Interactive Brokers (IB)
Interactive Brokers (IB) is popular among active traders, experience and professional investors and hedge fund. It was established and began executing trades for public in 1994. It offered its own clearing trading in 1998. Interactive Brokers Group is traded publicly on the NASDAQ under IBKR ticker. It has a market capitalization of $710 million. The current headquarter is located in Greenwich, Connecticut. The Chairman and CEO is Thomas Peterffy.
As one of the best brokerages, IB offers stock trading, option trades, ETF, mutual funds, future, Forex, CFDs, and bonds. It offers global products. You can trades in over 100 market centers in 19 countries using single IB Universal Account. There are 2 types of trading platforms: Trader Workstation (TWS), and WebTrader. Trader Workstation is one of the best desktop applications for trading. It also offers advance tools such as BookTrader, OptionTrader, BasketTrader, ScaleTrader Algo, Accumulate/Distribute algo, FXTrader, and SpreadTrader. There are 50 order types and algos supported.
The WebTrader is a web based trading platform. It is a scaled-down version of TWS with simplified interface. It offers in fourteen languages. As an online discount brokerage, it provides 11 supported order types.
Opening an account with IB can take a little longer than typical online broker. You need to fill your application online, and then you need to verify two deposits IB makes into your bank account. Then, Interactive Brokers will send you a code through a regular mail to start trading. You also need to deposit $10,000 initial funding to open an account. Most traders choose bundled commission to get the lowest cost for trading.
Products and Services
- Products: Stocks, bonds, ETFs, bonds, mutual funds, options, foreign investments, currency
- Market Orders: $0.005 per shares ($1.00 minimum)
- Limit Orders: $0.005 per shares ($1.00 minimum)
- Broker-Assisted Orders: $0.01 per shares ($100.00 min)
- Mutual Funds: $14.95/ trade
- Options: $0.70/contract
- Minimum to Open: $10,000 for US-based accounts; varied for foreign accounts
- Account Maintenance Fee: $10.00 - $20.00
- IRA maintenance Fee: $7.50 per quarter
- Some Other Fees: Wire Transfer outgoing: $10.00 per transfer.
- ACH Transfer Fee: $1.00 per transfer.
- Maximum Margin Rate: Based on proprietary base rate
- Low commissions for stocks and option trading
- Low margin rates
- Offers several trading platform
- High minimum requirement to open an account ($10,000)
- There is a commission fee of $10/month if you don’t trades more than $30 commission fee per month
- It can get quite expense for trades over 1,500 shares
- There is a quarterly IRA fee
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