Interactive Brokers review

The range of brokers on the market is extensive, and it makes choosing the ideal one time-consuming and often confusing. Careful research is key, along with identifying trading goals and preferences. 

Interactive Brokers is one of the most popular brokers around. Founded in 1978 in the US, it is one of the most popular brokers on the market, and it’s famous for its reliability. These days, there are offices worldwide, including Europe, the UK, Japan, Canada, Hong Kong, Australia, and India. 

Interactive Brokers is famous for its large range of financial markets and low trading costs. This broker has access to over 135 markets across 33 countries. Additionally, there are many tradable instruments available, making it an ideal choice for portfolio diversification.  

In this Interactive Brokers review, I will outline the main features, and the pros and cons. In the end, it will be easy to make an informed choice about this broker.

Table of Contents

• TL;DR: Key Takeaways
• Criteria Breakdown
• Interactive Brokers: A Closer Look
• What Interactive Brokers is Best Known For
• Features That Set Interactive Brokers Apart
• Pros of Using Interactive Brokers
• Cons to Consider
• Criteria Evaluation
• Community Reviews and Expert Recommendations
• Pricing: What You Need to Know
• Top Alternatives to Interactive Brokers
• Frequently Asked Questions
• Final Thoughts

TL;DR: Key Takeaways

• Interactive Brokers is a robust platform best suited for experienced traders and investors.
• Offers access to various global markets and financial instruments.
• Competitive pricing structure, especially for high-volume traders.
• Advanced trading tools and research capabilities.
• Steep learning curve may be challenging for beginners.
• Strong regulatory oversight ensures safety and security. 

Criteria Breakdown

To complete a comprehensive review of Interactive Brokers, I put together a set of criteria. This included regulation, platforms, assets, fees, customer support, educational resources, account types, and user reviews. I then rated each area out of five to give a well-rounded overview. 

Interactive Brokers: A Closer Look

What Interactive Brokers is Best Known For

Interactive Brokers is a reliable name on the market, and it’s best known for catering to serious traders in particular. Not only does it have access to a considerable number of markets, but it also offers a large range of advanced trading tools. Advanced and experienced traders will get the most out of these tools, however they don’t completely negate beginners. 

Additionally, Interactive Brokers has low margin rates, which is another attractive feature for high volume traders. 

Features That Set Interactive Brokers Apart

Interactive Brokers doesn’t lack features, and it’s important to assess each one carefully before making a decision. The Trader Workstation (TWS) platform is this broker’s standout feature. It is full of advanced analytic tools to help build strong trading strategies. It may be overwhelming for beginners, but for intermediate to advanced traders, it’s a strong option. 

The fact that this broker also has an app is ideal for on-the-go trading. This ensures a potentially profitable trade is never missed. The app is also very easy to use, with almost the same functionality of the desktop version. 

Another standout feature of Interactive Brokers is its numerous research tools. This includes real-time news feeds built into the platform, educational resources, and company financials. It is also possible to use fractional shares trading, which allows traders to acquire a small part of high-priced stocks. This is ideal for portfolio diversification with low funds. 

Pros of Using Interactive Brokers

Every broker has its advantages and disadvantages, and there is no completely perfect choice. To ensure this Interactive Brokers review is fair and transparent, let’s first look at the pros of using this broker. 

Unparalleled Market Access

The first major advantage of using Interactive Brokers is its global market access. It is possible to trade in more than 135 markets over 33 countries with a large range of tradable instruments. This is an ideal situation for traders who want to spread their investments and diversify their portfolios to manage risk. 

Within this is a wide range of tradable assets. This includes stocks, futures, bonds, options, ETFs, and cryptocurrencies. 

Competitive Pricing

Interactive Brokers has a competitively priced trading environment, which is beneficial for active traders in particular. The IBKR Lite account offers commission-free trading on US stocks and ETFs. The IBKR Pro account allows traders to choose between fixed-rate or tiered pricing. High volume traders will benefit from the tiered pricing option in particular. 

As far as leverage is concerned, this depends on jurisdiction, and varies accordingly. Australian or EU traders can access leverage of up to 30:1 on forex pairs. However, Singapore-based traders can access only 20:1. Minimum deposits also vary by account type. For that reason, it’s important to carefully assess each account and choose the best fit. 

Advanced Trading Tools

Another major advantage of choosing Interactive Brokers is its range of advanced trading tools. Again, this suits advanced traders in particular, with charting and algorithmic trading capabilities to name just two. 

However, beginner traders may find the range of tools confusing and overwhelming. While it is possible to learn over time, most users agree that these tools are best suited for more experienced traders. 

