Interactive Brokers Fees and Spreads

 

A Interactive Brokers Fees and Spreads review

 

Interactive Brokers Fees and Spreads

 

Interactive Brokers fees spreads and commissions start from 0.03% – 0.07% and spreads from 0.0 pips.

Interactive Brokers has a low and incredibly competitive spread when compared to what other brokers offer by offering a spread list which varies depending on the type of account and the financial instrument being traded.

Interactive Brokers trading fees are according to the type of account that the trader chooses and the options along with the spread list, leverage, minimum deposit required, and commissions will be determined by the type of account and instrument being traded.

Interactive Brokers offers two major accounts, with various options with regards to it being for an individual, joint, a trust account, small business, administrator, educator and introducing broker, to only name a few.

 

  • IBKR Lite – is designed specifically for individuals, joint or IRA clients which does not have a minimum deposit amount with no inactivity fees or commissions charged and variable leverage depending on the trader’s region.
  • IBKR PRO – this account has been designed for high volume professional traders, offering the lowest costs and prices and commissions are either fixed or tiered depending on the financial instrument.

 

The maximum leverage will depend on the trader’s region and may range from 1:5 to 1:400 for traders under the ASIC regulation.

 

Other Fees

 

Traders should note that certain financial instruments can only be traded during a certain time of the day, especially when considering different time zones, and additional fees may be charged should they hold these positions after they have closed.

Traders should always note that Overnight fees, otherwise known as swap fees or rollover fees, may be charged for positions held open for longer than a day.

There is no indication of whether Interactive Brokers offers the option of an Islamic account to traders who are of Muslim faith and who operate under the Sharia Law.

Interactive Brokers does not offer traders with spread betting and therefore spread betting fees are not applicable to this broker.

 

Broker Fees

 

Interactive Brokers does not charge any deposit fees or withdrawal fees. The exception with withdrawal fees is that traders get one free withdrawal in a calendar month, if this is exceeded, traders will be charged per withdrawal.

Interactive Brokers charges an inactivity fee on accounts with a balance less than $100,000 and should the trade commissions paid in a calendar month be less than $10, the balanced is charged.

Traders should note that fees charged by brokers may change due to certain conditions and there may be additional fees that are not mentioned in this article.

Before opening an account with Interactive Brokers, traders should contact Interactive Support to clarify any additional fees that may be charged.

Traders are advised to ensure that there are no fees waived by their payment provider in terms of depositing funds from their bank account to their trading account in addition to transaction costs when withdrawing funds and having it transferred to their bank account.

 

Pros and Cons

 

PROS CONS
1.      Tight and competitive spreads 1.      Traders only get one free withdrawal  month
2.      Zero minimum deposit fee  
3.      Fixed commissions on trades  
4.      Deposit fees are not charged  
5.      Low commissions when compared to other brokers  

 

FAQ

 

How many instruments can I trade with Interactive Brokers?

You can trade the following instruments:

  • Forex
  • Options
  • Stocks
  • Bonds
  • Futures, and more.

 

Which platforms are supported by Interactive Brokers?

Interactive Brokers provides the following popular trading platforms:

  • Interactive Brokers’ Client Portal
  • Desktop TWS
  • IBKR Mobile
  • IBot
  • IBKR WebTrader (Only for IBKR Pro Accounts)
  • IBKR APIs (Only for IBKR Pro Accounts)

 

Does Interactive Brokers offer leverage?

Yes.

Retail clients have access to leverage of between 1:5 and 1:400 (when using an account registered under the ASIC Regulations)

 

What spreads can I expect with Interactive Brokers?

Spreads are not indicated on the website, but variable, tight spreads are offered depending on the account type and financial instrument being traded.

 

Does Interactive Brokers charge commission?

Yes.

Commissions are charged on either a fixed or tiered basis when using an IBKR Pro account.

 

Is Interactive Brokers regulated?

Yes, Interactive Brokers is regulated by the highly reputed US SEC & CFTC, ASIC, and FCA.

 

Is Interactive Brokers a recommended forex trading broker for experts and beginners?

Yes, Interactive Brokers is suitable for both beginner and expert traders.

 

What is the overall rating out of 10 for Interactive Brokers?

8/10

Recommended Posts

LEARN HOW TO INVEST

We will never Spam you*