Interactive Brokers Review 2024: Features, Cost & Alternatives

Interactive Brokers is a world-leading online retail broker that offers investors low-cost access to global markets. With three decades of experience and millions of clients in over 150 market destinations, Interactive Brokers has established itself as a leader in the industry.

Through Interactive Brokers’ sophisticated trading platform, customers can trade stocks, options, futures, and more. The company’s cutting-edge software allows users to execute trades quickly and with minimal latency. 

Interactive Brokers also features a wide range of analytical tools to help active traders make informed investment decisions. Enjoy an array of services such as financial research, portfolio management, and wealth management solutions. 

Customers can choose from different account types, including individual or joint accounts, IRA accounts, and margin accounts. For those who prefer a hands-off approach to invest, Interactive Brokers also offers managed portfolios that are tailored to each customer’s risk tolerance and goals. 

Interactive Brokers Advantages

Take note of these huge advantages, which are tough for Interactive Brokers’ competitors to match. 

Low Commissions & Fees

Interactive Brokers offers some of the lowest commissions and fees compared to other brokers. For stock and ETF (exchange-traded funds) through IBKR Lite, Interactive Brokers charges no commissions. Through IBKR Pro, the commission’s fixed charge is $0.005 per share with no minimums or hidden fees. 

Interactive Brokers’ options fees are also low cost at just a fixed $0.65 per contract. There are also tiered pricing options.

Best Margin Rates

The margin rates offered by Interactive Brokers are among the lowest in the industry. For instance, for the lowest margin balances of below $100,000, the broker charges 1.5% above the benchmark. Higher margin balances will have lower charges. 

Impressive Trading Platforms

The broker provides a wide range of trading platforms, including the powerful web-based Interactive Brokers Trader Workstation, which is suitable for advanced traders. It includes advanced charting, options chain analysis tools, and more. For casual investors looking for a simple platform for stock trading and ETF trades, IBKR Lite is ideal. 

Great Research Tools

Interactive Brokers also has extensive research tools and resources. The Traders Academy portal provides a comprehensive set of educational materials, including tutorials and courses. You also get access to plenty of research providers, including Fundamentals Explorer.

Very Wide Range of Products

Interactive Brokers has one of the widest ranges of asset classes, products, and markets. They offer flexible order types on both the Client Portal platform and the Trader Workstation. It’s the right platform for trading forex, penny stocks, fractional shares, cryptocurrency, international mutual funds, and a lot more. Customers can also access global exchanges with just a single account and currency.

Incredibly Trustworthy Trade Execution

Interactive Brokers boasts some of the fastest order execution speeds in the industry. This is due to their sophisticated technology and powerful order-routing engine, like SmartRouting. This means that you’ll be able to get your orders filled quickly and accurately, with minimal slippage or latency.

Demo

Interactive Brokers offers a free demo account (free trial) for those who want to try out the web platform before committing to it. This is an excellent way for new traders to get comfortable with the features and functionality of Interactive Brokers without having to risk real money.

Interactive Brokers Accounts

Interactive Brokers Money Manager Account

A Money Manager Account is a separate account meant for users who manage money for their clients. This account offers the same features as a regular account, but additional features for portfolio management. Money managers can also manage money across multiple advisors and their clients.

Interactive Brokers IBKR Lite Account

This account type allows users to trade stocks, options, ETFs, futures, and more. IBKR Lite customers enjoy no minimum deposit, no inactivity fees, and no commission fees for stocks and ETFs. The account is more suited for retail investors and traders who are just starting out and want to learn the ropes.

Interactive Brokers IBKR Pro Account

This account type is the flagship account of Interactive Brokers. It offers more advanced features than IBKR Lite, including the option to choose between fixed or tiered pricing for options, futures, and mutual funds. You can also access early pre-market trading sessions and more comprehensive market data packages.

Interactive Brokers Quick Overview

4.6 stars

Best Overall Value

• Low commissions and fees
• Speedy trade executions
• Designed for experienced traders

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Interactive Brokers Customer Reviews

Here is a mix of reviews from TrustPilot to gauge customer sentiment on Interactive Brokers.

Leading technology and Leading price. Migrated an account from RBC for fees 1/10 of what they were there. Been an IBKR customer for some time so I’m comfortable with the quality of the offering (which is class-leading). The fact RBC refused to even come close to the commission cost was the final nail for them. For the best technology, greatest market access, reasonable fees for what you get and interest on long-settled balances, it’s a no-brainer.

Andrew

Interactive Brokers has low prices for margin loans and commissions, and the technology is excellent. When I get through on the phone I get excellent help. However, the website is confusing and it is hard to find what I need. I have used the websites of Merrill, Fidelity, Schwab, and others, and the Interactive Brokers site is by far the hardest to understand.

