On the list of the most comprehensive investment platforms, Interactive Brokers (IBKR) is now in first place. From a single integrated account, customers can trade stocks, options, futures, currency, cryptocurrencies, bonds, and funds in one hundred fifty different marketplaces. Investors interested in socially responsible investing (SRI) will be pleased to learn about the Impact Dashboard and app, which provide assistance in analysing assets from the perspective of SRI. The downloadable platform known as Trader Workstation (TWS) caters to professional traders as well as intelligent and active investors who have an interest in sophisticated technical and fundamental trading tools as well as extensive research.
In terms of the variety of assets, research reports, worldwide market access, tools, calculators, and educational materials that it provides, Interactive Brokers is in a league of its own. The variety of goods and services offered is both a blessing and a curse for the business. The sheer volume of information that is available through IBKR can be difficult to process at times. Users are given the opportunity to test out this all-inclusive investment broker through free paper trading as well as a trial period of three months.
Introduction
Interactive Brokers was established in 1993 by Thomas Peterffy, who is also the company’s current chairman. The company takes a streamlined approach to providing brokerage services, putting an emphasis on broad market access, low pricing, and superior trade execution. IBKR has 1.92 million customer accounts with daily trade values that total $2.17 million. The company is publicly traded and has adequate financial backing. This discount broker provides clients with a fee schedule that is both competitive and transparent, in addition to providing clients with rock-bottom margin pricing. Due to the vast number of assets and the complexity of the tools, navigating the platform and going through the pricing guide both require a considerable amount of time. This is one of the drawbacks.
The company has recently added access to cryptocurrencies as well as trading in fractional shares for equities listed in the United States and Europe. This is part of the company’s ongoing commitment to innovation. Investors will soon have the opportunity to trade firms on the basis of their environmental, social, and governance (ESG) leanings at a granular level thanks to a significant new project called the Impact app. The GlobalTrader app is a blessing for foreign investors who are searching for mobile access to various markets, which brings us to our last point. The IBKR trading platforms are continually updated with new features and products, and additional funds are consistently added to the huge selection of mutual funds available in both the United States and internationally. IBKR is an excellent platform for experienced and professional traders who are searching for a vast array of order types to execute complex trading strategies across a variety of assets and markets. The diversity of assets, as well as the expanding educational and research opportunities, will be appreciated by intermediate investors as well. IBKR may offer an excessive number of goods and services for new investors, making it more suitable for more experienced traders to work with a more streamlined investment broker.
Pros & Cons
Pros
• An unrivalled selection of available financial instruments for investment
• Reduced fees for both commissions and margins
• Superior order execution
• An extensive inventory of trading tools that cover both technical and fundamental aspects
• Designed to accommodate multinational merchants and financiers from around the world
Cons
• IBKR’s SmartRouter not available to IBKR Lite clients
• May appear frightening to individuals with less experience or who buy less frequently
The Positives Exposed
• An unrivalled selection of investing assets, including but not limited to equities, exchange-traded funds (ETFs), options, futures, spot currency pairings, cryptocurrencies, US spot gold, bonds, mutual funds, hedge funds, robo-advisors, and managed portfolios.
• Competitive commission and margin rates The margin rates are competitive with other markets and are among the lowest accessible. They are up to 66% lower than the norm in the industry, and larger traders would benefit the most from them because costs decrease with increasing order size.
• Exceptional order execution: IBKR’s SmartRouting enables automatic routing of each leg of a trade to the market maker with the lowest cost. This results in superior order execution.
• A plethora of tools for technical and fundamental trading The trading platforms Traderrkstation and Client Portal include interactive charts that may be customised, single-window access to live prices, technical research and analysis tools, and more.
IBKR was designed specifically for worldwide traders, giving them access to 150 markets across 33 nations and 24 different currencies. It was developed to fulfil the needs of foreign investors as well. Non-U.S. IBKR is available to users from a large number of countries throughout the world.
Defining the Drawbacks
• IBKR’s SmartRouter is not available to clients of IBKR Lite. As a result, these clients may experience less optimal pricing on trades. This is due to the fact that a certain category of users’ transactions may be paid for as order flows to a particular broker.
• It might be frightening for less experienced and less active investors because it is difficult to organise the enormous number of products and services in a way that is easy to access. On the other hand, IBKR is making strides toward improving the user experience and navigation of the website.
