Interactive Brokers Review 2024: Pros and Cons Revealed

Interactive Brokers is a well-established stock broker compared to many of its peers like Wellbull and offering a large selection of tradable securities, and it offers $0 per share on stock and ETFs (for U.S residents only) with its IBKR Lite plan. Besides, it also offers the most advanced platforms to foster superb trading experience. In this way, Interactive Brokers features the largest clientele compared to its competitors, like Robinhood, Fidelity and Charles Schwab, over 2.6 million institutional and individual brokerage customers.

Is Interactive Brokers good for beginners？

Interactive Brokers (IBKR) is generally considered a preferred platform for active and experienced traders, instead of beginnners. While IBKR offers features that may appear beginner-friendly—such as low minimum deposits, fractional share trading, and paper trading — its core strengths align more closely with the needs of sophisticated market participants.

Interactive Brokers's suite of tools and resources is primarily tailored to support frequent traders and those employing complex strategies. This focus is evident in IBKR's flagship platform, Trader Workstation (TWS). TWS is a robust interface that provides advanced analytical tools and extensive customization options. However, its comprehensive nature can prove daunting for those new to trading, as the multitude of features and settings may overwhelm inexperienced users.

Similarly, while IBKR's mobile application offers on-the-go trading capabilities, it inherits much of TWS's complexity. This design choice prioritizes functionality for experienced traders but may present a steeper learning curve for novices compared to mobile platforms specifically designed for beginners.

Although IBKR does provide educational resources, these materials may not offer the same level of accessibility and comprehensive guidance found on platforms explicitly targeting beginners. The brokerage's educational content often assumes a baseline of market knowledge, which aligns with its core demographic of more seasoned traders.

Interactive Brokers Pros and Cons

Is Interactive Brokers Safe？

Then our Interactive Brokers (IBKR) review will come to this question evitably: Is Interactive Brokers safe or Is Interactive Brokers legit？ As one of the largest brokerage firms globally, IBKR has established a reputation as a trustworthy and reliable stock broker. To address this quetsion, We'll examine two key aspects: regulatory compliance and account protection measures.

Interactive Brokers Regulations

Interactive Brokers is globally regulated, with its entities regulated in different countries:

INTERACTIVE BROKERS LLC, is regulated in the United States by the United States The Financial Industry Regulatory Authority ( FINRA) under license no. CRD#: 36418/SEC#: 8-47257.

INTERACTIVE BROKERS AUSTRALIA PTY LTD, its entity in Australia, is regulated by the Australia Securities & Investment Commission (ASIC) under license no. 453554.

Interactive Brokers (U.K.) Limited, its UK entity, is regulated by the Financial Conduct Authority (FCA) under license no. 208159.

インタラクティブ・ブローカーズ証券株式会社, its entity in Japan, is regulated by the Fiancial Service Agency (FSA) under license no. 関東財務局（金商）第187号.

Interactive Brokers Hong Kong Limited, is regulated by the Hong Kong Securities and Futures Commission of Hong Kong (SFC) under license no. AD124.

Interactive Brokers Canada Inc., is regulated by the Investment Industry Regulatory Organization of Canada (IIROC).

INTERACTIVE BROKERS SINGAPORE PTE. LTD, its entity in Canada, is regulated by the Monetary Authority of Singapore under license no. CMS100917.

Regulated Country	Regulated Authority	Regulated Entity	License Type	License Number
	FINRA	INTERACTIVE BROKERS LLC	Securities Trading License	CRD#: 36418/SEC#: 8-47257
	ASIC	INTERACTIVE BROKERS AUSTRALIA PTY LTD	Australia Securities Trading License	453554
	FCA	Interactive Brokers (U.K.) Limited	Securities Trading License	208159
	FSA	インタラクティブ・ブローカーズ証券株式会社	Securities Trading License	関東財務局（金商）第187号
	SFC	Interactive Brokers Hong Kong Limited	Securities Trading License	ADI249
	IIROC	Interactive Brokers Canada Inc.	Canada Securities Trading License	Ureleased
	MAS	INTERACTIVE BROKERS SINGAPORE PTE. LTD	SingaporeSecurities Trading License	CMS100917

Account Protection

Client securities accounts at Interactive Brokers LLC are protected by the Securities Investor Protection Corporation (“SIPC”) for a maximum coverage of $500,000 (with a cash sublimit of $250,000). In addition, Interactive Brokers LLC carries an excess SIPC policy with certain underwriters at Lloyd's of London, which extends the per account coverage by an additional $30 million (with a cash sublimit of $900,000), subject to an aggregate limit of $150 million.

