Interactive Brokers

This is where IBKR earns its reputation. The fee structure is genuinely cheap — but it's also genuinely complicated. There are two plans, two pricing models within Pro, and different rates for every asset class. Here's the breakdown:

IBKR Lite (Free Trading Plan)

• US stocks and ETFs: $0 commissions on exchange-listed securities
• Options: Fixed pricing at $0.65 per contract
• Futures: Fixed pricing at $0.85 per contract
• Margin rate: Benchmark + 2.5% (currently around 6.14%)
• Cash interest: Benchmark - 1.5% (currently up to 2.14%)
• Catch: IBKR uses payment for order flow (PFOF) on Lite orders, so you may get slightly worse execution prices

IBKR Pro (Active Trader Plan)

• US stocks/ETFs (Tiered): $0.0005 to $0.0035 per share — the more you trade, the less you pay
• US stocks/ETFs (Fixed): $0.005 per share flat
• Options (Tiered): $0.15 to $0.65 per contract
• Options (Fixed): $0.65 per contract
• Futures (Tiered): $0.25 to $0.85 per contract
• Futures (Fixed): $0.85 per contract
• Margin rate: Starts at Benchmark + 1.5%, drops with higher balances (as low as 4.14%)
• Cash interest: Benchmark - 0.5% (currently up to 3.14%)
• No PFOF: Pro uses IB SmartRouting for best execution

Across Both Plans — No Hidden Fees:

• $0 account minimum
• $0 maintenance fee
• $0 inactivity fee
• No platform fees
• No added spreads or ticket charges
• No transaction fee on select ETFs and mutual funds

Other Costs to Watch:

• Bonds: 10 basis points × face value per order
• Mutual funds: Up to 3% × trade value, capped at $14.95 (but $0 on no-transaction-fee funds)
• Spot currencies: 0.08 to 0.20 basis points × trade value
• Market data for non-US products: Paid subscriptions required (low cost, but not free)
• Exercising dissenter/appraisal rights: $500 + external costs (niche, but ouch)

How does it compare? The margin rates are the headline act. At 4.14% on the Pro plan for large balances, IBKR claims rates up to 55% lower than the industry average. Schwab and Fidelity typically charge 11-13% on margin. That's an enormous difference if you borrow. The cash interest is also best-in-class — Schwab pays far less on uninvested cash. For commission-free stock trading, IBKR Lite matches Robinhood, Schwab, and Fidelity. But on Pro's tiered pricing, active traders can pay fractions of a penny per share — cheaper than anywhere else.

IBKR covers every account type a US investor would need:

Individual Accounts:

• Individual brokerage (taxable)
• Joint accounts
• Trust accounts
• UGMA/UTMA custodial accounts

Retirement Accounts:

• Traditional IRA
• Roth IRA
• Rollover IRA
• SEP IRA
• SIMPLE IRA

Institutional Accounts:

• Registered Investment Advisors
• Family offices
• Hedge funds
• Proprietary trading groups
• Introducing brokers

All individual and retirement account types are eligible for IBKR Lite.

What You Can Trade — The Real Differentiator:

This is where IBKR leaves almost every retail broker in the dust. From a single account, you get access to:

• Stocks on 90+ market centers globally
• ETFs (including no-transaction-fee ETFs)
• Options (US and international)
• Futures and futures options
• Bonds (1 million+ bonds, including US Treasuries around the clock)
• Mutual funds from 500+ fund families
• Spot currencies (forex) with spreads as narrow as 1/10 PIP
• US Spot Gold
• Forecast/prediction contracts (political, economic, climate)
• Fractional shares

That's 170 markets across 40 countries in 29 currencies. No other retail-accessible broker comes close to this global reach. If you want to buy shares on the Tokyo Stock Exchange, trade currency pairs, short European equities, or buy German government bonds — IBKR is essentially your only mainstream option.

The Good:

• Margin rates are unbeatable. At 4.14% on the Pro plan, you're paying less than half what Schwab or Fidelity charge. For anyone who uses margin, this alone justifies the account.
• Cash earns real money. Up to 3.14% on Pro (on balances over $100K). Most brokers pocket this interest. IBKR actually shares it — and through their Insured Bank Deposit Sweep Program, uninvested cash is insured up to $5 million (with over $5M in coverage available).
• Global access is unmatched. 170 markets, 40 countries. Buy Sony in Tokyo, Nestlé in Zurich, or BHP in Sydney. Nobody else offers this breadth to retail investors.
• Pro-grade tools included free. Trader Workstation (TWS), IBKR Desktop, mobile apps, Client Portal, 100+ order types, algorithmic trading, API access, paper trading — all at no extra cost.
• Stock Yield Enhancement Program. Earn extra income by lending out your fully-paid shares. Few brokers offer this to retail clients.
• Financial fortress. Nasdaq-listed, S&P 500 member, $19.5 billion in equity, nearly 50 years in business. This is not a startup that might disappear.
• Extended hours trading from 4:00 AM to 8:00 PM ET on both plans, with overnight trading available on select securities.

