactive Brokers is not your average broker at all. It was established in 1977 and throughout the years, it was known as one of the leading brokers when it comes to commission schedules, international trading support and margin rates. It caters to clients from over 26 countries with more than 120 market centres.
Interactive Brokers is ideally for seasoned or expert traders as they offer them the lowest commissions schedule available. One thing for sure is that Interactive brokers are with you along your way to success, they don’t go against you at all. It also has the ability to trade all over the world in as much as it has the ability to trade currency futures and spots.
Interactive Brokers offer their clients the Trader Workstation, a comprehensive yet not-so-user-friendly trading platform, not unless used by someone who is knowledgeable enough about trading. This proprietary platform offers IB which is known as a true ECN. Despite the complication it has, the wide variety of order types make it a great platform.
Generally speaking, it is one is the best and most powerful trading platform which expert traders can use. It is a desktop platform with fast and standard trading features. It is equipped with real-time monitoring alerts, watch list, customizable account dash Board, and options strategy lab. It also has an advanced charting paper trading, mutual fund indicator and volatility lab. Furthermore, Interactive’s proprietary platform offers clients a customizable event notification which is the first ever platform which offers such a feature.
In order to cater to the needs of their clients wherever they are, Interactive brokers launched a mobile trading app that they can use. The mobile trading app allows traders to trade in just a click of their fingers in as much as they can monitor their account and check real-time news and events. Basically, the mobile app has the same feature as the web-based platform.
Interactive Brokers offer the account types for their clients. Each of these accounts is based on the needs and goals of the client. The following are the account types:
- Individual Account – Requires $10,000 minimum initial deposit
- Joint account – Requires a minimum initial deposit of $10,000
- Individual Retirement Account (IRA) – Requires a minimum initial deposit of $5,000
For clients whose age is 25 or lower, a minimum initial deposit of $3,000 is offered by Interactive Brokers for an IRA account.
A demo account is provided by Interactive Brokers in order for their clients to practice and have a first-hand trading experience without risking their assets. In here, they can practice trading as if they are live trading as the demo account offer the same features as the web trader by Interactive Brokers.
A minimum initial deposit of $5,000 is needed in order for someone to open a trading account with Interactive Brokers. The amount is way steeper compared to other brokers but it is definitely reasonable considering the features and benefits that come with it.
Interactive Brokers only offer two payment options for their clients. If a client wishes to deposit or withdraw, he can do the transaction via ACH and Wire Transfer.
A leverage which can reach up to 1:78 is offered to Interactive Brokers. This is a lower maximum leverage compared to what other brokers offer. A lower leverage means lower income and lower risk.
Spread and Commission
Interactive Brokers offer their clients a spread which starts at 0.2 pips with a commission of $2 per turn. Such spread and commission keep small traders away as this will require for them to pay $5 for every turn completed.
Regulation and License
Interactive Traders is under the regulation of FCA in the UK, IIROC in Canada, SFC in Hong Kong, and FSA in Japan. With the number of reputable regulatory bodies which Interactive Brokers have to abide, it is ensured that the assets and information of clients are safe and secured.
In order to cater to the needs of their clients, Interactive Brokers has agents all over the world. They have multilingual agents who can be one call away in case clients need assistance. Their website is also available in different languages to cater to their clients who speak different languages as well.
Benefits of Trading with Interactive Brokers
Trading with Interactive Brokers comes with a lot of benefits which include a safe and secured trading due to the regulatory bodies, lowest margin rates and trade commissions, and an endless order types for professionals.
- Publicly traded
- Regulated by major jurisdictions
- A wide range of global markets and asset classes
- High minimum deposit
- Limited payment option
- Complicated desktop platform
Interactive Brokers is undoubtedly one of the best online Forex brokers before up until now. It has proven its capacity all thought out the years especially for advanced traders. The downfall of it is the high minimum deposit which makes other clients think again why her they are going to open an account or not. All in all, this is worth the try if you wish to experience what it feels like to trade with a broker who has been in the industry for a very long time.