Interactive Brokers review
7
(our review)
Interactive Brokers offers low transaction costs, access to global markets, and advanced trading platforms. In our review, we rate Interactive Brokers with an 7. It is suitable for beginners but especially popular among experienced investors due to its wide range of products. In addition to stocks and options, it also offers trading in futures, foreign currencies, CfD’s, and margin trading. These products can involve significant risks.
Content:
Investing comes with risks. By trading on Interactive Brokers, you can lose (some of) your investment.
What characterizes Interactive Brokers?
Interactive Brokers (IBKR) is a large international broker known for its wide range of products, low fees and advanced trading tools. It is especially popular among large, experienced investors.
For stock and exchange-traded fund trading, IBKR is a reliable and beginner-friendly platform with competitive fees. However, the platform also offers high-risk products such as certain futures, contracts for difference, and margin trading. These are usually not suitable for beginner investors, as the chances of losing money are very high if you are not a professional.
Although the broad selection can be an advantage, Interactive Brokers requires users to make all investment decisions on their own. This makes it better suited for experienced traders who can fully utilize its advanced tools. The platform is most often compared to eToro, DEGIRO, and Saxo.
Interactive Brokers does not offer investment advice. Users must conduct their own research.
Usability: advanced options that take time to master
Interactive Brokers is a powerful trading platform with many advanced tools, but it can be challenging for beginners. To help users get familiar with the platform, IBKR offers a demo account through its Paper Trading feature. This allows you to practice with virtual money in a realistic trading environment, without financial risk.
The platform provides different trading options: Trader Workstation (TWS) is highly advanced but not very intuitive, IBKR GlobalTrader is a simpler mobile app for stocks and exchange-traded funds, and the Client Portal offers a more user-friendly web-based experience for basic functions. Compared to competitors like eToro or DEGIRO, IBKR’s interface is less intuitive, with many advanced order types and settings that take time to master.
Offering: best product range for active investors
Among the most popular brokers in Europe, Interactive Brokers stands out as the best choice for investors looking for the widest product range and the lowest fees. It provides global access to stocks, exchange-traded funds, options, futures, foreign currencies, bonds, and investment funds.
IBKR and Saxo offer the most advanced derivatives and foreign exchange options, while DEGIRO focuses on traditional investments without foreign currencies or contracts for difference. eToro specializes in contracts for difference and cryptocurrencies but does not provide access to bonds or investment funds. Every platform has its own strengths, whether it fits your needs depends on what you want to invest in.
IBKR follows strict regulations and risk assessments. When opening an account, you must indicate your experience with complex products. In some countries, certain products are restricted or only available to professional investors. Additionally, leveraged products like CfD’s require a margin account, which needs extra approval.
Platform features are aimed at active traders
Like other platforms that cater to passive investors or savers, IBKR offers interest on cash, fractional investing, and access to money market funds. However, it does not provide fully automated investment options, unlike some competitors. Other platforms often perform better in this area, as IBKR is primarily designed for active investors.
For active and professional investors, IBKR is a great option due to its broad market access, low fees, and advanced tools. Saxo offers similar features but covers fewer markets and charges fixed fees. DEGIRO is a simpler and more affordable alternative but lacks leveraged products. eToro is best suited for traders who want to speculate on contracts for difference and cryptocurrencies but has a more limited selection for long-term investors.
As a novice investor, it is difficult to assess the risks of investment products.
High risk investments
IBKR is best suited for independent investors who conduct thorough research, as the platform does not actively protect users from poor investment decisions. It provides extensive market analysis, educational content, and trading tools, but investors must make their own decisions without personalized advice or recommendations.
While IBKR performs a risk assessment when opening an account, experienced traders are free to take on high-risk positions. The platform also offers access to complex products such as contracts for difference, options, and futures, requiring beginners to assess the risks themselves.
Costs: one of the cheapest for active investors
Interactive Brokers (IBKR) is one of the cheapest brokers for active investors, especially in options, futures, and foreign exchange. Trading U.S. stocks is commission-free with a Lite account, while Pro account users pay a small fee per share. For European stocks, such as German or French shares, fees start at around 3 euros per trade.
Options trading costs start at approximately 0.25 euros per contract, depending on the market. Foreign exchange trading has tight spreads and low commissions, starting from 0.08 basis points of the trade value. Margin interest rates are among the lowest in the market, starting at just over 5 percent, depending on the balance. Many investment funds have no transaction fees, while others start at a few euros per order. Since 2021, there are no inactivity fees.
Other fees
Interactive Brokers (IBKR) has no hidden fees, but there are some costs to consider, especially for traders who make fewer transactions or use specific services. When trading in a different currency, IBKR charges a small currency conversion fee of about 0.002 percent, with a minimum of 2 dollars per transaction.
For margin trading, IBKR charges interest starting at around 5.8 percent, depending on the balance. Short selling may involve additional borrowing fees, depending on stock availability. Since 2021, there are no inactivity fees. The first withdrawal each month is free, while additional withdrawals cost 10 dollars per transaction.
Reliability
Interactive Brokers (IBKR) is a highly reliable broker, regulated by major financial authorities such as the SEC (United States), FCA (United Kingdom), BaFin (Germany), and FINMA (Switzerland). Client funds are protected up to 500,000 dollars, with extra insurance from Lloyd’s of London.
Founded in 1978, IBKR is a public company listed on NASDAQ. In 2024, it managed over 568 billion dollars in client assets and had more than 3.34 million accounts. The platform offers strong risk management and does not trade against its clients, avoiding conflicts of interest. However, customer service can sometimes be difficult to reach.
Review score: 7
In our latest review, Interactive Brokers scores a 7. It is a high-quality platform and one of the market leaders in terms of assets under management. For professional investors, it is one of the best brokers due to its low fees, access to over 150 markets, and extensive product range, including stocks, exchange-traded funds, options, futures, foreign exchange, and bonds.
However, for beginners or the average European investor, this broad selection can be overwhelming. Most investors benefit more from a platform that is easier to use and provides more guidance on available options. IBKR also lacks some features for passive investors, such as investment plans or automated investing. Additionally, it does not offer fixed-return products like those available on platforms such as Mintos or Freedom24.
If you have experience and plan to trade daily, IBKR is a strong option to consider. But for passive or new investors looking to build wealth more easily, it is not the first platform we would recommend.
