Options trading is offered at competitive pricing, for both Pro and Lite customers, with a $.65 charge per contract and no base, plus Pro customers get discounts for larger volumes. With IBKR Pro, margin rates decrease as you borrow more, and IBKR Pro customers receive lower margin rates than IBKR Lite customers do at all balance levels. Interactive Brokers’ margin rates are some of the lowest we’ve come across.

Customer Service

Interactive Brokers is by far the best trading website I have used and it’s pricing is very competitive. I have no complaints; they have been very cooperative handling all of my questions. I see their charting but don’t really trade with it but it is a good reference for me.

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Plus, you’ll still enjoy many of the features of the flagship program. At Bankrate we strive to help you make smarter financial decisions. While we adhere to stricteditorial integrity,this post may contain references to products from our partners. Any estimates based on past performance do not a guarantee future performance, and prior to making any investment you should discuss your specific investment needs or seek advice from a qualified professional. We are an independent, advertising-supported comparison service.

Options trading overview

Interest income is also an important revenue generator for IBKR. One is the difference between the margin lending rates the customer pays and the rate at which they borrow funds. It was one of the first companies to incorporate computer technology into its platforms, and it continues to stay on top of the innovation curve. Examples of IBKR’s strong trading technology include its order routing system, which finds the most cost-effective way to execute each leg of a transaction in a way that maximizes value for the customer. Customers on IBKR Pro also have the ability to control the routing of their own orders.

How This Broker Makes Money From You and For You

Interactive Brokers introduced cryptocurrency trading in 2021, and the offering gives users 24/7 access to bitcoin, ethereum, litecoin and bitcoin cash. And while the service doesn’t offer commission-free trading like some brokers do, the fees are pretty minimal, and https://www.trading-market.org/ are capped at 1%. The broker also offers fractional shares of both domestic and Canadian stocks and ETFs. The ability to purchase a portion of a company’s stock, rather than a full-priced share, makes it easier to invest in companies that have lofty share prices.

Trading Technology

Meanwhile, because it targets professional and institutional investors, IBKR Pro charges commissions, offering both fixed and tiered pricing options. Under the fixed pricing system, you owe $0.005 per share for stock trades, with a minimum fee of $1 and maximum of 1% of the total trade value. Those making a large volume of trades per month could switch to the firm’s tiered pricing system, where the fee decreases as your total trading volume gets larger. Interactive Brokers similarly uses both fixed and tiered commission systems for other investments like options, bonds, forex and mutual funds. This makes IBKR a viable option for nearly anyone looking to open an online trading account. Those planning to trade on margin will likely find IBKR’s margin rates very attractive relative to other platforms.

  1. Interactive Brokers offers 24-hour phone, email and chat support starting 8 a.m.
  2. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
  3. Survey participants again ranked Low Commissions & Fees as the most important online stock broker attribute.
  4. The data collection efforts at StockBrokers.com are unmatched in the industry.
  5. IBKR has multiple desktop and mobile platforms to suit client needs, and two of the company’s newer platforms are very positive steps for helping IBKR’s beginner and less experienced traders use the power of IBKR’s technology.

The two novice-focused apps, Impact and GlobalTrader, cater to different interests while sharing many elements. For more details about the categories considered when rating brokers and our process, read our full methodology. NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokers by assets interactive brokers review under management, along with emerging industry players. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgments on which ones will best meet your needs. The average execution quality of all brokers we review was 97.4% as of Aug. 31, 2023.

As mentioned earlier in this article, providing educational offerings for customers is important to Interactive Brokers, and the company has put a lot of effort into creating resources for its users. Coinciding with the launch of IBKR Desktop in February 2024, IBKR developed a free IBKR Desktop Trading Course which features 10 lessons on how traders can use the platform. Additional content in the education section includes financial courses (Trader’s Academy); quant articles, finance webinars, market podcasts, a student trading lab, and a trader’s glossary. Since the IBKR Desktop platform is geared towards traders who don’t need all of the power of IBKR Pro (TWS), this further shows IBKR’s commitment to growing the ranks of its non-professional trading customers. Interactive Brokers (IBKR) is one of the world’s leading trading platforms.

With low interest rates that are two to three times less than other discount brokers, it’s safe to say that margin lending is Interactive Brokers’ special sauce. For those who rely on margin as a central element of their trading or investing strategy, Interactive Brokers is definitely worth considering. We recommend comparing brokerage options to ensure the account you’re selecting is the best fit for you.

Interactive Brokers earned a rating of 4.6 in for “Best Portfolio Analysis and Reports”. Interactive Brokers earned a rating of 4.2 in for “Lowest Cost”. Interactive Brokers earned a “Best in Class” rating in 2017 for “Offering of Investments”. Interactive Brokers earned a rating of 4.7 in for “Best Trading Experience and Technology”. Interactive Brokers earned a “Best in Class Overall” rating in 2018″. Interactive Brokers earned a “Best in Class” rating in 2018 for “Options Trading”.

IBKR offers investors worldwide access to over 48,000 mutual funds. For mutual funds with a fee, the commission is either $14.95 or 3% of the trade value, whichever is less. IBKR offers thousands of U.S. mutual funds that have no transaction fees, meaning you can buy and sell without worrying about unnecessary fees. For funds that do carry fees, the cost is either $14.95 per transaction or 3% of the trade, whichever is lower. It’s important to note that there is a minimum order requirement of $3,000 for the initial purchase, although subsequent orders can be as low as $100. Interactive Brokers just hits the industry standard options pricing of $0.65 per contract.

Here’s a look at how Interactive Brokers delivers its product across various categories. Interactive Brokers also deserves some praise for using a clear and easy-to-understand method for calculating its margin interest rates. The brokerage uses the Federal Funds Effective Overnight Rate as its benchmark rate before adding a marginal spread.

You tap on tiles representing the strikes and expiry dates you want to trade to build a spread. You can compare two potential trades with the Performance Profile tool. There’s a persistent Trade button letting you send orders to market quickly. IBot is built into the mobile app as well, helping you find advanced order types and analytical tools on the app. As a popular and regulated broker in the US, Interactive Brokers has won some awards.

So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Mercedes Barba is a seasoned editorial leader and video producer, with an Emmy nomination to her credit. Presently, she is the senior investing editor at Bankrate, leading the team’s coverage of all things investments and retirement. Prior to this, Mercedes served as a senior editor at NextAdvisor.