Usability
The process of joining IBKR is now simpler than it was in the past. Users are able to sign up for an account and test out the functionality of the site without having to make any immediate financial commitments. Because the website contains so many different features, the user experience could be overwhelming for first-time investors. Having said that, the improvements to the website make it easier for users to browse the Trader WorkStation (TWS), Client Portal, and mobile apps. Help is readily available through a variety of support channels, including frequently asked questions (FAQs), videos, and both chat and phone customer care.
Multiple trading platforms are supported by Interactive Brokers, including desktop, web, and a number of mobile versions, which may be downloaded on Android and iOS-based mobile devices respectively. Although the app and the online platform are functionally comparable to one another, none is quite as advanced as the Trader Workstation (TWS), which is the name of the company’s premier trading platform.
On whatever platform, you have access to the same asset types for trading. In a similar fashion, you get access to real-time streaming data, graphing, drawing tools, research, and news across all of the platforms. There are dozens of sources from which one can obtain news, such as Benzinga, Dow Jones, Morningstar, Seeking Alpha, Thomson Reuters, Refinitiv, and in-house commentary, among others. A monthly price is required to access premium news subscriptions, which are also available.
Trade Experience
IBKR provides clients with a comprehensive selection of trading platforms to choose from. There are two platforms that are based on computers, and there are three apps for mobile devices. :
• Client Portal
• The Trader’s Station Workstation
• IBKR Mobile
• IBKR GlobalTrader Mobile
• Impact Mobile
Client Portal
Users are able to monitor and manage all aspects of their IB accounts after they have logged into the Client Portal. Checking on positions, getting a real-time picture of your accounts, and placing basic trades are all possible with IBKR, which is suited for most intermediate as well as experienced investors. It is simple to obtain a trade ticket, detailed quotes, advanced charting, news, and other information, as well as to configure trade defaults. The newly updated IBot provides you with ready access to chat with artificial intelligence (AI).
Workstation for Traders
TWS is intended for active traders and investors who require flexibility coupled with access to a variety of products. It provides a wealth of functionality and features and is geared to meet these requirements. Trading, order management, and portfolio management features, in addition to fundamental and technical charting, are all available through the fully customisable TWS.
More than a hundred other types of orders, such as algorithmic trading, are available to experienced traders. You have the ability to designate shortcut keys to speed up the process of placing orders, and you also have the choice of delaying the execution of orders until a later time, either one at a time or in a batch. You have the ability to specify a date and time for an order to be communicated, or you can submit a conditional order that will only take effect once certain circumstances have been satisfied, such as when an existing order is carried out.
Directly from the chart, you are able to put, change, and manage any orders that you have. Even if you are using a number of different devices at the same time, you will be able to get streaming real-time quotes, charts, and news across all platforms.
Mobile Trade Experience
IBKR Mobile
The IBKR Mobile app is virtually indistinguishable from the computer-based trading platforms, including the capacity to trade all of the same asset classes and to carry out the same orders. The workflow on the mobile app is simple to understand, and it moves smoothly from one phase to the next. The mobile platform provides access to the same research tools as the Client Portal, such as screeners and options strategy applications.
IBKR GlobalTrader
With this brand-new app for international trading, you may trade equities from your smartphone or tablet while depositing cash in the currency of your home country. Access to more than 90 worldwide stock exchanges is possible from North America, Europe, and Asia respectively. This app is perfect for users both inside and outside of the United States. investors looking to gain access to markets abroad.
Impact
Impact is a smartphone app developed by Interactive Brokers for users interested in environmental, social, and governance (ESG) investing. You are able to identify your beliefs and contribute to the change you wish to see in the world through the use of the Impact app, which addresses issues such as clean water, racial equality, and climate change. Users have the ability to screen for businesses that suit your criteria. The money you invest may even result in benefits for the community, as well as for you and your friends. Even very inexperienced investors can get their feet wet with fractional shares.
Variety of Services and Products
When it comes to the brokerage industry, Interactive Brokers provides the widest number of asset classes available. It frequently adds new items in response to the requests of its customers and links to emerging electronic exchanges as soon as this is practically possible. Customers have access to roughly 35,000 different mutual funds to trade, around 8,300 of which do not charge a transaction fee, and the funds offered in this marketplace are entirely no-load.
