Interactive Brokers Review 2023

Interactive Brokers review
Interactive Brokers Fees Explained

• Interactive Brokers withdrawal fees varies on payment method
• Interactive Brokers does charge a fee for inactive accounts.
• Interactive Brokers doesn't charge deposit fees.

Interactive Brokers Costs To Check

Modern brokers like Interactive Brokers provide advanced online trading platforms, mobile apps, financial analysis tools and educational resources. These services require significant investment, and in turn, Interactive Brokers may charge clients various fees for trading activities. Be mindful of these charges, impacting your overall Interactive Brokers trading profitability.

How Interactive Brokers Fees Compare Against Other Brokers

Interactive Brokers Minimum Deposit

Interactive Brokers requires a minimum deposit of 10000 GBP/USD/EUR when opening an Interactive Brokers trading account.

A minimum deposit is the minimum amount of money required by Interactive Brokers to open a new online brokerage account with them.

Don't be scared off by brokers like Interactive Brokers charging a minimum deposit to open a trading account. Brokers charging higher minimum deposits may offer additional premium services on their platforms that are not free on other platforms.

In the trading world, brokers like Interactive Brokers, have different minimum deposit requirements based on the target audience they are trying to attract. Brokers with lower minimum deposit requirements typically cater to a more mainstream audience who don't require advanced research tools or features. On the other hand, brokers that require a larger minimum deposit often provide a greater range of trading features, more in-depth technical analysis, research tools, and better risk management features.

Some brokers may waive the minimum deposit requirement to attract new customers but may compensate for it by charging higher transaction commissions and trading fees. As the online trading market becomes more competitive, brokers have reduced their minimum deposit requirements to attract new clients.

However, it's important to note that depending on your trading account type, some brokers may require a higher minimum deposit of up to 10,000 GBP/USD. Therefore, it's essential to research and compares different brokers to determine which best suits your trading needs and budget.

Interactive Brokers Withdrawal Fees

The fees for withdrawing funds from your Interactive Brokers account will differ depending on your chosen payment method. Reviewing the fees associated with each payment method before making your Interactive Brokers withdrawal request is important.

Interactive Brokers Withdrawal rules may vary across different brokers when it comes to transferring funds from your Interactive Brokers or other broker trading account. Each brokerage firm has its specific withdrawal methods. The payment provider associated with Interactive Brokers may have different transfer processing fees and processing times, affecting how long it takes to receive your funds.

In addition, currency conversion fees may apply if the Interactive Brokers withdrawal and receiving currencies differ, adding to the overall transaction costs. The currency conversion fee depends on your base currency, receiving currency, and the 3rd party payment provider that is separate from Interactive Brokers. Researching and comparing Interactive Brokers withdrawal policies and fees across different brokers is essential before choosing one, especially if you are withdrawing Interactive Brokers funds frequently or dealing with large sums of money. Awareness of these Interactive Brokers fees and policies can help you plan and budget accordingly and avoid any unpleasant surprises when transferring your Interactive Brokers funds.

For example, Interactive Brokers allows you to withdraw your funds to Bank Transfer, American Express, Cheque or Check.

Interactive Brokers Inactivity Fees

Interactive Brokers does charge a fee for inactive accounts.

When a trading account goes unused for a certain period, brokerage clients may be charged an account inactivity fee. To avoid such fees, clients may need to fulfill specific trading activity requirements outlined by Interactive Brokers terms and conditions. It's important to note that inactivity fees are not unique to online trading accounts, as many financial service companies may also charge them.

Make sure you're fully aware of all Interactive Brokers fees and services. It's recommended that you check the Interactive Brokers website before signing up. If you decide to close your Interactive Brokers account, it's important to do so with the Interactive Brokers broker customer support and obtain confirmation that no remaining Interactive Brokers fees are due.

Brokers like Interactive Brokers must disclose any inactivity fees as part of their regulations. The type of account and broker you sign up for, will determine whether or not you can be charged an inactivity fee under certain circumstances.

Certain brokers may levy inactivity fees to recoup the expenses associated with sustaining your account on their trading platforms when there is a shortage of commission fees earned from your trading activities.

Interactive Brokers Deposit Fees

Interactive Brokers does not charge deposit fees. Although bank / 3rd party merchant fees may apply.

Reviewing deposit fees before initiating a transaction is imperative, as certain brokers might impose a charge for depositing funds from your payment method to your trading account. The payment method employed for funding your account might also incur a fee.

Depositing funds into your trading account may incur a fee, which could vary depending on the fiat currency used. For instance, depositing funds from a credit card can attract high fees. Additionally, not all brokers accept credit card payments for account funding. It's crucial to review the funding options and associated fees the broker provides before depositing any funds.

