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Interactive Brokers Review 2025
Overview, highlights & more!
What will you find in this review:
Why do we recommend Interactive Brokers?
In this YourWalletManager Interactive Brokers review, we will provide an unbiased assessment of Interactive Brokers, a brokerage firm with a longstanding history and reputation as one of the world's most established and trustworthy online brokers.
We highly recommend IB for individuals who consider themselves active and sophisticated investors, particularly those who prioritize a brokerage's reputation.
This platform offers a robust trading system and a fee structure that, while comprehensive, may be considered complex by individuals who are newer to the world of investing.
Notably, the company has introduced IBKR GlobalTrader, a modern mobile trading application tailored for trading Stocks, Options, and ETFs. This offering caters particularly well to novice investors, providing a more accessible entry point into the world of trading.
IB has a remarkable history, having been founded in 1978. Over the decades, it has weathered significant economic crises, including the Asian Financial crisis of 1997, the dot-com bubble in 2000, and the global financial crisis of 2007-09.
Through these challenges, the firm has demonstrated resilience and a commitment to rigorous risk management practices.
The information provided on this page and throughout the website is for general information purposes only and does not constitute financial advice. It is important that you conduct your own research and consider your own personal circumstances before making any investment decisions.
Interactive Brokers Group is publicly traded on the NASDAQ exchange under the ticker symbol IBKR. This listing provides investors with transparent access to the company's annual reports and other critical financial data. Such transparency can be invaluable when evaluating the financial health and stability of the broker.
The platform boasts several noteworthy features that set it apart in the world of online brokerage. These strengths include an exceptionally detailed dashboard, an extensive array of available products (virtually anything tradable can be found on the platform), and superb access to a wealth of research and trading tools.
However, it's important to acknowledge some areas where IB falls short. The website's navigation can prove challenging for users, and the fee structure can be rather intricate to fully grasp. Additionally, the desktop version, known as TWS (Trader Workstation), may be perceived as overly complex, particularly by those who are new to trading.
Furthermore, it's worth noting that the company tailors its product offerings based on the user's country of origin. Given this fact, our review will primarily focus on Europe and other non-U.S. customers, as this represents our primary target audience and involves fewer intricacies compared to the U.S. market.
In summary, the above encapsulates the essence of this Interactive Brokers review.
Overview of Interactive Brokers
The broker distinguishes itself prominently from its competitors. It stands as one of the rare trading platforms that places an astonishing array of trading possibilities directly at your fingertips, and we mean that quite literally!
You gain access to more than 150 market destinations spanning across 30+ countries, enabling you to trade virtually any asset class you might seek: be it Stocks, Bonds, ETFs, Forex, Funds, Commodities, Options, Futures, CFDs, Cryptos
Futures, or even the lesser-known micro-cap companies with minimal liquidity. Furthermore, if you're a business owner, you can take advantage of its services to accommodate your company's needs with dedicated business accounts.
The trading experience delivered by Interactive Brokers is truly exceptional, provided you possess the knowledge to fully harness its extensive offerings. Consequently, our primary endorsement is directed towards advanced investors who can navigate the platform's intricacies with finesse.
While beginners and intermediate investors will find educational tools at their disposal, it's important to acknowledge that the learning curve may prove to be steeper for them.
Within the Trader Workstation (TWS), the desktop version of the platform, you have access to the highest level of customization, enabling the creation of advanced conditional order types like one-cancels-another and one-triggers-another.
Beyond the TWS platform, Interactive Brokers also facilitates trading through its web version and mobile app. These alternatives, designed with user-friendliness in mind, ensure you don’t sacrifice any essential features. In addition to executing buy and sell orders for various securities, they provide functionalities such as alerts, real-time monitoring, watchlists, and a host of other valuable tools.
Interactive Brokers has also introduced IBKR GlobalTrader, a modern mobile trading app tailored for those venturing into the world of Stocks, Options, and ETFs, making it particularly appealing to novice investors. IBKR GlobalTrader boasts an array of features, including automatic currency conversions and the ability to trade fractional shares of ETFs, European stocks, and US stocks, among others.
Regarding customer support, opinions among users tend to vary widely. The platform offers multiple channels for support, including phone, email, live chat, and an automated assistant called “iBot.”
From our own interactions via the message box, it’s worth noting that customer service response times have been on the lengthier side, exceeding three business days.
However, once a response was received, it proved to be highly informative, often eliminating the need for extensive back-and-forth communication.
Additionally, Interactive Brokers provides the perk of paying interest on uninvested cash, with rates reaching up to 2.23% for EUR balances and 4.58% for USD balances for investors maintaining balances exceeding 10,000 EUR/USD.
These features have notably attracted a substantial number of affluent investors, as evidenced by the average account balance. As of July 2021, this figure hovered around $240,000, calculated by dividing the total assets of $351.2 billion by the approximately 1,451,000 accounts—a truly significant average account value.
To provide some perspective, Robinhood, another brokerage platform, reports an average account balance per user of $5,000 (with even lower median figures, averaging around $350).
*Fractional shares trading is eligible to European stocks and ETFs listed on select exchanges, with an average daily volume above $5 million and market cap above $5 billion.
