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Interactive Brokers Review 

Interactive Brokers is a best-in-class brokerage offering thousands of tradable assets across 150 global markets through a single account, as well as comprehensive investment services. This NASDAQ-listed firm has over 40 years experience in the online trading industry and is heavily regulated by SEC, FCA, CIRO and SFC. Traders can access powerful research tools and data feeds through the flagship Trader Workstation terminal, as well as extensive educational resources.Minimum Deposit

$0Trading Platforms

AlgoTrader, OmniTrader, eSignal, TradingCentralInstruments

CFDs, Forex, Stocks, Cryptos, Futures, Options, Commodities, BondsBonus Offer

-Account Currencies

USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, HUFPayment Options

Mastercard, Cheque, Credit Card, Apple Pay, Samsung Pay, Google Wallet, ACH Transfer, Wire Transfer, Automated Customer Account Transfer Service, Payoneer

Forex Trading

Interactive Brokers offers 100+ major, minor and exotic forex pairs – a wider selection than many leading firms, including AvaTrade. Trading is available on the FXTrader platform which delivers institutional-quality spreads from 0.1 pips and 20 complex order types, including brackets, scale and one cancels all (OCA).

Stock Trading

Traders can access an unbeatable range of equity products from 24 different countries, including shares on both major and sub-exchanges. You can invest directly in stocks to benefit from capital growth, dividends and voting rights, or speculate on price movements via futures and CFDs.

CFD Trading

IB offers leveraged CFDs on thousands of instruments, including stocks, indices, forex and commodities. Additionally, the Trader Workstation platform continues to lead the industry for seasoned day traders, with over 100 order types and algos, plus top-tier market data from Reuters, Dow Jones and more.

Crypto Trading

You can buy and hold Bitcoin, Bitcoin Cash, Ethereum and Litecoin with low commissions of 0.12% – 0.18%. There are also some other diverse assets to explore, including crypto indices like the NYSE Bitcoin Index, as well as futures contracts including the BAKKT Bitcoin Futures.

✓ Pros

  • The broker’s flagship terminal, Trader Workstation, is geared towards intermediate and advanced traders and comes with over 100 order types and top-quality market data
  • There’s a vast library of free or paid third-party research subscriptions; plus, you can enjoy commission reimbursements from IB if you subscribe to Toggle AI
  • IB continues to deliver unmatched access to global stocks with tens of thousands available from 100+ market centres in 24 countries
  • Diverse payment options and account currencies are available, making the broker highly accessible for global traders
  • IB offers low commissions and tight forex spreads from 0.1 pips, thanks to the broker’s deep interbank liquidity pool
  • Traders can enjoy direct market access to the markets, including FTSE 100 index, the CAC 40, Germany’s DAX 40
  • IB is regulated by some of the world’s most reputable bodies including the CFTC in the US and the FCA in the UK
  • The broker provides traders with a reliable real-time market data feed that rarely goes offline

✗ Cons

  • Due to the pricing structure, this firm can be more expensive for aggressive traders who trade over $100,000 shares a day
  • Customer support is mediocre based on tests, with response times slower than competitors
  • The platform and web interface are complex and difficult for beginners to pick up
  • Accessing products like CFDs is not straightforward compared to competitors
  • The TWS platform falls short in terms of technical charting

Contents 

Interactive Brokers (IBKR) comprehensive offering facilitates access to over 100 market centres in 24 different countries, dealing in stocks, forex, futures, options, ETF, bonds, and CFDs. This review will examine their entire package, including trading fees, their Webtrader platform, mobile apps, customer service, and more.

A Brief History

Thomas Peterffy, chairman and CEO founded the IB group over 40 years ago. In fact, it all started when he purchased a seat on the American Stock Exchange in 1977. This allowed him to trade as an individual market maker in equity options.

Over the years, IBKR has gone by a number of names, including TP & CO and Timber Hill Inc. However, by 1993 Interactive Brokers Inc had stuck.

Today the company stands as an industry leader in terms of commissions, margin rates, and accessibility for international trading. Its $6 billion in equity capital demonstrates both its success and far-reaching influence.

