Interactive Brokers Review: Is This Top Broker Right for Your Investments in 2025?

Thinking about where to put your money in 2025? This Interactive Brokers review is here to help you figure out if they’re the right fit for your investment goals. We’ll break down what they offer, how they stack up, and if their platform is what you need. It’s a big decision, and we’re here to make it a little clearer.

Key Takeaways

• Interactive Brokers has some of the lowest margin rates out there, which is a big plus if you trade a lot or are a professional.
• If you like to invest globally, IBKR gives you access to over 150 markets. That’s a lot of options for diversifying your portfolio.
• Their trading platforms, like TWS, are packed with features. This is great, but it might take some time to get used to if you’re new to trading.
• They offer a huge range of investment choices, from stocks and options to crypto and forex, across many countries.
• IBKR Lite is an option for simpler investing with free U.S. stock and ETF trades, but watch out for interest on uninvested cash if you have small balances.

1. Range of Investments

When it comes to the sheer variety of things you can invest in, Interactive Brokers really sets the bar high. They give you access to over 150 different markets, and you can trade in more than 200 countries. It’s honestly the biggest selection I’ve come across anywhere. They seem to be constantly adding new features too, which keeps them ahead of the game in the self-directed investing world.

This broad access means you’re not just limited to stocks and bonds in your home country. You can explore international markets, different currencies, and a whole lot more. It’s pretty impressive, especially if you’re looking to spread your investments around the globe.

Here’s a quick look at what you can typically trade:

• Stocks
• Bonds
• ETFs
• Mutual Funds
• Options
• Futures
• Forex
• Cryptocurrencies

The sheer breadth of available assets is a major draw for serious investors. It allows for a level of portfolio diversification that’s hard to match elsewhere, catering to a wide spectrum of investment strategies and risk appetites.

Interactive Brokers has seen a big jump in option contracts lately, which makes sense given how volatile the markets have been. They’re always innovating, and their global reach is a big part of why they’re so popular. If you’re interested in exploring the world of options, checking out their option contracts is a good starting point.

2. Margin Trading

Interactive Brokers offers margin trading, which lets you borrow money from the broker to increase your buying power. This can amplify both potential gains and losses, so it’s a tool best suited for experienced traders who understand the risks involved.

The broker provides competitive margin rates, which can be a significant advantage for active traders. These rates are tiered, meaning the more you borrow, the lower the interest rate you’ll typically pay. This structure is designed to benefit larger accounts and more active users.

Here’s a general idea of how margin trading works with IBKR:

• Borrowing Power: You can borrow funds to purchase securities, effectively trading on leverage. The amount you can borrow depends on the collateral in your account and the specific securities you’re trading.
• Interest Rates: IBKR’s margin rates are known for being among the lowest in the industry, especially for larger balances. They use a tiered system, so check their latest rates for the most current information.
• Risk Management: Margin trading involves significant risk. If the value of your securities falls, you could face a margin call, requiring you to deposit more funds or sell assets to cover the shortfall. It’s vital to have a solid risk management strategy in place before using margin.
• Account Types: Margin trading is available on various account types, but not all. Cash accounts, for instance, do not permit margin trading.

Using margin can magnize your returns, but it also magnifies your losses. It’s not a strategy for beginners, and you should always be aware of the potential downsides. Make sure you understand the margin requirements and interest costs before you start trading on margin.

3. Active Traders

Interactive Brokers really shines when it comes to active traders. It’s not just about having a lot of tools; it’s about having the right tools that are fast and reliable. Many traders, especially those who move a good amount of volume, find the pricing structure very appealing. You can opt for the IBKR Lite plan, which offers commission-free trades on stocks and ETFs, or the IBKR Pro plan. With Pro, you’re looking at a $1 minimum commission per trade, or a half-cent per share if you’re trading more than 200 shares. This kind of tiered pricing can really add up to savings for frequent traders.

They offer a few different ways to trade, which is great because everyone has their own preference:

• Trader Workstation (TWS): This is the powerhouse platform. It’s packed with advanced charting tools, real-time data, and order types that serious traders need. It can feel a bit overwhelming at first, but the customization options are incredible.
• Desktop Platform: A more streamlined version of TWS, still offering robust features for day-to-day trading.
• Web Trading Platform: Accessible from anywhere, this platform is good for quick checks and trades without needing to download anything.

Beyond the platforms, Interactive Brokers provides features that active traders often look for:

• Paper Trading: Practice your strategies without risking real money. This is a big plus for testing out new ideas.
• Trade Journal: Keep track of your trades, analyze performance, and learn from your mistakes. It’s a simple but effective way to improve.
• Extensive Watchlists: You can create incredibly detailed watchlists with a huge number of fields to monitor your chosen securities.
• Advanced Charting: With 155 indicators and 85 drawing tools, you can really dig into the technicals of any stock.

For active traders, the ability to execute trades quickly and efficiently is paramount. Interactive Brokers has built its reputation on providing a stable and fast execution environment, which is a major draw for those who rely on split-second timing in their trading strategies. The sheer volume of available order types and the sophisticated routing options further cater to this demanding user base.