Interactive Brokers Commission Fees

Interactive Brokers does charge commission on CFD instruments.

Brokerage firms like Interactive Brokers may charge commission fees as compensation for executing trades on behalf of traders on their trading platforms. Commission fees can vary depending on the type of financial asset being traded and the Interactive Brokers trading account level held by the trader.

Interactive Brokers may charge commission fees for fulfilling, modifying, or canceling an order on behalf of its clients. However, if a market order is not fulfilled, no commission fee is usually charged. Reviewing Interactive Brokers terms and conditions to understand the commission fees and any other charges that may apply is essential.

Interactive Brokers review
Trading on Interactive Brokers web platforms and other applications

Interactive Brokers provides traders with a user-friendly custom platform that can be accessed through a browser-based web application. If you would rather see a MT4 brokers, or MT5 brokers you can do so here.

Interactive Brokers also offer mobile apps for Android and iOS trading apps help you stay on top of your trades and execute them on the go.

See Interactive Brokers's platforms

Is the Interactive Brokers Trading Platform Secure?

You should take the security of your personal information seriously and check SSL encryption is enabled on the Interactive Brokers trading platform to protect you on PC and mobile Interactive Brokers platforms. To further enhance security, we encourage traders to always look for the lock sign on their browser when using Interactive Brokers web trading platforms.

Interactive Brokers Trading Platform Options

Interactive Brokers does not offer the MetaTrader 4 (MT4), MetaTrader 5 (MT5) or cTrader trading platforms.

Interactive Brokers offers its custom trading platform developed and tested in-house. The Interactive Brokers trading platform allows traders to track their portfolios and the current markets, locate trade ideas and place trades.

The Interactive Brokers platform allows traders to filter the financial marketplace for trade opportunities that match criteria.

With Interactive Brokers, you can examine opportunities with actionable research and stock evaluations. Get streaming real-time information on the Interactive Brokers platform, including news and quotes. Discover possible trades with the strong charting tools found with Interactive Brokers. Interactive Brokers is available as downloadable applications or online through the cloud. Monitor your orders with Interactive Brokers and receive breaking news in your positions.

Interactive Brokers Trading benefits

• Interactive Brokers Allows scalping
• Interactive Brokers Allows hedging
• Interactive Brokers Offers STP
• Interactive Brokers Offers Negative Balance Protection

Interactive Brokers Trading Accounts Offered

Below we give an overview of the account types that Interactive Brokers offer. Whatever you are looking to trade, the varying Interactive Brokers account types will be able to provide you with what you need.

• Interactive Brokers Demo account
• Interactive Brokers Mini account
• Interactive Brokers Standard account
• Interactive Brokers ECN account
• Interactive Brokers STP account
• Interactive Brokers Managed account

Can I try Interactive Brokers?

Interactive Brokers provides a demo account that enables individuals to explore trading before investing their funds. By creating a Interactive Brokers practice account, users can gain experience and knowledge of how to trade effectively. Demo trading accounts like the Interactive Brokers demo account can help individuals to make informed decisions before investing their money.

Open a demo Interactive Brokers account to practice and trade.

Losses can exceed deposits

Interactive Brokers withdrawal and funding methods

It's essential to remember that the payment methods provided by Interactive Brokers vary based on the Interactive Brokers entity and the Interactive Brokers client's country of residence. To view the Interactive Brokers payment options available, you can log into your Interactive Brokers member's area.

Interactive Brokers offers various funding payment methods listed in your Interactive Brokers dashboard if available in your region. To learn more about the Interactive Brokers funding and withdrawal options available in your area, you can explore the Interactive Brokers website.

Interactive Brokers provides several payment methods for funding your Interactive Brokers account. You may utilize any of these deposit options if they are available in your region. Interactive Brokers ensures that users have multiple payment methods to choose from, making it more convenient for verified Interactive Brokers account holders to add funds to their accounts. However, it's important to note that the availability of payment methods may vary depending on the Interactive Brokers user's location. learn more about Interactive Brokers funding and withdrawal methods.

Interactive Brokers Payment Methods

Some Interactive Brokers payment methods are local and are available only to specific regions. Interactive Brokers account holders should check which payment methods are provided in your region.

• Interactive Brokers accepts Bank Transfer
• Interactive Brokers accepts American Express
• Interactive Brokers accepts Cheque or Check

How can I start trading with Interactive Brokers?

To open a trading account with Interactive Brokers, individuals can sign up on the Interactive Brokers website. Upon completing the signup process, users will receive login details via email, which they can use to access their accounts.

The next step involves submitting identification documents for Interactive Brokers account validation and making a deposit. Once completed, Interactive Brokers users can download the trading platform of their choice.

