InteractiveBrokers

IB Information

IB, or Interactive Brokers, is a discount brokerage firm founded in the United States in 1978. It is headquartered in Greenwich, Connecticut, and has offices in several other countries, including the United Kingdom, Hong Kong, and Australia. The company provides electronic brokerage services to individual and institutional clients, offering a range of financial products, including 150 markets including stocks/ETFs, options, futures, spot currencies, bonds, and mutual funds. Interactive Brokers is regulated by several financial authorities, including ASIC (Australia), FCA (UK), FSA (Japan), SFC (Hong Kong), and CIRO (Canada).

Pros & Cons

Interactive Brokers (IB) has many advantages, including low commissions, access to a wide range of financial products, and a highly customizable trading platform. Additionally, IB is known for its advanced research tools and competitive pricing.

However, complex trading platforms are not suitable for all investors.

Below is a table outlining the pros and cons of Interactive Brokers (IB):

Note: This table is based on general observations and may not represent the experience of every individual user.

Is IB Legit?

Interactive Brokers is a well-established and reputable broker. The company is publicly traded and regulated by multiple top-tier financial authorities around the world, including ASIC (Australia), FCA (UK), FSA (Japan), SFC (Hong Kong), and CIRO (Canada).

Regulated Country	Regulated by	Regulated Entity	License Type	License Number
	Australia Securities & Investment Commission （ASIC）	INTERACTIVE BROKERS AUSTRALIA PTY LTD	Market Making (MM)	000453554
	Financial Conduct Authority (FCA)	Interactive Brokers (UK) Ltd	Market Making (MM)	208159
	Financial Services Agency (FSA)	インタラクティブ・ブローカーズ証券株式会社	Retail Forex License	関東財務局長（金商）第187号
	Securities and Futures Commission of Hong Kong (SFC)	Interactive Brokers Hong Kong Limited	Dealing in futures contracts & Leveraged foreign exchange trading	ADI249
	Canadian Investment Regulatory Organization (CIRO)	Interactive Brokers Canada Inc.	Market Making (MM)	Unreleased

Furthermore, the broker has a long history of providing high-quality services to its clients, with a track record of financial stability and reliability. Therefore, based on these factors, it can be concluded that IB is a legitimate broker.

How Are You Protected?

Interactive Brokers (IB) provides a range of security measures to protect its clients' funds and personal information. Some of the key security measures include:

It's important to note that while no investment platform can completely eliminate risk, IB's measures are designed to mitigate risk and protect its clients as much as possible.

Our Conclusion on IB Reliability:

Based on the information provided, Interactive Brokers is a reliable broker with a strong focus on client protection and security measures. It is regulated by multiple authorities and has a history of being in the industry for several decades.

Market Instruments

IB offers 150 markets across multiple asset classes, including:

• Stocks: IB provides access to over 135 markets and 35 countries, with more than 9,000 stocks available to trade.
• Options: IB offers options trading across a variety of markets, including stocks, indices, and futures.
• Futures: IB offers futures trading on over 70 global markets, including indices, commodities, and currencies.
• Forex: IB provides access to forex trading in over 100 currency pairs.
• Bonds: IB offers trading in bonds, including corporate, municipal, and government bonds.
• Funds: IB offers trading in funds from over 250 fund families.

Account Types

Interactive Brokers (IB) offers various types of accounts for different trading needs, including Individual, Joint, Retirement, Trust, Family, and Institutional accounts.

Margin & Leverage

While the margin rates that IB offers are the same for all customers, local regulators may impose different or higher rates. Regulatory requirements for margin deposits in a given jurisdiction will take precedence over those set by the IB if they are greater.

And since high-risk leverage is regulated differently in different countries, your ability to use it will vary based on the trading instrument you use and the law where you live. As a result, IB provides a convenient online tool to let you quickly and easily view all applicable margins, allowing you to select the optimal trading conditions.

For customers who come under the jurisdiction of the Australian Securities and Investments Commission (ASIC), the maximum leverage available on Forex trades is 1:400.

It is important to keep in mind that the greater the leverage, the greater the risk of losing your deposited capital. The use of leverage can both work in your favour and against you.