4. International Trading

If you’re looking to invest beyond your home country’s borders, Interactive Brokers really shines. They’ve consistently been recognized as a top choice for international trading, and it’s easy to see why. You get access to a huge number of global exchanges, which is pretty impressive.

This broad reach means you can trade stocks, options, futures, and more in over 150 markets across 33 countries. That’s a lot of ground to cover, and it opens up a world of possibilities for diversifying your portfolio and taking advantage of global market movements.

Here’s a quick look at what they offer:

• Global Market Access: Trade on exchanges in North America, Europe, Asia, and beyond.
• Currency Trading: Access to major and minor currency pairs for forex trading.
• Multi-Currency Accounts: Hold and trade in multiple currencies, simplifying international transactions.
• Real-Time Data: Get live market data from exchanges around the world.

It’s not just about having access, though. The platform provides tools and data that help you understand these different markets. You can see how markets are performing globally and identify potential opportunities. For anyone serious about building a globally diversified portfolio, this is a big deal.

For investors who want to trade across borders, Interactive Brokers makes it straightforward. They handle a lot of the complexity, so you can focus on the actual trading and investment decisions. It’s a significant advantage compared to brokers with more limited international capabilities.

5. Trader App

Interactive Brokers really goes all out when it comes to their mobile apps. They don’t just have one; they actually offer three different ones: IBKR Mobile, GlobalTrader, and Impact. Each one is built for a specific kind of user, which is pretty smart.

IBKR Mobile is the main one, and it’s seriously packed with features. It feels like they managed to cram almost everything you can do on their desktop platform right into your phone. You get detailed quotes, you can manage your watchlists, and even place complex trades. The trade ticket for stocks is one of the most advanced I’ve seen on a mobile app. Even options trading, which I usually find too fiddly on a phone, felt surprisingly smooth. The options chain, wizard, and analyzer had all the data I needed.

Here’s a quick look at what IBKR Mobile offers:

• Watchlists: You can add a ton of data fields, way more than most apps allow. Almost all the info from the web platform is available here.
• Charting: It’s really good, with over 90 indicators and 80 drawing tools. Plus, you can save your chart setups to the cloud, which is handy.
• Toolbox Feature: This is where things get interesting. It includes AI-powered trade ideas, options strategies, tax tools, auto-investing, and market scanners, all in one spot.

GlobalTrader is designed for folks who are newer to investing or want an easier way to access international markets. It handles fractional shares, foreign stocks, and options with a clean, simple layout. It’s great for beginners or anyone just exploring overseas investments. The Impact app, on the other hand, is all about ESG investing. It helps you find companies that match your personal values, like clean energy or avoiding animal testing. It even has a cool "swap" feature to adjust your portfolio with one click and gives your investments a grade based on your chosen values. For anyone focused on socially responsible investing, this app is a must-try.

While IBKR Mobile is incredibly powerful, it’s worth noting that it’s primarily built for more experienced traders. The sheer amount of data and tools available can be a bit overwhelming if you’re just starting out. However, the platform does include a "slide-to-execute" function that simplifies placing trades, and you can explore features like recurring investments directly within the app.

6. Ethical Investing

For investors who want their money to do more than just grow, Interactive Brokers offers some solid options. It’s not just about picking stocks that might go up; it’s about aligning your portfolio with your personal values. This is a big deal for a lot of people these days, and thankfully, IBKR has tools to help.

They provide access to a variety of ESG (Environmental, Social, and Governance) focused funds and stocks. You can screen for companies based on specific criteria, like renewable energy, gender equality, or even companies that avoid controversial weapons. It’s a way to put your money where your mouth is, so to speak.

Here’s a quick look at how you might approach it:

• Define Your Values: What’s most important to you? Clean energy? Fair labor practices? Animal welfare?
• Research Investments: Use IBKR’s tools to find companies or funds that match your criteria.
• Build Your Portfolio: Construct a portfolio that reflects your ethical priorities.
• Monitor Performance: Keep an eye on both the financial returns and the impact your investments are having.

Interactive Brokers doesn’t have a dedicated app solely for ethical investing like some smaller platforms, but its main platforms are robust enough to handle this type of screening and portfolio building. You can find ESG ratings and data points within their research tools, which is pretty handy. It means you don’t necessarily need a separate account to manage your socially conscious investments.

While the platform provides the tools, the actual selection and ongoing management of ethical investments still require your attention. It’s about using the available resources to make informed decisions that align with your conscience and financial goals.

7. Professional Trading

Interactive Brokers really shines when it comes to tools and features aimed at professional traders. They’ve built a reputation for providing a robust environment that can handle complex strategies and high-volume trading.

The platform offers a wide array of sophisticated trading tools designed for serious market participants. This includes advanced charting capabilities with a large number of indicators and drawing tools, a trade journal for performance tracking, and the ability to save custom charting profiles. For those who like to test their ideas, there’s also backtesting functionality available.