The following is a list of all that IBKR has to offer:
• Long and short stock positions—approximately 17,500 US dollars are available for borrowing
• OTCBB—penny stocks
• Exchange-traded Funds (ETFs) – PRO customers get access to more than 150 ETFs that do not charge a transaction fee.
• Mutual funds are the largest marketplace for mutual funds in the world, with approximately 45,000 different funds and more than 17,000 of them not charging transaction fees.
• Bonds, including corporate, municipal, treasury, certificates of deposit, and international bonds
• Options are accessible all across the world on more than 30 market locations
• Futures and futures options
• Interactive Advisors, often known as Robo-advisors, which are included into both the website and IBKR Mobile
• International trading: a single integrated account gives you access to 150 exchanges located in 33 countries where you can trade stocks, options, futures, currency, bonds, funds, and contracts for differences.
• Currency pairs on the Forex market, including 24 different currencies and more than 100 trading pairs
• Trading of fractional shares on U.S. companies listed on the NYSE, AMEX, NASDAQ, ARCA, or BATS, as well as on OTC Pink U.S. penny stocks with an average daily volume of more than $10 million and a market capitalization of more than $400 million. There is also access to ETFs and stocks that are eligible in Europe. (It is important to note that in order to trade fractional shares, you need TWS Build Version 979 or later.)
The trading of cryptocurrencies is made available by IBKR via Paxos Trust, although it is included into the IBKR platforms themselves. IBKR gives users access to a total of eight different cryptocurrencies, some of which include Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
Order Types
IBKR’s Client Portal and mobile app both allow a versatile selection of order types, and the Trader Workstation can accommodate over one hundred different order types and algorithmic trading strategies. On TWS, the functionality of one-triggers-other, or OTO, orders can be found with connected orders, while on mobile, it can be found as part of the bracket order feature. You have the ability to choose from and combine logical conditions when using one-cancels-other (OCO) orders. These conditions include price, time, and volume variables (using operators such as, =, and >), as well as margin cushion, daily P&L, percentage change, number of shortable shares, and rebate rate. Traders of options are able to participate in single-leg and multi-leg options trading with a maximum of eight legs.
Technology Used in Trading
IBKR’s SmartRouting is a feature that will appeal to frequent Pro traders because it automatically communicates the best available prices for stocks, options, and combos across all exchanges. SmartRouting is not a one-and-done procedure; rather, it takes into account each leg of a transaction, as well as expenses, fees, and rebates associated with the transaction. Additional options are available for merchants to choose from when it comes to their shipping routes.
The overall quality of the trading experience has also been enhanced by the application of various technological advancements. Large-volume traders are better able to secure favourable pricing thanks to an algorithm called accumulate/distribute. Losses can be minimised by bracket orders, which consist of two orders on opposite sides. The “split-the-spread” price improvement is often applied to orders with prices that are already inside the spread between the bid and the ask price. Because IBKR does not provide a setup environment or tool to assist backtesting, you will need a third-party application programming interface (API) in order to test bespoke methods utilising previous data.
Costs
The price structure of Interactive Brokers is difficult to understand, particularly for PRO account holders. IBKR LITE customers don’t pay any commission fees when buying stocks or ETFs.
The PRO proposal incorporates the following three distinct commission structures for U.S. equities:
1.Pricing is fixed at $0.005 per share traded, with a minimum amount of $1.00 and a maximum amount equal to 1% of the total value of the trade. This price takes into account all exchange fees and the majority of regulatory fees.
2.Pricing for each share is tier-based and determined by the volume of orders placed each month. With a minimum of $0.35 per trade and a maximum of 1% of the trade value, this can go as high as $0.0035 per share if you trade less than 300,000 shares per month, or it can go as low as $0.0005 per share if you trade more than 100 million shares per month. There is also a maximum of 1% of the trade value. It does not include expenses associated with exchanges or regulators.
3.Free trades are available for shares and ETFs that are listed in the United States through the IBKR Lite programme. Transactions are executed in a way that results in monetary compensation for order flow (PFOF).
In the event that you make use of the system that charges a fixed rate per share, the following information pertaining to IBKR commissions and fees is provided:
The cost of trading 1,000 shares is $5. (free for IBKR Lite clients).
