INTERACTIVE BROKERS REVIEW: PROS & CONS
Have you come across this financial app and wonder what it is all about? In this review, we will walk you through the key points to consider when evaluating its features and benefits.
Last Update:
27.6.24
BASIC INFO
Interactive Brokers (IBKR), established in 1977, is a highly respected brokerage firm regulated by multiple top-tier authorities, including the FCA in the UK, SEC in the US, and ASIC in Australia. It offers investor protection, e.g., up to $500k (securities up to $500k, cash up to $250k) for US clients.
However, it is criticized for its complicated account opening process, complex desktop trading platform, and understaffed customer service.
PROS & CONS
PROS
+20 Years in Business
This platform has been in business for over 20 years, demonstrating its experience and reliability. Users can trust the platform's long-standing presence in the industry.
Clean Track Record
A broker having had no major regulatory incidents or fines is a positive sign of their commitment to compliance and ethical business practices.
Regulated by a Credible Government Agency
This platform is regulated by a credible government agency, ensuring that it operates in compliance with industry standards and regulations. Regulation provides a level of security and protection for traders, as it requires the platform to adhere to specific rules and guidelines designed to safeguard the interests of market participants. Trading on a regulated platform can enhance trust and confidence in the trading environment.
+1000 Stocks/ETFs Available
This platform offers a wide selection of over 1000 stocks and ETFs for traders to choose from, providing ample opportunities for diversification and investment.
Multi-Asset Trading
This platform allows traders to engage in multi-asset trading, enabling them to trade various financial instruments, including stocks, ETFs, forex, and more.
Advanced Order Types
This platform supports advanced order types, providing traders with additional flexibility in managing their trades and implementing various trading strategies.
CONS
Poor Customer Support
This trading platform offers limited customer support, leading to delays in resolving issues or inadequate assistance for traders. With subpar customer support, traders may face challenges in getting timely responses to their inquiries, resolving technical difficulties, or receiving necessary guidance.
Lack of Educational Resources
This trading platform lacks comprehensive educational resources, making it challenging for traders to access valuable learning materials and enhance their trading knowledge. Without access to educational resources, traders may struggle to understand complex trading concepts, strategies, or market analysis, limiting their ability to make informed trading decisions.
APPS
INTERACTIVE BROKERS TRADER WORKSTATION (TWS)
Comprehensive platform by Interactive Brokers. Offers tools for trading and analysis.
The image shows the user interface of the mobile trading application, highlighted by its intuitive and easy-to-navigate design.
The main screen presents a clear and concise view of the market, with quick access to a diverse range of assets, including stocks, forex, and indices.
ACCOUNT OPENING
How to Open a Trading Account with Interactive Brokers
Opening a trading account is a process that involves several key steps to ensure both your trading needs and the broker's regulatory requirements are met. Below, we describe the process in detailed steps:
Visit the Broker's Website: Access the official website (found in the index of this review). Look for the option to open a new trading account, which is usually clearly indicated on the main page.
Complete the Registration Form: Provide your personal details, such as name, address, email, and phone number. Depending on the broker's need to know you better as a client, additional information about your trading experience, employment, and financial situation may be requested.
Identity Verification: Upload documents to verify your identity and residence. This generally includes a photo ID (passport or identification document) and a proof of address (utility bill or bank statement).Set Up Your Trading Account: Configure aspects of your account, such as currency type, leverage, and, in some cases, trading preferences.
Deposit Funds: Make an initial deposit using one of the payment methods accepted by the broker (We detail the alternatives later).
Access the Trading Platform: Download and install the trading platform. Log in with your account details.
Practice with a Demo Account (Optional): Practicing trading with virtual funds before risking real money means you won't be surprised when using real money.
Start Trading: Once your account is set up and funded, you can start trading.
How to Deposit
Once you have decided how much to deposit and which method to use, making the deposit is simple and quick. Just follow these steps:
Log in to your newly created account.
Click on "Deposit Funds".
Enter the amount and select the currency.
Finally, select your chosen deposit method. Don't worry, it's a secure and private process. Transactions are communicated using Secure Socket Layer (SSL) technology.
Below we show you the available alternatives.
Deposit & Withdrawal Methods
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ASSETS & SERVICES
IBKR is highly recommended for its comprehensive services at low fees, including:
Unrivaled selection of all asset types from exchanges across the globe.
Wide range of products, including stocks, ETFs, Forex, funds, bonds, options, futures, CFDs, crypto, warrants, and structured products.
Trading platforms with great functionality and advanced research tools.
IBKR is ideal for those seeking access to foreign markets outside the US, including Europe, Singapore, and Hong Kong, and offers fractional shares and trading outside regular market hours.
REGULATION
United Kingdom
FCA
Financial Conduct Authority
Canada
IIROC
Investment Industry Regulatory Organization of Canada
United States
CFTC
Commodity Futures Trading Commission