Interactive Brokers Review on Accounts

Interactive Brokers is considered as one the best brokerage firms and offers the best brokerage accounts. IBKR tailors its account offerings based on client types, which are primarily determined by geographical regions, including Americas, Europe, Asia-Middle East, Asia-Pacific and Africa.

Available client type structures include:

• Individual, Joint, Trust, IRA.
• Non-Professional Advisor.
• Family Office.
• Advisor.
• Advisor Client (including Non-Professional Advisor and Family Office)
• Broker Client.
• EmployeeTrack.

When opening your account, you have a choice of Cash, Margin, SIPP or Portfolio Margin account types. Cash accounts may be upgraded to Margin accounts but Margin accounts may not downgraded to Cash accounts. Interactive Advisors allows clients to open multiple client accounts.However, you do not need to open multiple accounts to invest in multiple portfolios.

Interactive Brokers Login:Opening an Interactive Brokers account is considered relatively easy. You can do it entirely online and there is no minimum deposit required. However, the application will ask you about your investment experience and knowledge, so be prepared with that information.

Here is a detailed video to show you how to open an account with IBKR:

Using the Account Selector: Interactive Brokers accommodates users managing multiple accounts with an efficient Account Selector feature. Here's how it works:

After selecting a menu option at the top of the screen, you'll be prompted to choose one or more accounts. The Account Selector displays each account's ID and client type for easy identification. On desktop computers, this selector conveniently slides in from the right side of the screen.

For a comprehensive overview, the Account Selector also allows you to view account balances and Net Asset Value for all accounts on a single screen. This feature streamlines account management, providing a quick and convenient way to monitor multiple accounts simultaneously.

Interactive Brokers IRAs

Interactive Brokers offers Individual Retirement Accounts (IRAs) in both cash and margin formats. When establishing an IRA with Interactive Brokers, you'll need to select a specific IRA type.

The available options include:

• Traditional IRA
• Traditional Rollover IRA
• Traditional Inherited IRA
• Roth IRA
• Roth Inherited IRA
• Simplified Employee Pension (SEP) IRA
• Savings Incentive Match Plan for Employees (SIMPLE) IRA


IRA accounts at Interactive Brokers can be set up with either cash or margin trading permissions. However, even with margin permissions, IRA accounts are never allowed to borrow cash or maintain a debit balance. This restriction is in accordance with US IRS regulations governing retirement accounts.

Interactive Brokers Review on Fees

Interactive Brokers offers two pricing plans: IBKR Lite and IBKR Pro. IBKR Lite is tailored for retail traders, offering commission-free trading on U.S. exchange-listed stocks and ETFs. This plan features no account minimums and no inactivity fees, making it accessible to a wide range of investors

IBKR Pro, on the other hand, is designed for sophisticated traders and investors seeking advanced features. This plan provides enhanced price execution with low costs, the lowest rates on margin loans in the industry, and higher interest paid on idle cash. While not commission-free, IBKR Pro offers a competitive fee structure that can benefit active traders and those managing larger portfolios. .



Interactive Brokers offers a competitive commission structure for U.S. markets, featuring both Tiered and Fixed pricing models across various asset classes. For stocks and ETFs, commissions range from $0.0005 to $0.0035 per share under the Tiered model, and $0.005 per share under the Fixed model, with both models offering commission-free trading on select No Transaction Fee ETFs. Options trading incurs fees between $0.15 and $0.65 per contract (Tiered) or a flat $0.65 per contract (Fixed). Futures contracts are priced at $0.25 to $0.85 per contract (Tiered) or $0.85 per contract (Fixed). Currency trading fees are based on basis points of trade value for the Tiered model, while the Fixed model offers spreads as low as 1/10 PIP. Bond transactions are charged at 10 basis points of face value per order, and mutual fund commissions are set at 3% of trade value up to $14.95 per transaction, with No Transaction Fee Funds available at no cost. This diverse fee structure allows investors to choose the pricing model that best suits their trading style and volume.

Overall, Interactive Brokers offers a straightforward and budget-friendly way to trade. They keep costs low with competitive fees and no sneaky extra charges. Users won't find any hidden spreads, order fees, or charges for using trading platform. Plus, there's no minimum balance required to open an account.



Margin Rates

Interactive Brokers stands out in the brokerage industry for its competitive margin rates. Despite providing some of the most attractive rates in the market, ranging from 5.83% to 6.83%, Interactive Brokers currently holds only $38 billion, or approximately 5%, of the total $726 billion in outstanding margin loans across the industry. This presents a stark contrast to many other brokers, whose margin rates typically span from 2.5% to 8% or higher.