• OTCBB stocks have the same costs that are charged for trading, but in order to trade in this asset class, you are required to meet certain requirements.
Trading options does not incur any fees on a per-leg basis. When you make an options trade, the commission will be $0.65 per contract, with a minimum payment of $1. Fees associated with low value contracts are reduced to $0.50 (premium between $0.05 and $0.10) or $0.25 (premium less than $0.05).
• The cost to trade a single contract is one dollar. It will cost you $32.50 to trade 50 contracts.
• The cost of executing a covered call trade consisting of 500 shares of stock and five contracts is $5.75.
• The expense ratio for mutual funds is the lesser of 3% of the trade value or $14.95 for funds that are not on the list of funds that do not charge a transaction fee.
• The interest rate on margin loans for Pro customers is 3.83% for balances up to $100,000, while the interest rate for Lite customers is 4.83%. Among all of the brokers that were questioned, these are the most competitive interest rates. The interest rate on margin loans for Lite customers is one percent more than the rate for Pro customers.
• Futures trading are $0.85 per contract (plus exchange and regulatory fees). The price per contract ranges from $0.25 to $0.85 depending on the volume.
• The cost of foreign exchange trades ranges from 0.20 to 0.08 basis points, depending on the volume.
A transaction fee that is proportional to the value of the cryptocurrency being traded is applied. The cost is 0.18% for trades worth up to $100,000 USD in cryptocurrency, 0.15% for trades between between 100,000 and $1 million USD, and 0.12% for trades worth more than that per month.
• Clients who subscribe to the fixed or tiered commission plans can trade up to 150 ETFs without paying a commission; otherwise, the commission rate is $0.005 per share, with a minimum order size of $1. (LITE customers are not responsible for paying any ETF trading commissions.)
• There are no charges incurred in order to transfer or close an account.
• There are no dormant account fees applied to any of the accounts.
How this Broker Will Make Money for You While Also Making Money Off of You
Clients are aware of the fees and commissions that are indicated above; nevertheless, there are a few ways that IBKR makes money from you and for you that are not readily apparent to customers.
• Interest on cash: Similar to the majority of other brokers, IBKR makes interest income from the difference between what you are paid on your idle cash and what it can earn on client cash holdings. This allows it to achieve a higher rate of return on customer cash balances. IBKR applies a blended interest rate on cash holdings that are sitting idle, providing higher yields for balances that are larger.
• Payment for order flow (PFOF): Many brokers generate income by accepting payment from market makers in exchange for directing orders to specific trading venues. This type of arrangement is known as “payment for order flow.” The term for this practise is “payment for order flow” (PFOF). IBKR-Pro customers have the ability to route their orders in whatever manner they see fit, and the system’s default routing does not look for PFOF. IBKR-Lite customers are eligible for trading with no commissions and fixed rates on US equities options; nevertheless, those clients’ orders are routed to market makers who supply IBKR with PFOF.
• Stock loan programmes: Revenue is generated for brokers through stock loan programmes when stocks held in customer accounts are loaned to other traders or hedge funds, typically for the purpose of selling that stock short. This occurs most commonly. IBKR will give you a payment equal to half of the revenue it generates from the leasing of the shares. Customers qualify for participation in the programme if they have either been granted approval for a margin account or have a cash account with a balance of at least $50,000.
• Price improvement: In order to achieve an average of $0.62 in profit for every 100 shares that are exchanged, IBKR’s smart order router actively searches for price improvements.
• Portfolio margining: Clients of IBKR who meet the requirements can submit an application for portfolio margining, which allows for a reduction in the required margin based on the overall risk calculation. Customers that trade derivatives that compensate for the risk that is inherent in their equity positions are typically the ones who benefit most from portfolio margining.
Facilities for Account Management and Research
IBKR stays true to style by offering more research tools than the vast majority of investors will require. The site gives you access to a wide variety of screeners, tools, calculators, idea generators, and research that will assist you in locating your next potential transaction. Both paying customers and those who are only testing out the site have access to all of the research and screeners. There are approximately 45 free or freemium offers included in the research reports. In addition to the research and screeners, PortfolioAnalyst is an investment analysis tool designed for use at the professional level.