Here’s a look at some of the features that cater to professionals:

• Trader Workstation (TWS): This is their flagship desktop platform, packed with advanced order types, real-time market data, and analytical tools. It’s highly customizable, allowing traders to tailor the interface to their specific needs.
• Algorithmic Trading Support: For those who want to automate their strategies, Interactive Brokers provides APIs and tools that support algorithmic trading.
• Market Scanners: Identify trading opportunities based on user-defined criteria.
• Complex Options Strategies: The platform supports multi-leg options orders, giving traders flexibility in constructing complex positions.

The sheer depth of features available means there’s a learning curve, but for professionals who need granular control and access to a vast market, it’s often worth the effort. The platform is built to handle the demands of active, sophisticated trading.

When you look at the number of available indicators and drawing tools on the charting platform, it’s clear they’re not holding back. You get 155 indicators and 85 drawing tools, plus 6 study customizations. This level of detail allows for very specific technical analysis.

8. Platforms & Tools

Interactive Brokers really packs a punch when it comes to their trading platforms and tools. They offer a few different options, so you can pick what works best for you. There’s the IBKR Desktop, which is pretty solid for most people, and then there’s the Trader Workstation (TWS). TWS is where things get serious – it’s loaded with advanced features that seasoned traders will appreciate.

The Trader Workstation (TWS) is a powerhouse for active traders, offering a vast array of sophisticated tools. For example, it has things like Algo Trading, Options Strategy Lab, and a Risk Navigator. You can also set up watchlists that are incredibly flexible, letting you track almost anything you can think of, from stocks and options to forex and futures. They even have a feature called the ‘options lattice view’ which shows you option volume and implied volatility in a visual way, making it easier to spot where the action is.

Here’s a quick look at some of the tools available:

• IBKR Desktop: A user-friendly interface available for Windows and Mac.
• Trader Workstation (TWS): A more advanced, feature-rich platform for active traders.
• Web Trading Platform: Accessible from any browser, offering core trading functionalities.
• Paper Trading: A simulated trading environment to practice strategies without risking real money.
• Trade Journal: A tool to log and analyze your trades.

When it comes to charting, IBKR doesn’t hold back. You get a ton of indicators and drawing tools – over 150 indicators and 85 drawing tools, to be exact. You can even save your custom chart layouts, which is a nice touch. They also offer streaming time and sales data, which is pretty important if you like to see every single trade happening in real-time. Plus, there’s a backtesting feature for trade ideas, letting you see how a strategy might have performed in the past.

The platform’s customization options are extensive. You can adjust watchlists with hundreds of data fields and set up multiple charts simultaneously, tailoring the view to your specific trading style. This level of detail means you can really get a handle on market movements.

9. Overall Rating

So, what’s the final verdict on Interactive Brokers? It’s a bit like that Swiss Army knife of trading platforms – packed with features, maybe a little overwhelming at first, but incredibly capable once you get the hang of it. Most reviewers and users seem to agree that for serious traders, especially those looking for a wide range of investment options and global access, IBKR is a top-tier choice.

Over the years, Interactive Brokers has consistently snagged awards and high marks from various financial publications. Think Barron’s, Benzinga, and others. These aren’t just participation trophies; they often highlight specific strengths like low costs, advanced trading tools, and international trading capabilities.

Here’s a quick look at how they’ve stacked up in some key areas based on past reviews:

• Investment Variety: Generally scores very high, reflecting the sheer number of markets and products available.
• Trading Technology: Consistently praised for its robust platforms and tools.
• Costs: Often cited as one of the lowest-cost brokers, particularly for active traders.
• Research Amenities: Frequently receives top ratings for the depth and quality of research tools.
• Customer Service: While sometimes a point of contention due to its complexity, it has also received awards for client service in specific areas.

It’s not uncommon to see ratings like 4.5 out of 5 stars, or even a perfect 5/5 in specific categories like "Best Futures & Options Broker" or "Best Online Broker for International Trading." They’ve also been recognized as a top prime broker and hedge fund custodian.

While the platform can feel a bit complex for absolute beginners, the sheer power and breadth of services offered mean that for those who need it, Interactive Brokers is hard to beat. It’s built for traders who want to do more.

Ultimately, the "overall rating" often depends on who you ask and what they prioritize. If you’re a day trader, an options specialist, or someone looking to trade across global markets, IBKR is likely to score very high on your personal rating scale. For the casual investor just starting out, it might take a bit more effort to get comfortable, but the potential is definitely there.

10. Investment Selection

When you’re looking at Interactive Brokers, one of the first things that jumps out is just how much you can actually invest in. It’s not just stocks and bonds; they’ve really gone broad with their offerings.

Here’s a quick look at what’s on the table:

• Stocks: Access to markets in the US, Europe, Asia, and more. You can trade individual company shares across many global exchanges.
• ETFs: A huge selection of Exchange Traded Funds, covering all sorts of sectors, industries, and asset classes.
• Mutual Funds: Plenty of options here too, giving you diversification through professionally managed portfolios.
• Options: For those who like more complex strategies, options trading is available.
• Futures: Trade contracts based on commodities, indices, and more.
• Forex: Access to the global foreign exchange market.
• Bonds: A wide range of fixed-income securities, including government and corporate bonds.
• Cryptocurrencies: Interactive Brokers has been expanding its crypto offerings, allowing you to trade select digital assets.

