Interactive Brokers offers access to 150 markets for trading a wide range of securities. It also offers automated trade execution, IRAs, and other features. The platform comes with tools for faster trading speed and automation. It serves clients in over 200 countries. If you’re wondering whether you should use this platform, then we’re hoping our Interactive Brokers review below will help you out in deciding. 

Overview of Interactive Brokers 

Interactive Brokers allows you to trade stocks, bonds, futures, options, currencies, funds, and cryptocurrencies. It also provides automated trade execution, commodities, foreign exchange trading, and securities custody.

The Interactive Brokers platform offers tools to carry out portfolio analysis and improve trading speed. Clients can trade with as low as $0 commissions on US-listed stocks and ETFs. Interactive Brokers covers over 150 market centers, 27 currencies, and clients in 200+ countries. It is one of the largest forex brokers that you can sign up for.

IB trading platform is known for its low commissions and fees, reliable trading services, and a wide range of features and research resources that both beginners and advanced investors can take advantage of. However, the platform has so many features that it might take a while for investors to understand how to navigate it.

Tradable Securities on Interactive Brokers 

Interactive Brokers offers an extensive range of assets that its members can trade-in. From stocks and bonds to forex and commodities, there’s something for everyone on this online brokerage app and platform.

The interactive trading platform allows you to trade in stocks, options, and fractional shares. In terms of bonds, it also offers over a million bonds, including US, UK, and international bonds. There are over 26,000 US corporate bonds and thousands of corporate retail bonds from the UK. 

There are also no-load mutual funds with a standard pricing of 3% of the purchase value. If you’re looking to trade in futures, the IB trading platform allows you to trade their futures on the web, desktop, and mobile devices. The brokerage also allows you to trade forex across 23 currencies. 

In terms of cryptocurrency, the Interactive Brokers trading platform added this to its selection of tradable securities in 2021. With the integrated account, you can invest in Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and other options. 

US investors on the Interactive Trading platform can also trade in commodities like precious metals. You can trade spot gold as small as one ounce. You can trade on COMEX silver and gold. Other assets to trade on Interactive Brokers include funds, ETFs, and other commodities. 

Fees and Commissions 

Before signing up, one has to consider the Interactive Broker fees. The platform has two pricing plans depending on your level as an investor, and there are other charges to consider for penny stocks, options, and mutual funds. Fortunately, Interactive Brokers uses a low commission structure for its stocks and ETFs. And the tiered pricing offers rates as low as $0.0005 per share. Before choosing your plan, you should consider comparing Interactive Brokers Lite vs Pro plans. 

IBKR Lite

The IBKR Lite plan is for casual investors and does not have any market data fees. The fees on US stocks and ETF trades are $0, while for options trades, it’s $0.65. The plan also has no account minimums or inactivity fees.

It’s suitable for traders who want to invest in US stocks and ETFs without paying fees. With this plan, traders will have access to a Client Portal and IBKR mobile for trading on the go. On the Interactive Brokers Lite plan, you can join the Stock Yield Enhancement Program, which allows you to borrow your stock for cash collateral and still trade the loaned stock with no restrictions.

IBKR PRO

On the other hand, the IBKR Pro plan is ideal for advanced investors. It is known for its suite of trading technologies, which active investors and sophisticated traders can take advantage of. This includes the SmartRouting feature, which will help you find the best price for stocks, options, and more across different exchanges. This also allows investors to route their orders through dark pools for better executions. 

The IBKR Pro cost starts at $0.0035 per share with an account minimum of $0.35. If you’re trading 300,000 or more shares per month, the fees are as low as $0.0005. You can also consider the other Pro plan, which is not dependent on volume.

When considering the IBKR Pro commissions, there are options for trades to keep in mind. With US exchanges using SMART routing, there are different commissions depending on the options contract. Premiums less than $0.05 attract a commission of $0.25 per contract. Then, if the premium is between $0.05 and $0.10, the fee is $0.50 per contract. Greater than these is a commission of $0.65 per contract and $1 minimum.

Additional Commission and Fee Information

The Interactive Brokers platformallows investors to switch through the Lite and Pro plans at any time. But there are other things to come to mind.

In terms of the Interactive Brokers fees and commissions, there are fees on mutual funds. However, the fees are still affordable compared to other brokers. With US mutual funds, over 4,000 out of the 11,000+ offered have no charge. Others have a fee of $14.95 or $1.5, the trade value, whichever is less. 

For trading penny stocks, you have to pay commissions for each share, which makes this form of trading less popular on IBKR. There are no Interactive Brokers withdrawal fees, but it depends on the type of withdrawal. The first withdrawal of any kind every 30 days is free, but after that, it incurs a fee. Wire withdrawals are $10 after you use up your free trial. And with check withdrawals, it is $4. 

Platforms and Mobile Apps 

When trading on Interactive Brokers, there are different platforms and mobile apps that can be used to meet your needs. 

The flagship IB Trading Platform is called Trader Workstation, where traders can manage their assets. On this platform, investors can trade different assets simultaneously. It has features like trading, order, and live quote tools. There are also attached orders, newswire and analyst research, technical research, streaming news, and order entries. On the Interactive Brokers Trader Workstation, you can create watch lists for managing data.

Another platform is the IBKR desktop. The Interactive Brokers desktop platform also offers assets across 150 global markets, with educational tools and videos. It combines the features from Trader Workstation with customizable new tools like order execution and has a simpler learning curve. 