Screener for Stocks and ETFs
You can scan worldwide markets for the top instruments (such as stocks, ETFs, options, futures, bonds, and indices) using the TWS Market Scanners based on the parameters and filtering criteria that you select. These instruments include equities. You have the option of using one of the 49 predefined scanners or creating a new one from scratch. It is possible to submit orders straight from a scanner, and a scanned order can be saved as a template for further uses. The Fundamentals Explorer (which is available on both TWS and Client Portal) provides a comprehensive investigation into hundreds of data points covering historical trends, industry comparisons, important ratios, projections, ratings, ownership, and other topics. There is a stock scanner available through Client Portal; however, it is not nearly as powerful as the one available through TWS. This is a tool that is designed for professionals and may be altered in any way you choose.
A Screener for Mutual Funds
The Mutual Fund Search Tool is a screener that is both easy to use and capable of screening both domestic and international mutual funds. Country or location, fund family, commission charged, and fund type are the four basic factors that are considered during the screening process. The categories that are included in the fund type category cover a wide variety of asset classes, such as stocks and bonds, in addition to mixed, alternative, commodity, and money market funds.
Alternatives Analyzer
IBKR provides you with a number of different tools that might assist you in locating your next potential options deal. The degree of personalization available is suitable for even the most experienced traders. The Probability Lab is responsible for converting the option price of an equity into the price estimate that the market has for that asset. Customers provide their price forecast, and the Lab generates trading strategies that have the highest possible Sharpe ratio. The Option Strategy Lab devises option strategies for a certain stock by basing them on price and volatility projections for that stock. You can search by various options-related indicators such as volume and open interest in the Option Strategy Activity Scanner, which scans the majority of active multi-leg option strategies for a certain ticker.
Although it is one of the top options platforms, we believe that the average retail trader would find it too complicated to use. Having said that, IBKR has improved its offering by providing additional guidance and education regarding the use of the platform.
a Screener for Fixed Incomes
Another professional-level fixed income screener that more than lived up to our anticipations is called the Bond Search Tool. The search categories started out with worldwide corporations and then moved on to the United States. CDs and Treasuries, as well as United States municipal and foreign sovereign debt. Next, the criteria grow more specific, with options like maturity date, yield to worst, parameters for the coupon rate, nation, and currency. This is without a doubt one of the most effective fixed-income screeners that we have come across for fixed-income investors.
Instruments, Including Calculators
A wide variety of calculators, including those pertaining to options, margin, order quantity, interest, and financing, are available across all of the platforms. The PortfolioAnalyst makes it possible to do sophisticated analysis and planning of investments.
The fundamentals explorer has been overhauled, and it is now available on all IBKR trading platforms. Utilizing this tool, you will have the ability to go deeply into hundreds of data points covering historical trends, industry comparisons, important ratios, projections, ratings, ownership, and a variety of other topics. You are able to view how a firm stacks up against its rivals and the averages of its industry across a wide range of data points, as well as how the company has performed over time with the help of historical trends.
Charting
Charting assists in the transformation of raw market data into something more useful. IBKR’s charts allow for a high degree of personalization; for example, you can establish chart parameters, alter them from within a chart by using the Edit menu, and save a chart layout as a template. There are dozens of additional chart parameters that can be customised, including the time period, primary display, bar type (TWS native charting offers line, bar, candle, historical volatility, implied volatility, option open interest, option volume, heikin-ashi, and hollow candles), volume plot height, dividends, number of bars to display, and vertical scale), and more. Traders who focus on technical analysis will like the inclusion of more than 120 technical indicators and a set of sketching tools that are simple to operate.
Trading Idea Generators (from the French:
Each of the screeners contributes their own trade recommendations as well. In addition to screeners, the news and educational resources can be a source of creativity for traders and help them think of new trading strategies. As a client’s criteria are customised, trades that are particular to their selected asset classes will become visible to that client. In addition, customers of IBKR have access to the idea generators Capitalise, IBKR Market Signals, Benzinga, and Refinitiv Significant Developments. If you need additional inspiration, the “Top Lists” section of the research site provides a listing of the assets that are the most popular across a variety of geographical areas and asset classes.
News
On every platform, users have access to dozens of different real-time news sources. The following websites are included on the list: 24/7 Wall Street, AccessWire, Benzinga Pro News, Benzinga Crypto News, Briefing.com, China Perspective, China Investment Insight, Dow Jones North American Briefing, IBKR Market Signals, IBKR Quant Blog, IBKR Traders’ Insight, Insider Insights, Market Realist, Morningstar Insider Trade Log, Seeking Alpha, StreetInsider.com Top News and Analyst Actions A monthly charge is required for subscriptions to premium news publications.