The sheer breadth of available assets is a major draw for serious investors. It means you can build a very diverse portfolio all within one account, without needing to juggle multiple brokers. Whether you’re into traditional investments or looking to explore newer markets like crypto, Interactive Brokers aims to have you covered. It’s pretty impressive, honestly. You can find pretty much any type of investment you’re looking for, which is a big deal when you’re trying to manage your money effectively.

11. Pros & Cons

Alright, let’s break down what’s good and what’s not so good about Interactive Brokers. It’s a big player, and like anything big, it has its ups and downs.

The Good Stuff (Pros):

• Massive Investment Selection: Seriously, you can trade almost anything here. We’re talking stocks, options, futures, forex, bonds, funds – you name it, and it’s probably available across over 150 markets worldwide. It’s hard to beat this kind of global reach.
• Super Low Margin Rates: If you’re into margin trading, IBKR is a big deal. They consistently offer some of the lowest margin rates out there, which can save you a ton of money, especially if you’re trading frequently. They even have a handy calculator to help you figure out the costs.
• Powerful Tools for Serious Traders: The platforms, especially Trader Workstation (TWS), are packed with advanced features. Think sophisticated order types, analytical tools, and research capabilities that serious traders really appreciate. For professionals, tools like the Impact Dashboard help align investments with personal values, and the Advisor Portal simplifies complex tasks.
• Commission-Free Options (for Lite users): While not everything is free, the IBKR Lite plan offers commission-free trading on stocks and ETFs, which is a nice perk for many investors.

The Not-So-Good Stuff (Cons):

• Platform Complexity: This is the big one. The sheer power and number of features mean the platforms can feel overwhelming, especially if you’re new to investing or just want something simple. It takes time and effort to learn how to use everything effectively.
• Learning Curve: Related to the complexity, the educational resources can sometimes feel a bit too advanced. While they have a Trader’s Academy, it sometimes skips over the basics, assuming you already know a lot about markets.
• Mobile App Hiccups: The mobile app is generally good, but it’s not perfect. Sometimes it can be a bit slow, and the login process can be a pain without simpler options like a passcode. There have been instances where minor glitches could lead to accidental trades, which is definitely not ideal when you’re trying to move fast.

It feels like Interactive Brokers is built for people who know exactly what they want to do in the market and have the experience to back it up. If you’re that person, the advanced tools and low costs are fantastic. But if you’re just starting out or prefer a more straightforward experience, you might find yourself a bit lost in all the options. It’s a trade-off between power and simplicity, and IBKR definitely leans towards power.

Here’s a quick rundown:

Feature	Interactive Brokers (IBKR Pro/Lite)
Investment Variety	Excellent (150+ markets)
Margin Rates	Very Competitive (lowest in industry for Pro)
Platform Complexity	High (steep learning curve)
Mobile App	Functional, but can have occasional usability issues
Educational Content	Skews advanced, may lack beginner fundamentals
Fees (Stocks/ETFs)	Commission-free (Lite) or low cost with volume discounts (Pro)
Global Access	Unmatched (200+ countries)

Overall, IBKR is a powerhouse for experienced traders and those looking for extensive global access and competitive margin rates. Just be prepared to invest some time in learning its systems if you’re not already familiar with advanced trading platforms.

12. Global Access

Interactive Brokers really shines when it comes to letting you trade across the globe. It’s not just about buying stocks from your home country; you can access markets in over 150 countries and 23 currencies. This is a pretty big deal if you’re looking to diversify your portfolio beyond domestic borders or want to tap into specific international growth opportunities.

For those new to international investing or just wanting a simpler way to get started, Interactive Brokers offers platforms like GlobalTrader. It’s designed to be user-friendly, making it easier to buy fractional shares of foreign stocks and even trade options. It lays everything out clearly, which is nice when you’re dealing with markets you might not be as familiar with.

Here’s a quick look at what they offer for global reach:

• Access to 150+ Markets: Trade stocks, ETFs, options, futures, and more from around the world.
• Multiple Currencies: Hold and trade in 23 different currencies, helping you manage foreign exchange risk.
• Global Research Tools: Access research and news from international sources to inform your decisions.
• Currency Trading: Directly trade forex pairs to hedge or speculate on currency movements.

If you’re serious about building a globally diversified portfolio, the sheer breadth of markets and currencies available through Interactive Brokers is hard to beat. It really opens up a lot of possibilities that you just don’t find with many other brokers.

13. Trading Costs

When it comes to trading costs, Interactive Brokers really tries to cover all the bases, offering two main pricing structures: IBKR Pro and IBKR Lite. It’s not just a one-size-fits-all situation, which is pretty neat.

IBKR Lite is the simpler option, especially for folks trading US stocks and ETFs. You get $0 commissions on those trades, and there are no fees for market data. Options trades are $0.65 per contract. This plan makes money through payment for order flow (PFOF), which means your orders might not always get the absolute best price, but for most everyday investors, the difference is pretty small.

