Interactive Brokers Review - Is Interactive Brokers A Good Broker?
Interactive Brokers Review
Interactive Brokers is unique because it offers the lowest margin rates and commissions among its peers. Thus, it is an excellent option to consider for stock trading.
This Interactive Brokers Review will reveal some essential factors you need to consider before using this brokerage platform. Interactive Brokers was founded by Thomas Peterfly (its current chairman) 29 years ago.
Interactive Brokers is traded publicly under the ticker symbol IBKR and has 1.92 million client accounts.
The Interactive Brokers' Advantage
Interactive Brokers is ideal for investors, especially those involved in margin trading. This Broker's margin rate is much better than most of the competition.
Interactive Brokers may not be the best online stock broking firm for all traders and investors. However, it has some top features that make it better than most of its competition.
Low Commissions And Margin Rates
IBKR's lite platform doesn't charge any fee for ETF and stock trades. Instead, interactive Brokers offers various price options for traders, which determines the transaction fees they pay per trade.
This stock broker prices the first dollar margin at an interest of about 5%, contrasting to many other brokers where it costs twice as much. This sum of these differences becomes important for investors that carry huge margin balances for a long time.
Trading On Markets Outside The US
Interactive Brokers is one of the few brokers that enable traders to buy trade on markets that are not within the US. This is another advantage of IBKR as many brokers allow you to purchase stocks of international companies provided those companies are listed on the US stock exchange.
Traders can access over 150 markets globally through this Broker's trader workstation. Interactive Brokers is also among the few discount brokerage firms that allow traders access to this vast number of markets.
Interactive Brokers' Trader Workstation
Regardless of the financial markets you trade, IBKR's Trader WorkStation (TWS) desktop platform is suitable for you, and it is free. The platforms also offer two mobile trading apps, and your needs will determine which of the two apps you choose.
The IBKR mobile app has several features and functions similarly to the TWS platform. Meanwhile, the lite IBKR GlobalTrader mobile app has streamlined functionalities.
Hence, it has a simple user interface, making it suitable for only simple crypto and stock trades. However, many inexperienced investors will find all they need to trade or make trading decisions on the lite IBKR GlobalTrader mobile app.
As one of the leading stock brokers, Interactive Brokers offers several mutual funds you can buy without paying any transaction fees. However, many smaller stock brokers charge transaction fees for traders who purchase mutual funds.
Trading Crypto With Interactive Brokers
Interactive Brokers has partnered with Paxos trust company to enable its users to buy cryptocurrencies. Through this partnership, Interactive Brokers' users can trade the top digital currencies (Bitcoin, Ethereum, and Litecoin) and various other digital currencies.
However, these users need to create a Paxos account before they can begin to trade. The crypto trading service is available anytime, and traders are free to domicile in crypto or fiat (us dollar).
The platform also offers several other order types. Furthermore, your monthly trade value determines the amount of commissions you'll pay under its tiered commission structure. Finally, users can execute trades from their Interactive Brokers trading app (desktop or mobile) even though Paxos serves as the crypto exchange.
Interactive Brokers' Margin Lending And Customer Support
With arguably the lowest margin rates among other brokers, offering low-margin lending is this platform's unique selling advantage. Other discount brokers charge at least two times Interactive Brokers' margin loans.
Hence, if margin rate is the focal point of your trading strategy, Interactive Brokers is the best option you should choose as your stock broker. There is also a variation in margin rates of IBKR margin pro and lite users.
Margin rates on the former are lower than the latter. Also, the margin rates on the IBKR Pro reduce further as you borrow more. Interactive Brokers' customer support is available throughout the day of the week to answer your queries. You can reach them via their secure account center, phone call, or chat.
Interactive Brokers should be among the list of brokers you should consider if you want to keep your expenses low, including access to low-margin rates. In addition, it is also a good option for you if you can perform market research yourself.
Interactive research offers a paid market research service for traders who can afford it. If any of the above suits you, you can now open a brokerage account with Interactive Brokers.