If you’re a beginner and confused about which Interactive Broker platform you should sign up on, you can consider the client portal. It comes with all the tools to trade and manage a portfolio but does not pack a wide range of features and data that might confuse the beginner.

A More In-Depth Look at the App

 Interactive Broker stands out as the best trading app for earning money, especially since it comes with downloadable and convenient apps for investors. There are three trading applications to choose from, suitable for beginners and advanced investors.

The first app is IBKR Mobile, which comes with the most features among the other apps. The mobile trading application is suitable for all, with tools like data streaming, full-featured order entry, portfolio management tools, and more. 

The IBKR app also comes with comprehensive charting features. It offers access to 90 indicators, tens of drawing tools, and seamless customizations. iBot is another feature on the mobile app that uses AI to fulfill your customer requests via chat or voice instructions. You can use the tool for getting portfolio information, quotes, and orders.

Another trading mobile app offered by Interactive Brokers is Global Traders, especially designed for beginners and foreign stock investors. It offers access to foreign shares, fractional stock trades, and options trading. It’s one of the best options for beginner investors.

The third Interactive Brokers app is the Impact app, which is suitable for Environmental, Social and Governance (ESG) investing. It allows you to select causes that are important to you, such as opposing animal testing and clean water. From there, you can invest in companies that support these causes. 

Customer Education and Resources 

Interactive Brokers offers tools for resources and education, which beginners and advanced investors can take advantage of. For one, you get access to different resources in the Learn & Earn section. There is also the Traders Academy, which offers free online courses on how to use the IB trading platform.

On the Education menu, you get IBKR podcasts, webinars, and articles, which will come in handy when learning how to use the platform. The Interactive Trading platform features an online forum for thousands of clients, who can exchange ideas, articles, observations, and questions. On the forum, you can browse posts and their comments, reply, and make your own post.

Another way for investors to learn is with the Interactive Brokers simulated trading account, which is called the Paper Trading account. It allows you to use all the IBKR features with actual market conditions in a simulated environment, and you are providing $1,000,000 of fake money to get started. 

Quality of Customer Service 

In terms of Interactive Brokers customer service, these are available via phone, email, live chat, and the Support Center. When you send an email, you will most likely get a response on the same day. Phone calls are more straightforward, but if you leave a voicemail, it takes 24 hours. 

Live chat is the quickest way to get responses from their customer service team. The Interactive Brokers’ customer service hours are Monday to Friday from 9 am to 5 pm Eastern Time. The Support Center includes an FAQ, video tutorials, user guides, a message center, and corporate actions.

Interactive Brokers Extra Features 

There are other features you can enjoy when using the IBKR platform. 

For one, the Interactive Brokers trading journal is a note-taking feature available on the platform. It allows traders to take notes on trading ideas, products, progress, and more and save them. Once you open your account, you get access to the journal.

Another feature is the Interactive Brokers backtesting feature, which is possible with its BackTrader integration. This allows you to develop strategies using historical data to see if they are feasible or not. This can be done before live trading. If the test offers good returns, then the user will be confident to apply it in real trades.

The platform also comes with stock and ETF screeners, real-time news sources, trading idea generators, charting, and third-party research sources. 

You can open an Interactive Brokers IRA if you’re preparing for retirement. These include traditional, Roth, SEP, and other types. You can open cash and margin Individual Retirement Accounts on the platform. 

You can earn money with the Interactive Brokers referral program. This allows eligible clients to earn $200 for each referral, although the requirements are stringent. To refer others, you must have an account, a net liquidation value of $2000 or more, and have securities in their account. Then, the referred member must have an account with a balance of at least $10,000 for a year before you get the $200 promo.

Real User Reviews of Interactive Brokers

It’s a good idea to explore real Interactive Brokers’ reviews from users online before you sign up. 

On Trustpilot, there are 2,590 Interactive Brokers ratings, with a 3.6 rating. It is also a verified company. The platform has been praised as the best low-cost execution broker with advanced technology. 

The platform has also been reviewed by reputable platforms. For instance, Bankrate gives it a 5-star rating, while The Motley Fool features a 4.5 rating. On Forbes, it received a 4.4 rating, and on Investopedia, it received 4.2 stars. 

Who is Interactive Brokers Best For? 

Interactive Brokers is an all-rounder that will benefit a wide range of traders. It is great for day trading, futures trading, options trading, and mobile trading. The platform is also suitable for beginners and professionals, although the learning curve is present for newbies.

Day traders will benefit from this plan because it comes with real-time data, charting platforms, and customizable layouts. The Interactive Brokers desktop app is the best option for day traders. The platform also has margin trading, which is suitable for professionals.

If your focus is options trading, then this platform is suitable. The Interactive Brokers options trading platform is one of the best options because it has a wide market range and AI tools that help with strategy building. 

Interactive Brokers has been praised as one of the best platforms for international trading. It offers access to a wide range of assets globally, zero commissions and low costs, and advanced features like order routing. 

Final Verdict: Is Interactive Brokers Good for You?

Interactive Brokers is a fantastic choice for casual traders, sophisticated investors, and institutions that require a full suite of trading tools. It comes with over 100 order types, multiple platforms, and apps, trading in 150+ markets, and more. 

It’s suitable for beginner investors who are interested in fractional shares, convenient mobile apps, paper trading, and research tools. At the same time, it offers professionals access to global markets, very low commissions, and minimal margin rates.