Interactive Brokers (aka IBKR) provides exchange intermediary services to individuals and organizations. This brand is one of the oldest brokers – it was founded in 1978. Founder Thomas Peterffy has propelled Interactive Brokers into a pioneer role as the service was the first to offer direct access to IEX.
Interactive Brokers at a Glance: Regulation and Territorial Operations
The brand is widely known outside the United States and provides its services even in Russia. Today, support can be obtained from 11 regional offices around the world – in Japan, Canada, Hong Kong, India, Hungary and other countries. Interactive Brokers provides consultations in English, Russian, Chinese and other languages, and the site operates in 8 languages.
Officially, the group of companies is a member of the NYSE exchange and a member of FINRA and SIPC organizations, and is also regulated in all jurisdictions in which it is represented, except Russia. In the United States, the brand is regulated by the SEC, as described in the traders’ reviews of Interactive Brokers.
Broker’s controversial reputation and money laundering allegations
The company’s reputation was damaged after a major scandal, during which the broker was fined $ 38 million. The service allowed some money laundering operations and did not file reports on transactions. The broker’s negligent behavior has also resulted in negative reviews of Interactive Brokers.
Today the company is trying to restore its reputation, but the latest comments from traders point out the incompetence of the support service and difficulties with the implementation of the withdrawal from the cabinet.
Interactive Brokers Trading Accounts and Trader Services
The broker promises low service fees and the most comfortable order execution rates. Additionally, after registration, the investor gains access to profitability programs that are aimed at reducing trading costs.
As for the direct trading process, four terminals are presented for the comfort of clients: Client Portal, Trader Workstation, Mobile, IBKR API. The company also gives access to algorithmic tools and indicators by default. To improve trading skills, the official website has an educational section and some analytical functions.
There are only two tariff plans – Tiered and Fixed, and their main difference is their pricing structure. The amount of commissions is determined based on the selected tariff; in case of opening a Tiered account, the client receives a refund of part or the full amount when the exchange provides the rebate.
The general trading conditions can be summarized as follows:
- minimum deposit is only $ 100 – previously, Interactive Brokers required $ 10,000 to open an account ;
- the minimum size of spreads is 0.5 pips and is floating;
- you can trade 40 currency pairs, as well as gold, silver, options, futures and contracts for difference;
- the broker provides swaps, one-click trading and pending orders.
It cannot be said that the company offers ultimatum trading conditions, but thousands of investors consider them competitive. Before opening an account with Interactive Brokers, a trader should review the company’s reviews and user agreement to ensure that the broker is reliable.