Spreads & Commissions

Spreads:

• Forex: IB offers competitive spreads on major forex pairs, with typical spreads ranging from 0.1 to 0.3 pips for EUR/USD, 0.1 to 0.6 pips for USD/JPY, and 0.3 to 0.7 pips for GBP/USD.
• Stocks: IB offers tiered pricing for stocks, with spreads ranging from $0.0035 to $0.01 per share, depending on monthly volume. For example, the spread for a trade of 100 shares of Apple (AAPL) would be $0.35 to $1.00, depending on the monthly volume.
• Options: IB offers competitive spreads on options, with typical spreads ranging from $0.10 to $0.30 per contract for major options.

Commissions:

A tiered commission of $0.0035 per share for a monthly volume of fewer than 300,000 shares, $0.002 per share for a monthly volume of 300,001-3,000,000 shares, $0.0015 per share for a monthly volume of 3,000,001-20,000,000 shares, and $0.0015 per share for a monthly volume of 20,000,000 shares. $0.001 per share for a monthly volume of 20,000,001-100,000,000 shares and $0.0005 per share for a monthly volume of 100,000,000 shares or more. The minimum commission is $0.35, and the maximum commission is 1% of the trading volume. The commission for metals trading is 0.15 basic points of the volume, with a minimum of $2.

Trading Platforms

IBKR GlobalTrader, Client Portal, IBKR Mobile, Trader Workstation (TWS), IBKR APIs, IBKR Event Trader, and IMPACT are different trading platforms and tools offered by Interactive Brokers (IB) to its clients.

• IBKR GlobalTrader is a web-based platform designed for trading and managing international accounts. It provides access to 125 global markets and 31 countries. It also allows clients to trade in multiple currencies and offers currency conversion at competitive rates.
• Client Portal is a web-based platform that enables clients to manage their accounts, view balances and positions, access research and news, and monitor trading activity. It also provides account management tools such as funding, withdrawals, and statements.
• IBKR Mobile is a mobile application that allows clients to manage their accounts, place trades, and access real-time market data. It is available for both iOS and Android devices.
• Trader Workstation (TWS) is a desktop trading platform that provides advanced trading tools, real-time market data, and research. It is designed for professional traders and investors who require advanced trading capabilities.
• IBKR APIs are a set of programming interfaces that allow clients to integrate their own software and applications with IB's trading systems. This enables clients to automate their trading strategies and access real-time market data.
• IMPACT (Interactive Brokers Market Place and Corporate Technology) is an online marketplace that offers a range of third-party applications and services to clients. These include trading tools, research, analytics, and other resources to enhance trading capabilities.

Overall, IB offers a variety of trading platforms and tools that cater to the needs of different types of traders and investors. These platforms provide access to a wide range of markets and instruments, advanced trading tools, real-time market data, and research resources. Additionally, the IBKR APIs enable clients to customize and automate their trading strategies.

Deposits & Withdrawals

There are several major options for traders to deposit and withdraw funds from their accounts, including bank wire transfers, ACH, BPAY, EFT, online bill payment and more.

Note that the availability of deposit and withdrawal methods may vary depending on your location and account type.

Minimum deposit requirement

The minimum deposit requirement for Interactive Brokers (IB) varies depending on the account type and the location of the account holder. For example, the minimum deposit for a US-based individual account is $0 for IBKR Lite and $0 for IBKR Pro, while for a non-US-based individual account, the minimum deposit is $0 for IBKR Lite and $10,000 for IBKR Pro. However, the minimum deposit for other account types, such as institutional accounts or margin accounts, may be higher.

IB minimum deposit vs other brokers

Education

Interactive Brokers offers a variety of educational resources for traders, including webinars, courses, videos, and articles.

The education section of their website includes topics such as trading basics, options trading, technical analysis, and trading strategies. They also offer a wide range of educational videos on their YouTube channel.

In addition, Interactive Brokers offers a simulated trading account that allows traders to practice trading with virtual funds before risking real money. This is a useful tool for beginners who are learning to trade.

Conclusion

In conclusion, Interactive Brokers is a reputable and reliable broker that offers a wide range of investment products and trading platforms to its clients. The broker is known for its low commission rates and competitive pricing structure, making it a good choice for active traders and investors.

IB also provides a high level of security and protection to its clients, through various measures such as SIPC and excess SIPC insurance, and two-factor authentication. The broker also offers educational resources, customer support, and a variety of account types to meet the needs of different traders.

However, IB may not be the best fit for beginners due to its complex trading platforms and sophisticated tools.

Overall, Interactive Brokers is a good choice for experienced traders and investors who are looking for a reliable broker with low commissions and a wide range of investment products.

Frequently Asked Questions (FAQs)