IB Rating: 
Overview of Interactive Brokers
For advanced traders, Interactive Brokers offers professional-level software and a large selection of things to trade. The company also now has more than just self-directed trading. This broker is definitely worth a look.
Investment Docket
Interactive Brokers lets you trade the following assets on your own:
- Stocks
- Options
- Precious metals
- Bonds and other fixed-income
- Warrants
- Funds (ETFs, closed-end, and mutual funds)
- Cryptocurrencies
- Foreign currencies (forex)
- Futures (including event contracts)
- Options on futures
The real list is even bigger because Interactive Brokers gives access to many markets outside the U.S.
Interactive Brokers is mainly for experienced traders, so it has a lot of account types. These include non-professional accounts like IRAs and joint accounts, and professional accounts for things like hedge funds or introducing brokers.
Interactive Brokers also offers robo accounts through Interactive Advisors. This service uses ETFs with low costs. You can choose from many portfolios and fund families.
Only stocks and some other securities in IBKR accounts are protected by SIPC (up to $500,000 per account type). There’s also extra insurance from Lloyd’s of London, up to $150 million for all accounts combined.
IBKR Pricing and Minimums
A robo account with Interactive Advisors needs at least $100 to open (some portfolios require more). There is a management fee from 0.10% to 0.70% per year, depending on which portfolio you pick.
Self-directed accounts at Interactive Brokers have no minimum deposit and no management fees. There are commissions in some cases, but the IBKR Lite plan offers zero-commission trades on stocks and ETFs listed on U.S. exchanges. Other products have small commissions. Here are some examples:
* Futures: 5¢ to $5.00 per contract, depending on what you trade and your commission plan
* Cryptocurrencies: as low as 0.12% of trade value, with a $1.75 minimum
* Spot gold: as low as 0.007% of trade value, with a $2.00 minimum
Open Interactive Brokers Account
Get up to $1,000 in IBKR stock with this referral link!
Open IB Account
Margin Accounts
Interactive Brokers offers both cash and margin accounts. Upgrading from cash to margin is easy on the website. Margin details for each stock or asset are shown on several platforms. You’ll see initial and maintenance margin amounts for both long and short trades.
All margin loans have a cost. IBKR Lite customers pay a flat 6.62% for all U.S. dollar margin balances. IBKR Pro users pay 5.62% interest.
IBKR brokerage accounts can be in many currencies, each with its own margin rates. Rates range from 20% to 0.75%, depending on the currency and how much is borrowed.
Website Trading
Interactive Brokers’ website is called the client portal. It has a lot of good trading tools. The order form, for example, includes on-close orders, which are rare. You can pick from several order durations. A smart-routing checkbox uses IBKR’s tech to try to get better prices. Take-profit and stop-loss orders are easy to add or remove.
Charts in the client portal use TradingView software, so you get great features, including full-screen mode with no borders. There are lots of drawing tools, indicators, and other options.
Mobile App
The mobile app is another strong point. You get 13 different chart styles, including some uncommon ones like baseline and point & figure. There are technical indicators and trade buttons right on the chart. One downside: a recent update removed horizontal charting. The old wheel-order system for trades is also gone.
The trade form has a tab that lets you pull up a chart for the ticker. The order ticket has several order types, such as relative, market on close, and trailing limit. Bracket orders are easy to add.
Other good features include mobile check deposit, an AI assistant called iBot, and an economic calendar. Live video news is not available.
Trader Workstation
Trader Workstation (TWS) is IBKR’s advanced desktop platform. It has many professional tools. We especially liked the advanced option widgets, found under the New Window tab in Mosaic layout. You can create and save multiple layouts (they’ll show up in the bottom-left corner).
A TWS chart can be displayed horizontally, and it comes with lots of tools. The right-click menu has a red sell button and blue buy button. Other tools in this window include a crosshair, technical studies, and a text box.
Day Trading
Leverage: Day traders can get up to 4:1 leverage on many stocks and ETFs with an IBKR taxable account. IRAs can’t use leverage because of industry rules, but they can trade with unsettled funds using IBKR’s limited margin. Portfolio margin is also offered.
Direct Access Routing: Available in Trader Workstation.
Extended Hours: IBKR Lite clients can trade from 7:00 am to 8:00 pm.
Level II Quotes: Market depth is shown in Trader Workstation.
Shorting: You can open short positions at Interactive Brokers. The software will show you how many shares are available to short.
Routing Fees and Rebates: Offered.
PDT Rule: U.S. accounts must follow the Pattern Day Trader rule. Accounts outside the U.S. are not subject to this. U.S. accounts can day trade futures, forex, and cryptocurrencies without any restrictions.
Bank Products
Interactive Brokers does not focus on cash management, but it does have a Mastercard debit card. Only individual and trust accounts can get this card. It works for borrowing on margin if your account is approved for margin. There is a $1,000 daily ATM withdrawal limit. Other features offered by some brokers, like ATM fee refunds and checkwriting, are not available.
You can also invest in money market mutual funds. These can be found using the fund screener under the Research tab on the website. Some funds have no load and no transaction fee.
Customer Service
iBot, the Interactive Brokers robo-chat tool, is available on all their platforms. It answers questions fairly well but not perfectly. You can find human help under the Help link at the top-right of the website. In the Help area, you’ll see FAQs, user guides, video tutorials, and a secure message center.
Phone support is open for U.S. accounts on weekdays from 7:00 am to 7:00 pm, and on Sunday from noon to 6:00 pm.
There’s also online chat, but hours are limited. The Welcome link next to Help gives access to many self-service options.
The customer service reps are polite, but if your problem is more complicated and must be passed to another department, it’s unlikely to be solved quickly, no matter how many times you call.
Extra Services
Stock Yield Enhancement Program: Interactive Brokers shares 50% of the revenue from lending your fully-paid stocks.
DRIP: Stocks, but not ETFs, are eligible for automatic dividend reinvestment.
IPO Service: Not offered.
Fractional Shares: Stocks, ETFs, cryptocurrencies, and mutual funds can be bought in dollar amounts, not just whole shares.
Periodic Mutual Fund Investing: Not available.
Individual Retirement Accounts: SEP, Roth, and Traditional IRAs are offered. There are no fees and no minimums.
Our Recommendations
Small Accounts: An IBKR Lite self-directed account is a good choice for small investors. Some robo portfolios need only $100 to get started.
Stock & ETF Trading: There are excellent research tools on the website and very advanced trading tools in the desktop program.
Beginners: Interactive Advisors automated accounts are a good place to start.
Long-Term Investors & Retirement Savers: Interactive Brokers is not the best for retirement planning. Charles Schwab is better for things like annuities and more retirement services.
Mutual Funds: Interactive Brokers has 11,483 mutual funds, but some are closed to new investors. The search tool is easy to use, but there aren’t many other features.
Firstrade is a better choice.
Interactive Brokers Review Summary
Interactive Brokers is very good in some areas, but not all. With the addition of Interactive Advisors, beginners can now find something here too.
Open Interactive Brokers Account
Get up to $1,000 in IBKR stock with this referral link!
Open IB Account
Updated on 7/20/2025.
Continue Reading