IBKR Pro is where things get more detailed, aimed at more active traders. Here’s a quick look at some common costs:

• Stocks: Trades start at $0.0035 per share, with a minimum of $0.35. The more you trade, the lower this can go, down to $0.0005 per share for very high volumes.
• Options: These are priced per contract, starting at $0.65 and going down to $0.25 depending on how many you trade and the premium.
• Futures: Expect to pay around $0.85 per contract.
• Mutual Funds: There are over 11,000 US mutual funds available, and many have no trading fees. For others, it’s $14.95 or 1.5% of the trade value, whichever is less.
• Penny Stocks (OTC): These have a fee of $0.01 per share.

Margin rates are also a big deal with Interactive Brokers. They’re known for being quite competitive. For example, in January 2025, margin rates for USD loans under $100,000 were around 6.830% for IBKR Lite and 5.830% for IBKR Pro. That’s generally lower than what you’d find at many other big brokers.

It’s worth noting that IBKR Pro doesn’t use PFOF for stock trades, which is a plus for those who prioritize execution quality. Overall, Interactive Brokers offers a lot of flexibility in its pricing, which can be really beneficial depending on how you trade.

14. Research Amenities

Interactive Brokers really packs a punch when it comes to research tools, and honestly, it feels like they’ve tried to cover all the bases. Whether you’re just starting out or you’ve been trading for years, there’s a good chance you’ll find something useful here. They offer a ton of data and analysis across various asset classes.

For stocks and funds, you get detailed financial trends, key ratios, and even sections that align with your personal values, similar to their Impact Investing tool. The financial data is presented clearly, showing year-over-year changes, which is super helpful. They also have analyst forecasts, giving you a look at potential future performance. While I did have to do a bit of manual calculation for the forward P/E ratio, that seems to be a common thing across most brokerages.

When looking at funds, like the QQQ ETF, I found some really insightful critiques, like Morningstar pointing out its limitations in tracking only Nasdaq-listed securities. It’s these kinds of details that can make a big difference for everyday investors trying to get a clear picture. You can even find forward estimates for funds, which is great.

For a broader market view, Interactive Brokers has a market overview page that’s pretty slick. It shows major indices, top movers, and even a section explaining why certain stocks are making big moves. I also liked the integration of smart text, which makes information easier to digest.

Here’s a quick look at what’s available:

• Stock Research (including ESG and PDF reports)
• ETF Research and Screeners
• Mutual Fund Research and Screeners
• Fixed Income Research
• Pink Sheets / OTCBB Research

But the real standout for me is the PortfolioAnalyst tool. This is where IBKR really separates itself. It offers portfolio-level monitoring and reporting that feels almost institutional-grade. You can compare your portfolio’s performance against a benchmark, breaking down what drove the results – was it stock selection, sector allocation, or timing? And the best part? It’s free, unlike expensive alternatives like a Bloomberg terminal. It’s even available to non-clients who want to consolidate accounts from many different institutions and get detailed reports. This tool alone makes exploring their platform quite appealing for serious investors.

15. Education

Interactive Brokers really puts a lot of effort into their educational resources, which is pretty great for anyone trying to get a handle on investing. They’ve got this thing called Trader’s Academy, and then there’s the IBKR Campus. It’s not just a bunch of dry articles; they mix in videos, written stuff, definitions of terms, and even show you how to apply what you’re learning.

I checked out their "Introduction to the Stock Market" course. It starts from the ground up, which is good, and it even includes a tutorial on how to use their platform. It felt like a solid overview, though I did wish for a bit more detail on the really basic stuff, like a super clear definition of what a stock actually is. Still, the broader picture was well-covered, and I liked that they touched on impact investing.

One thing that really made their education stand out was how they integrated community features. Instead of just sticking it all inside the trading platform, which can get complicated, IBKR links it to the educational content. You can see comments from others, find related resources, and look at practical examples. It makes learning feel more interactive.

They offer learning materials covering a wide range of topics, from the absolute basics for beginners to more complex trading strategies. It’s all organized by investment type and skill level. They even have courses for financial professionals who need continuing education credits.

It seems like IBKR genuinely wants to help people learn about investing.

Here’s a quick look at what they provide:

• Trader’s Academy: Structured courses on various investment types and trading strategies.
• IBKR Campus: A broader collection of learning materials.
• Paper Trading: A virtual trading environment to practice without real money.
• Videos & Webinars: Visual and live learning sessions.
• Interactive Quizzes: Tools to test your knowledge.
• Progress Tracking: Monitor your learning journey.

They’ve put together a pretty solid educational hub. It covers a lot of ground, from the absolute beginner stuff to more advanced topics. The way they’ve organized it makes it easy to find what you’re looking for, whether you’re interested in stocks, ETFs, options, or something else entirely. It’s definitely one of the better educational platforms I’ve seen from a brokerage.

16. Customer Service

When you’re trading, having reliable customer service can make a big difference. Interactive Brokers offers a few ways to get in touch if you run into issues or just have a question. They have phone support, email, and live chat available.

Based on some tests, the average connection time for customer service was pretty quick, usually under a minute. That’s good to know if you need a fast answer. They also scored decently on professionalism, though there have been some mixed reviews, with one user mentioning communication problems, especially in Spanish.

