Top rated Thinkorswim competitor brokerage companies alternatives offering free or low priced trades.

Top Thinkorswim Competitors

Brokerage Firm Rating Stock & ETF Options Cost Mutual Funds Min To Open Review
Firstrade Firstrade rating $0 $0 $0 $0 Review
WeBull Webull Rating $0 $0 na $0 Review
IB Interactive Brokers rating $1.00+ $0.25-$0.70 per contract $14.95 $0 Review
Tastyworks TastyWorks rating $2.50 $1.00 per contract to open, $0 to close na $0 Review

Interactive Brokers Overview

With the large number of brokers available to retail traders and investors, the decision on which broker to choose can be very daunting. However, if clients are looking to go with a more professionally focused broker, who spends millions on offering the most sophisticated services to its clients, then Interactive Brokers is a broker to consider.

With lots of built in security, and some of the best trading platforms available traders and investors will be able to trade multiple investment products across multiple markets with a fee structure that will definitely save money.

Keep in mind that the level of support available is not as high as from other brokers offered by retail banks. Potential clients should have some understanding of how the stock market works. Interactive Brokers will do exactly what you tell it to do in the markets, which may not be a great thing if you meant to do one thing but told the system to do another.

However, one thing that does catch many clients of Interactive Brokers off guard is a number of the hidden fees at IB that can add up. Article below will highlight some of those fees that potential clients must be aware of before making the decision to sign up with the firm.

Huge Market Access

Trading does not need to be limited to the U.S. In fact, for many traders, investors, and institutions based in the U.S. having access to markets around the world to trade is a huge advantage.

Interactive Brokers can provide a trader with the ability to trade in over one hundred markets around the world, all within one single account. For example, if a U.S. investor wants to buy a resource-based stock in Canada then Interactive Brokers will allow the investor to do that, and at the best price possible.

Buy Cronos on Interactive Brokers

Smart Routing Technology

Many brokers are not focused on price execution – the price that a stock or option contract is bought and sold at. Traders simply get the bid price no matter what. As a way to differentiate themselves from the pack, Interactive Brokers has invested in technology that provides clients with access to instantly execute buy or sell orders at the best price available.

Called SmartRouting, the technology has logic within its trading engine that looks for the best prices available when an order is placed and purchases at that price. This can mean that traders can see improvements in what is paid per share when compared to the bid/offer price. Over time these savings can add up.

Low Cost

Even with all the above features, it is still critical that active traders choose a broker with the lowest fees and commissions. Clients of Interactive Brokers can choose from either a Fixed or Tiered commission structure.

The Fixed Pricing Structure trade commission for stocks is $0.005 per share with a minimum of $1.00 and a maximum trade commission of 0.5% of the trade value. With the tiered structure, traders will see commissions of $0.0035 per share when less than 300,000 are traded per month. If a client trades over 100,000,000 shares per month (most of us don’t!) then the commission rate drops down to $0.0005 per share. No matter what pricing structure is chosen, Interactive Brokers will offer lower commissions than many of the discount brokers that offer trades at around $6.95 per trade.

Continue Reading