Interactive Brokers Review 2023: Low Fees, Global Access, and Powerful Tools

Interactive Brokers Review 2023: Low Fees, Global Access, and Powerful Tools

In this in-depth exploration, we shed light on Interactive Brokers (IBKR), a brokerage powerhouse that offers access to over 100 market centers across 24 countries, facilitating trading in stocks, forex, futures, options, ETFs, bonds, and CFDs. This detailed review will delve into every facet of their services, including trading fees, the Webtrader platform, mobile apps, customer support, and more.

The Genesis

Interactive Brokers, founded by Thomas Peterffy, the current chairman and CEO, has a rich history spanning over four decades. It all began in 1977 when Peterffy acquired a seat on the American Stock Exchange, embarking on his journey as an individual market maker in equity options.

Over the years, the company underwent several name changes, including TP & CO and Timber Hill Inc. However, by 1993, it became Interactive Brokers Inc. Today, IBKR stands tall as an industry leader, boasting competitive commissions, favorable margin rates, and global accessibility. With $6 billion in equity capital, it's evident that IBKR has achieved remarkable success and influence.

Minimum Initial Deposit

Once you've completed your account setup and received your login credentials, funding your account is the next step to initiate day trading. The broker has eliminated the hefty minimum deposit requirement of $10,000, making it more accessible to traders on a budget.

Spreads & Commissions

Interactive Brokers offers competitive forex spreads and fees, primarily catering to professional traders and institutions. The commission structure features a low, fixed rate of $0.005 with a minimum charge of $1.00 for all products, including stocks, stock futures, options, futures options, forex bonds, and CFDs.

For European clients, there's an option for a fixed-rate commission of 3 EUR/GBP for trades below 6,000 EUR/GBP in value, shifting to 0.005% for higher values. Additionally, Interactive Brokers partnered with Toggle AI in 2022, introducing a reimbursement plan that returns trading fees on a monthly basis. New customers can also qualify for low options commissions at $0.50 per contract.

Leveraging Opportunities

Interactive Brokers also excels in offering leverage compared to competitors like eTrade, Thinkorswim, Tradestation, Oanda, and Scottrade. Initial margin rates can range from 1.41% to 1.91% for accounts holding over $1 million. However, it's essential to exercise caution when engaging in futures and options margin trading, as it can amplify losses and potentially lead to a complete account balance depletion.

Additional Trading Costs

Interactive Brokers imposes an exposure fee on a small percentage of high-risk margin accounts to compensate for servicing such accounts. The fee amount is calculated using proprietary algorithms and varies based on individual circumstances.

Trading Platform

The heart of Interactive Brokers' appeal lies in its Trader Workstation (TWS). This versatile platform supports trading in a wide range of instruments, from ETFs and futures products to cryptocurrencies like Ethereum. It is compatible with Mac, Windows, and Linux operating systems.

Upon completing the Workstation download, users encounter the default Mosaic setup, but they can also access the Classic TWS, the original version of the platform. The platform provides essential functionality, including backtesting, setting trailing stop limits, and accessing earnings calendars.

To simplify watchlist management across numerous asset classes, Interactive Brokers has introduced an intuitive approach. Users can simply enter a stock symbol, and a summary of available securities will be displayed. With the capability to include up to 338 different columns in watchlists, Interactive Brokers leads in terms of customizability. However, a potential downside is the challenge of sifting through a long list of real-time quotes or securities when searching for specific symbols.

Charting Capabilities

Interactive Brokers offers respectable charting capabilities with 124 different studies available for inclusion in charts. While competitors like TradeStation provide 270 studies and TD Ameritrade offers 370, Interactive Brokers ensures user-friendly charting with ample customization options. Additionally, historical trades, alerts, and index overlays are readily accessible. However, the platform provides only eight tools for markups, missing features like resistance lines and channels.

Other Features

Interactive Brokers provides access to a remarkable 63 different order types. The Options Strategy Lab enables the creation and submission of both simple and complex multiple options orders, allowing users to compare up to five options strategies simultaneously. The Mutual Fund/ETD Replicator aids in identifying lower-cost ETF alternatives to mutual funds, aligning with the company's commitment to offering a broad array of instruments and markets.

MetaTrader Compatibility

While Interactive Brokers does not actively support MetaTrader 4 or 5 platforms, preferring to promote their proprietary TWS platform, some third-party software solutions can bridge the gap and enable integration.

TWS: The Verdict

For advanced traders, the Trader Workstation is a prudent choice, offering a wealth of powerful features, watchlists, and a customizable account dashboard. The inclusion of risk analysis and technical tools further enhances its comprehensive offerings.

However, beginners might find the Trader Workstation overwhelming. In this case, they may consider using the mobile offering or the IB WebTrader, a user-friendly browser-based trading platform.

Mobile Applications

Interactive Brokers offers mobile applications for both iPhone and Android, compatible with tablets. The interface incorporates Key technology, requiring a PIN or swipe as an additional security layer. Two-factor login with Touch ID support is available, although it necessitates a secondary key app instead of direct Touch ID access.

User feedback and reviews generally express satisfaction with the mobile offerings. These applications provide essential tools for convenient trading, including alerts, scanners, newsfeeds, stop losses, watchlists, order history, historical tick data, portfolio management, full-featured order entry, and real-time data and quotes. Additionally, balances, margins, and market values are readily accessible.

In terms of charting, some users prefer the mobile applications due to their cleaner interface. However, it's worth noting that the charting capabilities, despite offering 68 different optional studies, may be less flexible compared to some competitors.

On the downside, there are certain limitations. Advanced order types can be challenging to set up, and the home screen is not customizable, with a lack of push notifications for basic stock alerts.

