Interactive Brokers is one of the top trading platforms due to its amazing tools that are very helpful for investors who are interested in trading after tracking the global trends on investing. The firm allows the traders to invest in equities, futures, and options from anywhere in the corner of the world and at any time he/she wants. The firm is suitable for active and sophisticated traders all over the world. The firm still needs to put a few things in action to make the process less intimidating for its new traders. However, according to Interactive Brokers review, the firm is highly competitive when it comes to serving the active and experienced traders.
The firm offers its powerful Traders Workstation platform for which it charges small fees. The platform also offers some attractive plans like the IBKR Lite pricing plan, where a trader gets the privilege to execute no-commission trades on most of the available platforms of the firm. One of the best parts as per Interactive brokers review is that it offers a wide array of tools that are best to meet almost all the trading needs.
Pros & Cons of Interactive Brokers
Wide range of assets for investments.
A smart order router.
Inactive accounts are charged with hefty fees.
IBKR Lite users are not given the benefit of a smart order router.
Usage of Interactive Brokers
To sign up with this platform, traders need to fill out some forms. Some of the features are available as soon as the account is opened while there are others that take some time. A trader can open an account without having to make any deposits. However, the firm closes the account if the traders don’t fund it within 90 days.
After the Interactive Brokers account fully gets set up, a trader can take help from the client portal, which makes the IBKR tools easier to find. The firm has made some updates and added IBot, which is a digital assistant powered by Artificial Intelligence, to help you with whatever you need.
Traders Workstation (TWS) is one of the most powerful and customizable platforms which can easily be downloaded. It has a unique “For You” section where a trader can maintain the links of his most frequently used tools. Though understanding TWS needs a little time, the mosaic interface that it offers is aesthetically pleasing. A trader can select from predefined interfaces from the layout library, which can further be customized. TWS allows the traders to create their own mosaic layouts, which they can save for future use. In a nutshell, Traders Workstation has everything that is needed to enhance the experience of trading; however, it needs little time to get started with.
Similar to the web platform, Interactive Brokers mobile app has all the functions needed. All the available assets can be traded through a mobile app. The created watchlists on the mobile are also accessible from desktop and web platforms. The TV section on the mobile displays Bloomberg, IBKR Traders Insight, and Real Vision. Charts are exceptionally good, and the research available is also solid.
From Interactive Brokers review, we get to know that placing a trade on a platform needs so many clicks. However, there is a trade ticket which you can use as a shortcut. A trader can also customize the trade default settings on the client portal. However, one needs to place advanced order types using TWS.
TWS makes the trading experience unique for all its traders. TWS allows the traders to set order details for every asset class. A trader can also set a time and date for order and also can set up a complex order which can be executed only after certain conditions are met. An order can be placed in unlimited ways.
Mobile Experience of Interactive Brokers
The workflow on the Interactive Brokers mobile app is easy and intuitive. The data is available in real-time; however, a trader can use only one platform at a time, which can be an issue with those who like to have trading workflow through the multi-device approach. The mobile trading platform is capable of offering all the essential researches, including options strategy tools and screeners.
Other than Interactive Brokers, there are no other brokers, which offer such a wide range of tradable assets. However, it is worth noting that IBKR doesn’t allow trading in cryptocurrency and Bitcoin futures. To place international orders, client portals need to switch to TWS. A trader can trade in Mutual funds, Stocks (Long and Short), Bonds (Treasury, Corporate, Municipal, CDs, etc.), Futures and Futures Options, Forex, IPOs, Single Stock futures, etc.
The Interactive Brokers firm’s order execution re-route all or parts of orders so that a trader can get optimal execution along with price improvement and any possible rebate. The router seeks for the best place to execute each leg for multi-leg orders. The payment for order flow is given back to IBKR Pro clients, but it is not given back to the clients of the Lite pricing plan.