Here’s a quick look at some metrics:

• Average Connection Time: Under 1 minute
• Average Professionalism Score: 6.6 / 10
• Overall Customer Service Score: 7.50 / 10

While they ranked 9th out of 13 brokers in one assessment, the quick connection times are a definite plus. It seems like they’re generally responsive, but the quality of the interaction can vary.

It’s always a good idea to check out recent reviews for the most up-to-date information on customer service experiences. What works for one trader might not be the perfect fit for another, so consider what you prioritize when seeking support.

For those who prefer self-help, Interactive Brokers also has a pretty extensive library of educational materials and FAQs that might answer your questions without needing to contact support directly. This can be a real time-saver for common queries. You can find more details on their support pages.

17. Security

When it comes to keeping your investments safe, Interactive Brokers takes a pretty serious approach. They employ multiple layers of security to protect your account and personal information. This includes things like two-factor authentication, which is pretty standard these days but still important. You’ll also find that they use encryption for data transmission, meaning your sensitive details are scrambled when sent back and forth.

Interactive Brokers also segregates client funds from their own operational capital. This is a big deal because it means your money is kept separate, which is a key protection. They are also regulated by major financial authorities around the world, which adds another layer of oversight. For peace of mind, it’s good to know that Interactive Brokers is a well-established firm with a strong financial standing. They are also covered by SIPC insurance up to $500,000, which is a standard safety net for brokerage accounts in the US. You can read more about their safety measures on their official website.

Here’s a quick rundown of their security features:

• Two-Factor Authentication (2FA): Adds an extra step to log in, making it harder for unauthorized access.
• Data Encryption: Protects your information during transmission.
• Segregated Client Accounts: Keeps your funds separate from the firm’s operating funds.
• Regulatory Oversight: Adherence to strict financial regulations in multiple jurisdictions.
• SIPC Insurance: Protection for your assets up to $500,000.

While no system is completely foolproof, Interactive Brokers has put in place robust measures to safeguard client assets and data. Their commitment to security is evident in their regulatory compliance and the technologies they use.

18. IPO Access

When it comes to getting in on the ground floor of new companies, Interactive Brokers doesn’t really offer much. They don’t provide direct access to Initial Public Offerings (IPOs). This is a bit of a letdown, especially when you consider how many other investment options they do have. For many investors, IPOs represent a chance to get in on potentially high-growth companies right from the start. It’s a shame that Interactive Brokers hasn’t built out a feature for this.

If you’re someone who really wants to participate in IPOs, you might need to look at other brokers. It’s not the end of the world, but it’s definitely something to be aware of if you’re considering Interactive Brokers for all your investing needs. You can always find information about upcoming IPOs and how they work on podcasts discussing startup liquidity.

It’s a bit of a trade-off, really. You get a lot of other great tools and investment choices, but this one area is a bit of a blank spot. So, if IPOs are a big part of your investment strategy, you’ll want to keep this limitation in mind.

19. Uninvested Cash Yield

So, what happens to the cash sitting in your account that you haven’t invested yet? With Interactive Brokers, it’s not just sitting there doing nothing. They actually pay you interest on it. This is a pretty neat feature, especially if you tend to keep a bit of cash on the sidelines waiting for the right investment opportunity or just for general liquidity. It’s like a small bonus for just holding your money with them.

Now, it’s not quite as simple as just getting interest on every single dollar. There are some tiers and conditions, which can make it a bit confusing at first. For instance, you generally need a certain amount of cash in your account before they start paying interest. For IBKR PRO clients, you can earn up to 3.83% on USD, and for IBKR Lite clients, it’s up to 2.83%. Keep in mind that these top rates often come with specific requirements, like having a substantial overall account value. It’s definitely worth checking the specifics to see how your balance stacks up.

Here’s a general idea of how it works:

• Minimum Balance: You usually need to have more than $10,000 in cash to start earning interest.
• Interest Calculation: Interest is typically paid on the cash balance above that initial threshold.
• Tiered Rates: The actual rate you get can depend on your total account value, with higher balances potentially earning better yields.

It’s a good idea to look into the current rates and requirements on the Interactive Brokers website to get the most accurate picture for your situation. It’s a nice perk that can add up over time, especially with larger cash balances.

While the interest rates are competitive, understanding the tiered structure and minimum balance requirements is key to maximizing the yield on your uninvested cash. It’s not a one-size-fits-all approach, so a little research goes a long way.

20. BasketTrader Feature

Interactive Brokers offers a feature called BasketTrader, which is pretty neat for anyone looking to execute trades on multiple securities at once. Think of it as a way to buy or sell a whole group of stocks or other assets in a single order. This can save a lot of time compared to placing individual orders for each item in your basket.

The main idea behind BasketTrader is efficiency. It’s designed to help you manage portfolio rebalancing, execute large block trades, or implement specific investment strategies that involve a predefined set of assets.

Here’s how it generally works:

• Create a Basket: You first define a list of securities you want to trade together. This could be based on an index, a sector, or any custom group you’ve put together.
• Set Quantities/Values: For each security in your basket, you specify the quantity you want to trade or the total value you want to invest/divest.
• Submit as One Order: Once your basket is ready, you submit it as a single order. Interactive Brokers then works to execute all the trades within that basket.