It's important to note that Interactive Brokers requires users to provide essential documentation to verify their identity during onboarding and routine KYC identity checks. These checks are a standard practice that helps Interactive Brokers maintain a trustworthy financial environment for its 10,000 users. Detailed information on the Interactive Brokers trading platforms is available on their website.

Losses can exceed deposits

Performing trades with Interactive Brokers

The Interactive Brokers trading platform, does not have fixed minimum and maximum trade requirements. These requirements vary based on the account type, the trader, and the specific traded instrument. The maximum trade requirements on eToro can vary depending on the specific trader and instrument being traded. With the ECN and STP execution methods offered by the platform, traders using Interactive Brokers can enjoy tighter spreads and greater transparency when it comes to the pricing of their trades.

One of the Interactive Brokers platforms notable features is its claim of having no requotes, which means traders need not be concerned about slippage when executing trades (i.e., trades being executed at a price different from the intended price). No requotes can provide Interactive Brokers traders with greater confidence and peace of mind when trading on the Interactive Brokers platform. It's worth noting, however, that other factors, such as market volatility and liquidity, can still affect the execution of Interactive Brokers trades.

Like other brokers, Interactive Brokers margin requirements can differ depending on the traded instrument.

Interactive Brokers offers traders several risk management tools and features, such as Technical analysis, Fundamental analysis, Diversification of portfolio, Negative Balance Protection, Stop losses (with trailing stop loss orders), Position sizing techniques, Price alerts, Position sizing techniques, Limit orders, Hedging strategies, amonst others. You can learn more about Interactive Brokers, and see all of the Interactive Brokers account features on the official Interactive Brokers website.

Limiting Your Risk When Trading with Interactive Brokers Negative Balance Protection

Negative balance protection is important for traders using leverage on platforms like Interactive Brokers. In an unfavourable market move, leverage can result in a loss that exceeds the trader's account balance, leaving them with a negative account balance. If a Interactive Brokers trading position does not go in your favour, this is where negative balance protection comes in handy.

Brokers regulated by the Financial Conduct Authority (FCA) must offer negative balance protection as a standard feature. With negative balance protection, Interactive Brokers trading losses are always limited to the current balance of funds in the trader's account.

Even if an Interactive Brokers trader experiences a significant loss, they will never owe more money than what is available in their Interactive Brokers account balance.

It's important for Interactive Brokers traders to understand the potential risks of trading with leverage and to take advantage of features like negative balance protection to mitigate those risks. By doing so, traders can trade with peace of mind, knowing that Interactive Brokers losses are limited to the funds available in your Interactive Brokers account when negative balance protection is in place.

Limit Risk When Trading with Interactive Brokers Stop Loss, Interactive Brokers Stop Limit Orders

Stop-loss orders are a popular risk management tool traders use on platforms such as Interactive Brokers . By setting a specific price point for buying or selling a security, traders can limit their potential losses on a position.

Stop-loss orders are especially important for Interactive Brokers traders not hedging their positions or using leverage, as they can be more vulnerable to significant losses. However, the circumstances in which an Interactive Brokers trader should use a stop-loss order can vary depending on the specific trade and market conditions.

Overall, stop-loss orders can provide Interactive Brokers traders with an effective way to manage risk and protect their investments in volatile markets.

Education Resources at Interactive Brokers

To trade effectively with Interactive Brokers, it's important to have a good understanding of the Interactive Brokers trading tools and the markets. Make sure you make full use of all education tools. Including educational tools with Interactive Brokers and externally.

Interactive Brokers . It's essential to take the time to learn about the financial markets and understand how they move before diving into trading with Interactive Brokers. Familiarizing yourself with the Interactive Brokers trading platform is crucial to use it effectively.

While learning, you can also use global trading times to practice making live buy or sell trades using Interactive Brokers. This hands-on experience can help you gain confidence and become more comfortable with trading.

Furthermore, learning how to mitigate and manage investment risk is crucial. Trading with Interactive Brokers involves developing a strategy considering risk management techniques such as stop-loss orders, diversification, and position sizing. By effectively managing risk, you can increase your chances of success in the markets.

Learning about the financial markets, trading platforms like Interactive Brokers, and risk management techniques can help you become a more confident and successful trader.

Take an analytical approach to trading with Interactive Brokers. Explore the Interactive Brokers platform and train yourself to think systematically and logically about the markets.

While it may be a new skill set for some, it is what the market requires for success. Developing your trading skills with Interactive Brokers, before live trading.

Customer Support at Interactive Brokers

As part of our Interactive Brokers review, we review customer service options, response times and problem resolution effectiveness on the Interactive Brokers trading platform. The Interactive Brokers trading platform supports multiple languages, which includes English, Francais, Deutsch, Espanol, Italiano, Ruskiyy, Mandarin, Cantonese, Nihongo.