IB also boasts office locations across the world, including Canada, India, Hong Kong, Japan, and the UK.

Popular Alternatives To Interactive Brokers

Minimum Initial Deposit

Once you have downloaded an account and received your login details, you will need to fund your account before you can start day trading. The broker has slashed the historically high minimum deposit of $10,000 to $0, making it more attractive to those with a lower budget.

Spreads & Commissions

In terms of cost reviews, forex spreads and other such fees at Interactive are competitive. This is because the bulk of the brand’s clients are professional traders and institutions. So, providing low commission rates is essential.

You can expect a low, fixed commission rate of $0.005 with a $1.00 minimum on all products and comparable rates. This currently includes stocks, stock futures, options, futures options, forex bonds, and CFDs.

European clients can also opt for a fixed-rate commission of 3 EUR/GBP for any trades under 6,000 EUR/GBP in value, above which the rate becomes 0.005%.

Note, Interactive also partnered with Toggle AI in 2022 to offer a reimbursement plan. The broker will return trading fees on a monthly basis. Commissions are awarded up to the dollar value of client subscriptions. New customers can also qualify for low options commissions at $0.50 per contract.

Leverage

In terms of leverage, IBKR also ranks highly vs eTrade, Thinkorswim, Tradestation, Oanda, Scottrade, and other competitors. In fact, initial margin rates can be anywhere from 1.41% to 1.91% for those who hold accounts of over $1 million.

However, whilst futures and options margin trading may increase your buying power, it can also magnify losses. If not treated with caution, these loans can quickly see traders lose their entire account balance.

Other Trading Fees

IB impose an exposure fee on a minority of high-risk margin customers. This is to compensate for servicing such risky accounts. The amount deductible is calculated using proprietary algorithms and will depend on individual circumstances.

Trading Platform

The core appeal for many is the Trader Workstation (TWS). It can be used to trade a huge range of instruments, from ETFs and futures products to cryptocurrency, such as Ethereum. It is available for Mac, Windows, and Linux users.

Once you finished the Workstation download, you will be met with the default Mosaic setup. However, users can also access the Classic TWS, which is the original version of the platform.

You get all the essential functionality. So, backtesting and setting trailing stop limits come as standard. Earnings calendars can also be accessed with ease.

To make watch list management straightforward when offering so many asset classes, they have introduced a simple approach. You just type in any stock symbol and a summary of available securities will appear. Your watch lists can then include a variety of everything. In fact, you can have up to 338 different columns. So, in terms of customisability, IB are leading the way with their proprietary platform.

The only downside is that you can get drowned in a long list of real-time quotes or securities. For example, type in AAPL for Apple and you have to wade through a number of possible matches.

Charting

In terms of charting, the platforms perform fairly well. You have 124 different studies available to be added to any chart. However, TradeStation offers 270 and TD Ameritrade promise 370. Another drawback comes in just eight tools available for markups. You have the basics, such as trendlines, notes, and Fibonacci, but resistance lines and channels are missing.

Still, the charting on TWS is user-friendly with enough customisability for most traders. Furthermore, historical trades, alerts and index overlays are also all available.

Other Features

You will also benefit from an impressive 63 different order types.

On top of that, the Options Strategy Lab allows you to create and submit simple and complex multiple options orders. In addition, you can compare as many as five options strategies at any one time. Volatility Lab and Algo trading are all available in the TWS.

The Mutual Fund/ETD Replicator also deserves a mention. This helps you locate lower cost ETF alternatives to mutual funds. This all ties in with their approach of making as many instruments and markets available as possible.

MetaTrader Compatibility

IBKR do not actively support the MetaTrader 4 or 5 platforms. As you can imagine, they want to promote the download of their bespoke TWS platform, so you won’t get too much assistance from them on how to integrate your MetaTrader software with their offering. Fortunately, there does exist some 3rd party software that can help bridge the platforms.

TWS Verdict

Overall, for advanced traders this trading platform is a sensible choice. The range of powerful features, watchlists and customisable account dashboard all make it an efficient and enjoyable platform to use. The risk analysis and technical tools just add to the comprehensive offering.

