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Interactive Brokers Review + Opinions (2022) | Safe And Fast?

Fees
$0
*Except inactivity fee
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Minimum deposit
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Interactive Brokers review

Interactive Brokers is an online broker founded in 1977 in the United States. As a broker, the company is jointly responsible for more than 2 million transactions per day. It is possible to trade in various instruments such as stocks, options, currency pairs, indices, commodities and bonds.

In this Interactive Brokers review we will tell you more about the experiences with this broker, read about the advantages and disadvantages associated with an account at Interactive Brokers, how to create an account, the security and reliability of the party, the payment methods that can be used for depositing and withdrawing money, how to create an account, which accounts you can choose and the Interactive Brokers customer service.

How are the Interactive Brokers experiences?

The experience with Interactive Brokers has been positive in several ways. It is nice to start investing with the broker by choosing a demo account. This allows you to practice with the possibilities that are available for trading in different instruments.

Security is good and your money is protected on several levels as well. Minuses include the fact that payment is only possible by bank transfer and that there are charges for inactivity. For your convenience, we have listed some of the pros and cons for you below.


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★★★★★
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Fees
$0
Per trade
Fees
$0
Per trade
Fees
$0
Per trade
Minimum Deposit
$50
Minimum Deposit
$50
Minimum Deposit
$50
Promotion
$50 – $5.000
Check conditions
Promotion
1 free stock
Check conditions
Promotion
1 free stock
Check conditions

Advantages Interactive Brokers

In order to convince you of the benefits you can expect from investing with Interactive Brokers, we have named a few plus points for you. These include:

  • Investing at Interactive Brokers can be done by using a convenient app;
  • There are several platforms available;
  • The broker is regulated by several authorities including the Financial Conduct Authority (FCA);
  • You can get acquainted with the service provider by creating a demo account;
  • Customer funds are segregated from Interactive Brokers’ assets in separate accounts.

Disadvantages

There are also some disadvantages to be named such as:

  • In order to invest, a minimum deposit of € 2000,- must be made;
  • The Interactive Brokers customer service desk is not available in all languages;
  • Only 1 payment method is possible;
  • Fees are charged for account inactivity.

Is Interactive Brokers scam: reliability and security

Interactivebrokers should also be reliable and secure before you create an account. Therefore, we have looked at several aspects that contribute to this. For example, the Interactive Brokers Group is regulated by various bodies and holds the proper licenses and permits to be able to offer its services.

For security, there are also measures in place to ensure that your account, your data and your investments are safe. Of course, there are also rules and measures in place to ensure that your money is safe at Interactive Brokers.

What about the regulation and licensing of Interactive Brokers?

Interactive Brokers is monitored and regulated by the Financial Conduct Authority (FCA) in the United Kingdom and by several other authorities. These authorities oversee compliance with laws and regulations related to the provision of services to invest. Because there are multiple licenses present and several authorities overseeing compliance, we can assume that Interactive Brokers is a reliable party.

regulation interactive brokers

Security of your money

Of course you also want your money to be stored and used in a safe way. Several measures have been taken for this purpose as well. These measures ensure that you don’t have to worry in case Interactive Brokers goes bankrupt or you lose the money due to scams. Security measures taken by the broker include:

  • Dumping your money into separate accounts. This keeps Interactive Brokers’ assets separate from your money. The firm cannot access these, even if they are in financials trouble. An additional advantage is that any creditors cannot lay claim to these assets;
  • As a broker Interactive Brokers is a member of the Financial Services Compensation Scheme (FSCS). If financial problems do occur at the company, your assets are insured up to a certain amount.
  • Your account is also protected through the Securities Investor Protection Corporation (SIPC) in the event of bankruptcy.

Use of SSL encryption

The security of the connection between your device and the servers of Interactive Brokers is obviously of great importance. For this reason, various security measures are used. One measure taken for this is SSL-encryption. With this encryption an encrypted connection is made between your device and the website.

Because of the security, your data, your money and other items are protected from outside influences. SSL stands for Secure Sockets Layer and can be recognized by the padlock in the address bar next to the web address.

