BEST DISCOUNT BROKER - InteractiveBrokers Review

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Recommended for traders looking for low fees and a professional trading environment.

Interactive Brokers was founded in 1978 and is one of the biggest US-based discount brokers. The broker is regulated by several financial authorities globally, including top-tier ones like the UK's Financial Conduct Authority (FCA) and the US Securities and Exchange Commission (SEC).

As it has licenses from multiple top-tier regulators, Interactive Brokers is considered safe. Having a long track record and publicly disclosed financials while being listed on a stock exchange are also great signs for its safety.

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Interactive Brokers pros and cons

Interactive Brokers has low trading fees, one of the lowest on the market. It covers a wide selection of markets and products and a lot of great research tools.

Nevertheless, this broker is recommended mainly for advanced traders, as the account opening process is complicated and the desktop trading platform is not user-friendly. In addition, the inactivity fee is quite high and most users can only make deposits and withdrawals via bank transfer.

Pros

• Low trading fees
• Wide range of products
• Many great research tools

Cons

• Complicated account opening process
• Complex desktop trading platform
• High forex fees

Account Opening

IB's account opening process is fully digital and the required minimum deposit is low. On the negative side, the process is complicated, and account verification takes relatively long.

Pros 

• Fully digital
• Not user-friendly

Cons

• No minimum deposit for most account types
• Confusing messages throughout the process

Deposit and withdrawal

Interactive Brokers offers many account base currency options and one free withdrawal per month. The main drawback is that you can only use bank transfers.

Pros

• No deposit fee
• Several account base currencies
• First withdrawal each month free

Cons

• Credit/Debit card not available

Interactive Brokers main features and highlights:

🗺️ Country of regulation - UK, USA, India, Australia, Canada, Japan, Hong Kong

💰 Trading fees class - Low

💰 Inactivity fee charged - Yes

💰 Withdrawal fee amount - $0

💰 Minimum deposit - $0

🕖 Time to open an account - 1-3 days

💳 Deposit with bank card - Not available

👛 Depositing with electronic wallet - Not available

💱 Number of base currencies supported - 22

🎮 Demo account provided - Yes

🛍️ Products offered - Stock, ETF, Forex, Fund, Bond, Options, Futures, CFD, Crypto, Warrants, Structured Products

Verdict

Interactive Brokers is one of the biggest US-based discount brokers, regulated by several top-tier regulators globally. This broker is mainly recommended for advanced traders.

On the plus side, IB has low fees, a vast range of available markets and products, and diverse research tools. 

There are some drawbacks, though: there is high forex fee, and the account opening process is complicated. The desktop platform is complex and hard to get a handle on, especially for beginners.

If you have experience navigating complex platforms and enjoy transparent, low-cost trading, Interactive Brokers could be a great fit for you.

Reprinted from Brokerchooser, the copyright all reserved by the original author.