Beginners, however, may be overwhelmed by the Trader Workstation. Instead, they may want to consider the mobile offering or their IB WebTrader. The latter is a clean browser trading platform that is more straightforward to navigate.

Mobile Apps

IB provide iPhone and Android apps. Their apps are also compatible with tablets. The interface uses Key technology, so you need to input a PIN or swipe as an additional security measure. Two-factor login with Touch ID is supported, but a secondary key app is needed, instead of just Touch ID logging into the actual app as you load it.

Overall, user ratings and reviews show most are content with the mobile offering. You are given everything you need to trade with ease including:

  • Alerts
  • Scanners
  • Newsfeeds
  • Stop losses
  • Watchlists
  • Order history
  • Historical tick data
  • Portfolio management
  • Full-featured order entry
  • Fast live data and quotes

In addition, balances, margins and market values are easy to get a hold of. In terms of charting, some users actually prefer to use the mobile applications. You get the same choice of indicators, but with a cleaner interface. The downside to the charting capabilities is that even with 68 different optional studies, the charts are not flexible.

Unfortunately, there also a number of other drawbacks. You do not get access to complex tools or venue-specific interfaces, such as FX Trader. Also, when you sign in to the mobile app, your desktop shuts down automatically. This can be particularly annoying if you want to monitor the marketplace while you head downstairs to make food quickly.

In addition, placing sophisticated order types can prove challenging. You also cannot customise the home screen or stream live TV. Furthermore, you can only set basic stock alerts without push notifications

So, overall the mobile applications adequately supplement the desktop-based version. In fact, custom screening and after-hours charting are two features few in the industry offer in their mobile applications. However, as iPad app reviews highlight, applications are not comprehensive and are perhaps best used only to support desktop trading.

Methods of Payment

There are two types of deposit methods. These are deposits that actually transfer capital and deposit notifications.

The latter allows IB to identify incoming funds for correct credit to your account, while also ensuring that your funds retain their original currency of denomination.

Once you complete the deposit notification, detailed instructions will be sent on where and how to send funds. Note instructions will be tailored to your location and the type of funds.

A deposit notification will not move your capital. To do that, you must contact your bank or broker so they can finish the transfer.

IB accept wire and SEPA (Single Euro Payments Area) as withdrawal methods. A wire transfer fee may be applied by your bank. Wire instructions will be emailed when you open an account.

With a secure login system, there are withdrawal limits to be aware of. For example, you are limited to a maximum withdrawal of $50,000 per day, plus a maximum total withdrawal of $100,000 within five business days.

There will be no charge for the first withdrawal of each calendar month. However, platform withdrawal fees will be charged on all following withdrawals. The amount will depend on your location but it is currently around €8.

If you want to receive funds into your account in an alternative currency than your base currency, conversion rates are the same as the forex trading conversion rates.

Finally, there are also the capabilities to pay by Debit cards, Credit cards and Mastercard.

Account Types

There are multiple account types available at IB, including:

  • Cash accounts – These can be used only to enter long securities positions, long option positions and covered short positions.
  • Margin accounts – You can purchase a security on margin. This means you can short security positions, futures positions and naked options positions.
  • Portfolio margin accounts – These allow you to take the same positions as normal margin accounts. However, they use an alternative method for calculating margin requirements. Often these requirements ensure users can benefit from greater leverage, but you will need a minimum account balance of $100,000. On top of that, foreign accounts may not be eligible, so international trading is limited with this account type.

There is also a Universal Account option. Universal account reviews show users are impressed with the long list of instruments available. They also like that you can trade around the world, ensuring you don’t have to open different accounts in Canada, Australia, India, or Singapore, for example.

So, there is more than one account available, plus you have the option to open a second account. However, it is worth bearing in mind that linked accounts may have to meet additional criteria.

Demo Accounts

You also get access to a practice account / demo account. This free trial allows for unlimited simulated trading where you won’t have to risk real capital. Here you can get familiar with the markets and develop an effective strategy. It’s also a fantastic way to test drive their trading platform.

Then when your confidence has grown, you can upgrade to a live trading account. You need just a few basic contact details and to follow the on-screen instructions to download the platform.

