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Interactive Brokers Review: Pros, Cons, Fees (& More!)
Interactive Brokers offers powerful trading platforms and a range of products and services.
Clients can invest globally in stocks, options, futures, currencies, bonds and funds from a single unified platform and benefit from services and tools including PortfolioAnalyst®, which tracks and analyzes portfolios, and IBKR GlobalAnalyst, which lets investors compare stocks globally to help them discover new investment opportunities.
In this Interactive Brokers review, we’ll guide you through everything that you should know about the service.
If you’re looking for a way to top up your Interactive Brokers account with more than 50+ currencies or manage the money you’ve withdrawn from Interactive Brokers, why not try out Wise? - more on this later.
| 📝 Table of contents |
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Interactive Brokers Pros & Cons
| Pros | Cons |
|---|---|
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Who Interactive Brokers is Best for?
While Interactive Brokers serves sophisticated individual and institutional investors, the company has introduced new platforms and tools to address the needs of a broad range of investors.
For example, IBKR GlobalTrader is a straightforward mobile app featuring a streamlined design that is easy for novice investors to use, yet powerful enough for experienced traders.
Another example is the Options Wizard tool, which helps users understand how options work and how to trade them.
Recurring Investments is another feature that lets clients setup and execute a predetermined investment strategy by automatically investing funds on a recurring schedule.
However, Interactive Brokers does have one of the market’s most detailed education portals, which also makes it inviting for beginners.
Traders have access to a wealth of information that will get them up to speed very quickly. There are also new products that are being released regularly, which will be appealing to traders who are making their first foray in this area.
Making this a user-friendly site for beginners to visit is something Interactive Brokers does very well. It is one of the key factors we looked at when we started to compile our review.
Interactive Brokers Fees
Interactive Brokers has slightly different fees associated with different account types which traders need to understand. ‘IBKR Lite’ targets beginner investors and retail investors, while the ‘IBKR Pro’ account is for traders with more experience.
It should be noted that if you have an IBKR Lite account, and you use it to trade for more than just retail trading purposes, then Interactive Brokers may refuse your positions and orders.
Account Fees
Both with IBKR Lite and IBKR Pro accounts, investors are not required to pay monthly fees to use the account. This is one of the standout features of the site, and helps keeps costs to a minimum for traders using Interactive Brokers.
There’s no minimum deposit when creating an account – we found this was the case for both the IBKR Lite and IBKR Pro accounts.¹
| IBKR Lite | IBKR Pro | |
|---|---|---|
| Monthly account fee | $0¹ | $0¹ |
| Monthly Inactivity fee | $0¹ | $0¹ |
Trading Fees & Commissions
With International Brokers, you’ll either be subject to fixed or tiered rates. When using IBKR Lite, the fees will be either commission free or fixed. With IBKR Pro, fees tend to be fixed for smaller volume trades and for higher volumes there is a tiered system in place.
The reason for the difference in fees between IBKR Lite and Pro, is that the IBKR Lite account is recommended for retail trades whereas IBKR Pro is for industry investors – the fees cover higher volume trades.
The IBKR Lite account charges zero commissions and fees on listed stocks and ETFs. The IBKR Pro account has fees of $0.005 per share, but there is a minimum cost of $1 attached. However, the fee will reflect a maximum of 1% of the trade’s total value.²
Options, Futures and Mutual Funds all have equal costs for both account types. Options trades carry a fee of $0.65 for every contract involved, whereas futures trades are charged $0.85 per contract, and the mutual funds come in at $14.95. With mutual funds, you could face a charge that translates to 3% of the total transaction value – if this is less than $14.95. If that’s not the case, then $14.95 is the flat fee.²
| IBKR Lite | IBKR Pro | |
|---|---|---|
| Stocks | $0² | $0.005 per share (minimum $1 and maximum 1% of trade value)² |
| ETFs | $0² | $0.005 per share (minimum $1 and maximum 1% of trade value²) |
| Options | $0.65 per contract² | $0.65 per contract² |
| Futures | $0.85 per contract² | $0.85 per contract² |
| Mutual Funds | $14.95 or 3% of value per transaction (whichever is less)² | $14.95 or 3% of value per transaction (whichever is less) |
Withdrawal Fees & Commissions
Each month, you’re allowed one withdrawal without any additional fees attached. Once this has been used up, there will be fees applied for the rest of the month. So, if you want to make a withdrawal, it makes sense to do it all at once. This will help to keep your costs as low as possible in the long term, and your profit margin rates will be higher.