Excellent Trading Platforms

As part of my review of Interactive brokers, I looked at the trading platforms in-depth and it’s clear that this broker has an excellent range for different needs.   

Interactive Brokers does not give access to MetaTrader 4 & 5, however, it does have a range of its own proprietary platforms. While MetaTrader users may find this is a downside, these proprietary platforms are excellent quality and have many features. 

The IBKR Mobile platform is the broker’s mobile app that allows on-the-go trading. Within this, it’s possible to manage an account, execute trades, and look at market data in real-time. The IBKR GlobalTrader platform is a good option for trading international assets, such as stocks, options, and futures. This also gives access to more than 100 markets across 24 countries. 

I mentioned the Trader Workstation platform earlier and this is the primary platform for this broker. It contains many advanced tools, including real-time data, customizable charts, and an easy-to-use interface. 

Quality Regulation & Protection

The fact that Interactive Brokers has been around since 1978 gives a lot of peace in terms of its reliability. However, some quality entities, including top-tier choices also regulate this broker. This includes the FCA in the UK, SEC in the USA, IIROC in Canada, ASIC in Australia, and MAS in Singapore, along with other regulatory bodies. 

Tough regulation means this broker must follow robust guidelines and ensure client security. All this gives extra peace of mind. Within this, Interactive Brokers has segregated accounts, so client funds are kept separate from operating funds. It also has coverage under the Securities Investor Protection Corporation, which provides insurance in case of a broker-dealer failure. There is also negative balance protection for some clients. 

A Range of Educational Resources

Interactive Brokers has the IBKR Campus, which offers a range of resources to improve trading skills and strategies. These cover beginners to professional traders. So, although this broker is aimed more toward advanced traders, it still has some benefits for new traders.  

There are regular free webinars, a comprehensive blog and FAQ section, a trader’s academy, and many other useful tools.

Cons to Consider

No broker is without its downsides. To conduct a well-rounded Interactive Brokers review, let’s now look at the disadvantages. 

Steep Learning Curve

While Interactive Brokers doesn’t negate beginner traders, it can be quite overwhelming. The range of tools are advanced and these require careful learning before making adequate use of them. The platform isn’t that easy to use in general for anyone who hasn’t traded before, so beginners may find that other brokers suit them better. 

Customer Service Could Be Better

While Interactive Brokers does have a comprehensive customer support service, there are some brokers that excel in this area more. Many users say response times can be quite slow, which can be damaging to trading efforts in the event of a problem. 

It’s possible to contact customer support via email, telephone, live chat, and social media, so there is a range of options available. Additionally, support is available 24/5, which is industry-standard, and this can vary by location. To improve customer support, changing these hours to 24/7 would be beneficial.  

Customer support is available in English, Spanish, French, Russian, Chinese, Italian, Japanese, and German.

Criteria Evaluation

Regulation and Safety: 5/5

Trading Platforms: 4/5

Asset Range: 5/5

Fees and Commissions: 4/5

Research and Education: 4/5

Community Reviews and Expert Recommendations

Overall, Interactive Brokers receives positive feedback from the trading community. Many users rate its range of global markets and tradable assets in particular. Additionally, the broker’s longevity in the mark gives peace of mind, along with its robust regulatory status. However, some users mention that customer support times can sometimes be slower than they would like. 

“Interactive Brokers is one of those brokers you go to if you want a stable, trusted broker instead of those flashy new apps. If you are planning on investing for the long-term, or you have a lot of money, I definitely think you are better off with them. My main issue is of course the old and outdated UI, which I definitely agree is an issue. I however think it’s “reassuringly outdated”. I’d much rather have a serious and a bit outdated interface than one of those flashy ones with few options and fancy sprinkle animations when you buy something.” – Richard Dubniczky via Trustpilot 

“IBKR competitively provides an excellent broker device. I have kept money with them for over ten years. They offer intuitive service. I would suggest using the web browser on a desktop on complex matters. The application is terrific for quick review. No complaints have ever surfaced with me.” – Joe Zao, DDIV via Trustpilot 

“I’ve been using Interactive Brokers (IBKR) for over a year now, and I can confidently say it’s one of the best brokerage platforms out there for traders. The range of tools and features IBKR offers is incredible, from advanced charting to customizable order types and access to global markets. One of the things I appreciate most is their low commissions and transparent pricing model, which is perfect for active traders. The IBKR platform (both desktop and mobile) is highly customizable and allows for detailed analysis.” – Finn McCarthy via Trustpilot 

Industry experts recommend Interactive Brokers for advanced traders in particular, and praise their range of trading platforms and tools. They also highlight this broker’s longevity in the market and its reliability.