Demo account reviews have been very positive. Once you have signed in, you will find access to a multitude of trading tools and financial instruments, while customising the interface is quick and easy.

Additional Features

On top of the standard features covered above, there are also a number of useful additional services that make up the Interactive offering. Some of the most beneficial include:

  • iBot – This is a text and voice-based trading interface. It has a solid grasp of basic English commands. The add-on is available for both desktop and mobile TWS applications.
  • WebTrader – This is a web-based trading platform. It offers many of the same features and functions as the current desktop version. You also get an intuitive interface. Security is guaranteed with a firewall, as well as a number of other security protocols.
  • Risk Navigator – This offers a comprehensive portfolio risk management platform. One obvious benefit is that it is straightforward to identify hidden exposures. A number of reports use real-time data to offer a current risk summary from a range of perspectives.
  • Mosaic Market Scanner – This simply scans markets in line with customisable numerical criteria.
  • Probability Lab – This can be used to decipher the options markets.
  • Zacks Research – Via the TWS interface, you get access to Zacks Research. There you will find high-quality research, analysis and recommendations.
  • Traders’ Insight – This useful tool provides daily articles via email subscriptions or straightforward website access. The information can help users make informed trade decisions.
  • Social Sentiment – This facilitates access to a number of website ticker discussions and commentary. All of which can help to paint a clearer picture of where price may be heading.

So, there are a number of fantastic extras traders can get their hands on. However, some of the above may require an additional payment, depending on the account type you hold.

Regulation & License

Before funding a day trading brokerage account for the first time, it’s key you check the broker is properly regulated. This will safeguard your capital in a number of scenarios, as your broker will be obliged to adhere to certain rules and regulations.

With that said, IBKR LLC is regulated by the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the New York Stock Exchange, and the Financial Conduct Authority. It is also overseen by a number of other regulatory bodies around the world.

Trading Hours

Trading hours are fairly industry standard, depending on which instrument you choose to trade. Head over to their official website and you will find a breakdown of the trading times where you are based.

In addition, extended and after-hours trading is also available. This ensures traders with limited time or those on inflexible schedules will still have the opportunity to capitalise on market conditions.

Contact & Customer Support

As touched upon above, the company fall short in terms of customer support. While it is true they offer a live help chat, a telephone line and email support, user reviews show all are fairly poor.

Telephone

If you have any security issues, such as resets or security tokens, you must use their contact telephone number, which can be found on their website. There is phone access 24 hours a day, however, the service shifts to foreign venues overnight, making contact more difficult.

Live Chat

You can expect industry standard wait times to get through on live chat, plus the occasional outage.

Having said that, it must be stressed that it isn’t all bad news. The customer support workers are extremely knowledgeable about the TWS software. In addition, they can walk you through all of their products. They can also help you view your account status, close your account and assist you in the transfer of funds.

Chat Room

Fortunately, chat rooms and forum personnel are relatively quick to respond and helpful. They can inform you of new account promotions, as well as instructing you on how to upgrade to a margin account. You will also be pointed towards useful research and user guides. Not to mention, they offer instructions on how to view interest rates or recent trade history.

Verdict on Support

Overall, there is a number of straightforward means of contacting IB. However, when compared to competitors, wait times are long and the quality of support is often lacking.

Having said that, customer service reviews show support workers do have relatively strong technical knowledge. Therefore, they can help you with error codes, forgotten passwords and a number of issues if your account is not working.

But if you’re looking for fast and reliable customer service, you may want to look elsewhere.

Safety & Security

As exchanges go, you get a high level of security and protection. This is a result of their two-factor authentication.

Firstly, you will need your username and password. Account login then requires a physical token. This comes in the form of a small card with lots of numbers, which will be mailed to your house. You will have to activate this and use it each time you log in.

In addition, you can opt for connections to be encrypted with standard SSL encryption.

Admittedly, keeping track of the physical token and using it each time can feel a bit of a chore. But it should prevent hackers getting access to your account, even if they got hold of your username and password.

Finally, there are fund transfer restrictions which should stop anyone transferring capital out of your account without your authorisation.