Platform Highlights
| 🗺️ Supported Countries | Worldwide |
| 📊 Stocks and ETFs fees | $0.0035/share (min $0.35; max 1% of the trade value) for US stocks |
| 💲 Currency Conversion Fee | 0.002% (0.20 basis points) |
| ⏳ Inactivity fee | €/$/£0 |
| 🏧 Withdrawal fee | €/$/£0 |
| 💵 Minimum Deposit | €/$/£0 |
| 💡 Products offered | Stocks, ETFs, Bonds, Forex, Funds, Commodities, Options, Futures and CFDs |
| 🎮 Demo Account | Yes |
| 📜 Regulatory entities | FINRA, SIPC, SEC, CFTC, IIROC, FCA, CBI, AFSL, SFC, SEBI, MAS, MNB |
Advantages
Competitive commissions
for trading US stocks (applies to EUR-based accounts).
Elimination of monthly inactivity fees
Please note that as of July 2021, a minimum monthly fee of $10 was in effect.
Attractive interest rates
offered on uninvested cash: With yields reaching up to 2.23% and 4.58% for EUR and USD cash balances, respectively, provided your account balance exceeds 10,000 EUR/USD.
Extensive and diverse product selection,
encompassing a wide range of markets, making it one of the most comprehensive in the brokerage industry.
Access to a valuable demo account
for practice trading.
Distinguished reputation
with a foundation dating back to 1978.
Abundant research
and educational resources.
Introduction of IBKR GlobalTrader
a contemporary mobile trading app designed for trading Stocks, Options, and ETFs, catering especially to less experienced investors.
Start your investing journey with Interactive Brokers today!
Investments can fall and rise,
your capital is at risk.
Investments can fall and rise,
your capital is at risk.
Drawbacks
Complicated and lengthy account opening process (but fully online)
Steeper learning curve for beginners
Website is difficult to navigate
Interactive Advisors (Robo-advisor feature) is only available for US customers
Account Setup Process
To open an account, you will exclusively utilize the IBKR PRO service plan, which leads to either a Fixed or tiered pricing structure for all offered products.
Unlike many low-cost competitors with simpler fee structures, Interactive Brokers provides a choice, so it’s essential to carefully consider what you intend to trade and the corresponding volumes to determine the most cost-effective option.
For instance, Fixed pricing entails a charge of 0.005 cents per share with a minimum order value of $1 for stocks and ETFs. Conversely, Tiered pricing starts at 0.0035 cents per share with a minimum of $0.35 for monthly trades involving up to 300,000 shares.
The account registration process is entirely digital, requiring you to follow a series of steps. It is somewhat time-consuming as it involves collecting personal information and assessing your trading experience.
These factors will influence the range of assets you can trade within Interactive Brokers, although you can adjust this later if you find the restrictions too limiting.
After successfully verifying your identity, residency, and making a deposit, you will gain access to the platform where you can begin your investment journey. In our experience, the team processed our account setup within one business day.
Keep in mind that YourWalletManager does not provide investment advice.
Individual investors should make their own informed decisions based on factual information.
Deposits and withdrawals are exclusively facilitated through bank transfers (Wire/SEPA), and other methods such as debit/credit cards or PayPal are not accepted. With Wire transfers, you are entitled to one free withdrawal per month.
Any subsequent withdrawals in the same month will incur a fee of EUR 8.00. In the case of SEPA transfers (limited to EUR transactions), you have the benefit of one free withdrawal each month, with a fee of EUR 1.00 applied to subsequent withdrawals within that same month.
Platform & Tools
The platform grants you access to an extensive network of over 150 market destinations across 30+ countries, providing the versatility to trade a wide array of assets.
This encompasses Stocks, Bonds, ETFs, Forex, Funds, Commodities, Options, Futures, and even micro-cap companies with limited liquidity. Furthermore, you can engage in stock trading on more than 90 stock exchanges spanning the USA, Canada, Europe, and Asia.
However, it’s worth noting that the platform does not offer cryptocurrencies in Europe, restricting its cryptocurrency offerings to crypto futures.
The availability of fractional shares extends to both US stocks and European stocks and ETFs across all Interactive Brokers’ robust trading platforms, including the user-friendly IBKR GlobalTrader.
For investors that need an actively managed investment solutions, mutual funds present a viable option. The platform offers access to thousands of funds, including those managed by prestigious global asset management firms such as Fidelity, BlackRock, Schroder, and JP Morgan.
The minimum initial investment size required is $3,000, with subsequent minimum order sizes set at $100. European investors primarily engage with UCITS funds domiciled in Ireland or Luxembourg, making the following commission structure pertinent: a commission of 0.10% of the trade value with a minimum of €4 and a maximum cap of €29.
Regulatory Safeguards
For those seeking actively managed investment solutions, mutual funds present a viable option. Interactive Brokers offers access to thousands of funds, including those managed by prestigious global asset management firms such as Fidelity, BlackRock, Schroder, and JP Morgan.