The Not-So-Good:

• Complexity is the price of power. The platform has a steep learning curve. TWS looks like it was designed by quants, because it was. Even the "simplified" IBKR Desktop and Client Portal have more knobs and dials than most people need.
• Market data costs add up. You get free streaming US stock/ETF data, but international market data, Level II data, and research packages are paid subscriptions. A serious global trader could easily spend $30-100/month on data feeds.
• Cash interest has a catch. Accounts under $100K earn proportionally less interest. If you have $10K in cash, you earn roughly 1/10th of the headline rate. This is a significant penalty for smaller accounts.
• No fractional shares for international stocks. Fractional trading is available for US securities only.
• Customer service isn't warm and fuzzy. IBKR is built for self-sufficient traders. Don't expect hand-holding. The support experience, while improving, still lags behind Fidelity or Schwab for beginners.
• IBKR Lite uses payment for order flow. The free trades aren't truly free — you're paying through potentially worse execution prices. Pro eliminates this with SmartRouting, but it costs per share.

IBKR is perfect for:

• Active traders who want the lowest possible per-share costs and the best execution technology. The tiered Pro pricing rewards volume, and SmartRouting actively hunts for price improvement.
• Margin users. Full stop. If you borrow against your portfolio — for leverage, for liquidity, for anything — nobody beats IBKR's rates. The difference between 4.14% and 12%+ at other brokers is thousands of dollars per year on a meaningful margin balance.
• International investors who want to trade directly on foreign exchanges instead of through ADRs. This is IBKR's killer feature. No other retail broker gives you direct access to 170 markets.
• Sophisticated options and futures traders who want tiered pricing that rewards volume and access to global derivatives markets.
• Investors with large cash balances who want to earn competitive interest without sweeping to a separate account.

IBKR is NOT great for:

• True beginners who want a simple, clean app and a friendly onboarding experience. Robinhood, Fidelity, or Schwab are much more approachable.
• Buy-and-hold investors with small accounts who just want to buy a few index funds and forget about them. IBKR's complexity is wasted on this use case, and the proportional interest penalty on sub-$100K accounts stings.
• People who want integrated banking. Schwab and Fidelity offer checking accounts, debit cards, and full banking services that feel more seamless. IBKR does offer the Karta Visa Infinite charge card, but it's aimed at high-net-worth international travelers, not everyday banking.
• Anyone who wants a robo-advisor built in. IBKR's Interactive Advisors service exists, but it's a separate entity. Schwab Intelligent Portfolios and Fidelity Go are more tightly integrated.

vs. Fidelity: Fidelity is the best all-around broker for most Americans. Zero-fee index funds, excellent research, great customer service, and a clean interface. But IBKR crushes Fidelity on margin rates (4.14% vs ~12.5%), cash interest (3.14% vs significantly less), international market access, and advanced trading tools. If you trade actively, use margin, or invest globally — IBKR wins.

vs. Schwab: Similar story. Schwab offers a better banking experience, excellent customer support, and a huge branch network. But IBKR's margin rates, cash interest, and global access are in a different league. Schwab's margin rates hover around 12-13%, and they pay very little on uninvested cash.

vs. Robinhood: Both offer $0 stock trades. Robinhood is simpler and prettier. But IBKR offers far more asset classes, much better margin rates, pays interest on cash, doesn't gamify investing, and has 50 years of financial stability behind it. Robinhood is a mobile app with a broker attached; IBKR is a broker with a mobile app attached.

vs. TD Ameritrade/thinkorswim (now Schwab): Thinkorswim was the closest competitor to TWS for advanced trading. With the Schwab merger complete, the future of thinkorswim is uncertain. IBKR remains the clear choice for professional-grade tools with the lowest costs.

The bottom line on competition: If low costs and global access are your priorities, IBKR has no real competitor. If ease of use and customer support matter more, look at Fidelity or Schwab.