Interactive Brokers Review 2024

Interactive Brokers Features

In a zero-commission environment like Interactive Brokers, investors might understandably ask themselves what the catch is. Well, the company is heavily-oriented toward experienced, advanced traders who trade securities frequently.

Sophisticated investors, both individual and institutional, will benefit from a wealth of tools designed for advanced trading. On top of that, they can exploit numerous market analyses and educational platforms. 

Those who prefer to trade in global markets will be quite satisfied with the company’s access to more than 135 exchanges in 33 countries. 

However, before you log in to the Interactive Brokers platform, review not only its prices but its services. We wouldn’t recommend the venue to amateur investors. Although Interactive Brokers tries to tailor its features toward casual traders, these options’ complexity still wards new investors off. 

There are four platforms: 

• Client Portal: User-friendly web application, easy-to-use, displays all the necessary information and tools 
• Trader Workstation (TWS): Designed for active traders and investors; quite challenging to navigate
• IBKR Mobile: Available both for iOS and Android, more user-friendly than its desktop counterpart
• IBKR APIs: Documentation and communication protocols that allow software developers to bridge Interactive Brokers’ servers and custom software applications

Among the four, the Client Portal is probably the best choice for amateurs and new investors.

IBKR Lite is a trading plan specially designed for up-and-coming investors, as it tries to make things less intimidating for them. 

However, even though Interactive Brokers aims to open up to the mass market by providing educational material and introducing user-friendly features, it still favors active users. 

In a nutshell - opt for Interactive Brokers once you’re ready to take your investing to the next level.

Interactive Brokers Application Process 

Opening an account is possible in almost every country, and it won’t cost you a cent. Interactive Brokers’ account minimum is $0, and there’s no deposit minimum if you don’t intend to trade on margins or make short sales. If you do, you’ll need to deposit at least $2,000.

The process of opening an account with Interactive Brokers is quite complicated and time-consuming. Once you create your account following a five-step registration procedure, verification will take two days. 

During setup, you’ll be directed to submit personal information and answer questions about your previous trading experience. After that, you’ll be asked to verify your identity and residency by uploading documents. You needn’t feel uneasy - it’s a standard procedure. 

After Interactive Brokers reviews your data, you’ll get access to a wide array of account options, both individual and institutional.

Once you’re all set with your IBKR login, you can choose between cash, margin, and portfolio accounts and pick a plan that best suits your needs. We’ve listed them for your convenience.

• Individual - an account owned by a single person 
• Joint - an account shared by two users 
• UGMA/UTMA - a custodial account for minors 
• IRA - a retirement account
• Trust Account - an account held by a trustee
• Friends and Family - for up to 15 members
• Family Office - for a family office manager
• Small Business - for small corporations
• Advisor - for a client’s manager 
• Money Manager - for a client hired by another advisor

Interactive Brokers Fees and Plans

Are you a professional or an amateur investor? The Interactive Brokers trading platform has brokerage plans for both: IBKR Pro and IBKR Lite. Both provide access to the Client Portal, IBKR Mobile, and Trader Workstation platforms. Let’s compare the two plans:

• IBKR Pro offers top-notch features and sophisticated tools for experienced investors who regularly buy and sell securities, with access to IBKR Web Trader and APIs.

The maintenance fee is $10 per month, or $0 if you generate $10 or more in commissions. The plan gives you access to three trading hours before markets open and lets you use software like the Interactive Brokers SmartRouting system.

IBKR Pro users can access 98 commission-free ETFs. They pay $0.0005 to $0.0035 per share in commissions.

• Interactive Brokers Lite is not that different from its big brother. The plan was introduced in 2019 as the company’s way to attract up-and-coming investors. This plan lets amateurs trade stocks and ETFs commission-free.

The company raises the bar high when it comes to educational materials. What you’ll get for free are numerous videos to lead you through the investment process and get you prepared for the fintech world. The newly launched robo-advisor is an asset, too. 

There are no inactivity fees, which is important for passive investors. Another benefit in favor of hassle-free trade is low-cost access to the global market. Search no more; you’ll get an all-in-one experience for low prices. 

Interactive Brokers commissions can be free, fixed, or tiered. The company offers low trading prices, open stock, and more than 50 commission-free ETFs, but steep inactivity fees apply for Pro users. 

Interactive Brokers’ margin trading rates are the real deal, with only 1.5% on top of the benchmark rate (or 2.5% for Lite users). On the flip side, be prepared to invest as much as $30 for broker-assisted trades.

Out of roughly 37,000 mutual funds, more than 8,300 can be traded at no charge. For the others, investors pay $0.6 per contract. If you’re into futures trading, be ready to invest money  based on the number of deals you trade, which is 2.5% for the US micro e-mini stock index. 

Our Interactive Brokers Forex review shows that the higher your trades’ volume, the lower the commission you pay. Commissions start at $0.00002 with a minimum of $2 per order but can drop by up to 50% if you are a very active investor.

With the options that Interactive Brokers offers, trading around the world and around the clock might not be that pricey after all.

To Trade or Not To Trade?

If you find yourself to be an investor that fits into this target mold, you’ll be more than satisfied with the firm’s services. 

With the addition of the Lite payment package, Interactive Brokers stock trading turned out to be appealing to professionals and amateurs alike.

Once you log into Interactive Brokers and review its terms, conditions, prices, and plans, we’re fairly confident you’ll hang your hat with them. The company sets the bar high with abundant research tools and a wide variety of accounts for individual and institutional users.

Interactive Brokers can handle the most volatile markets and not crash on you, which is essential these days. The company has proved to be rock solid, with more than 40 years in the fintech sphere. And yes, it’s worth the hype, with its robust platforms, sophisticated features, global market access, and low commission fees. 

When it comes to the rough edges of Interactive Brokers, our customer service review confirms the rumors about unresponsive customer support. Even though it is available via email, 24-hour phone service on business days, and 24-hour live chat on workdays, waiting times are quite long. 

You’ll probably stumble upon negative reviews on this part of the company’s business, so we believe this is something Interactive Brokers could and should work to improve in the near future, especially considering its new focus on amateur investors.

Since the Interactive Brokers website is quite challenging to navigate and tricky for new users, our Interactive Brokers mobile app review favors the latter. However, even though the app is handier than the web platform, it’s still not as user-friendly as its competitors.

The biggest drawback we can find in Interactive Brokers’ offerings is probably the costly inactivity fees that penalize passive investors looking for a hands-off and relaxed approach to buying and selling stock.