Pricing: What You Need to Know

Interactive Brokers offers a competitive pricing structure with no inactivity fees. It has two main pricing structures: IBKR Lite account and IBKR Pro. 

The IBKR Lite account is commission-free for US stocks and ETFs. It is a good choice for less active investors who don’t want to spend too much on trading fees. The IBKR Pro account is for advanced and active traders. This account has either a fixed-rate of tiered pricing structure depending on various factors. The tiered structure in particular is ideal for high volume traders as it leads to larger savings. 

However, it’s important to remember that there may be other fees charged depending on trading types and specific markets. 

Top Alternatives to Interactive Brokers

From this review of Interactive Brokers, it’s clear that this is a quality broker with a range of features. It is a good choice for advanced and high volume traders in particular. However, there are some good alternatives for those who prefer different features or traders with less experience. 

IC Markets

IC Markets is a well-established broker that was founded in 2007. It has a good reputation for both beginner and advanced traders, with a range of features for all ability levels. This broker has a large range of tradable instruments and platforms to choose from. Read more in our IC Markets review. 

Forex.com US

US traders in particular will appreciate FOREX.com’s trading services. This is one of the few brokers available to US clients, and it has strong regulatory oversight and a good reputation. This broker is particularly known for its educational resources for beginners and advanced traders alike. Our FOREX.com review provides more details.  

Pepperstone

Pepperstone is another quality broker that deserves a notable mention. This broker is well-regulated and offers many trading platforms with various features. It offers over 1200 tradable instruments and competitive spreads. Additionally, many educational resources are available. Our Pepperstone review provides more information. 

Oanda US

My final notable mention is Oanda US. This broker was founded in 1996 and offers several trading platforms and instruments. It’s important to note that cryptocurrency trading isn’t available in all regions, yet it offers plenty of other trading opportunities. The range of educational resources is extensive and aimed toward all trading abilities. Read our Oanda review for details. 

Frequently Asked Questions

Is Interactive Brokers good for beginners?

Interactive Brokers is a quality option with a range of features but it’s mostly aimed toward intermediate to advanced traders. There are several trading platforms available but they may be overwhelming to new users. However, that doesn’t mean newbies can’t learn. It will simply take time and effort to develop trading skills. 

How safe is Interactive Brokers?

Having been around since 1978, Interactive Brokers is a solid choice for reliability and safety. Several top-tier entities, including SEC, ASIC, and FCA regulate this broker. However, it’s important to remember that all trading has some amount of risk and even the best broker can’t guarantee zero losses. 

What are the fees for Interactive Brokers?

Interactive Brokers has competitive prices and they vary by account type chosen. The IBKR Lite account is commission free for US stocks and ETFs. However, the IBKR Pro account has fees that vary based on asset type and trading volume. For accurate, up-to-date pricing, visit the Interactive Brokers website. 

Can I trade cryptocurrency on Interactive Brokers?

It’s possible to trade cryptocurrency with Interactive Brokers, and this practice began in 2021. The range of digital currencies available includes Bitcoin, Litecoin, Ethereum, and Bitcoin Cash. However, this type of trading is only available in certain US states through the IBKR Pro account. 

What types of accounts do Interactive Brokers offer?

There are several account types available with Interactive Brokers and it’s important to assess each one carefully to find the best fit. The Individual account is a good choice for solo traders, and there are Joint accounts also available. Additionally, this broker offers Trust accounts, IRAs for retirement planning, and Corporate accounts for business owners.

Final Thoughts

This Interactive Brokers review has covered a lot of ground and it’s clear that there are many pros and cons to consider. No broker is a perfect choice for everyone and it’s vital to carefully assess individual trading goals and preferences before making a decision. 

Overall, Interactive Brokers is best for intermediate to advanced traders. While beginners can use this broker, they may find the platforms complex and overwhelming at first. Many of the features are aimed toward more experienced traders, and the value may be lost on new users at first. However, this broker offers competitive pricing and excellent tools and research capabilities. It is a strong choice and one that creates a lot of peace of mind. 

Ultimately, it’s important to remember that choosing the right broker requires time and effort. Every trader has their own specific requirements, and if Interactive Brokers isn’t the right fit, there are many other alternatives. 

At TopBrokers, we have many comparisons and broker reviews. For instance, our Oanda vs Interactive Brokers comparison is a good place to start. We also compare IC Markets vs Interactive Brokers. 

Finally, we are also committed to helping traders develop their skills and knowledge in the trading arena. Our range of education resources is large, including how to read forex charts for beginners, and how to create and manage a forex trading strategy. 

With careful decision-making and consistent learning, trading is easier, more enjoyable, and generally more profitable.