Interactive Brokers Review with Pros, Cons, Fees & More | Eivod

Interactive Brokers Review

Interactive Brokers (IBKR) stands as a highly trusted multi-asset broker, offering an extensive range of tradeable global markets. This review provides an in-depth analysis of the platform's strengths and weaknesses, fees, and unique features to help potential users make an informed decision.

Pros

• Established Reputation - Founded in 1977, Interactive Brokers is publicly listed (NASDAQ: IBKR) and regulated in nine Tier-1 jurisdictions, instilling confidence in its reliability.
• Global Market Access - With access to 135 market centers across 33 countries and 23 currencies, IBKR enables traders to diversify globally, supporting a wide array of securities, including stocks, options, futures, and spot forex.
• Advanced Trading Tools - The Trader Workstation (TWS) desktop platform offers sophisticated order type configurations, catering to the needs of professional traders and providing an institutional-grade trading experience.
• Unique Features - IBKR distinguishes itself with fractional share trading, a stock yield enhancement program, and a robo-advisor offering themed and actively-managed portfolios. Additionally, overnight trading of over 10,000 US Stocks and ETFs is available.
• Competitive Fees - IBKR Lite offers commission-free US-listed stock and ETF trading, while IBKR Pro provides smart routing and offers up to 4.83% interest on uninvested cash balances. The platform also boasts some of the lowest margin rates in the industry.

Cons

• Complexity for Beginners - The Trader Workstation (TWS) desktop platform, while powerful, may be overwhelming for inexperienced traders. Unfortunately, MetaTrader is not available as an alternative option.
• Customer Support Challenges - Interactive Brokers' customer support has been reported as unreliable, with difficulties in accessing live chat support, especially via the mobile app.
• Security Concerns - While providing a secure platform, IBKR's security features have been criticized for occasionally complicating the login and trading processes, leading to user frustration.

Fees

Fee Type	IBKR Lite	IBKR Pro
Minimum Deposit	$0	$0
Annual Fee	$0	$0
US-Listed Stock and ETF Trade Fees	Commission-free	Choice of fixed or tiered pricing
Other Trade Fees	Fixed pricing	Choice of fixed or tiered pricing
Inactivity Fee	$0	$0
Withdrawal Fees	Varying	Varying

Is Interactive Brokers Legit?

Yes, Interactive Brokers is a legitimate multinational brokerage firm founded in 1977. It is authorized and regulated by the US Securities and Exchange Commission, a member of the New York Stock Exchange (NYSE), Financial Industry Regulatory Authority (FINRA), and Securities Investor Protection Corporation (SIPC).

Trading and Analysis Tools

Interactive Brokers offers a suite of powerful tools, including PortfolioAnalyst, IBKR GlobalAnalyst, OptionTrader, FXTrader, Fundamentals Explorer, Social Sentiment, Technical Insights, Interactive Advisors, EventTrader, and access to micro futures. The single login feature across all platforms ensures seamless user experience.

Conclusion

Interactive Brokers caters to a broad spectrum of traders, from beginners to professionals, offering a vast range of global markets and advanced trading tools. While it excels in various aspects, potential users should consider their experience level and preferences before choosing IBKR as their trading platform. 

DISCLAIMER: This article by Eivod is general in nature. We provide investment opinions, based on historical data and our articles are not intended to be investment advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis, driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Eivod has no position in any stocks mentioned.