Interactive Brokers (also known as "IBKR") is a leading brokerage company from the United States, providing services to clients from more than 170 countries around the world. Since its foundation in 1978, it has acquired the status of one of the oldest and most reputable companies in the financial markets. With more than 40 prestigious awards in the United States and Europe, its capitalization exceeds $12 billion, making Interactive Brokers one of the key players in the securities industry.

Interactive Brokers provides a wide range of trading opportunities, including Forex, Exchange traded funds, Stocks, Bonds, options, Futures and more. With 11 licenses and access to more than 135 markets in 33 countries, the company's customers have access to global trading opportunities.

The unique features of Interactive Brokers include its own trading platform with advanced settings, support for 26 currencies for depositing and withdrawing funds, as well as the lowest commissions on the market. In addition, the company offers universal accounts for trading stocks, options and funds worldwide, providing a high level of flexibility and accessibility for its clients.

Interactive Brokers also provides extensive training materials, which makes it an ideal choice for both individuals and corporate clients who want to develop their knowledge and skills in the field of investing.

Due to the absence of a minimum deposit, anyone can easily open an account on the Interactive Brokers platform, which makes it accessible to a wide range of investors.

Trading conditions

Interactive Brokers offers its clients a wide range of financial products and its own platform providing access to global markets. The universal account allows you to trade various assets, such as options, futures, stocks, currencies and more, in more than 135 markets around the world.

Margin trading is available on the Interactive Brokers platform with a maximum leverage of up to 1:40. To open a margin account, you must have at least $2,000 on deposit.

Interactive Brokers trading terminal is available in three versions: for PC, mobile devices and web versions. It has advanced features and is recognized as one of the deepest trading terminals in the world by experts and experienced traders.

Although there is no minimum deposit on the Interactive Brokers platform, it is recommended to have at least $10,000 in the account, taking into account the specifics of the site. Funds stored in the broker's system can generate income of up to 6% per annum.

Clients can use a demo account and a trading simulator on the Interactive Brokers website to practice and familiarize themselves with the functionality of the platform without financial risks.

Types of accounts

Interactive Brokers provides three types of accounts for individuals:

• Private account: Intended for one individual.

   

• Joint account: Allows two people, for example, spouses or relatives, to have access to the account and the same rights to manage finances.

   

• Trust account: This is a private account where finances are held in favor of another person, for example, a child. Access to funds in the account is obtained after reaching the age of majority. Such an account is managed by the owner, founder or donor.

Two types of investment accounts are also available for UK and US residents, but they are not available for Ukrainian clients.

Only private accounts are available for individuals from Ukraine. A joint account can only be opened through a common bank account, which is not yet practiced in Ukraine. The same applies to trust accounts.

Organizations and private entrepreneurs can also open several types of accounts, such as a small business account, a financial management account (trust management), a brokerage account, etc. Opening such accounts is more difficult due to the need to submit a large number of documents. These accounts are also unavailable for Ukraine.

Demo account

Interactive Brokers, although aimed at experienced traders, also takes into account the needs of beginners, giving them the opportunity to hone their skills on a training demo account. This tool allows you to test the functionality of the platform in a risk-free environment, practicing making deals and working with various types of orders.

After filling out the questionnaire and logging in, you will have access to a demo account with an initial capital of 1 million academic dollars. In addition, you will be able to use credit funds in the amount of up to $3 million. The personal account at Interactive Brokers is available even for demo account users, which allows you to study the interface of the client portal in more detail.

A demo account is provided to all clients, and you can switch to it by simply selecting the "Simulator" option in the authorization form.

Although demo trading conditions may differ from real ones, using a demo account is an excellent opportunity for novice traders to get used to the platform and gain the necessary experience without financial risks.

Trading Instruments

Interactive Brokers provides its clients with a wide range of financial instruments. More than 130 markets from 33 countries are available on their trading platform, providing convenient access to all financial products directly from one terminal.

• Stocks:

Interactive Brokers offers access to shares of the stock markets of North America, Europe and Asia, which makes up more than 90 sites. Clients can trade both whole shares and fractional shares. The broker also offers a variety of options for day trading in stocks of large companies such as Google, Amazon, Tesla and others. Commissions on exchanges in Western Europe are only 3 euros per transaction, and on American markets up to 0.0035 USD per share.

• Profitability Improvement Program:

Interactive Brokers allows clients to receive additional passive income from fully paid shares. The broker automatically borrows shares from the client to lend to other users and charges a reward to the client's account. This program is available provided that the total value of the purchased shares is from $50,000.

• ETFs (Exchange-traded funds):

Interactive Brokers offers the opportunity to buy and sell shares in exchange-traded funds (ETFs). ETF trading is available around the clock and is not limited to the exchange day. Their trading terminal provides a convenient ticker search. It is important to note that investors do not pay commissions for the purchase of ETFs.

Thus, Interactive Brokers provides its clients with a wide range of stocks and ETFs with attractive trading conditions and the opportunity to receive additional income from investing in stocks.

• Futures:

Futures are securities reflecting a contract for the supply of an asset in the future at a pre-agreed price. Interactive Brokers offers a wide range of futures of the following classes: currencies, cryptocurrencies, agriculture, commodities, energy, metals, stock indices and volatility indices. Futures from 30 leading global markets are available.

• Options:

Options are derivative financial instruments, the value of which depends on the change in the price of the underlying asset. Interactive Brokers offers call and put options trading, giving clients the opportunity to purchase contracts to buy or sell assets at a fixed price at a certain time. Options are available on more than 30 global platforms.

