Interactive Brokers Review
4.9
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Interactive Brokers is a professional powerhouse that offers advanced technology, a wide range of tradable instruments, low costs, and transparent operations. With its powerful trading tools, comprehensive research resources, and dedicated customer support, Interactive Brokers is an excellent choice for traders seeking a professional and rewarding trading experience.
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A publicly listed company on NASDAQ, operates under the regulation of six tier-1 jurisdictions, ensuring a secure trading environment for forex and CFDs
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Offers a low trading fees and the potential for high interest on cash balances
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Regulated by top-tier authorities
Overview
Year founded
Minimum deposit
Withdrawal fee amount
Available
Offerings
Platforms available
1977
0$
0$
Stock, ETF, Forex, CFD, Crypto, Fund, Bond, Options, Futures
Desktop, Mobile, Web
Account Opening
Interactive Brokers offers a fully digital account opening process with a low required minimum deposit, making it accessible to potential clients across continents. However, it's important to note that the account opening process can be complicated, and the verification procedure may take a relatively longer time. Interactive Brokers provides multiple account types, each offering different ownership structures and services to cater to diverse needs. The minimum deposit required by Interactive Brokers is $0, except for margin or short-selling, where a minimum deposit of $2,000 is required. Depending on your account ownership selection, you can opt for Cash, Portfolio Margin, or Reg T Margin accounts. For EU clients, selecting a margin account automatically grants them a portfolio margin account. US residents have the option to choose between the IBKR PRO and IBKR LITE service plans, which differ in terms of pricing. However, only the IBKR PRO plan is available for non-US residents.
Safety
Interactive Brokers is regulated by multiple financial authorities, including the US Securities and Exchange Commission (SEC) and the UK Financial Conduct Authority (FCA). Its parent company is listed on the NASDAQ exchange. To ensure the safety of retail clients from the European Union, Interactive Brokers offers negative balance protection for forex spot and CFD trading. However, it's important to note that this protection is not extended to professional and non-EU clients. Established in 1977, Interactive Brokers is headquartered in USA.
Risk Disclaimer
Trading securities carries a significant level of risk. When it comes to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is substantial exposure to various risks. These risks include, but are not limited to, leverage, creditworthiness, limited regulatory protection, and market volatility. They can have a significant impact on the price or liquidity of a currency or related instrument. It is important to note that the methods, techniques, or indicators provided in these products may not necessarily yield profits, and there is a possibility of incurring losses. For more information on the risks associated with forex trading, please refer to further resources.
Summary
Interactive Brokers, a prominent US-based broker, stands out as one of the largest providers with exceptionally low spreads. It is regulated by multiple top-tier regulators worldwide.
One of the significant advantages of Interactive Brokers is its remarkably low fees. Additionally, it offers competitive interest rates on cash balances in various currencies.
However, there are a few drawbacks to consider. The account opening process can be complex, requiring additional attention. Furthermore, while the web and mobile platforms are user-friendly, the desktop platform can be perceived as intricate and challenging to navigate.