Interactive Brokers Fees and Commissions Revealed

Pros

Cons

  • Low commissions
  • Low trading fees
  • Inactivity fee

Introduction

With the Interactive Brokers broker you can invest online in a multitude of different financial instruments such as forex, CFDs, ETFs, and more.

This company, which has more than 40 years of experience in the sector, stands out for offering a professional and transparent service . The Interactive Brokers group has a presence in a lot of countries and has various regulations, for example it is regulated by FCA, the Financial Conduct Authority.

But, what is the cost of their services? Like other online brokers, Interactive Brokers applies a series of fees, which represent their fees. If you want to know what are the most significant commissions for trading in Forex, and ___ with this online broker, whether you are a client belong to the Latin American area, we invite you to read this article:

Interactive Brokers fees may vary from account type to another. Please read the following sections for more information.

Commissions

The commissions of Interactive Brokers differ from an account type to another and from trading instrument to another as the following:

  • Stocks, ETFs and Warrants

There are three types of commissions:

  • Tiered (Transparent Volume-Tiered Pricing)
  • Fixed (fixed rate per share or trade value)
  • Free (free US stocks for US residents only)
  • Options
  • Tiered (Transparent Volume-Tiered Pricing)
  • Fixed (fixed rate per share or trade value)
  • Futures and FOPs
  • Tiered (Transparent Volume-Tiered Pricing)
  • Fixed (fixed rate per share or trade value)
  • SSFs
  • SGX SSFs => 1 BPS with a clearing fee of 0.5 BPS.
  • South Korea SSFs => 0.85 BPS for USD account
  • Hong Kong SSFs => HKD 30.00 for HSI, CHH, CES120
  • Spot Currencies
  • They have a commission of 0.2 BPS with a minimum of $2 per order if the order amount is less than $1,000,000,000 per month.
  • Then it goes down until it reaches 0.08 BPS with a minimum of $1 if the order amount is less than $5,000,000,000 per month.
  • Metals
  • Gold has a commission of 1.5 BPS with a minimum of $2.5 per order if the order amount is less than $500,000.
  • Silver has a commission of 3.0 BPS with a minimum of $300 per trade if the order amount is less than $250,000
  • Fixed Income

Commissions are calculated based on volume and any external fees are added on.

For example, in the USA, first USD 10,000 in face value have a commission of 0.1%, then it becomes 0.025% if greater than $10,000.

  • Mutual Funds

More than 40,000 Funds Available at the Lowest Cost Including 7,700 Commission-Free Funds.

There’s also a fixed low commission of EUR 4.95 per trade for all other funds.

  • Trade Disk (US)
  • Stock and ETFs => USD 0.01 per share (min $100)
  • Options => USD 0.95 per contract (min $95)
  • Futures => USD 3.00 per contract (min $300)
  • Futures options => USD 3.00 per contract (min $300)

Disclaimer: CFDs have a high risk of losing money rapidly. 79% of retail investor accounts lose money due to leverage when trading CFDs with this provider. CFDs are not complying with the islamic religion. And if you want to trade in CFDs you should consider a swap-free account to follow islamic rules. Learn more about CFDs for muslims.

Non-Trading Fees

  • Account fee: $0
  • Monthly activity fee: $10 for IBKR Pro accounts which generate no commissions (USD 20.00 if the account equity is USD 2,000 or below, and USD 10.00 if the account equity is above USD 2,000)
  • Deposit fee: $0
  • Withdrawal fees: $0

FAQs

  1. Does Interactive Brokers allow bot trading?
  • Yes, it does.
  1. Does Interactive Brokers give a bonus?
  • Yes, Interactive Brokers will give you a bonus of up to $200 if you refer a friend that opens an account and maintains a balance of at least $10,000 for one year.
  1. Does Interactive Brokers allow scalping and hedging?
  • Yes, Interactive Brokers does.
  1. Does Interactive Brokers accept payments from third parties?
  • No, the payments should be under your name only.

 



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