IB Final Verdict

The firm facilitates truly global trading and promises extremely low commissions and tight spreads. Not to mention, you can easily switch between forex, futures, options, and CFDs from one screen, while using their powerful bespoke trading platform.

IB is best suited to experienced traders with substantial capital.

Top 3 Alternatives to Interactive Brokers

Compare Interactive Brokers with the top 3 similar brokers that accept traders from your location.

  1. IG – Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.
    Go to IG
  2. Forex.com – Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they provide a huge range of day trading markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.
    Go to Forex.com
  3. Swissquote – Swissquote is a Switzerland-based bank and broker that offers online trading and investing. The company has a high safety score and is listed on the Swiss stock exchange. The firm offers a huge range of products, from stocks, ETFs, bonds and futures to 400+ forex and CFD assets. Hundreds of thousands of traders have opened an account with the multi-regulated brokerage. Clients can get started in three easy steps while 24/7 customer support is available to assist new users.
    Go to Swissquote

Interactive Brokers Comparison Table

Interactive BrokersIGForex.comSwissquote
Rating4.34.44.54
MarketsCFDs, Forex, Stocks, Cryptos, Futures, Options, Commodities, BondsCFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread BettingForex, CFDs, Stocks, Indices, Commodities, Futures, Options, CryptoForex, CFDs, Indices, Stocks, ETFs, Bonds, Options, Futures, Cryptos (location dependent)
Demo AccountYesYesYesYes
Minimum Deposit$0$0$100$1000
Minimum Trade$1000.01 Lots0.01 Lots0.01 Lots
RegulatorsSEC, FCA, CIRO, SFCFCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCAFCA, CySEC, NFA, CFTC, CIMA, CIRO, SFCFCA, FINMA, DFSA, SFC
Bonus20% Welcome Bonus Up To $5000
EducationNoYesYesNo
PlatformsAlgoTrader, OmniTrader, eSignal, TradingCentralWeb, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentralMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentralMT4, MT5, AutoChartist, TradingCentral
Leverage1:501:30 (Retail), 1:250 (Pro)1:200 (Retail), 1:500 (Pro)1:30
Payment Methods10685
VisitVisitVisitVisit
ReviewIG
Review
Forex.com
Review
Swissquote
Review

Compare Trading Instruments

Compare the markets and instruments offered by Interactive Brokers and its competitors. Please note, some markets may only be available via CFDs or other derivatives.

Interactive BrokersIGForex.comSwissquote
CFDYesYesYesYes
ForexYesYesYesYes
StocksYesYesYesYes
CommoditiesYesYesYesYes
OilNoYesYesYes
GoldYesYesYesYes
CopperNoYesNoNo
SilverNoYesYesYes
CornNoNoNoNo
CryptoYesYesYesYes
FuturesYesYesYesYes
OptionsYesYesYesYes
ETFsNoYesNoYes
BondsYesYesNoYes
WarrantsYesYesNoNo
SpreadbettingNoYesNoNo
Volatility IndexNoYesNoNo

Interactive Brokers vs Other Brokers

Interactive Brokers LogoVisitInteractive Brokers is a best-in-class brokerage offering thousands of tradable assets across 150 global markets through a single account, as well as comprehensive investment services. This NASDAQ-listed firm has over 40 years experience in the online trading industry and is heavily regulated by SEC, FCA, CIRO and SFC. Traders can access powerful research tools and data feeds through the flagship Trader Workstation terminal, as well as extensive educational resources.

Review Methodology

benstride.com is committed to helping traders of all levels make informed decisions about which broker to trade with.

We offer impartial reviews of online brokers that are hand-written, edited and fact-checked by our research team, which spends thousands of hours each year assessing trading platforms.

To evaluate brokers, we test the accounts, trading tools and services provided. Over 100 data points are considered, from minimum deposits and trading fees to the platforms and apps available. Our broker ratings are also informed by the experience of our researchers during the evaluation process.

Above all, our experts assess whether a broker is trustworthy, taking into account their regulatory credentials, account safeguards, and reputation in the industry.

Find out more about how we test.

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