• Bonds:

Bonds are IOUS issued by companies or states to raise capital. Interactive Brokers offers a wide range of bonds, including U.S. government securities, municipal bonds, corporate securities and depositary certificates of foreign companies. In total, more than a million securities are available. Interactive Brokers' official website provides a convenient bond search tool that allows clients to view prices and compare them with quotes from other brokers.

• Currency:

Interactive Brokers provides the opportunity for spot currency trading, offering more than 100 currency pairs from 24 world currencies. With narrow spreads and up-to-date quotes in real time, the broker offers rates for currency trading starting from 0.08 basis points. In addition, there is a separate trading interface for this direction — FXTrader, which supports 20 types of orders.

• Precious metals:

Gold and silver trading is available on the Interactive Brokers platform through Spot Gold and Spot Silver tools. The broker provides access to wholesale prices of precious metals, and trading commissions are among the lowest in the industry: from 1.5 bp for gold and from 3 bp for silver. Leverage with a rate of 1% per day is also available for this type of trading.

• Cryptocurrencies:

Although direct trading of cryptocurrencies on the Interactive Brokers brokerage platform is not supported, the broker offers trading futures contracts for bitcoin and ethereum (BTC and ETH). Futures are calculated in dollars, and it is impossible to replenish the account in cryptocurrency.

• CFD:

Contracts for Difference (CFDs) allow traders to speculate on changes in the price of an asset without actually owning it. Interactive Brokers offers CFDs on stocks, stock market indices, precious metals and the Forex market. The broker also offers more favorable margin requirements for CFDs, allowing you to use leverage if you have 20% of the market price of all open positions instead of the usual 25%.

Trading Platforms

For Windows-based computers, Interactive Brokers offers several software solutions with advanced functionality for trading and analytics:

• Trader Workstation (TWS): 

Trader Workstation is the main trading application from Interactive Brokers and is available for Windows. It provides a wide range of functions, including advanced trade settings, P&L tracking (profit and loss), continuous real-time monitoring of markets, risk management and advanced analytics. TWS offers a variety of tools for technical and fundamental analysis, including charts, statistics, news and more.

• IBKR Mobile: 

For those who prefer to trade from mobile devices, Interactive Brokers offers the SILK Mobile application, which is also available for Windows. This mobile application has advanced functionality that allows you to trade, monitor markets in real time, analyze data and manage your portfolio, including risk management.

• WebTrader: 

WebTrader is an Interactive Brokers web platform that is also available via a browser on Windows computers. This is a convenient solution for those who prefer to trade without installing additional software. WebTrader provides access to trading operations, market monitoring and analytics, although its functionality may be somewhat limited compared to TWS.

The choice of a specific software depends on your preferences and trading needs. However, as a rule, Trader Workstation provides the widest and most advanced functionality for traders and investors.

Education

Interactive Brokers brokerage company is focused mainly on experienced traders, providing them with a wide range of tools and a sophisticated trading platform interface. However, for beginners who may be confused in such a complex environment, a comprehensive guide is provided to help them understand the specifics of financial markets and trading.

The following resources are available in the Education section:

• Trader Academy: It contains full-fledged training courses divided into lessons covering various topics such as stocks, options, futures, bonds and mutual funds.

• Short videos: video instructions explaining the process of opening an account with Interactive Brokers, the use of the TWS global trading platform and other aspects are presented.

• Glossary of traders: specific terms with detailed explanations are collected.

• IBKR blog and Podcasts: sections with reviews of trading instruments, market news and other useful information.

However, it is worth noting that all information is presented in English, which may create difficulties for some users. Text materials can be translated using an automatic translator, but video instructions do not have subtitles.

In addition, a collection of answers to frequently asked questions and a support service are also available on the site, which is ready to help solve any problems that arise.

Safety 

Interactive Brokers' brokerage activities are subject to regulation by 11 licenses, including supervisory authorities in the United States (SEC), the United Kingdom (FCA) and the European Union (CSSF). The lack of a Ukrainian license is not an obstacle for the company, which is considered one of the most reliable brokers in the world.

Interactive Brokers is not affiliated with banks, which provides it with the opportunity to fully settle accounts with customers even in the event of a market crisis. About 92% of client funds are used for short-term investments in U.S. Treasury securities, and the remaining 8% are stored in the deposit accounts of IBKR clients, thus ensuring the safety of user deposits.

Guarantees for the safety of users' funds are complemented by FDIC insurance and SIPC protection. Each open position in the market undergoes a mandatory real-time risk assessment, and in case of a shortage of assets to cover the margin, the position is liquidated.

The security of user accounts is supported by two-factor authentication and flexible settings for withdrawal limits, which helps to minimize the risk of withdrawing money without the owner's knowledge in the event of account hacking.

Support Service

You can contact the brokerage company's support service in three different ways: by sending an e-mail request, calling the specified phone number, or using the online chat on the website. Prompt response is guaranteed, while the maximum waiting time does not exceed 20 minutes. The support service speaks the client's language, which eliminates possible problems with understanding. It is important to note that before contacting the support staff, your question will be reviewed in order to find a solution in the section with answers to frequently asked questions. The support service is available for 5 days a week, it is closed only on weekends.

Reviews

Reviews about Interactive Brokers are indeed contradictory. Among the advantages, users highlight a wide range of tools and settings of the trading platform, as well as a high percentage of order execution and low commissions. A fully functional demo account is singled out separately, which is available to everyone, which is especially useful for inexperienced traders.

However, despite these advantages, not all reviews about Interactive Brokers are positive. The criticism is mainly directed at the inconvenient and confusing interface of the website, application and trading software. Many users also complain about problems with the speed and slowing down of the platform, which can significantly complicate trading operations.