In summary, mobile applications effectively complement the desktop-based version, with features like custom screening and after-hours charting that stand out. However, for comprehensive desktop trading, these applications are best used as a supporting tool.

Payment Methods

Interactive Brokers offers two types of deposit methods: actual fund transfers and deposit notifications. Deposit notifications enable IB to identify incoming funds and maintain the original currency denomination of your funds. Detailed instructions for fund transfer will be provided following the completion of the deposit notification process. Wire transfer and SEPA are the accepted withdrawal methods, and wire transfer fees may apply. Secure login systems enforce withdrawal limits, with the maximum daily withdrawal set at $50,000 and a total maximum withdrawal of $100,000 within five business days. The first withdrawal each calendar month is fee-free, while subsequent platform withdrawals incur charges based on location, typically around €8. Debit cards, credit cards, and Mastercard payments are also accepted.

Account Types

Interactive Brokers offers various account types, including:

  • Cash accounts
  • Margin accounts
  • Portfolio margin accounts
  • Universal accounts

Cash accounts are designed for long securities positions, long option positions, and covered short positions. Margin accounts allow purchasing securities on margin, including short security positions, futures positions, and naked options positions. Portfolio margin accounts share the same trading capabilities as normal margin accounts but employ an alternative method for calculating margin requirements, offering greater leverage potential with a minimum account balance of $100,000. Universal accounts provide access to a wide range of instruments and markets, allowing global trading without the need for separate accounts in different regions.

Demo Accounts

Interactive Brokers offers a practice/demo account, allowing unlimited simulated trading without the risk of real capital. This feature provides an opportunity to familiarize yourself with the markets and develop effective trading strategies. It also serves as a useful tool to test the trading platform.

The demo account has received positive reviews, offering a multitude of trading tools and financial instruments. Customizing the interface is straightforward.

Additional Features

Interactive Brokers provides several valuable additional services, including:

  • iBot: A text and voice-based trading interface with a strong understanding of basic English commands, available for both desktop and mobile TWS applications.
  • WebTrader: A web-based trading platform with features and functions similar to the desktop version, offering an intuitive interface and enhanced security.
  • Risk Navigator: A comprehensive portfolio risk management platform that simplifies the identification of hidden exposures and provides real-time risk summaries.
  • Mosaic Market Scanner: A tool that scans markets based on customizable numerical criteria.
  • Probability Lab: A tool for deciphering options markets.
  • Zacks Research: Access to high-quality research, analysis, and recommendations via the TWS interface.
  • Traders' Insight: Daily articles provided through email subscriptions or a straightforward website access, offering valuable insights for informed trading decisions.
  • Social Sentiment: Facilitates access to various website ticker discussions and commentary to enhance market analysis.

While these features provide substantial value, some may require additional payments, depending on the account type.

Regulation & License

Before funding a day trading brokerage account, it's crucial to ensure proper regulation, safeguarding your capital in various scenarios. Interactive Brokers is regulated by the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the New York Stock Exchange, and the Financial Conduct Authority, in addition to being overseen by various other regulatory bodies globally.

Trading Hours

Interactive Brokers adheres to industry-standard trading hours, which vary depending on the chosen instrument. For specific trading times, users can refer to the official website.

Additionally, extended and after-hours trading is available, ensuring flexibility for traders with limited time or rigid schedules.

Contact & Customer Support

Interactive Brokers offers several means of contacting customer support, including live chat, a telephone line, and email support. However, user reviews indicate that customer support may fall short of expectations, with extended wait times.

Telephone support is essential for handling security-related issues such as resets and security tokens, and it is available 24 hours a day. Nevertheless, customer service shifts to foreign locations overnight, potentially complicating contact.

Live chat may entail standard wait times and occasional outages. It's worth noting that despite potential delays, customer support personnel possess substantial technical knowledge, assisting users with software-related issues and account management.

Chat rooms and forum personnel typically provide quicker and more helpful responses.

They offer information on account promotions, guidance on account upgrades, and access to research and user guides. However, compared to competitors, Interactive Brokers' customer support may exhibit longer wait times and lower quality.

Safety & Security

Interactive Brokers prioritizes security and protection with a two-factor authentication system. This system requires a username, password, and a physical token in the form of a card with multiple numbers, which is sent to the user's address. The token must be activated and used for each login. The platform also offers encrypted connections with standard SSL encryption.

To prevent unauthorized capital transfers, fund transfer restrictions are in place. The two-factor authentication system ensures that even if an unauthorized party gains access to a user's username and password, they cannot access the account.

The Final Verdict on Interactive Brokers

In conclusion, Interactive Brokers is a brokerage that excels in facilitating global trading with low commissions and tight spreads, providing a broad array of instruments and markets. It caters to retail traders, offering access to a multitude of global stocks from over 100 market centers in 24 countries, including direct market access to prominent indices.

Pros and Cons


  • Exceptional access to global stocks
  • Direct market access to major indices
  • Multiple account types
  • Proprietary workstation with powerful tools and charting
  • Stringent regulatory oversight
  • Reliable real-time market data feed
  • Diverse payment options and account currencies
  • Commission reimbursement with Toggle AI
  • Competitive commissions and tight spreads


  • Potentially expensive for high-frequency traders exceeding 100,000 shares daily
  • Complex platform and web interface, less suitable for beginners
  • Limited accessibility to products like CFDs compared to competitors
  • Technical charting capabilities of the TWS platform may fall short
  • Customer support may exhibit mediocre response times

In summary, Interactive Brokers is best suited for experienced traders with substantial capital. For beginners, the mobile and web-based platforms offer a more accessible entry point into the world of trading.

Interactive Brokers Details

Disclaimer: - We at forexoverflow do not endorse neither refer anyone to trading broker websites. The information is for educational purpose and source of information is from the broker website.


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