Interactive Brokers Review
Whether you are a casual or an active trader, the services of a broker are a must to engage in the financial markets. Sure, you will quickly discover that the market is overflowing with options for you to explore and you don’t have to settle for one. However, this does mean that you have to do a bit of homework and get to know a broker properly before you sign up with them. The following Interactive Brokers review is aimed at helping you in this task; it provides you with information about one of the most trusted brokers in the financial markets.
Established in 1978, Interactive Brokers is one of the most prominent online trading solutions based in the United States. It was listed on the NASDAQ stock exchange in 2007 and it is now serving more than 1,000,000 clients all over the world. Interactive Brokers is currently offering its services in more than 135 markets that are spread across 33 countries and its equity capital is around $9.9 billion. Whether you are a retail, institutional or professional trader, you can find it a suitable option. What can you expect here? Let’s take a closer look:
Regulation and Security
The regulation of a broker reassures traders about its legitimacy and Interactive Brokers doesn’t disappoint in this regard. It is under the regulation of the US Securities and Exchange Commission (SEC), which is recognized as one of the leading regulators in the world. It is also a member of the Commodity Futures Trading Commission (CFTC), the Securities Investor Protection Corporation (SIPC), the Financial Industry Regulatory Authority (FINRA) and the New York Stock Exchange (NYSE). There are nine global regulators currently overseeing Interactive Brokers, which makes it one of the most trustworthy and transparent platforms out there.
Signing up with Interactive Brokers gives traders access to options, equities, spot currencies, futures, bonds, ETFs, CFDs, mutual funds, Robo portfolios and hedge funds. You will find one of the most comprehensive list of assets available here in the industry, which work for both active as well as passive traders. Even those who go with automated trading solutions will also find sufficient instruments, allowing everyone to create a well-diversified portfolio.
There are sixteen account types that Interactive Brokers has put together for its clients, three of them for retail traders and three for individual traders, whereas the remaining ten are for institutional investors. The cost structure as well as the benefits of each account type vary, but the options are still more than what you can expect to find at other brokerages. Despite the numerous account options available, you should note that the process to sign up for them is very well-explained and as straightforward as possible.
You will find a proprietary trading platform offered by Interactive Brokers, which is known as Trader Workstation (TWS) and is regarded as one of the most innovative trading solutions out there. It allows for complete customization and can be a good fit for traders who prefer a simple interface, along with those who enjoy advanced features, or wish to try out algorithmic trading. You will also be able to access news, broad research and market data from multiple sources.
Interactive Brokers has added more than 100 order types and there is the option of real-time monitoring and algorithms that can help in enhancing the trading experience. You will also find the option of Paper Trading, which is essentially the demo account option that TWS offers to traders. A web-based alternative has also been added, which is considered a suitable choice for retail traders. It is also packed with essential trading features.
Apart from these options, those who sign up with Interactive Brokers can also find a mobile app that has an excellent overall technology structure.
Along with these features, Interactive Brokers also offers good customer support and research, and educational resources for delivering a complete trading experience to its clients.