As per the Interactive Brokers review, we get to know that the firm offers a Mid Price order, which is routed for many venues like IEX. Such floating orders automatically adjust with the changing market and seek for quicker fills along with price improvement. Clients can pick a particular venue to execute the orders from TWS. You can also take help from Portfolio Builder to walk you through the process and offer you the investment strategies based on research and fundamental data which can be tested and adjusted by you. The demo version of TWS allows you to learn and experience the platform along with the trading strategies.
Lite customers of Interactive Brokers can use any type of platform other than the IBKR mobile app to get free orders. For Lite customers, the order router prioritizes the payment of order flow.
Interactive Brokers Prices:
The fee structure of the platform is rather complicated. The firm charges three types of commissions:
1. Free trades for US-listed equities for IBKR Lite customers.
2. Per-share pricing on a monthly activity basis, which can range from $0.035 for 300,000 shares per month to $0.0005 per share for more than 100,000,000 shares per month. It excludes regulatory as well as exchange fees.
3. Fixed share pricing of $0.005 per share, which includes regulatory as well as exchange fees.
How Interactive Brokers make a profit from you?
The firm charges fees and commissions which are visible to the customers; however, there are other means too through which the broker makes money. Similar to many other brokers, Interactive Brokers make income from the difference between the amount that traders are paid for their idle cash and what they earn from their cash.
Research: Interactive Brokers offer a wide range of analytical tools along with research resources, which provides massive information for traders. The client portal and mobile apps have many research tools. Also, there are real-time scans and international trading data on the Traders Workstation.
Market Scanners of Interactive Brokers:
The mosaic is an interface in TWS has a market scanner which allows the traders to scan hundreds of criteria like options, global equities. One can use an existing scanner or can set up a custom scan. The fundamental explorer analyzes hundreds of points from TipRanks. The stock scanner is also very powerful, which makes trading very convenient.
TWS’s Fund scanner allows the screening of 170 variables. The tool is perfect, and it will soon be introduced to the client portal and mobile platform in 2020.
The options Screener allows the clients to look for spreads which can fulfill the outlook of customers’ market. A trader is allowed to compare within the five spreads and do profitable analysis along with entering the order directly from the screener.
Tools and Calculators:
The platform is full of many calculators like calculators related to margin, interest, order quantity, etc.
On the Interactive Brokers platform, a trader can either use a predefined scanner or set up a customized scanner. There is a mutual fund replicator as well, which allows a trader to identify ETFs, which are similar to a particular mutual fund but are less in cost and more liquid.
Education Resources of Interactive Brokers:
The platform offers a wide range of educational material to the investors and traders which are free of cost. Traders Academy has a rigorous curriculum and is for professionals, educators, investors, and students who want to have a better understanding of markets, asset classes, tools, currencies, and functionality. The firm offers more than 40 courses, and there are tests to mark the student’s progress so that students can learn easily at their own speed. The offered courses include introductions to asset classes like futures, forex, options, bonds, and international trading.
Interactive Brokers offers customer service through online chat, 24/7 phone call service, and through AI-powered IBot, which directs the customer to FAQs and other resources.
As per our Interactive Brokers review, it is one of the best available trading platforms, which has made trading easier by introducing technology, which is helpful for the traders. The availability of many tools makes it the best choice for advanced investors who like customizations. However, with the introduction of free trades with IBKR Lite, even casual traders may like trading on this trading platform.
1: What is Interactive Brokers?
Ans: Interactive Brokers LLC is a U.S. based brokerage firm that operates the largest electronic trading platform in the U.S.
2: What is the minimum deposit for Interactive Brokers?
Ans: To trade a margin account, you must maintain at least $2,000 or non-USD equivalent.
3: What is Excess Liquidity Interactive Brokers?
Ans: Excess Liquidity tells you whether you have sufficient cushion to maintain your current positions or not.
4: Why is Interactive Brokers so cheap?
Ans: The platform has millions of active trading clients, and they generate significant revenue every day via trading commissions & fees.
5: How to use Interactive Brokers trading platform?
Ans: You can use the trading platform by WebTrader, Trader Workstation, Mobile Solutions, API Solutions.