This tool is particularly useful for:

• Portfolio Rebalancing: If you need to adjust your portfolio to match a target allocation, BasketTrader makes it much simpler to buy or sell multiple positions simultaneously.
• Implementing Strategies: For strategies that require buying or selling a specific set of stocks, this feature streamlines the process.
• Efficiency for Large Trades: If you’re managing a significant amount of capital and need to enter or exit multiple positions, BasketTrader can help ensure faster execution and potentially better pricing.

While the specifics of execution can depend on market conditions and the size of your basket, the BasketTrader feature is a solid tool for simplifying complex trading actions. It’s a good example of how Interactive Brokers tries to cater to traders who need more advanced capabilities.

21. IBKR Lite

So, Interactive Brokers has this thing called IBKR Lite. Basically, it’s their way of offering commission-free trades for stocks and ETFs. This is a big deal for everyday investors who don’t want to see their profits eaten up by fees on every single buy or sell. It’s kind of their answer to some of the newer, more budget-friendly brokers out there.

The main catch with IBKR Lite is how they make their money: payment for order flow (PFOF). This means they route your orders to other trading firms who pay them for the business. For most people, this probably won’t make a huge difference, but if you’re trading a ton, you might notice your trades aren’t always getting the absolute best price possible compared to brokers that don’t use PFOF. It’s a trade-off for those zero commissions.

Here’s a quick look at what you get:

• Commission-Free Trades: Stocks and ETFs traded on U.S. exchanges are commission-free.
• Platform Access: You get access to their Client Portal and the IBKR Mobile app, which are pretty capable, though maybe a bit much for total beginners.
• Other Fees: While trades are free, watch out for other charges. For instance, withdrawing money more than once a month can cost you.

IBKR Lite is a solid option if you’re looking for zero-commission stock and ETF trades and don’t mind the PFOF model. It’s a good entry point into the Interactive Brokers ecosystem, but be aware of the potential for slightly less optimal trade execution and keep an eye on those non-trading fees.

It’s worth noting that while IBKR Lite is great for stocks and ETFs, options trades still have a per-contract fee, and it’s higher than what you’d find on the IBKR Pro side. So, if options are your main game, you’ll want to compare those costs carefully.

22. Forex Trading

Interactive Brokers really makes a splash when it comes to forex trading. They offer access to a huge number of currency pairs, which is pretty great if you’re looking to diversify or just want to play the global currency markets. You can trade forex nearly 24 hours a day, six days a week, which is a big deal for anyone who can’t stick to typical market hours. This kind of flexibility is super helpful, especially if you’re dealing with different time zones or just want to react quickly to market news that breaks overnight.

They provide a lot of tools to help you out, too. You get access to real-time quotes, charting tools, and even some analytical features that can help you make sense of all the price movements. It’s not just about buying and selling; they give you the resources to actually analyze the market.

Here’s a quick look at what they offer for forex:

• Extensive Currency Pairs: Access to a wide variety of major, minor, and exotic currency pairs.
• 24/6 Trading: Trade almost any time the market is open, giving you flexibility.
• Competitive Spreads: They aim for tight spreads, which means lower costs for you.
• Advanced Trading Platforms: Utilize powerful tools for analysis and execution.

When you’re looking at forex, the spreads and the liquidity are usually the most important things. Interactive Brokers generally does a good job on both fronts, making it a solid choice for both beginners and more experienced forex traders. It’s definitely worth checking out if you’re interested in foreign exchange markets, and they are known for their low fees on many transactions, which is a big plus for active traders.

Trading forex involves significant risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. You should carefully consider your investment objectives, level of experience, and risk appetite before trading foreign exchange. You may sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.

23. Cryptocurrency Trading

Interactive Brokers has stepped into the crypto world, allowing you to trade a selection of digital assets. They offer trading for 11 different cryptocurrencies, which is a decent starting point for those looking to diversify their portfolios with digital currencies.

It’s important to note that while you can trade these cryptocurrencies, they are held by Interactive Brokers and not directly in your own digital wallet. This means you don’t have direct control over the private keys, which is a different experience compared to holding crypto on a dedicated exchange.

Here’s a quick look at what they offer:

• Available Cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), EOS, Cardano (ADA), Polkadot (DOT), Solana (SOL), Dogecoin (DOGE), Shiba Inu (SHIB), and Avalanche (AVAX).
• Trading Hours: 24/7, just like the crypto markets themselves.
• Custody: Cryptocurrencies are held by Interactive Brokers, not in a personal wallet.

While Interactive Brokers provides access to crypto trading, it’s worth understanding the structure. You’re trading crypto as a financial product through IBKR, rather than directly owning and managing the underlying digital asset in a self-custody wallet. This approach has its own set of pros and cons regarding security and control.

24. Forecast Contracts

Interactive Brokers has been adding some really interesting new ways to trade, and forecast contracts are a prime example. Think of them as a way to bet on real-world events happening, or not happening. For instance, you could trade a contract that pays out if inflation goes above a certain percentage, or if the Federal Reserve decides to change interest rates. It’s a bit like a prediction market, but structured as a tradable contract.