Interactive Brokers Review on Platforms

Interactive Brokers review here come to its platform offerings. Interactive Brokers offers multiple trading platforms, IBKR Desktop, IBKR GlobalTrader, Trader Workstation (TWS), IBKR Client Portal, serving both new and seasoned traders. These platforms range from simple interfaces for beginners to complex systems for professionals.

Best for beginners:

IBKR Desktop (New): IBKR's newest platform prioritizes user-friendliness. It features a simplified interface for trading stocks and ETFs while retaining IBKR's competitive pricing, efficient order execution, robust research tools, and comprehensive market data. This platform is ideal for novice traders seeking a straightforward yet powerful trading experience.



IBKR GlobalTrader: This platform is another good option for beginners. It provides a simple interface for basic investing in stocks, ETFs, and some options. You can even try a simulated trading account before using real money.

Not ideal for beginners :

TWS (Trader Workstation): IBKR's most sophisticated platform offers extensive features and tools, making it ideal for experienced traders. However, its complexity may prove challenging for novice investors due to the wealth of advanced functionalities.

IBKR TWS comes in two versions: Mosaic and Classic. Mosaic offers intuitive, out-of-the-box functionality with easy access to comprehensive trading tools, order management, charts, watchlists, and portfolio analysis in a customizable workspace. The Classic version caters to traders needing more complex tools and algorithms, featuring a quick-click order entry system with bid and ask prices displayed above the order line. This layout facilitates efficient trading for advanced users.



Although IBKR TWS does not target for beginners, beginners can also learn to use this powerful trading platforms to enhance their trading experience with IBKR.

Trader Workstation (TWS) for beginners:

IBKR Client Portal: The Client Portal provides basic account management features but is not ideal for active trading due to its limited functionality. Users can access it by clicking “Log In” in the upper right corner of interactivebrokers.com, then selecting “Portal Login”. The difference between Client API and TWS API lies in Client Portal API is a REST based API. That is, requests to the IBKR backend are sent over the internet. In comparison, TWS API is designed to programatically interact with the Trader Workstation software.



Other Platforms

Interactive Brokers offers various APIs. These include a user-friendly Excel API for beginners and a robust FIX API for advanced users. The TWS API is particularly well-supported, providing numerous examples to help traders get started with programmatic trading.

IBKR EventTrader is a specialized web-based platform for trading Event Contracts. It allows investors to easily trade based on their knowledge or opinions about specific yes/no outcome questions, providing a unique way to participate in event-driven markets.

For socially conscious investors, IBKR IMPACT is a mobile app available on iOS and Android devices. It simplifies the process of aligning investments with personal values, enabling users to find and invest in companies that match their ethical or social priorities.



Compare to Similar Brokerages

Interactive Brokers	Webull	Robinhood	Fidelity
⭐⭐⭐⭐⭐	⭐⭐⭐⭐⭐	⭐⭐⭐	⭐⭐⭐
Products offerings: Stocks & ETFs, Options, Futures/FOPs, Event Contracts, Spot Currencies, US Spot Gold, Bonds, Mutual Funds	Products offerings: Stocks, Options, Index Options, Futures, ETFs, OTC, Margin, Fractional Shares, Cryptos	Products offerings: Crypto, Options, Retirement, ETFs	Products offerings: Mutual FundsCryptoDirect IndexingFixed Income, Bonds & CDs, ETFsOptions
Account Minimums: $0	Account Minimums: $0	Account Minimums: $1	Account Minimums: $10
Fees: $0 per trade	Fees: $0 per trade	Fees: $0 per trade	Fees:$ per trade
Regulations: FINRA, ASIC, FCA, FSA, SFC, IIROC, MAS	Regulations: FINRA, AISC, FSA, SFC, MAS	Regulations: FINRA	Regulations: FINRA
Promotions: Yes	Promotions: Yes	Promotions: Yes	Promotions: No

Frequently Asked Questions (FAQs)

Is Interactive Brokers good for beginners？

Interactive Brokers offers a powerful platform with advanced features, but it is not an ideal for new investors.

How do Interactive Brokers' commissions compare to other brokers？

Interactive Brokers' commissions are considered competitive, but their structure can be a bit more complex compared to some other brokers.

Does Interactive Brokers offer fractional shares？

Fractional shares allow you to invest in any amount, regardless of the stock price.

Is Interactive Brokers a safe and reliable broker？

Interactive Brokers is a well-established and globally recognized broker with strong regulatory compliance.

For more professional reviews on stock brokers, please visit Wikistock (https://www.wikistock.com/en)