Once you have carried out your free withdrawal, then depending on the method you use, you’ll be charged between $1 and $10. If you use BACS/GIRO/ACH/EFT/SIPA for withdrawals, there will be a $1 fee, while a check costs $4 and wire transfers are $10.³
Obviously, the check takes the longest to process as it has to be sent out to the trader, and then it will take further time to be cleared. The other methods tend to be resolved within three business days, but in some cases, it can take up to five business days for the funds to clear.
| Transfer Method | Fee |
|---|---|
| BACS/GIRO/ACH/EFT/SEPA | $1³ |
| Wire | $10³ |
| Check | $4³ |
Once you’ve withdrawn your money from Interactive Brokers, you’ll want to find an easy-to-use service to store your funds. We recommend that you give Wise a go. Not only is it safe and secure, but it also allows for exchanges between 50+ currencies to be carried out quickly and safely. Send money abroad with low and transparent fees using the mid-market rate⁴.
| 💡 Topping up your Interactive Brokers account with Wise can also be a great option, as you can exchange your source currency into more than 50+ currencies – you may save money as the transfer uses the mid-market rate, and you only pay a small and transparent fee⁴. |
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Interactive Brokers Platform Review
Interactive Brokers have a large selection of different platforms available. There is a browser-based platform, a desktop download platform, a mobile platform as well as several APIs. In addition to Trader Workstation, IBKR’s flagship desktop platform and APIs, Interactive Brokers offer Client Portal, a web-based platform and several mobile apps including IBKR Mobile, the simple IBKR GlobalTrader and IMPACT, a specialized app for ESG-focused investors.
To understand which platform is the best for you, we had a look at all of them in this review.
Browser Platform
The browser platform, called the Client Portal, allows full access to your IBKR accounts.
This is generally the easiest platform to use. It doesn’t offer the full range of analytical tools that the desktop platform does, but you can place trades quickly and easily, as well as trawling your way through several performance trackers.
This includes a profit and loss chart where you can see how you’re doing over specific time periods.
There is also an AI assistant that is on hand to provide any help that might be needed.
Experienced traders may look for something else, but for beginner traders the browser platform will be the best choice.
Interactive Brokers Mobile App Review
The IBKR mobile app is available on both iOS and Android. It’s one of the strongest mobile apps on the market, but it can be quite tricky for new traders to get to grips with – it’s essentially halfway between the browser and the desktop platform.
For experienced traders who want to keep in touch with the markets on the go, the app is a very powerful platform. It can also be linked to the browser and desktop platform. So, you’ll notice that any new metrics or watch lists that have been created, will automatically be sent over to them each time you log onto your computer.
Desktop Platform
Trader Workstation, Interactive Brokers' desktop platform is the most in-depth platform that the broker has to offer. It allows traders to access a massive range of different tools and analytical charts. The other thing that is impressive about the desktop platform is that it is very intuitive. If you prefer to use certain tools more often than others, this will appear in your own personal list.
For beginner traders, this could take some getting used to. However, for professional or experienced traders, this platform provides the perfect environment to invest at a high level.
In addition to Trader Workstation, IBKR Mobile and Client Portal, Interactive Brokers offers the following:
- IBKR GlobalTrader
- IMPACT
- IBKR EventTrader.
Interactive Brokers Customer Service Review
Interactive Brokers offers plenty of opportunities to get support. For example, the AI-driven FAQs section provides a high quality experience where traders can get answers to common questions.
If the FAQ doesn’t prove to be helpful, there are also email, live chat and telephone support options.
The telephone line is open 24/7, and an agent will always be around to tackle any queries via email. Calls are answered instantaneously, while it may take slightly longer to receive a reply to your email. This is likely during busy periods.
The live chat is available 24 hours a day from Monday to Friday. It’s closed on Saturdays, and it can be used between 13:00 and 19:00 Eastern Time (US) on Sundays.
Contact Interactive Brokers’ customer support through the following channels:
| Service | Details |
|---|---|
| Phone | 1 (877) 442-2757 |
| Contact Form | |
| Post | Interactive Brokers LLC: Document Processing P.O. Box A3770 Chicago, IL 60690-3770 USA |
Bottom line: Is Interactive Brokers good for beginners?
Interactive Brokers provides traders with many good features. There is the ability to trade with a wide range of different stocks, mutual funds, bonds and instruments. This makes it a great place if you like to keep a diverse portfolio.
While experienced traders will be blown away by everything that Interactive Brokers offers, beginners may need some time. However, the huge range of educational materials on offer do help with this.
Overall, experienced and professional traders should gravitate towards Interactive Brokers. But – as far as our Interactive Brokers review is concerned – beginners might want to start out somewhere else.
Frequently Asked Questions
Does Interactive Brokers work with Plaid?
Yes, you should be able to use Interactive Brokers with Plaid. First, make sure to enable third-party services in the Interactive Brokers app and activate the service from the list.
Is Interactive Brokers trustworthy?
It definitely is. The company takes abiding regulatory standards very seriously: you can read about Interactive Brokers’ Regulatory information here.
Is my money safe with Interactive Brokers?
Interactive Brokers works hard to keep the information and money of traders safe. It has a number of fail-safes in place to ensure accounts are kept secure and money can’t be stolen.
Insurance has been arranged that covers each individual investor to a maximum of $500,000. There is also an extra policy from UK-based bank Lloyds that covers up to $150 million. This ensures that traders' money is completely protected.
Does Interactive Brokers have a monthly fee?
No, you are not required to pay a monthly fee both with IBKR Lite and IBKR Pro.
Does Interactive Brokers have an inactivity fee?
There are no inactivity fees for either IBKR Lite or Pro.
Sources:
- Account Minimums - Interactive Brokers
- Commissions Stocks, ETFs (ETPs) and Warrants - Interactive Brokers
- Other Fees - Interactive Brokers
- Please see Terms of Use for your region or visit our Wise PricingPage for the most up-to-date pricing and fee information.
All sources checked on 11 May 2023
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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