Research Conducted by a Third Party
Customers of IBKR have access to dozens of market research and news providers, both free and premium, including AltaVista Research (which covers mutual funds and exchange-traded funds), Edison Investment Research, EventShares Research, ETF Guide, Morningstar Equity Ownership, Reuters Stockreports+, ValuEngine, and Zachs. Users have the ability to pre-screen and organise relevant study resources according to categories such as basic, technical, Macro, Quantitative, Ratings, and Media.
Management of Cash Flow
IBKR has just lately upgraded its choices for cash management. At IBKR, the elements of cash management are integrated into a single account, in contrast to other platforms, which need customers to open a separate “cash management” account in order to use those features. You can borrow money, make deposits, pay bills, and even transfer cash using a mobile device. Cash balances get interest payments calculated according to a formula, with the amount of interest received increasing proportionately with the size of the cash balance.
The Interactive Brokers Debit Mastercard is connected to your IBKR account, which enables eligible users to take advantage of low-margin borrowing and provides access to IBKR money no matter where they are in the world.
Plan for the Reinvestment of Fractional Dividends
IBKR customers have the ability to specify an account-wide default for the reinvestment of dividends on equities that qualify for the feature. Customers can ensure that their money continues to be invested in the markets by having dividends automatically reinvested. This ensures that their money does not remain in cash or on the sidelines. In the event that there is insufficient funds to acquire a share, however, fractional shares will not be purchased and the available cash will instead be credited to your account.
Research Facilities for SRI and ESG
You are able to analyse and invest in businesses that are congruent with your principles with the assistance of the Impact Dashboard, which is accessible through TWS, the Client Portal, and the brand-new mobile Impact app. To begin, you will develop your own particular impact lens. Next, choose the ESG investment criteria that you want to use from a list of 13 impact values and principles. These include having clean air, pure water, ocean life, consumer safety, ethical leadership, gender equality, racial equality, LGBTQ inclusion, company transparency, a sustainable product lifecycle, mindful business models, fair labour, and thriving communities. You also have the option to exclude investments based on one of ten criteria, which are as follows: animal testing; business ethics controversies; corporate political spending and lobbying; energy-intensive; fossil fuels; greenhouse emissions; hazardous waste; high water usage; tobacco, alcohol, and gambling; and manufacturers of weapons and guns.
Portfolio Analysis
The PortfolioAnalyst is not your usual investment management software application. This piece of software brings together, monitors, and evaluates all of your financial accounts, and it offers separate options for institutional and individual investors. After connecting your bank and savings accounts, as well as any debt you may have and any annuities you may have, you will receive a comprehensive analysis of your overall financial picture. This tool provides a checkup for your portfolio, detailing total returns, risk metrics, and allocations broken down by area, asset class, and industry. Investors with a social conscience are able to see the ESG ratings of their portfolios. Even if you do not have an IBKR account, you are able to use the tool for free; nevertheless, only paying clients have access to more complex features and real-time updates.
The exclusive IBKR Tax Optimizer tool gives users the ability to select a default matching approach, which they are then able to modify for certain symbols if they so choose. The Tax Optimizer has a “what-if” capability, which presents a preview of P&L for each of the matching methods, in order to assist you in achieving the highest possible level of tax efficiency.
The Trader’s Journal is a note-taking feature that is available on IBKR’s TWS. This feature enables users to capture and retain trading notes and thoughts on any product. Screenshots can be saved as part of a note, notes can be attached to trades, and charts can be configured to display both orders and performed transactions. This is one of the trading diaries that is available from any brokerage, and it is one of the more complete ones.
Education
IBKR offers a multitude of different investor education programmes to its clientele as well as the general public. These little films are perfect for acquiring TWS and Client Portal knowledge in a manner that is easily digestible. The training are available in multiple languages, making it easier for international investors to learn how to utilise the platform.
