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Interactive Brokers Review

  • Regulated by: Financial Conduct Authority
  • Safety: segregates client funds
  • Trust Rating: AAA
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Losses can exceed deposits. Your capital is at risk.

Interactive Brokers one way: Forex.

To open a live account, you’ll need a minimum deposit of at least $10,000. Alternatively, Interactive Brokers offer a demo account that you can use to practice and familiarise yourself with their platform.

Regulated by the Financial Conduct Authority, UK (FRN: 208159 ). Interactive Brokers puts all client funds in a segregated bank account and uses tier-1 banks for this. Interactive Brokers have been established since 1977, and have a head office in United States.

Before we dive into some of the more detailed aspects of Interactive Brokers’s spreads, fees, platforms and trading features, you may want to open Interactive Brokers‘s website in a new tab by clicking the button below in order to see the latest information directly from Interactive Brokers.

Open a demo account Visit IB

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Your capital is at risk.

Interactive Brokers screenshot

PROS

  • Segeregates client funds
  • Established in 1977
  • Regulated by Financial Conduct Authority
  • Min. deposit from $10,000

CONS

What are Interactive Brokers's spreads & fees?

Like most brokers, Interactive Brokers take a fee from the spread, which is the difference between the buy and sell price of an instrument.

The spreads displayed below are based on the minimum fixed spreads listed on Interactive Brokers’s website. The colour bars show how competitive Interactive Brokers’s spreads are in comparison to other popular brokers featured on BrokerNotes.

Interactive Brokers variable spread is not available. If you believe this is incorrect please fill in our form

Speads are dynamic and are for informational purposes only. Last updated: June 06, 2018.

As you can see, Interactive Brokers's minimum spread for trading EUR/USD is pips - which is relatively low compared to average EUR/USD spread of 0.82 pips. Below is a breakdown of how much it would cost you to trade one lot of EUR/USD with Interactive Brokers vs. similar brokers.

See all Spreads Your capital is at risk.

How much does Interactive Brokers charge to trade 1 lot of EUR/USD?

If you were to buy one standard lot of EUR/USD (100k units) with Interactive Brokers at an exchange rate of 1.1719 and then sell it the next day at the same price you would likely pay $0. Here’s a rough breakdown of the fees and how this compares against Plus500 & AvaTrade.

Interactive Brokers Plus500 AvaTrade
Spread from: $0.00 $6.00 $7.00
Typical overnight fee: $0.00 $9.40 $5.00
Commission: $0.00 $0.00 $0.00
Total cost of a 100k trade: $0 $15.4 $12
$15.40 more $12.00 more
Visit IB Visit Plus500 Visit AvaTrade

Your capital is at risk. All fees/prices are for informational purposes and are subject to change. Last updated: 09/03/2018.

General Fees

  • Interactive Brokers does charge inactivity fees
  • Interactive Brokers withdrawal fees varies on payment method

Commissions

  • Interactive Brokers does charge commission on CFD shares

What can you trade with Interactive Brokers?

FX / Currencies IB Plus500 AvaTrade
# of forex pairs offered 61 59
Major forex pairs Yes Yes Yes
Minor forex pairs Yes Yes
Exotic forex pairs Yes Yes
Cryptocurrencies No Yes Yes
Commodity CFDs Interactive Brokers Plus500 AvaTrade
# of commodities offered 17 16
Metals Yes Yes Yes
Energies Yes Yes Yes
Agricultural Yes Yes Yes
Indiced & Stock CFDs Interactive Brokers Plus500 AvaTrade
# of Stocks offered 1816 99
UK Shares Yes Yes Yes
US Shares Yes Yes Yes
German Shares Yes Yes Yes
Japanese Shares Yes Yes Yes
See IB's Instruments See Plus500's Instruments See AvaTrade's Instruments
Your capital is at risk.

What’s the Interactive Brokers trading experience like?

1) Platforms and apps

Interactive Brokers offer a user-friendly custom trading platform, available as both a downloadable program or as a broswer based WebTrader. If you are looking for a MetaTrader broker, see our comparison of MT4 brokers here

Interactive Brokers Screenshot See IB's Platforms

Interactive Brokers also offer mobile apps for Android and iOS, making it easier to keep an eye on and execute your trades while you are on the move.

See IB's platforms Your capital is at risk.

Trading Features:

  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit

Accounts offered:

  • Demo account
  • Mini account
  • Standard account
  • ECN account
  • Managed account

Still not sure?

Open a practice account & learn to trade

2) Executing Trades

Interactive Brokers do not have set minimum and maximum trade requirements. They may vary depending on the account, trader and the instrument. The maximum trade requirements vary depending on the trader and the instrument. As Interactive Brokers offer ECN and STP execution, you can expect very tight spreads with more transparency over the price you’re paying to execute your trades.

As a nice bonus, Interactive Brokers are one of very few brokers that claim to have no requotes, so you don’t have to worry about slippage (your trades being ordered at a different price to what you executed them at).

As with most brokers, margin requirements do vary depending on the trader, accounts and instruments, but as a guide, Interactive Brokers offer margin up to 1 on currencies.

Finally, we’ve listed some of the popular funding methods that Interactive Brokers offers its traders on the right.

Funding methods:

  • Bank Transfer
  • American Express

3) Client support

Interactive Brokers support a wide range of languages including English, Francais, Deutsch, Espanol, Italiano, Ruskiyy, Mandarin, Cantonese, Nihongo

Interactive Brokers have a BrokerNotes triple AAA support rating because they offer a wide range of languages, live chat, phone and email support.

4) What you’ll need to open an account with Interactive Brokers

As Interactive Brokers is regulated by Financial Conduct Authority, every new client must pass a few basic compliance checks to ensure that you understand the risks of trading and are allowed to trade. When you open an account, you’ll likely be asked for the following, so it’s good to have these handy:

  • A scanned colour copy of your passport, driving license or national ID
  • A utility bill or bank statement from the past three months showing your address

You’ll also need to answer a few basic compliance questions to confirm how much trading experience you have, so it’s best to put aside at least 10 minutes or so to complete the account opening process.

While you might be able to explore Interactive Brokers’s platform straight away, it’s important to note that you won’t be able to make any trades until you pass compliance, which can take up to several days, depending on your situation.

To start the process of opening an account with Interactive Brokers you can visit their website here.

CFDs are leveraged products and can result in the loss of your capital. All trading involves risk. Only risk capital you’re prepared to lose. Past performance does not guarantee future results.
This post is for educational purposes and should not be considered as investment advice. All information collected from https://www.interactivebrokers.com/ on March 21, 2018.