INTERACTIVE BROKERS: IT'S GOOD... BUT IS IT FOR YOU?

Do I like Interactive Brokers?
Yes, I do. But… it's not a broker I use often.

When do I use Interactive Brokers?
I use it when I'm investing for the long term. The truth is, in terms of security and the number of assets available, Interactive Brokers is unbeatable.

So what's the problem with Interactive Brokers?
Definitely the trading platform. If you only make one or two investments a year, that might not be a problem for you, but it's not suitable for more active traders like me.

So, do I recommend Interactive Brokers?
Yes, absolutely. But keep in mind that it's not the simplest or easiest broker to use. It's just a matter of getting used to it.

You can see my ranking of the best stockbrokers here

Regulation and reliability of Interactive Brokers

As you know, it is essential that a broker is under the supervision of the financial authority corresponding to the country where it is based.

Furthermore, it is also important that the regulatory body itself be reputable. For example, the UK's Financial Conduct Authority (FCA) is one of the strictest bodies in existence. Brokers who obtain a license from this regulatory body and are under its supervision must comply with strict conditions that guarantee the security of funds and the reliability of the broker's good practices.

However, to be regulated by the FCA, a company must be headquartered in the UK, as this regulatory body has no jurisdiction beyond its borders. But a company can have multiple headquarters and be regulated by different bodies.

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In other words,a broker can be comprised of multiple subsidiary companies, based in different countries, in order to have the capacity to operate in various regions of the world. In fact, brokers with an international presence, such as Interactive Brokers, use this structure.

Therefore, we can check if the broker is regulated by reputable bodies, even if these regulations don't directly affect us as traders because we contract with a subsidiary company. This will give us an indication of its high degree of reliability.

A different case is that of a broker headquartered in a European Union member state. In that instance, the intermediary must comply with EU regulations and is authorized to offer its services throughout the common territory.

Interactive Brokers Group (the Nasdaq-listed company) is a holding company comprised of a considerable number of subsidiaries. It has a complex organizational structure.

This demonstrates how Interactive Brokers is a true giant and represents one of the primary guarantees (the company's solvency and stability). Furthermore, the fact that it is listed on an organized market obliges it to publish its accounts and operate with complete transparency.

Available assets and advantages of trading with Interactive Brokers

Up to 4.08% USD on uninvested cash balances.

Interactive Brokers clients earn up to 4.08% USD on their uninvested cash balances. IBKR now offers higher interest rates for large cash balances . *Fees subject to change. Visit this page to learn more .

You can operate with really low fees.

• 150 markets in 33 countries and 24 currencies.
• IBKR offers highly competitive commissions and access to options, futures, currencies, bonds and funds from a single unified platform.
• Access to markets in the United States and the world.
• You can deposit funds in multiple currencies and trade assets denominated in multiple currencies.
• Access to market data 24 hours a day, six days a week.

GlobalAnalyst (the indispensable tool for the professional investor):

• How to find undervalued stocks worldwide? With IBKR's GlobalAnalyst.
• Search and ranking tables for "fast-growing companies at reasonable prices".
• Search for stocks by region, country, industry, market capitalization, and currency.
• The search results provided by this tool show current market prices, various financial metrics, and the price/earnings/growth (P/E/G) ratio.
• You can scan across 150 markets, 33 countries, and 24 currencies.

Trade fractional shares – No share is too expensive.

Choose any eligible US or European stock (or ETF, where available) and decide how much you want to invest; it's that easy. If the purchase price doesn't result in a whole number of shares, Interactive Brokers will allow you to buy or sell fractional shares.

IBKR SmartRoutingSM.

IBKR SmartRoutingSM searches for the best prices of stocks, options, and combinations available at the time of your order and seeks to execute your order electronically immediately.

More than 46,000 investment funds available.

• More than 520 fund families.
• More than 18,000 funds with no transaction fees.

A vast universe with more than 1 million bonds worldwide.

• No built-in margins or spreads.
• Low and transparent fees.

Trading platforms offered

Interactive Brokers puts effort into this aspect, since one of its objectives is to offer technological tools of the highest quality.

So much so that it has its own platform: Trading Workstation. It's a platform with great functionality and power; however, it can also be somewhat complex for some traders (especially those without experience). For this reason, Interactive Brokers also offers other solutions: the Client Portaland the mobile application called IBKR GlobalTrader.

Interactive Brokers Customer Service

Another area where this broker has room for improvement is its support. It's not that it's entirely deficient, but rather that it has several shortcomings.

Customer service is not a trivial matter; it's a crucial factor for a broker. This is because financial transactions affect our assets. The service must be fast and efficient , especially when the broker offers a professional-grade trading platform (which can be challenging to learn and use effectively).