Tom

I’m a retail customer and I don’t have huge requirements, but what I would like to do is split my portfolio into multiple different portfolios so I can track them separately and I would also like to have easy access to every dividend payment I have received and I have maybe scheduled, etc. Not sure about the portfolios, I think you can access it with some joint accounts, but if that is true, it took me a lot of googling to find it out and it is not obvious. When it comes to the dividend payments, all of this information is accessible from the reporting section, but it is EXTREMELY confusing how to pull this information out and very user-unfriendly. Thank you.

Peter

I learned a lot so far from the IB platform. Other than the wise instruments that I still have to learn about, I appreciate the fact that the broker has a wide range of learning channels within its own platform, and that comforts me as I am going to be a trader/investor for the rest of my life. Plus on occasions of contacting customer support, they are very prompt, very professional, very honest and very practical.

Ali

Interactive Brokers Review

Now that we’ve explored the highlights of Interactive Brokers, it’s time to assess whether or not this broker is for you.

Is This Brand Right For You?

Interactive Brokers has an impressive set of comprehensive features and highly competitive commissions and fees. However, it is historically known to be geared towards more sophisticated investors who have a solid understanding of the markets and trading strategies.

It is important to note that Interactive Brokers’ desktop trading platform can be intimidating for novice traders, as it is filled with an overwhelming amount of features, trading tools, and settings. But recent years have seen the company make strides in streamlining its platform and introducing features and resources tailored to casual investors.

For now, this company’s advanced trading platform is best suited for professional traders and institutional investors looking for low-cost access to global markets. The company’s cutting-edge technology and experienced customer service team make it a great choice for those needing the latest tools and resources to take their trading strategies to the next level.

Cost Value

Interactive Brokers’ fees and commissions are among the most competitive in the industry. Moreover, you can choose between fixed or tiered commission structures, depending on the markets and products you plan to trade.

The company also offers impressive margin rates, along with discounts for larger trading volumes. Plus, there is an extensive list of free research and educational resources to help customers learn the ins and outs of trading.

Finally, Interactive Brokers offers a wide range of account types, including individual retirement accounts (IRAs) and corporate accounts. This makes it a great choice for those looking to diversify their portfolios or manage multiple accounts in one place.

Customer Service

Customer service reviews are mostly positive. The Interactive Brokers website offers a comprehensive customer service section, with a helpful and knowledgeable staff available through phone and email, and chat. 

Interactive Brokers also has a great selection of educational resources, including webinars, tutorials, in-depth articles and commentaries (via IBKR Traders’ Insight), and more. These provide newbies with easier ways to learn the art of trading without having to invest too much time or effort into researching on their own.

Ease of Use

As mentioned, Interactive Brokers can be overwhelming. Therefore, it is not recommended for those just starting out in the markets. However, those with a bit of trading experience will find Interactive Brokers’ platform relatively easy to use.

The company has exerted efforts in recent years to make its software more accessible and easier to navigate. It now offers tutorials and help tools that take users step-by-step through various tasks on the platform.

The IBKR Mobile app is also impressive, as you can access most of the features you would find on the desktop platform. Other mobile apps only feature a simplified version of their desktop counterparts.

Included Features

Few come close to Interactive Brokers’ impressive range of features and tools. The company’s trading platform also allows users to access the markets through multiple asset classes such as stocks, options, futures, forex, and more. And with this comprehensive feature set comes an array of order types and advanced charting capabilities.

The platform also offers automated trading strategies that can be tailored to individual needs. Such algorithms are designed to help investors execute trades quickly while managing risk across multiple markets simultaneously.

Overall

In summary, Interactive Brokers is a highly tempting broker for those seeking low trading costs, a wide range of markets, and sophisticated trading tools. If you do professional trading and are looking for a reliable platform with advanced features, Interactive Brokers could be the right choice. 

However, if you’re new to trading or simply looking for an easier platform to use, there are other options out there that may better suit your needs.

2 Top Interactive Brokers Alternatives

eToro:  

eToro is an online trading platform that provides users with access to global markets. It offers traders a wide range of features, including copy trading and social trading, as well as a variety of tools and services designed to help them make better trades. eToro also allows users to invest in stocks, ETFs, indices, commodities, and cryptocurrencies.

CMC Markets:  

CMC Markets is a UK-based broker specializing in CFDs and spread betting. It offers a wide range of different markets to trade, including stocks, indices, commodities, and forex. CMC Markets provides its clients with an intuitive platform offering advanced charting tools for technical analysis as well as powerful order execution capabilities. The company also offers various educational resources to help traders improve their trading knowledge.

Conclusion

Interactive Brokers is a reliable and trusted broker offering customers low-cost access to global markets. It has an impressive array of features, including sophisticated order routing for options, futures trades, and advanced charting tools for technical analysis.

The company’s commitment to technology innovation also makes it a great choice for those looking for a powerful trading platform with comprehensive features. However, if you’re looking for a user-friendly broker, you may need to look for other online brokers.

Frequently Asked Questions (FAQs)