How do you create an account with Interactive Brokers?

If you want to invest with an account of Interactive Brokers, you first have to create this account. For your convenience, below we’ve outlined step by step how to open an account with the organization.

  1. On the website of Interactive Brokers, click on the button marked “Open Account”;
  2. You can then fill in your information in an online form. You will be asked for an email address, a username, a password and the country in which you live;
  3. When you have filled in the details, then click on “Create Account”;
  4. You will then receive an email containing a link to activate the account. Clicking on the link will take you back to the website and allow you to submit the application further;
  5. You will then be asked for several pieces of information that are necessary to open an account. This includes information about your personal details, your financial situation, your income, the experience and knowledge you have with investing and taxes;
  6. If you have provided all the information, you can review and agree to the terms and conditions;
  7. The next step is to upload a valid ID and other documents that will be requested;
  8. After you have done that, you can expect a response from Interactive Brokers within two days. All data will be verified and upon approval, the account will be activated for use.

As you can see the whole process will take some minutes. Make sure you fill in the questions by 100% truth, this will make you application time quicker.

account interactive brokers

Conditions Interactive Brokers

In the previous steps you have already been able to read some of the conditions for opening an account with Interactive Brokers. To start with, you must be 18 years or older and have equity. For this reason, data and documents related to your identity, income, assets and expenses must be provided.

Questions will also be asked that relate to the experience and knowledge you have regarding investing. All of these are required to approve an application for an Interactive Brokers account.

Account Overview

For opening an Interactive Brokers account, you have several options. There are accounts offered for individual users and for companies. It depends on your wishes, experience and needs which choice you make. When you have created an account, you can start trading with the Interactive Brokers webtrader. Below we have listed the different accounts for you:

  • Demo-account: this account gives you a virtual amount of money which you can use to get acquainted with the service and to learn how to trade without any risks.
  • Individual account: this allows you to invest as an individual. You have access to the platform used by Interactive Brokers and can use all its features;
  • Joint account: this type of account has the same features as the previous account, the only difference being that there can be multiple owners;
  • Trust account: your account and your investments are managed for you, without you having to worry about it;
  • Friends & Family account: it allows you to create an account for a group of up to 15 users;
  • Small Business account: an account that can be opened by small businesses to invest with;
  • Advisor account: can be opened by an external party who invests and manages portfolios for others;

interactive brokers accounts

Interactive Brokers payment methods

Depositing money into your account to then invest with can only be done at Interactive Brokers by bank transfer, but this will depend on the country where from you’re trading. In countries, like Canada and the United States, there are several other payment methods available. Depositing money into the account by bank transfer can take up to 4 business days before you have it at your disposal. No Interactive Brokers fees are charged for depositing money into the account.

The minimum deposit that must be made is $1,-. However, if you are serious about investing, then a minimum deposit is required of $2000,-.

If you want to withdraw money from your Interactive Brokers account, this is free of charge in the beginning. After one month, you will be charged a fee of € 8,- per transaction. Withdrawing money from your account can also take several days before you receive it on your bank account.

Offerings at Interactive Brokers

The offering of Interactive Brokers consists of various instruments. The selection is very wide and you can invest in any way you want. The instruments which are offered by the broker include:

  • Shares on 135 markets in 22 countries;
  • ETF’s on 28 markets in 14 countries;
  • Options on stocks, indices and currencies in North America, Europe and Asiaë;
  • Futures on 35 markets worldwide;
  • Value pairs such as combinations of USD, AUD, CAD, EUR, GPB, PLN, SEK and more;
  • Obligations and funds.

Costs Interactive Brokers

If you want to use the services offered by Interactive Brokers, a fee will be charged. The costs differ per service and are divided in fixed costs and variable costs. The fixed costs are Interactive Brokers fees that you pay for trading in certain instruments. The variable costs are based on the amount of trades you do during a month.

