Why choose Interactive Brokers
Interactive Brokers is a broker that suits all needs. Besides great fees, you can trade stocks, ETFs, options, futures and many more assets from all over the world. I mainly use Interactive Brokers for my long-term stock and ETF investments and I’m really satisfied with it. Beginners will find the platforms and service complex, but learning to use them is absolutely worth your time, as you can unlock powerful tools for your investments.
| Pros | Cons |
| Extremely low fees Wide range of products Many great research tools | Complicated account opening process Complex services Understaffed customer service |
- Overall score 4.9/5
- Minimum deposit $0
- Stock fee Low
- Options fee Low
- Inactivity fee No
- Account opening 1-3 days
See how the best brokers in Hong Kong compare to Interactive Brokers
- Interactive Brokers $0
- CapTrader $1.5
- Saxo $3
- Webull $1.0
- Alpaca Trading $2.0
Fees
Interactive Brokers has low trading fees and the best margin rates in the industry. IB currently pays interest (up to 4.83% for USD) on cash balances if you have a $100k account (net asset value). For US clients, stock and ETF trading is free if they choose the Lite plan.
| Pros | Cons |
| Low trading fees Free stock and ETF trading for US clients Low margin rates | Average CFD and forex fees |
We compared Interactive Brokers’s fees with two similar brokers we selected, Saxo and DEGIRO. These competitors were selected based on objective factors like products offered, client profile, fee structure, etc. See a more detailed comparison of Interactive Brokers alternatives.
Low stock and ETF commission
Interactive Brokers US stock fees are less than half of the industry average. US stock fees are calculated as follows: Fixed pricing: $0.005 per share, min. $1, max. 1% of trade value. Free for US clients choosing IBKR Lite plan.
Interactive Brokers stock and ETF commission
| Broker | US stock |
| Interactive Brokers | $1.0 |
| Saxo | $1.6 |
| DEGIRO | $2.2 |
For IBKR Pro clients, SMART routing continually scans competing markets and automatically routes orders directly to the best available market based on price while also taking into account factors such as the availability of automatic order execution.
Low margin rates
Interactive Brokers has the lowest USD margin rate fees among brokers we reviewed. USD margin rate fees are calculated as follows: Tiered margin rate. Lowest tier has a rate of 6.83% at IBKR PRO (7.83% at IBKR Lite)
Interactive Brokers annual margin rates
| Broker | USD margin rate |
| Interactive Brokers | 6.8% |
| Saxo | – |
| DEGIRO | 6.9% |
Interactive Brokers’s margin rates are one of the best in the industry for IBKR Pro customers. However, if you choose the IBKR Lite plan, you’ll be charged a higher annual rate – for example, the markup is 2.5% for IBKR Lite under $100k, while it’s 1.5% in the case of IBKR Pro.
Low options commission
Interactive Brokers US stock index options fees are about half of the industry average. US stock index options fees are calculated as follows: Less than 10,000 contract per month and for a 10 contracts trade: $0.65 per contract with $1 min
Interactive Brokers stock index options commission
| Broker | USD margin rate |
| Interactive Brokers | 6.8% |
| Saxo | – |
| DEGIRO | 6.9% |
No inactivity fee, no withdrawal fee
Interactive Brokers does not have a monthly inactivity fee, and it doesn’t charge an account or deposit fee, either. The first withdrawal each month is free of charge while subsequent withdrawals carry a fee (e.g. $10 in case of USD withdrawal).
Interactive Brokers inactivity, withdrawal and other fees
| Broker | USD margin rate |
| Interactive Brokers | 6.8% |
| Saxo | – |
| DEGIRO | 6.9% |
Other commissions and fees
Average mutual fund commission: trading mutual funds involves the following charges – $14.95 per transaction or 3% of trade value, whichever is lower. There are also more than 19,000 funds with no transaction fee.
Low futures fees: US index futures fees are as follows – $0.25 per contract.
Average FX fees: Interactive Brokers charges a forex commmission: Trade value less than $1 billion: 0.2 bps * trade value; min. $2. Spread costs come on top of this, e.g. the EUR/USD spread is 0.2.
Low spot crypto fees: at Interactive Brokers, crypto trading costs 0.12% to 0.18% of trade value with a USD 1.75 minimum per order (but the minimum is subject to a cap of 1% of trade value).
Low bond commission: US treasury bonds come with the following charges – For the first $1,000,000 face value: 0.002% of trade value with $5 min. Free with IBKR Lite that is available for US and Indian clients..
