Interactive Brokers 2023 Review: Pros, Cons, and More The Motley Fool
Interactive Brokers 2023 Review: Pros, Cons, and More The Motley Fool

When comparing offers or services, verify relevant information with the institution or provider's site. With Interactive Brokers you also have access to trading ideas and data from third-party sources including Thomson Reuters and Morningstar. Furthermore, IBKR recently added two innovative features known as Valldea and TheLeadingEDGE which offer real-time analysis, extensive reports, and pre-built portfolios for a monthly fee. Another useful and effective trading feature is the IBKR paper trading account which allows all types of investors to practice their trading strategies in a risk-free simulated environment with virtual funds. When it comes to options trading with an Interactive Brokers account you will benefit from low commissions per US options contract typically between $0.15 and $0.65. Furthermore, you can trade options on more than 30 market centers including the Chicago Board Options Exchange (CBOE), the ISE Options Exchange, the NASDAQ OMX, and the NYSE American (AMEX) just to name a few.

Use OptionTrader, Risk Navigator, Rebalance Portfolio and FXTrader and access 100+ order types and algorithms. The IBKR Lite plan boasts commission-free US-listed stock and ETF trading while IBKR Pro has smart routing and offers up to 4.08% interest on uninvested cash balances. IBKR also offers some of the lowest margin rates in the business. For example, you can borrow against your account balances at 5.08% to 6.08% a year with IBKR Pro, while other brokerage platforms charge between 7.75% and 12.75% annually. Interactive Brokers offers a range of trading platforms tailored to meet the requirements of active traders and long-term investors.

You are unable to access

You cannot set alerts and notifications on the Interactive Brokers mobile platform. As the picture below shows, it can be a little confusing when there are several companies with a similar name or if a given company has both common and preferred shares. Also, as of early 2020, Interactive Brokers introduced direct debit card deposits as part of their Integrated Investment Management account. This is a standard process, which in financial lingo is called a KYC (know-your-customer) process.

ib stock broker

The Economic Calendar informs you about upcoming events that will have an economic impact. This feature can be accessed separately any time from the menu, though the design could be better. If you are looking for an all-around economic calendar that includes upcoming national holidays. However, similar to the platforms, the charting tool is not user-friendly.

Tax Optimizer, Shortable Instruments and alternative news sources

The company is regulated by the SEC, FINRA, NYSE, FCA, and other regulatory agencies worldwide. Interactive Brokers clearly sets itself apart from the competition with its focus on high value accounts, financial professionals, and active traders. It's no wonder that few brokers publish margin rates for loans in excess of $2 million to $5 million, but Interactive Brokers is not afraid to do so. This speaks volumes about the level of service that clients can expect from the platform.

ib stock broker

Interactive Brokers' Trader Workstation offers access to more than 150 markets around the globe, several times more markets than any other discount brokerage firm. The IBKR Lite platform offers zero-commission stock and ETF trades. Interactive Brokers offers pricing designed for investors and traders who want to minimize the cost of trading.

Other Stocks

To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

ib stock broker

For beginner traders interested in online trading we found that eToro offers the best bang for your buck when it comes to low commissions and a wide range of tradable assets. Social trading is another useful feature that allows you to interact with other traders and copy investments that take your fancy. Perhaps one of its most prominent features is that of the Copy Trading feature which allows you to copy the trades of other advanced investors on the eToro platform. Furthermore, you can also invest in CopyPortfolios which is eToro’s premium portfolio management product. When you invest in CopyPortfolios you will automatically copy a range of markets based on a prebuilt investment portfolio. As for search functionality, the mobile trading platform mirrors the superb functionality of its web platform counterpart.

Put the World in the Palm of Your Hand with IBKR GlobalTrader

With the availability of free trades through IBKR Lite, even casual traders might find Interactive Brokers a strong contender. But beginner investors might prefer a broker that offers a bit more hand-holding. Users can create order presets, which prefill order tickets for fast entry. Presets set up on Trader Workstation are also available from the mobile app. However, the app gets fairly low ratings from both Android and iOS users. The casual traders who find IBKR Lite appealing will find the Client Portal platform adequate for their trading needs.

Scroll to Top