Interactive Brokers (IB) is one of the largest online brokers for international trading in stocks, ETFs, futures, CFDs, options, commodities and currencies / Forex and is one among the leading securities firms. during this post, we’re getting to take a better check out Interactive Brokers and show the various opportunities traders, investors, and investors can find with this pioneer of electronic exchange trading.
The story of Interactive Brokers
Interactive Brokers (IB) was the forerunner of Timber Hill, an American stock broker founded in 1977 by Thomas Peterffy.
Timber Hill was the primary broker to use handheld computers on the American stock market floor. Timber Hill’s business grew very quickly and expanded to other exchanges also as futures and options trading.
In 1997 Timber Hill traded nearly 5% (15,000 transactions) of the daily volume of listed equity derivatives worldwide.
In 2003, the Interactive Brokers Group companies administered approximately 12% of all transactions with listed equity and index options worldwide.
The company will go public on May 3, 2007, and Interactive Brokers Group, Inc. is issuing 40,000,000 shares at $ 30.01 per share. The free float of Interactive Brokers Group LLC amounts to a share of approx. 10%. The ticker symbol is IBKR, listed on Nasdaq.
In 2009 Interactive Brokers was ranked No. 1 among the most cost-effective brokers for the fifth time during a row. This year the “iTWS” trading app for the iPhone also will be launched.
In 2010, TAG statistics show that IBKR continues to deliver above the industry average price improvements for US stocks and options.
In 2011 Interactive Brokers becomes the largest US online broker supported the typical number of daily average revenue trades.
The introduction of the TWS Mosaic interface, which is a component of the Trader Workstation, will happen in 2012.
IB today employs quite 1,400 people worldwide, processes more than 1,000,000 transactions daily, and has $ 5 billion in equity.
The company has been consistently profitable for years, even during the financial crisis. Refer to the Interactive Brokers Canada review if you are a Canadian trader.
Which markets are tradable?
Interactive Brokers offers direct market access to stocks, options, futures, forex, fixed income, ETFs and CFDs with a single IB Universal Account ™ .
The offer enables trading on more than 125 international stock exchanges worldwide and from 31 countries.
All common shares exchanges in North America, Europe, Australia and Asia are available.
The following products are tradable:
- raw materials
- Investment funds
- Hedge funds
- Robo portfolios
The share trading and trading in ETFs is feasible in 26 countries.
For futures, commodities and futures options, the range includes quite 35 market centers from round the world.
Options are often traded in over 15 countries.
CFDs are often traded on all common indices, currencies and stocks. For share CFDs, the offer currently includes 7,250 shares from America, Europe and therefore the Asia-Pacific region.
There are around 100 currency pairs to settle on from in forex trading .
IBKR provides direct market access to quite 38,000 US, Canadian and European corporate bonds, US Treasuries, 1.4 million US municipal bonds, non-US Asian and European bonds, Euro-denominated government bonds, fixed income futures and glued income options. additionally , IB offers quite 33,000 CDs.
All warrants and certificates from all common issuers are tradable.
Interactive Brokers offers access to quite 11,000 funds from over 240 fund families worldwide.
In the Robo-Portfolios there are over 60 actively and passively managed portfolios with annual management fees between 0.08% to 1.5% and minimums starting at $ 5,000.
Is Interactive Brokers an ECN / STP Broker?
Interactive Brokers is an ECN / STP broker.
What is the minimum deposit?
There is no minimum deposit.
How is Interactive Brokers regulated?
Interactive Brokers (UK) Limited is authorized and regulated by the Financial Conduct Authority . FCA reference number: 208159.
Interactive Brokers LLC is regulated by the US SEC (Securities and Exchange Commission), FINRA (Financial Industry Regulatory Authority) and the CFTC (Commodity Futures Trading Commission) and is a member of the SIPC settlement system.
Is there a deposit insurance?
There is a deposit insurance.
All customer accounts are managed as segregated accounts. These are accounts that are kept break away the accounts of the brokerage. If a broker becomes insolvent, the customer can still eliminate his money with the broker in question with a segregated account.
Registering a Demo Account
Registering for a demo account is easy and uncomplicated via the Interactive Brokers website.
How do I open an account?
The account can be opened quickly and easily online.
The following information must be provided:
- Full name with proof of identity;
- Home address with proof of address;
- Date of birth and country of birth;
- Tax residence and tax identification number
- Name and address of the employer
- Information on assets and income
- Information on the source of wealth and source of funds
- Investment goals and experience
- Account numbers of bank or third party broker accounts for deposit purposes and
- Details of other account users, if applicable
What are the conditions and spreads at Interactive Brokers?
