Interactive Brokers offerings: Your Complete Guide to Trading
The range of Interactive Brokers offerings is extensive, providing access to numerous global markets. However, the exact availability of these markets is dependent on your geographic location and the specific Interactive Brokers entity managing your account.
For instance, retail spot Interactive Brokers forex trading is typically unavailable to U.S. residents, unless they are classified as an ‘Eligible Contract Participant’. Similarly, CFDs are not accessible to clients in the U.S., Canada, or Hong Kong.
Interactive Brokers Products and Available Markets
Interactive Brokers provides a broad spectrum of investment products. The table below summarizes some key features and offerings.
Regarding Interactive Brokers crypto, trading is offered for the underlying asset, such as Bitcoin, through a partnership with Paxos. It’s important to note that crypto CFDs are not available to retail traders from any broker’s U.K. entity, nor to U.K. residents.
- Forex Trading (Spot or CFDs): Yes
- Tradeable Symbols (Total): 8500
- Forex Pairs (Total): 90
- U.S. Stock Trading (Non CFD): Yes
- Int’l Stock Trading (Non CFD): Yes
- Social Trading / Copy Trading: No
- Cryptocurrency (Physical): Yes
Interactive Brokers Available Markets Overview
The global reach of Interactive Brokers is impressive, offering clients access to a vast number of exchanges and financial instruments around the world. This broad access is a key component of the Interactive Brokers offerings.
Clients can trade stocks, options, futures, forex, bonds, and funds across diverse international markets. The specifics of what is available can vary, so checking your local regulatory guidelines is always recommended.
Interactive Brokers Fees and Commissions
Interactive Brokers is known for its competitive Interactive Brokers fees structure. While precise comparisons can be challenging due to the lack of published average forex spreads, our analysis shows strong pricing.
For example, a sample of one week’s worth of average spread data for the EUR/USD showed a total of 0.6 pips after commission.
Forex Pricing Summary
For Interactive Brokers forex trading, commissions per side begin at 0.00002 (0.2 basis points) of the U.S. dollar trade value. There is a minimum charge of $2 per order ($4 per round turn).
Highly active traders may see commissions decrease to as low as 0.08 basis points. An example of buying and selling $100,000 worth of EUR/USD would incur a commission-equivalent of approximately 0.40 pips, in addition to prevailing spreads. This is a very competitive rate for forex trading, though IBKR Lite and IBKR Pro accounts, while supporting forex, are not commission-free.
Minimum Charges and Execution Method
Given the minimum commission of $2 per side, trading less than 100,000 units of currency becomes proportionally more expensive. This minimum charge for forex is comparable to Saxo Bank’s $3 per-order fee for trades under 50,000 units.
For forex traders, Interactive Brokers aggregates prices from 17 of the world’s largest interbank forex dealers. Instead of marking up spreads, they charge a commission per trade, ranging from $16 to $40 per million round turn ($8 to $20 per side). This pricing aligns with other brokers offering commission-based forex trading with agency execution.
Discounts for Active Traders
Active traders benefit from discounts once certain monthly trading volume minimums are met. For instance, trading over $1 billion worth of forex reduces the minimum charge from $2 to $1.5 per order.
This can further decrease to $1 per order for volumes exceeding $5 billion per month. Interactive Brokers also handles large order sizes via Request For Quote (RFQ) to minimize market impact and ensure optimal execution.
Further Considerations on Interactive Brokers offerings
It would be beneficial if Interactive Brokers published its average forex spreads, especially given its strong competitive standing in other asset classes like U.S. equities trading. Adhering to the FX Global Code would also further solidify its position as a global leader.
- Minimum Initial Deposit: $0
- Average Spread EUR/USD – Standard: 0.6 (Aug 2022)
- All-in Cost EUR/USD – Active: 0.6 (Aug 2022)
- Active Trader or VIP Discounts: Yes
- Execution: Agency Broker: Yes
- Execution: Market Maker: No
Conclusion
The Interactive Brokers offerings represent a comprehensive suite of trading options for a diverse range of investors. From extensive Interactive Brokers available markets to competitive Interactive Brokers fees and a wide array of Interactive Brokers products, the platform caters to both casual and active traders.
While some regional restrictions apply, particularly in Interactive Brokers forex and Interactive Brokers crypto, the overall value proposition remains strong. The platform’s commitment to competitive pricing and broad market access makes it a top choice for many traders globally.