Traders Academy is an online, on-demand resource with a structured and rigorous curriculum designed for financial professionals, investors, educators, and students who want to learn about asset classes, markets, currencies, tools, and functionality available on IBKR’s trading platforms. Traders Academy is available to users whenever and wherever they want to access it. The development of students is measured by quizzes and assessments in relation to the learning goals. The topics covered in the available courses include introductory lessons on several asset classes, such as options, futures, foreign exchange, international trading, bonds, and margin trading.
IBKR and other professionals in the field host daily webinars. These programmes include a wide range of topics, some of which include education regarding options trading, how to use various platforms and tools, trading foreign products, and more.
Assistance to Customers
IBKR has a long history of having a poor reputation for its customer service, but the corporation is working to improve both its accessibility and its response time. IBot, which is driven by artificial intelligence, responds to inquiries asked in standard English. IBot is accessible throughout the website and trading platforms, and it can assist consumers in locating the information they need without requiring them to wait for an extended period of time.
The following are examples of customer service features:
• Support by toll-free telephone is offered around the clock, seven days a week, 24 hours a day.
• If you need to hang up but don’t want to lose your place in line, you can use the callback feature to request another call at a later time.
• Users of the trading platform or website have the option to engage in live conversation with a real person via online chat.
• You can access the encrypted communication centre from anywhere within the trading platform or on the website.
IBot, which is driven by AI, guides clients to various online resources and frequently asked questions.
Both Safety and Trustworthiness
The majority of industry standards are exceeded by the security mechanisms that IBKR provides for your account, as well as for your personal information and data. The Securities Investor Protection Corporation (SIPC) insures client accounts held with Interactive Brokers LLC for a maximum of $500,000, with a cash sublimit of $250,000. Excess SIPC coverage offers up to an additional $30 million, with a cash sublimit of $900,000, and a total limit of $150 million for the entire policy.
Biometric authentication, such as face or fingerprint recognition, is available to users of mobile apps. Users have the ability to request an additional layer of protection when using a device. A digital security card is also available for accounts with a balance that is greater than one million US dollars.
If you have stocks that were bought or sold through IBKR, the IBKR Securities Class Action Recovery service can determine whether or not you are qualified to submit a claim for reimbursement. Your claims will be submitted automatically, and you will receive assistance in recouping your qualified cash, minus a 20% contingency fee for using this service.
Transparency
The IBKR website is both thorough and open to public scrutiny, despite its inherent complexity. Commissions and fees, in addition to disclosures of financial soundness and liquidity, are all easily accessible to customers. Commissions are segmented according to plan and asset type, which include stocks, ETFs, and warrants; options, futures, and free-of-payment transfers; and so on (FOPs).
Since the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC) levied fines for failures in the firm’s anti-money laundering programme on August 10, 2020, there have been no reported regulatory actions taken against IBKR. This is the case despite the fact that the fines were levied.
Account Types That Are Available
IBKR provides its customers with a diverse selection of account kinds, as is to be expected from a platform that was developed with the intention of serving the needs of both individual and professional investors. Those who reside in countries other than the United States can open international accounts. The only sort of account that is not included is the 529 plan for saving money for college.
The following are examples of individual account types:
• Individual and shared brokerage opportunities
• Individual retirement accounts, including standard, Roth, rollover, and inherited retirement plans for retirees (IRAs)
• UGMA and UTMA are responsible for custody.
• Trust
The following are categories of professional accounts:
• Home business enterprise
• Legal structures for small businesses include the corporation, partnership, and limited liability company (LLC).
• Advisor
• Investment funds, both hedge and mutual
• Institutional
Final Verdict
It will be difficult for sophisticated individual investors as well as professional investors to discover a platform that offers more comprehensive services. IBKR is distinguished from its competitors by offering a vast selection of tradable assets, a number of trading apps for both computers and mobile devices, minimal transaction fees, effective order routing, and access to a global market. IBKR Lite is suitable for ordinary investors who are prepared to do without the SmartRouting trade routing order feature. IBKR Pro offers reduced pricing for large orders and a commission structure that improves with increased volume, both of which are designed to attract advanced, institutional, and professional traders.
Even while IBKR is the market leader in trading fractional shares and now offers a wide variety of European equities and ETFs, we are unable to confidently suggest the platform to investors who are just starting out in the market. IBKR makes a compelling argument to be the broker of choice for intermediate investors while continuing to control the field when it comes to serving the most sophisticated traders. However, beginning investors are still better suited to a platform that is easier.