Interactive Brokers Available Support Types

Interactive Brokers has a triple AAA grade support and customer service rating because they offer various range of languages, live chat, and email support.

Interactive Brokers customer service supports multiple languages from all over the world. Having a broker that can hire people from various locations worldwide who can better communicate with you in your local language is a huge advantage when dealing with issues.

Your customer service experience with Interactive Brokers has to be positive for you to effectively trade the financial markets on the Interactive Brokers platform. Interactive Brokers should answer all of your questions and your Interactive Brokers platform issues are solved. When an Interactive Brokers customer has any queries regarding Interactive Brokers, the Interactive Brokers customer support team should take these issues seriously and offer a quick and effective solution. Interactive Brokers has a great client support team, so we have rated their customer service highly.

Livechat Support at Interactive Brokers

We experienced fast and responsive support from Interactive Brokers

At Interactive Brokers, customer support is a top priority. We put their live chat to the test, reaching out through both their app and website. We were pleasantly surprised to receive a response within three minutes. Don't take our word for it. Test the chat service yourself. A responsive chat service from Interactive Brokers should be a positive support experience for all Interactive Brokers users, saving you from waiting days for an email response.

We also tested communicating with Interactive Brokers support in various languages and countries. The Interactive Brokers help centre quickly resolved our customer issues.

Email Support at Interactive Brokers

As part of our review process, we wanted to test the email support offered by Interactive Brokers. We sent 25 emails at different times and were impressed with the response times. We received the fastest response in less than 2 minutes, and the slowest response was 3 hours. While your experience may vary, our testing shows Interactive Brokers has excellent email support overall.

The support team quickly and efficiently resolved all of our queries. Overall, we were very satisfied with the email support provided by Interactive Brokers. If you're looking for a broker with reliable email support, Interactive Brokers is worth considering.

Phone Support at Interactive Brokers

Our experience with Interactive Brokers phone support was positive. When we called, the team answered our call promptly, in less than a minute.

During the call, we tested the multilingual Interactive Brokers team by speaking in different languages, and they made an effort to answer our queries in each language.

The phone support team successfully resolved our questions and issues over the phone. Overall, we found the phone support from Interactive Brokers good.

See how Interactive Brokers Support Compares Against Other Brokers

What you will need to open an account with Interactive Brokers

As Interactive Brokers is regulated by Financial Conduct Authority (FCA).

As a new client of Interactive Brokers, you will be required to pass a few basic compliance checks to ensure that you fully understand the risks involved in trading and are permitted to trade with Interactive Brokers in your region. During the Interactive Brokers account opening process, you will be asked to provide Interactive Brokers with certain documents, including a scanned copy of your passport, driving license or national ID, as well as a utility bill or bank statement from the past three months to verify your address.

When registering with Interactive Brokers have the following documents available.

• Interactive Brokers require a scanned colour copy of your passport, driver's license or national ID card.
• A recent utility bill or bank statement that confirms your residential address for Interactive Brokers compliance. This must be dated within the last six months.
• If you plan to fund your Interactive Brokers account using a credit or debit card, you will need to provide a scanned copy of the front and back of your card. You can mask any sensitive information like the CVV code on the Interactive Brokers platform.

It's worth noting that the expiration date of the proof of address document may differ for different entities under Interactive Brokers Brand. Additionally, you will need to answer some basic compliance questions to confirm your level of trading experience. This process usually takes around 5 minutes, and once you've passed compliance, you can start exploring Interactive Brokers's platform.

However, remember that you won't be able to make trades on Interactive Brokers until you have passed compliance, which may take several days, depending on your circumstances. It's essential to complete the Interactive Brokers KYC compliance process as soon as possible to avoid any delays in accessing the Interactive Brokers platform's features.

It is important to note that Interactive Brokers may request additional documents or information to verify your identity or comply with regulations. The account opening process usually takes a few minutes to complete, and you can start exploring the Interactive Brokers platform and features immediately. However, you must pass the verification process to start live trading with Interactive Brokers, which can take up to a few business days.

To start the process of opening an account with Interactive Brokers you can visit the Interactive Brokers trading platform here.
Losses can exceed deposits
You should consider whether you can afford to take the high risk of losing your money.

CFDs are leveraged products and can result in significant losses, excess of your invested capital. All trading involves risk. Only risk capital you're prepared to lose. Past performance does not guarantee future results.
This post is for educational purposes and should not be considered investment advice. All information collected from https://www.interactivebrokers.com/ on September 29, 2023.

Interactive Brokers review written by Andrew Blumer and Mark Hansen