High index CFD fees: Interactive Brokers charges a commission for index CFDs, calculated as 0.005% of trade value with $1 min. There is also a spread cost. For example, the S&P 500 index CFD spread is 0.4.
Low stock CFD fees: the commission for stock CFD trading is the following – Below $300,000 monthly volume: $0.005 per share with $1 min.
Safety
Interactive Brokers is a legit brokerage. It is regulated by several financial authorities, including top-tier ones like the SEC in the US and the UK’s FCA. Its parent company is listed on the US NASDAQ exchange.
| Pros | Cons |
| Listed on stock exchange Negative balance protection Regulated by top-tier financial authorities | None |
Deposit and withdrawal
Interactive Brokers offers several account base currencies and one free withdrawal per month. The main drawback is that you can only use bank transfer.
| Pros | Cons |
| Listed on stock exchange Negative balance protection Regulated by top-tier financial authorities | None |
Deposit fees and options
Interactive Brokers charges no deposit fees.
However, deposit options are limited, as neither bank cards nor electronic wallets can be used. If you reside in the US, though, you have multiple extra options such as:
- ACH (Automated Clearing House)
- Check
- Online bill payment
- Direct Rollover (IRA accounts only)
- Trustee-to-Trustee (IRA accounts only)
Additionally, Interactive Brokers also offers direct debit card deposits using the IBKR debit card provided with Integrated Investment Management accounts. However, this is only available to US residents. (Separately, IBKR has an American Express International Dollar Card, designed for non-US residents.)
Account opening
IB’s account opening is fully digital and there is no required minimum deposit (except for a margin account). On the negative side, the process is complicated and account verification takes relatively long. The GlobalTrader app offers a somewhat better account opening experience.
| Pros | Cons |
| Listed on stock exchange Negative balance protection Regulated by top-tier financial authorities | None |
Product selection
At Interactive Brokers, you have access to an extremely wide range of markets. Every type of asset is available.
Interactive Brokers has a great selection of products, with an exceptionally wide range of ETFs and bonds. IB also offers a couple of more exotic assets, such as warrants and structured products. It only lags behind its competitors in terms of FX pair and CFD selection. Availability of products depend on IB affiliate and country of residence.
IB provides access to roughly 150 exchanges worldwide, including its alternative services, such as Interactive Advisors. This is an asset management service that is a mix of robo-advisory and social trading.
Interactive Brokers also offers an Overnight Trading Hours service that lists over 10,000 US stocks and ETFs. You can trade these US equities nearly 24 hours a day, five days a week. To find more information, visit Interactive Brokers’s page on overnight trading.
Interactive Brokers asset classes
| Interactive Brokers | Saxo | DEGIRO | |
| Stocks | |||
| ETFs | |||
| Forex | |||
| Funds | |||
| Bonds | |||
| Options | |||
| Futures | |||
| CFDs | |||
| Crypto |
FAQ
Does Interactive Brokers charge a monthly fee?
Interactive Brokers does not charge any recurring fees such as account maintenance fees or inactivity fees.
What is the minimum amount to deposit in Interactive Brokers?
To open an Interactive Brokers account, the required minimum deposit is $0. Meaning, there is no minimum deposit. To start trading you need to deposit at least $100.
Is Interactive Brokers free?
Yes, Interactive Brokers is free, if you are from the US and use IBKR Lite. IBKR Lite charges $0, and provides US stocks and ETFs only. However, order execution quality is bad because of PFOF (payment for order flow).
What fees does Interactive Brokers charge?
US clients can trade US-listed stocks and ETFs for $0 per share with the IBKR Lite plan. If you choose IBKR Pro, you pay $0.005 per share with $1 minimum and 1% maximum for US-listed stocks and ETFs. Annual margin rates are also really favorable at Interactive Brokers: benchmark rate + 1.5% for IBKR Pro, and benchmark rate + 2.5% for IBKR Lite.
How long does it take to withdraw money from Interactive Brokers?
It takes 2 to 4 days to withdraw money from IBKR depending on your bank and location. You can make one withdrawal per calendar month for free.
Can I open a cash account with Interactive Brokers?
Yes, you can open a cash account at Interactive Brokers. When you use cash account, you’re not allowed to borrow from the broker, ie. you can’t use margin. Cash account limits the potential losses, you can’t lose more than the originally invested amount.
How long does it take to get an IBKR account?
It usually takes about 2-3 working days to get a live IBKR account. Completing the application form takes about 30 minutes.