Interactive Brokers offers tight spreads, good conditions and powerful liquidity. this is often possible, for instance , in forex trading thanks to the mixture of quotation streams 17 of the world’s leading forex dealers, who together hold a market share of over 60% of the worldwide interbank market. this permits price quotes to be given an accuracy of 1/10 of a pip.
There are two different commission models for exchange-traded products like stocks, ETFs, warrants, futures, and options:
- Staggered: Here the fees decrease with increasing trading volume.
- Fixed price: A positive fixed price commission is calculated per product or a hard and fast percentage of the commercial value.
American stocks are tradable from $ 0.005 per share. The minimum fee is $ 1.00.
With options, the commissions depend upon the contract volume, counting on the routing.
The fees for US options via smart routing are, for instance , with variety of contracts ≤ 10,000 as follows:
Interactive Brokers FAQ
What is your experience with Interactive Brokers?
The experiences with Interactive Brokers are consistently excellent.
Interactive Brokers offers its customers good support in various languages and features a highly competent team.
Each broker on the order desk team has at least 20 years of trading experience.
IBKR features a first-class service within the areas of pricing, execution and portfolio management.
The customers thus receive a comprehensive complete package including an in depth training area.
Is there a wiki entry for Interactive Brokers?
Yes, there’s an entry for Interactive Brokers in Wikipedia.
What trading tools are there at Interactive Brokers?
IB uses the trading software Trader Workstation (TWS).
The TWS offers many analysis options with which one can examine the worth development of stocks, currencies, options and futures, among others.
Furthermore, the TWS also contains a large number of trading tools:
In ChartTrader you can trade directly in the real-time chart and use over 70 technical indicators to adapt your own chart to your own needs.
The BookTrader is the right tool for investors who want to enter and transmit orders particularly quickly.
With the BasketTrader you create your own basket / index with securities that you want to trade at the same time. Of course, these values in the basket / index can be changed at any time. The BasketTrader is therefore also the ideal tool for all investors who regularly trade positions at the same time.
The FXTrader is the ideal tool for particularly active forex traders. With just one click, you can trade your desired currencies at lightning speed. With the FXTrader you can keep an eye on up to 16 currency pairs and transmit, change or delete orders at lightning speed.
The OptionTrader is suitable for both beginners and professionals thanks to its clear interface. It offers a clear presentation of available option contracts for an underlying asset, as well as various modules for risk and portfolio analysis.
- Option Portfolio
With the help of the Option Portfolio Tool you can see the risk profile of your own option positions at a glance and adjust it immediately based on the option Greeks . In addition, you can achieve your Delta, Gamma, Vega, or Theta goal by simply setting that goal.
Interactive Brokers API software
IB also has a proprietary programming interface (API) . With the help of this it is possible to create your own automated, rule-based trading software using the preferred programming language / protocol .
These are for example as follows:
- Java – The most popular API technology;
- C ++ (POSIX compliant);
- .NET (C #) – You can use the C # library with any language supported by .NET;
- C ++ (MFC);
- ActiveX – The ActiveX control can be integrated into other programs, such as B. Excel and Matlab;
- DDE – use as the starting point for the Excel sample application or any other DDE-sensitive program.
What is the Interactive Brokers Inactivity Fee?
Interactive Brokers does not charge maintenance fees for accounts that meet the following criteria:
- If the commissions generated in a calendar month exceed USD 10, or
- If the average account capital is more than $ 100,000 in a calendar month.
Should the account not meet these criteria, a $ 10 turnover fee will apply. Commissions incurred will be offset against the USD 10 sales fee on a monthly basis.
Conclusion on Interactive Brokers
The trading costs are rock bottom altogether areas (stocks, forex, futures, options, ETFs). Practically, there’s no other broker which will really compete with IB.
Interactive Brokers also has enormous financial stability and is one among the few brokers with a BBB + rating from Standard & Poor’s.
Interactive Brokers also features a deposit insurance of USD 500,000 per customer.
All awards confirm that Interactive Brokers is one among the simplest online brokers with a singular universe of tradable markets.
The trading platform of Interactive Brokers is extremely stable. The Interactive Brokers app is additionally easy to use and allows you to trade on the go and keep an eye fixed on your portfolio in the least times.
Thanks to Interactive Brokers’ a few years of experience, the support is additionally very competent and has enormous know-how.