In principle, the broker offers sufficient contact methods:

• Frequently Asked Questions section.
• Telephone support
• Chat (via the Client Portal).
• Email.
• Online document submission.
• Social networks.

The live chat is available 24 hours a day (except on Sunday, which has limited hours).

However, while it works very well for English-speaking clients, it's slow and inaccurate for Spanish-speaking users. It doesn't quite meet the needs of these traders (although this has improved considerably lately).

On the other hand, I have found the telephone support in Spanish to be very good, although this surely depends on the country and the time you call.

Please note that telephone support is available 24 hours a day in English on weekdays, but only during market hours for those requiring assistance in Spanish. The Interactive Brokers for Spanish inquiries is: 0080042276537.

Unfortunately, not all issues can be resolved over the phone, as many times it's necessary to send documents, which can only be done via email. This email service is usually much better in English than in Spanish.

My experience with Interactive Brokers

Interactive Brokers is my first choice when I think about long-term investing (more than 10 years). In other words, it's a broker I really like when it comes to buying and holding.

You should know that Interactive Brokers is one of the best brokers in the world, boasts strict regulation, and has a huge asset catalog. It's ideal for long-term stock investing, but it's not for every type of trader.

The truth is, this broker offers great versatility when it comes to trading: you can scalp, short sell stocks (not all brokers allow this), or even trade options. This is a major advantage of Interactive Brokers, but I must also say that it's not all sunshine and roses, as the complexity of the trading platform (called Trader Workstation or TWS) makes it a difficult broker for beginners to grasp.

The learning curve with Interactive Brokers can be much steeper than with other brokers, as it's designed for professional traders. However, there are also more user-friendly ways to place orders with Interactive Brokers, such as using the Client Portal.

Unfortunately, this last option isn't suitable for active trading. Therefore, if you're only looking to buy and hold your position for years, Interactive Brokers be an ideal choice for you. However, if you prefer some day trading, or even swing trading, you might want to consider options like XTBor eToro.

Interactive Brokers reviews

Interactive Brokers is one of the most professional brokers in existence, as it is not only regulated by virtually all the most important supervisory authorities in the world (SEC, FCA, ASIC, etc.), but also allows you to trade virtually all types of financial assets, namely: stocks, ETFs, fixed income, futures, and options.

Furthermore, its longevity (founded in 1977), as well as the fact that it is listed on the NYSE, gives it an added level of security and transparency.

However, if you visit many public investment forums or chat rooms, you'll find very positive opinions about it, but also some difficulty in learning how to use it. The most highlighted features by users are usually:

• Access to almost all markets at very reasonable fees.
• With IBKR you have a wide variety of analysis tools, from both a fundamental and a technical point of view.
• Recently, their high-yield savings account stands out, where you can earn up to 4.83% annual interest in dollars.
• The Trader Workstation, its trading platform, is based on outdated software architecture, making it difficult for beginners to understand and use
• Their platform does not allow the insertion of code to create or shape your own indicators.
• However, on platforms like Google Play, it boasts an average rating of 4.5 out of 5 stars, based on 20,000 reviews. Its low average rating on Trustpilot, however, is notable due to its less-than-friendly user experience.

Frequently Asked Questions

What is Interactive Brokers?

Interactive Brokers is an online broker that allows users to invest in a wide range of financial assets, such as stocks, ETFs, bonds, futures, and options.

Is it safe to invest with Interactive Brokers?

Yes, Interactive Brokers is regulated by several international financial entities such as the SEC in the US, the FCA in the UK and other important authorities, which guarantees a high level of security.

What are the main advantages of using Interactive Brokers?

Key advantages include low fees, access to global markets, and advanced analytical tools for professional traders.

What disadvantages does Interactive Brokers have?

Some disadvantages include the complexity of its platform, which can be difficult for beginners to use, and some negative user experience reviews on sites like Trustpilot.

How can I start using Interactive Brokers?

To begin, you must register on their website, complete the verification process, and then you can open a demo account to familiarize yourself with the platform before investing real money.

Is Interactive Brokers suitable for beginners?

Interactive Brokers is best suited for experienced traders due to the complexity of its platform. Beginners may find it overwhelming and might consider simpler alternatives.

🛡️ Legal notice

The opinions shown are from real users and have been collected from external platforms. Some are presented as screenshots to preserve their original format.

The analysis and comparative assessments are prepared by the author of this article for informational purposes. We recommend always consulting the official terms and conditions on each company's website before making any decisions.

Norberto Viale( Trader and founder of Topstep Experience )

My name is Norberto. I've been investing and trading for over a decade. I'm also the author of the Topstep Experience trading course. If you want to learn how to invest and have any questions, feel free to contact me.

Jose Miguel Bastida( Specialized Finance Writer )

I'm Jose. I'm a finance professional with experience in trading and investing in financial markets. I also have a background in economic journalism and journalistic writing.

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