Is Interactive Brokers good for small accounts?
A great low-cost option for small trade volume. While the interface isn't as clean or modern as other brokers, it gets the job done. Interactive Brokers is also a great choice for options investors, traders, and those trading on margin. On Interactive Brokers' Secure Website.
Ease of use: 2/5
On the web version, there are far too many options for investors on the beginning of their journey. However, for the more knowledgable investors, the tools Interactive Brokers offers are really helpful to provide you the analysis you're seeking but it remains complicated for beginner investors.
| Account minimum | $0 |
|---|---|
| Account fees (annual, transfer, closing, inactivity) | None. |
| Number of no-transaction-fee mutual funds | Over 19,000. |
To open an Interactive Brokers account, the required minimum deposit for a basic Cash account is $0, meaning there is no minimum deposit. To actually start trading, you need to deposit at least $100. If you want to trade on margin (ie.
In order to day trade, the account must have at least 25,000 USD in Net Liquidation Value, where Net Liquidation Value includes cash, stocks, options, and futures P+L.
Fidelity's site is easy to navigate, and you'll find what you're looking for quickly without much fuss. All these reasons explain why Fidelity was named the best broker for beginners in the 2024 Bankrate Awards. Fidelity may be the most investor-friendly broker out there, making it a top choice for beginners.
Interactive Brokers does not have a monthly inactivity fee, and it doesn't charge an account or deposit fee, either.
Unlike a mutual fund investor, you continue to be the direct owner of the underlying securities that are held in your own brokerage account. Your assets are held in an Interactive Brokers LLC brokerage account in your own name.
Client securities accounts at Interactive Brokers LLC are protected by the Securities Investor Protection Corporation ("SIPC") for a maximum coverage of $500,000 (with a cash sublimit of $250,000).
Interactive Brokers (IBKR) remains firmly entrenched as our overall pick as Best Online Broker for Day Trading because it offers among the widest ranges of assets available to trade while charging some of the lowest commissions and margin rates in the industry.
Is there an inactivity fee for IBKR account?
Does Interactive Brokers charge an inactivity fee as of April 2024? No, Interactive Brokers does not charge an inactivity fee. This is great news, because you can be sure you won't be charged for not using your account for a long period of time.
No worries - Interactive Brokers is a reliable broker that lets you access your funds any time. You can use only bank transfers to withdraw funds. In most cases, you can get your money back within 2 days. Interactive Brokers charges $0 for basic withdrawals, but some methods may cost more.
IBKR Lite provides commission-free trading in US exchange-listed stocks and ETFs, low cost access to global markets, no account minimums and no inactivity fees.
The NYSE regulations state that if an account with less than 25,000 USD is flagged as a day trading account, the account must be frozen to prevent additional trades for a period of 90 days.
| Monthly Volume (shares)1,7 | IBKR Pro - Tiered | IBKR Pro - Fixed |
|---|---|---|
| > 100,000,000 | USD 0.0005 | |
| Minimum per order (shares) | USD 0.35 | USD 1.00 |
| Minimum per order (fractional shares) | USD 0.01 | USD 0.01 |
| Maximum per order | 1% of Trade Value4,8 | 1% of Trade Value4,8 |
The number of active trading accounts is a key metric for brokerages like Interactive Brokers because they make money from users placing trades through their platform. The more people making trades, the greater the amount the company can earn from commissions, margin loans, and other fees.
- Partner Offer.
- Featured Partner Offer.
- Our pick of the best trading platforms for beginners of 2024.
- interactive investor: Trading Account.
- Trading212: Trading 212 Invest.
- AJ Bell: Dealing Account.
- eToro: Trading platform.
- Hargreaves Lansdown: Fund and Share Account.
- Interactive Brokers.
- E*TRADE.
- Fidelity.
- Webull.
- Robinhood.
- TradeStation.
| Broker | Star Rating | Fractional Share Trading of Stocks |
|---|---|---|
| Fidelity Investments | 4.8 | Yes |
| Charles Schwab | 4.7 | Yes |
| Interactive Brokers | 4.6 | Yes |
| tastytrade | 4.5 | Yes |
Earn interest up to USD 4.83% on instantly available cash balances.
Do professional traders use Interactive Brokers?
"Because Interactive Brokers' core clientele are professional traders and institutional investors (e.g., hedge funds), it is crucial to provide the lowest commissions schedule available. In our rigorous assessment, there is no question Interactive Brokers delivers."
Depends on the fee. Interactive Brokers charges commission fees on stocks, ETFs, and crypto; Robinhood doesn't. But Interactive Brokers offers better margin rates.
Interactive Brokers is a highly trusted multi-asset broker with an extensive offering of tradeable global markets. It delivers competitive fees and high-quality research and education, as well as a modern, institutional-grade trading platform suite.
| Company | Forbes Advisor Rating | Learn more CTA below text |
|---|---|---|
| Interactive Brokers | 4.4 | Via InteractiveBrokers' Secure Website |
| TD Ameritrade | 4.4 | Read Our Full Review |
| Fidelity Investments | 4.4 | Read Our Full Review |
| Charles Schwab | 4.3 | Read Our Full Review |
Interactive Brokers LLC is rated "A- Outlook Stable" by Standard & Poor's.
