IB, or Interactive Brokers, is a discount brokerage firm founded in the United States in 1978. It is headquartered in Greenwich, Connecticut, and has offices in several other countries, including the United Kingdom, Hong Kong, and Australia. The company provides electronic brokerage services to individual and institutional clients, offering a range of financial products, including 150 markets including stocks/ETFs, options, futures, spot currencies, bonds, and mutual funds. Interactive Brokers is regulated by several financial authorities, including ASIC (Australia), FCA (UK), FSA (Japan), SFC (Hong Kong), and CIRO (Canada).

Pros & Cons

Pros

Wide range of trading instruments

Advanced trading platform with many features

Low trading fees and commissions

Access to international markets and exchanges

Multiple account types to choose from

Strong regulatory oversight and safety of client funds

Cons

Complex platform and steep learning curve

Is IB Legit?
Interactive Brokers is a well-established and reputable broker. The company is publicly traded and regulated by multiple top-tier financial authorities around the world, including ASIC (Australia), FCA (UK), FSA (Japan), SFC (Hong Kong), and CIRO (Canada).

How Are You Protected?

Interactive Brokers (IB) provides a range of security measures to protect its clients’ funds and personal information. Some of the key security measures include:

Market Instruments
IB offers 150 markets across multiple asset classes, including:

Stocks: IB provides access to over 135 markets and 35 countries, with more than 9,000 stocks available to trade.
Options: IB offers options trading across a variety of markets, including stocks, indices, and futures.
Futures: IB offers futures trading on over 70 global markets, including indices, commodities, and currencies.
Forex: IB provides access to forex trading in over 100 currency pairs.
Bonds: IB offers trading in bonds, including corporate, municipal, and government bonds.
Funds: IB offers trading in funds from over 250 fund families.

Account Types
Interactive Brokers (IB) offers various types of accounts for different trading needs, including Individual, Joint, Retirement, Trust, Family, and Institutional accounts.

Margin & Leverage
While the margin rates that IB offers are the same for all customers, local regulators may impose different or higher rates. Regulatory requirements for margin deposits in a given jurisdiction will take precedence over those set by the IB if they are greater.

And since high-risk leverage is regulated differently in different countries, your ability to use it will vary based on the trading instrument you use and the law where you live. As a result, IB provides a convenient online tool to let you quickly and easily view all applicable margins, allowing you to select the optimal trading conditions.

For customers who come under the jurisdiction of the Australian Securities and Investments Commission (ASIC), the maximum leverage available on Forex trades is 1:400.

It is important to keep in mind that the greater the leverage, the greater the risk of losing your deposited capital. The use of leverage can both work in your favour and against you.

Spreads:

Forex: IB offers competitive spreads on major forex pairs, with typical spreads ranging from 0.1 to 0.3 pips for EUR/USD, 0.1 to 0.6 pips for USD/JPY, and 0.3 to 0.7 pips for GBP/USD.
Stocks: IB offers tiered pricing for stocks, with spreads ranging from $0.0035 to $0.01 per share, depending on monthly volume. For example, the spread for a trade of 100 shares of Apple (AAPL) would be $0.35 to $1.00, depending on the monthly volume.
Options: IB offers competitive spreads on options, with typical spreads ranging from $0.10 to $0.30 per contract for major options.

Commissions:

A tiered commission of $0.0035 per share for a monthly volume of fewer than 300,000 shares, $0.002 per share for a monthly volume of 300,001-3,000,000 shares, $0.0015 per share for a monthly volume of 3,000,001-20,000,000 shares, and $0.0015 per share for a monthly volume of 20,000,000 shares. $0.001 per share for a monthly volume of 20,000,001-100,000,000 shares and $0.0005 per share for a monthly volume of 100,000,000 shares or more. The minimum commission is $0.35, and the maximum commission is 1% of the trading volume. The commission for metals trading is 0.15 basic points of the volume, with a minimum of $2.

Trading Platforms
IBKR GlobalTrader, Client Portal, IBKR Mobile, Trader Workstation (TWS), IBKR APIs, IBKR Event Trader, and IMPACT are different trading platforms and tools offered by Interactive Brokers (IB) to its clients.

IBKR GlobalTrader is a web-based platform designed for trading and managing international accounts. It provides access to 125 global markets and 31 countries. It also allows clients to trade in multiple currencies and offers currency conversion at competitive rates.
Client Portal is a web-based platform that enables clients to manage their accounts, view balances and positions, access research and news, and monitor trading activity. It also provides account management tools such as funding, withdrawals, and statements.
IBKR Mobile is a mobile application that allows clients to manage their accounts, place trades, and access real-time market data. It is available for both iOS and Android devices.
Trader Workstation (TWS) is a desktop trading platform that provides advanced trading tools, real-time market data, and research. It is designed for professional traders and investors who require advanced trading capabilities.
IBKR APIs are a set of programming interfaces that allow clients to integrate their own software and applications with IB’s trading systems. This enables clients to automate their trading strategies and access real-time market data.
IMPACT (Interactive Brokers Market Place and Corporate Technology) is an online marketplace that offers a range of third-party applications and services to clients. These include trading tools, research, analytics, and other resources to enhance trading capabilities.

Deposits & Withdrawals
There are several major options for traders to deposit and withdraw funds from their accounts, including bank wire transfers, ACH, BPAY, EFT, online bill payment and more.

Note that the availability of deposit and withdrawal methods may vary depending on your location and account type.

Minimum deposit requirement

The minimum deposit requirement for Interactive Brokers (IB) varies depending on the account type and the location of the account holder. For example, the minimum deposit for a US-based individual account is $0 for IBKR Lite and $0 for IBKR Pro, while for a non-US-based individual account, the minimum deposit is $0 for IBKR Lite and $10,000 for IBKR Pro. However, the minimum deposit for other account types, such as institutional accounts or margin accounts, may be higher.

Conclusion
In conclusion, Interactive Brokers is a reputable and reliable broker that offers a wide range of investment products and trading platforms to its clients. The broker is known for its low commission rates and competitive pricing structure, making it a good choice for active traders and investors.

IB also provides a high level of security and protection to its clients, through various measures such as SIPC and excess SIPC insurance, and two-factor authentication. The broker also offers educational resources, customer support, and a variety of account types to meet the needs of different traders.

However, IB may not be the best fit for beginners due to its complex trading platforms and sophisticated tools.

Overall, Interactive Brokers is a good choice for experienced traders and investors who are looking for a reliable broker with low commissions and a wide range of investment products.