These contracts are available for trading most of the day, six days a week. You’re essentially buying a "yes" or "no" on a specific outcome. The price of the contract fluctuates based on how likely the market thinks that event is to occur. It’s a pretty unique way to express a view on economic or political events without having to buy or sell traditional assets. This adds another layer to the already huge selection of products IBKR offers, and it’s something that could appeal to traders looking for different ways to speculate or even hedge their existing positions. It’s still a developing area, but it’s definitely a noteworthy addition to their platform.

Forecast contracts offer a novel approach to trading, allowing investors to speculate on the outcomes of specific events. This can range from economic indicators to political developments. The value of these contracts is determined by the market’s perception of the likelihood of the event occurring, creating a dynamic trading environment.

Here’s a quick look at how they work:

• Event Definition: A specific, verifiable event is clearly defined (e.g., "Will the unemployment rate be below 3.5% in Q1 2026?").
• Contract Types: You can typically trade "Yes" contracts (betting the event will happen) or "No" contracts (betting it won’t).
• Pricing: Contracts trade between $0 and $1, with the price reflecting the implied probability of the event.
• Settlement: Upon the event’s resolution, contracts are settled at $1 (if the event occurred) or $0 (if it did not).

This type of trading is still relatively new, and it’s important to understand the risks involved. It’s not for everyone, but for those who like to analyze and predict future events, forecast contracts offer a fascinating new avenue.

25. Prediction Markets and more

Interactive Brokers keeps adding new ways to trade, and prediction markets are one of the latest additions. Think of them as a place to bet on whether certain real-world events will happen. For example, you could trade on whether inflation will go above a certain percentage or if the Federal Reserve will change interest rates.

These aren’t your typical stocks or bonds. They’re called "forecast contracts," and you can buy "yes" or "no" positions. The price you pay depends on how likely the market thinks the event is to occur. It’s a bit like a futures contract, but tied to specific outcomes rather than a commodity or index. This offers a unique way to express a view on economic or political events without needing to own the underlying asset.

While these markets are still pretty new, they can be used for a couple of things:

• Hedging: You might use them to protect your main investments against certain risks. If you’re worried about an event that could hurt your portfolio, a prediction market contract could potentially offset some of those losses.
• Speculation: You can also use them purely to try and profit from your predictions about future events.

It’s important to remember that these are high-risk instruments. They can amplify both gains and losses, so understanding exactly how they work and the potential downsides is key before you jump in. It’s a bit like options trading in that regard – powerful, but requires careful handling.

The addition of prediction markets and forecast contracts shows Interactive Brokers is trying to stay ahead of the curve, offering tools that go beyond traditional investing. It’s definitely an interesting development for traders looking for more complex strategies or ways to hedge against specific event risks.

So, Is Interactive Brokers the Right Choice for You in 2025?

Alright, let’s wrap this up. Interactive Brokers is definitely a powerhouse, especially if you’re an active trader or someone looking to trade across a ton of different markets globally. Their margin rates are seriously hard to beat, and the sheer number of investment options is pretty wild. But, and this is a big but, it’s not exactly a walk in the park for beginners. The platforms are packed with features, which is great, but it means there’s a learning curve. If you’re just starting out or prefer something super simple, you might want to look at other options. For the experienced investor who knows what they want and wants access to almost everything, IBKR is a strong contender.

Frequently Asked Questions

What kinds of things can I invest in with Interactive Brokers?

Interactive Brokers offers a huge variety of investment choices. You can buy and sell stocks, options, futures, bonds, and even cryptocurrencies. They give you access to over 150 markets worldwide, so you can invest in companies and assets from many different countries.

Is Interactive Brokers good for beginners?

While Interactive Brokers has amazing tools for experienced traders, it can be a bit overwhelming for newcomers. Their main trading platform, Trader Workstation (TWS), is very powerful but has a steep learning curve. However, they also offer a simpler option called IBKR Lite, which is more beginner-friendly for trading US stocks and ETFs.

How much does it cost to trade with Interactive Brokers?

Interactive Brokers is known for having very low trading costs, especially for active traders. They offer competitive prices on margin trading, which is borrowing money to invest. For basic stock and ETF trades on US exchanges, IBKR Lite offers commission-free trading.

Can I trade when the US stock market is closed?

Yes, Interactive Brokers provides 24-hour trading for certain products, which is a big plus for investors in different time zones or those who want to react to global news outside of regular market hours. This is especially helpful for international trading.

Does Interactive Brokers have a mobile app?

Absolutely! Interactive Brokers has a mobile app that’s highly rated. It allows you to manage your portfolio, place trades, and access market data right from your phone or tablet, making it convenient to stay connected to your investments on the go.

What makes Interactive Brokers stand out from other brokers?

Interactive Brokers really shines with its massive selection of global markets, super low margin rates, and advanced trading tools. They are a top choice for active traders and those looking to invest internationally. They also offer unique features like BasketTrader for buying multiple stocks at once.