The minimum initial investment size required is $3,000, with subsequent minimum order sizes set at $100. European investors primarily engage with UCITS funds domiciled in Ireland or Luxembourg, making the following commission structure pertinent: a commission of 0.10% of the trade value with a minimum of €4 and a maximum cap of €29.
To illustrate better:
- Interactive Brokers UK Limited: If you are a UK resident, your investments fall under the purview of this legal entity, affording you protection up to £85,000 by the Financial Services Compensation Scheme (FSCS), encompassing both cash and assets.
- Interactive Brokers Ireland Limited: Residents of Northern and Western Europe fall under the regulation of the Central Bank of Ireland. This arrangement provides protection of up to €20,000, covering 90% of your losses, which include cash and assets, as overseen by the ICCL.
- Interactive Brokers Central Europe: Individuals residing in Central/Eastern European nations, Cyprus, Malta, and Greece receive regulatory oversight from the Central Bank of Hungary (MNB). This regulatory framework safeguards your investments up to €100,000.
Consequently, selecting the appropriate subsidiary when registering is paramount. Notably, the Luxembourg entity is no longer operational.
Furthermore, the company is publicly listed on the NASDAQ exchange, necessitating the regular publication of quarterly and annual reports detailing its business activities. This level of transparency enables any investor to gauge the company’s overall health. Based on our comprehensive analysis, we assert that Interactive Brokers maintains a robust financial standing. It’s important to note the company operates without any long-term debt, demonstrating its solid financial resilience.
Additionally, in adherence to the August 2018 regulations imposed on CFD trading by the European Securities and Markets Authority (ESMA), the brokerage extends negative balance protection solely to retail clients from the European Union for Forex and CFD trading.
This means that if you were to deposit 1000€ into your account and engage in a position with a 5:1 leverage, amplifying your exposure to 5000€, a 25% market drop would result in a loss of 1250€ (25% of 5000€). This amount surpasses your initial deposit of 1000€, theoretically leaving you indebted to your broker by 250€. However, under ESMA regulation, your account balance is automatically adjusted to 0€, limiting your losses to your deposit alone.
Finally, the company possesses a reputation that is truly invaluable. We regard it as one of the most trustworthy brokers in existence. Founded in 1978, it endured and thrived during one of the most tumultuous periods in modern financial history, the Global Financial Crisis of 2007-09, emerging from the ordeal even more resilient than before.
While the past performance of assets or institutions does not guarantee future outcomes, investors maintain confidence in Interactive Brokers.
This confidence is rooted in the company’s commitment to public scrutiny through the disclosure of financial statements, its rigorous risk management practices, and the oversight provided by top-tier regulatory bodies.
Fee Structure at a Glance
As previously mentioned, the fee structure can be somewhat intricate, with numerous tables and fine print. Nonetheless, its transparency is commendable, signifying a fair pay-for-value approach. Navigating this fee structure seamlessly is a task primarily reserved for investors who possess a clear understanding of their intended trading activities, yet even the most prepared may find themselves surprised by the wealth of details.
For non-US investors, the choice between two pricing options, tiered or fixed, hinges on the types of assets they plan to trade and the capital they intend to invest.
In this context, here are the fees applicable to the financial assets that are likely to be the focus of your investments:
Tiered Plan:
– US stocks/ETFs: $0.0035 per share (minimum $0.35, maximum 1% of the trade value).
– UK Stocks/ETFs: 0.05% of the trade value (minimum £1, no maximum).
– European Stocks/ETFs*: 0.05% of the trade value (minimum €1.25, maximum €29).
Fixed Plan:
– US stocks/ETFs: $0.005 per share (minimum $1, maximum 1% of the trade value).
– UK Stocks/ETFs: 0.05% of the trade value (minimum £3, no maximum).
– European Stocks/ETFs*: 0.05% of the trade value (minimum €3, no maximum).
We encourage you to carefully review both options to determine which aligns best with your specific investment objectives.
*Please note that commissions are subject to reduction based on the monthly trade value. For additional details, consult the pricing page.
It’s important to account for exchange currency fees, especially if you anticipate purchasing assets in a currency other than your base currency.
Global Reach
The brand extends its services to a global reach, encompassing 218 countries.
These include prominent locations like Australia, the United Kingdom, South Africa, Singapore, Hong Kong, India, as well as numerous European nations such as France, Germany, Portugal, Spain, Norway, Sweden, Italy, Denmark, Luxembourg, and many more.
Frequently Asked Questions
Conclusion
Interactive Brokers is actively pursuing the goal of expanding its customer base. The COVID-19 pandemic has led to heightened interest and involvement in personal finance decisions, and Interactive Brokers aims to be part of this evolving landscape.
To this end, the company is making significant improvements to enhance the user experience of its web and mobile applications. It’s worth noting that while these platforms have seen substantial updates, the desktop trading platform retains its traditional design.
However, it’s important to acknowledge that IB may not yet be considered a beginner-friendly platform. Nevertheless, recent advancements indicate the company’s commitment to catering to individuals less familiar with investment practices. The introduction of IBKR GlobalTrader, for instance, demonstrates a strategic move to engage with a broader audience, including novice investors.
This suggests that Interactive Brokers is heading in the right direction to accommodate individuals who are less experienced in the world of investing.
