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Interactive Brokers rating

Interactive Brokers IRA Fees


2019 Interactive Brokers Roth IRA Fees, Traditional IRA, Rollover IRA, SEP IRA, 401K individual retirement accounts annual, opening/closing, transfer out fees charged, costs, and investing commissions

Interactive Brokers IRA Fees

Fee Amount
Interactive Brokers IRA setup fee $0
Interactive Brokers annual IRA fee $30 ($7.50 quarterly)
Interactive Brokers IRA termination fee $0
Interactive Brokers account maintenance fee $0
Interactive Brokers account inactivity fee $10 per month minimum commission requirement (rises to $20 monthly if account balance is less than $2,000; waived for $100,000+ accounts)
Interactive Brokers outbound full account transfer (ACAT) fee $0
Interactive Brokers outbound partial account transfer fee $0


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Interactive Brokers IRA Review

IB (IBKR) is a popular broker with active global stock and option traders. What they may not know is that the firm also offers a selection of Individual Retirement Accounts. An IRA with Interactive Brokers is subject to the firm's $10 monthly trading commission minimum (investors under the age of 25 only pay $3). The firm also charges a quarterly IRA account fee of $7.50.

There is no fee to setup an IRA with Interactive Brokers. Furthermore, there is no charge to close an IRA. To open an IRA, there is a $5,000 opening deposit requirement.

The account fees are the same for all IRA types. These include SEP, SEP Inherited, Roth, Traditional, Rollover, and Inherited (in both Traditional and Roth formats). The broker does not provide Custodial IRA's.


IB TWS


Interactive Brokers IRA Trading Fees

IRA's with Interactive Brokers are governed by the same commission schedule as a non-retirement account. The firm's pricing is somewhat complicated, and is based on the number of shares traded. An account can be classified as either Fixed or Tiered. Under the Fixed plan, equity trades cost $0.005 per share with a minimum of $1 per trade. The Tiered plan charges $0.0035 per equity trade with a maximum of 0.5% of trade value.

IB customers who want to avoid the above equity commissions should check out the broker's list of 2,583 NTF mutual funds. Some of these funds are also carry no load. There is a $14.95 charge for transaction-fee funds. This commission is applied to both the buy and sell sides. The broker requires a minimum initial investment of at least $3,000 for mutual funds.

Some of IB's NTF mutual funds are target date funds. These mutual funds are designed for retirement savers. They have portfolios that are adjusted quarterly to have less risk as the target date approaches. The target date is the time when retirement is expected to begin.

IB also provides 21 commission-free ETF's. There are some that have investment objectives that will appeal to retirement savers. These include REIT's and dividend-paying equities.


Interactive Brokers IRA Fees Comparison

Interactive Brokers' commission schedule is more complicated than the flat fee structure of other firms, such as Firstrade, which charges a flat $0 for all trades. Furthermore, IB's monthly and quarterly IRA charges are a real turnoff compared to other brokers, such as Charles Schwab and TD Ameritrade, that have no IRA fees at all. Finally, IB's minimum IRA opening deposit of $5,000 is exactly $5,000 higher than Fidelity and Ally Invest. Overall, retirement savers who don't plan to make frequent stock trades can find better IRA options elsewhere.


Interactive Brokers Pros

  • Super powerful and customizable trading platform.
  • Very strong mobile trading platform.
  • Secure Login System which protects accounts from unauthorized access.
  • Super fast order execution.
  • Access to advanced trading products like options, forex, commodities as well as shorting stocks.
  • Users can open practice accounts to practice trading.
  • Solid suite of market intelligence and research tools.
  • Account balances update in real-time.
  • Access to global markets.
  • Offers commission-free trades for some ETFs.


Interactive Brokers Cons

  • Depending on the market data required, market data access fees can add up.
  • Not a beginner platform; designed for the serious trader who does not require a lot of support.
  • Account funding options are limited and can be slow.
  • No automatic dividend reinvestment.


Interactive Brokers Review

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