In addition to these costs, there are also charges for the individual financial instruments. For a complete overview it is wise to consult the website of Interactive Brokers. If you make little or no use of your account, costs are also charged. If there is less than 2000,- dollar on your account and you do not trade for at least 20,- dollar, you will pay 20,- dollar per month inactivity fee.

Education Interactive Brokers

In order to teach customers more about investing and related topics, a lot of attention is paid to education. At Interactive Brokers there are several opportunities to learn about investing, about the instruments you can trade in, the account, the platform and more.

You can use video’s, manuals and documents that tell you more about this. Interactive Brokers offers this for novice investors and to give experienced investors more insights and knowledge to be able to invest in the best way in the future.

tradersacademy interactive brokers

Customer service InteractiveBrokers

The Interactive Brokers customer service team provides support to users in a variety of ways. If you have questions, you can already find many answers directly at the frequently asked questions section. You can use a search function there to get answers to any questions you may have. If you don’t find what you are looking for, you can contact customer service.

This can be done at Interactive Brokers in various ways. You can always send an e-mail which, as a rule, will be answered within 24 hours. The telephone number of InteractiveBrokers can be reached 24 hours a day and it is possible to use a live chat 24 hours a day from Monday to Friday.

Conclusion Interactive Brokers review

As a broker, Interactive Brokers has advantages and disadvantages. It is nice that there is a wide choice of instruments and accounts, on the other hand we find it unfortunate that it is only possible to deposit or withdraw money via bank transfer.

The customer service is well organized and can provide the best support. For beginners, there is enough information and material available to get started


★★★★★
Reportlab score

★★★★★
Reportlab score

★★★★★
Reportlab score
Learn moreLearn more (review)Learn more (review)
Fees
$0
Per trade
Fees
$0
Per trade
Fees
$0
Per trade
Minimum Deposit
$50
Minimum Deposit
$50
Minimum Deposit
$50
Promotion
$50 – $5.000
Check conditions
Promotion
1 free stock
Check conditions
Promotion
1 free stock
Check conditions

Frequently asked questions

It is very important that a broker is regulated by a renowned regulatory authority. If a broker is not licensed, you may question its reliability. Interactive Brokers has received a license from the FCA. This UK financial authority is considered one of the best. The FCA regularly checks the broker and makes sure that all the rules are followed. If not, the broker is punished or fined. They may even lose their European or Amercan license.

Interactive Broker’s customer service is available to you in several ways: by phone, email and live chat. They can be reached 24/5 by phone, and also on Sundays via live chat. However, please note that you can only contact customer service in English. In addition, this broker has an extensive FAQ where you can find the answer to your question. We advise you to consult these frequently asked questions first before contacting the customer service desk. You may not even need to contact support.

Our experiences with Interactive brokers are generally good. In addition, this broker is completely reliable. Do you want to read more about our experiences with this broker? Then be sure to take a better look at our Interactive Brokers review.

In the App Store, the Interactive Brokers app has an average rating of 3.5 out of 5. The app has just the same features as the desktop version. It allows you to trade stocks, futures, bonds, and much more. Moreover, the app is available in almost all languages. Would you like to download this app? Then you must have iOS 11.0 or higher.

You can already trade at Interactive Brokers with a minimum deposit of €1, so to speak. However, if you want to trade with margin or in short sale, you need to deposit at least €2000. Trading with margin means that you are using leverage.

Interactive Brokers users can indulge in a very wide range of offerings. You can invest in stocks, options, futures, spot currencies, metals, bonds, ETFs, EPFs, mutual funds and hedge funds.

Interactive brokers has received many different awards in those 43 years. You can invest in a very wide range of trading instruments: shares, bonds, spot currencies, ETFs and much more. If you are not yet completely at home in the world of investment, you can visit the education center. Thanks to the Trader’s Academy, the webinars, videos, etc. and the demo account, you’ll be an expert in no time. Thus, both novice and professional investors can turn to this broker.

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Freddy Agard
Freddy Agard

Freddy Agard writes daily about financial products and specializes particularly in the equity markets. He is happy to tell you more and enjoys reducing complex material to manageable and understandable information. Questions? Leave a comment at the bottom of the page!

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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