Interactive Brokers Review 2021. Its Features, Advantages, and FAQs

Interactive brokers have been around for many years. It was founded in 2000, and it is one of the most popular online trading platforms available today. The company offers its services to both retail traders as well as institutional investors. Interactive Brokers provides access to over 100 financial markets, including stocks, bonds, forex, futures contracts, options, ETFs, commodities, currencies, indices, mutual funds, etc. In addition to this, they also offer their clients an extensive set of tools such as charting software, technical analysis indicators; news feeds, social media integration, mobile apps, webinars, educational materials, etc. They have offices all across the globe, with headquarters located in New York City. Their customer service team can be reached via phone or email 24/7.

Features of Interactive Brokers 


The following are some features offered by IB:

Over 100 global stock exchanges

IB’s proprietary market data platform, which includes real-time quotes from more than 200 countries worldwide

More than 50 currency pairs

In IB’s own words, they provide "the best execution on Wall Street.” This means that you will get the lowest possible price when buying shares or other securities. You may not know about this, but there are two prices – the bid price and the midpoint between them. If your order is executed at the asking price, you pay the higher price, whereas you pay less money if your order is completed at midprice. So, what does this mean? Well, if you place an order for $100 worth of IBM and the current bid price is $90 per share, then you would pay $10 extra because you were paying too much. However, if the midpoint is $95 per share, then you only need to pay $5 extra since you’re getting the same amount of shares for half the cost.

Lowest fees

One thing that makes IB stand out among other brokerage firms is that they charge meager transaction costs. For example, if you trade 1 million dollars worth of equities, you will only incur a 0.1% commission fee. That's right! No matter how big or small your trades are, you won't ever have to worry about high commissions again.

Free demo account

If you want to test drive IB before making any actual transactions, you should check out their free demo accounts. These accounts allow you to practice without risking anything, so you don’t even need to deposit any cash into these accounts. All you need to do is sign up using your personal information and start practicing. Once you feel comfortable enough, you can move forward with depositing money into your account.

No minimum balance requirement

Another great feature of IB is that no minimum balance is required. As long as you keep opening new positions, you'll never run out of capital. Also, unlike traditional banks where you might find yourself having to wait months just to open a checking account, IB allows you to open multiple accounts within minutes.

Customer support

As mentioned earlier, IB has a live chat option available 24 hours a day.

Mobile app

You can download the official IB Mobile App onto iOS devices like iPhone, iPad, iPod Touch, etc. With this application, you can easily monitor your portfolio anytime, anywhere.

Social Media Integration

With the help of Social Trading, you can now connect with others who are interested in similar topics. Through this feature, you can follow people whose opinions match yours and learn from each other.

Education Center

This section contains various articles written by experts in finance and investing. Some of theseof15–20 etc., seconds.Lower Transaction Fees

How To Open an Account with IB

To open an account with IB, all you need to do is visit ib.com/us-en/accounts/. There, you can choose either Individual Investor or Business Customer. After selecting one of those options, click Next Step. Then enter your name, address, phone number, email address, password, date of birth, social security number, and lastly, select whether you're male or female. Click Continue.


Advantages

There are many advantages associated with trading through Interactive Brokers. Here are some:

Faster Execution Time

IB offers a faster execution time than most online brokerages. The average execution speed is around 2 seconds which is way better than the industry standard of 5–7 seconds.

Better Pricing Structure

The pricing structure offered by IB is more favorable compared to its competitors. It charges lower rates than most other online brokerages.

More Options

you pay less money. However, unlike other online brokerages, IB gives you access to over 100 financial instruments, including stocks, bonds, ETFs, futures contracts, commodities, currencies, and indices.

Easy Accessibility

IB provides easy access via mobile apps, web browsers, and desktop applications. You can also trade on your PC at home if you have an internet connection.

Free Demo Accounts

IB offers free demo accounts for both individual investors and business customers. This means that you won't be charged when testing out the platforms.

Cons

High-Risk Investment: The main reason we recommend Interactive Brokers over other brokerages is its high-risk investment nature. However, it offers some benefits such as lower trading fees, more customer service, mobile apps, education centers, etc.

It also comes with many risks, including market volatility, margin calls, credit card fraud, hacking attacks, etc. Therefore, make sure that you understand everything thoroughly before signing up.

Low Minimum Deposit: Unlike most online brokerages, which require at least $5,000 for initial deposits, IB involves nothing but your personal info. This means that you can get started immediately after registering. However, be aware that there may come times when you would need to pay additional funds depending on what type of account you've chosen.

Trading Platform: If you prefer desktop platforms, IB provides access through Windows and Mac computers.


Frequently Asked Questions

Q1. What's a good starting balance?

A1. It depends on how much money you want to invest. For example, if you plan to start small, say less than $10,000, you should consider opening a cash account. On the other hand, if you intend to deposit large amounts of money into your brokerage account, then you might want to opt for a margin account instead.

Q2. How long does it take to withdraw my profits from my trades?

A2. Withdrawing profit usually takes between 1 day and three days. But this varies based on the amount of money in question.

Q3. Can I use my debit cards while trading?

A3. Yes, you can! All central banks offer their debit cards, so you don’t even need any special ones. Just choose one that suits your needs best.

Q4. Is it safe to open an account with Interactive Brokers?

A4. Absolutely yes! As mentioned earlier, IB has been operating since 1973, and they are regulated by the US Securities & Exchange Commission. They also hold themselves accountable to all laws and regulations set forth by the SEC. So rest assured, knowing that your information will remain private and secure.

Q5. How safe is my investment?

A5. Your investments are wholly protected because IB holds itself responsible for ensuring that clients' assets stay intact. In addition, they provide 24/7 monitoring services to ensure that no unauthorized transactions occur.

Q6. What makes It a Better Choice?

A6. There are several reasons why we think Interactive Brokers is better than others. First, unlike traditional stock brokerage firms, IB doesn't charge commissions or transaction costs. Second, it allows traders to trade stocks without having to worry about taxes. Third, it gives users complete control over their portfolios. And lastly, it lets them manage multiple accounts simultaneously.

Conclusion

In conclusion, Interactive Brokerage Services is worth checking out, especially if you're looking for low-cost stock trading options. Their platform allows users to easily manage their portfolios without worrying about complicated technicalities or confusing jargon. Moreover, they have a wide range of financial products available for traders who wish to diversify their portfolios. Overall, IB is an excellent choice for those seeking reliable and convenient ways to trade stocks.