In this contemporary time, stock exchanges and cryptocurrencies have taken over as the number of investors is skyrocketing daily. As such, you may be looking for a platform where you can invest in stocks and trade cryptos. Interactive Brokers is a versatile and powerful electronic trading tool to kickstart your trading exercise.
Without much bickering, Binance and other top cryptocurrency trading platforms have been the go-to for most investors. Interactive Brokers, on the other hand, can not be sidelined when it comes to online trading. This is because it offers amazing features that most of its counterparts do not.
Pros of Interactive Brokers
- Interactive brokers offer a large range of trading products such as options, forex, stocks, funds, futures, and bonds on 135 markets in 33 countries. Moreover, interactive brokers fund a wide inventory of fixed-income products, which includes different European cooperate bonds.
- The web-based client portal is easily accessible to trade forex, and it has an integrated news headline along with an economic calendar.
- Interactive brokers provide an exceedingly sophisticated order type of configuration, which is a benefit for advanced forex traders.
- Interactive Broker margin interest rates are below the financial industry average. IBKR makes use of a merged rate formed on tiers.
- It offers clients the finest price execution in the trading industry. IBKR locates the finest firm stock option and combines prices within reach when you place an order and want to execute the order instantly.
- Interactive Brokers is strong enough for advanced traders to use. It is created for investors and retail traders. There are a lot of technical tools available on the trader’s workstation platform, which include ESG scores from Refinitiv, Social Sentiment by social market, and access to the company’s important data on stocks and funds.
- Interactive Broker lite clients do not have access to the Interactive Broker smart router. IBKR lite customers have restricted access to the Interactive Brokers web trader platform.
- IBKR’s impressive platform can be quite frightening to rookie traders and less active investors.
- Traders can’t use MetaTrader as an alternative trading platform.
Interactive Brokers Commissions and Fees
IBKR pricing is not on the competitive side. However, it is quite hard to estimate the interactive broker fee as they didn’t publicize the average spread for forex.
Forex pricing summary: The commission for Forex trading begins at 0.00002 of USD trade value, with a minimum of $2 for each order. If you are an active forex trader, the commission can drop to 0.08 basis points.
Forex account example: If you buy and sell EUR/USD worth over $100,000 at IBKR, it would result in a commission worth the same amount of 0.40 pips plus any prevailing spreads.
Minimum charge for each trade: Since the lowest commission for trading is $2 per trade when you trade less than 100,000 units of currency, it becomes equivalently more expensive. IBKR charges a minimum of $3 for forex traders when you trade less than 50,000 units of currency, which is similar to Saxo Bank.
Commission and execution method: IB Broker combines prices for forex traders from 17 of the globe’s largest interbank forex dealers. IBKR charges a commission for each trade that ranges from $16 to $40 per million round turns.
Active traders: Interactive Broker offers discounts for professional forex traders as long as there is some minimum monthly trading volume. For instance, if you trade $1 billion worth of forex, the minimum charge goes down from $2 per order to $1.5, and it can go down to $1 per order when it gets to $5 billion in volume each month.
Interactive Brokers Mobile App
The Interactive Brokers app for forex traders offers a lot of powerful tools for forex traders. The IBKR mobile app provides an excellent trading experience that challenges the industry’s best multi-asset brokers. IBKR offers its IMPACT app for crypto and stocks.
IBKR has a mobile app for forex trading and CFD trading. The mobile app is available on the Google Play Store for Android users and the Apple App Store for iOS users. The app has amazing features for forex traders, such as a dashboard where you can view portfolio metrics. There are over 127 indicators available on the mobile app, and forex traders can trade from within the charts.
The app is available to both pro and lite customers. It has over 400 data columns, research charts, option exercises, scanners, and spread templates. The IBKR mobile app allows users to create order presets that prefill order tickets for quick entry. InteractiveBrokers designed another app called IBKR Global Trader. The app was designed to reach global investors and allow users to trade stocks on over 80 exchanges in Europe, North America, and Asia.
Interactive Brokers Margin Rates
Interactive Brokers LLC margin rates are relatively low, enabling margin traders to benefit from the cheap rates. The maximum margin rate for Interactive Brokers pro customers is 1.58%. The maximum margin rate for Interactive Brokers lite customers is 2.58%.
These rates apply to a balance between $0 and $100,000. The rates tend to drop at higher balances. The margin loan size determines the rate the broker charges. Investors can calculate the margin rates on the website.
Interactive Brokers’ Customer Service
There is a 24-hour phone offered at Interactive Broker for its customers. There is also an email for customers to reach out to IBKR regarding their questions, along with chat support. The customer service is available for 6 days. Interactive Brokers is not only available to U.S. residents alone, it is open to investors in 218 countries.
Is Interactive Brokers Right for You?
Interactive Brokers is the right choice for experienced forex traders and active investors. It is a great choice for people who can shift to the brokers’ cheaper volume pricing. Inexperienced traders can find interactive brokers more effective with free trades made available through Interactive Brokers Lite.
Cryptocurrency trading was introduced by the interactive broker in 2021, which gives customers access to bitcoin, bitcoin cash, Ethereum, and Litecoin. Although interactive broker charges the customer for trading, the trading fees are very cheap, ranging from 0.12% to 0.18%, which depends on monthly volume.
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