Is Interactive Brokers Scam? | Interactive Brokers Safety and Reliability

Pros

Cons

  • Regulated by top-tier financial authorities
  • Negative balance protection
  • Listed on stock exchange
  • Founded in 1978
  • Over 720,000 clients worldwide
  • None

Introduction

Interactive Brokers is a US-based broker founded in 1978. It’s basically a forex and CFD broker and has a wide variety of other trading instruments. It’s also regulated by top-tier FCA.

Is Interactive Brokers Regulated?

The Interactive Brokers broker is regulated by many financial authorities in different countries like:

  • FCA: the Financial Conduct Authority in the UK
  • SEC: Securities and Exchange Commissions

Is Interactive Brokers a Scam?

Interactive Brokers has a long record as a trading platform since 1978 with more than 720,000 users worldwide and passed through different global crises ending with the coronavirus.

Interactive Brokers was also awarded with several awards along its history that make Interactive Brokers reliable.

Interactive Brokers is also listed on the stock exchange and publishes its financial statements regularly.

Client Protection

Interactive Brokers has client protection amounts for its clients according to their country of residence as the following table shows.

Interactive Brokers Legal Entities Table

Country

Protection amount

Regulator

Broker’s Legal Entity

United States of America

$500,000

FINRA and SEC

Interactive Brokers LLC

United Kingdom

€85,000

FCA

Interactive Brokers (U.K.) Limited

EU countries in Northern and Western Europe (incl. Italy and Spain)

€20,000

CBI

Interactive Brokers Ireland Limited

Austria and Luxembourg

€20,000

CSSF

Interactive Brokers Luxembourg SARL

EU countries in Central/Eastern Europe & Cyprus & Malta & Greece

€100,000

MNB

Interactive Brokers Central Europe Zrt.

Unfortunately, Interactive Brokers does not provide any client protection amounts for countries not mentioned in the table above.

Negative Balance Protection

On the other hand, Interactive Brokers provides a negative balance protection on forex and CFDs for the clients from the European Union only.

Two-step Verification

Luckily, Interactive Brokers has the two-step verification method while logging in.

Interactive Brokers Awards

Since its foundation in 1987, Interactive Brokers was awards like:

  • 2021
  • Best Online Brokers of 2021, by Matt Miller
  • Best Online Broker for Bonds by Benzinga
  • Best Online Broker by Brokerchooser
  • Winner 2021 Stock Brokerage by Stocks and Commissions Awards
  • Winner 2021 Futures Brokerage by Stocks and Commissions Awards
  • Winner 2021 Forex Brokerage by Stocks and Commissions Awards
  • 2021 ForexBrokers.com Online Broker Review (4.5 out of 5)
  • 2020
  • 2020 Barron’s Best Online Brokers (5 out of 5)
  • #1 for Commission and Fees in the 2020 StockBrokers.com Award
  • #1 for Offering of Investments in the 2020 StockBrokers.com Award
  • #1 for Professionals in the 2020 StockBrokers.com Award
  • #1 International Trading in the 2020 StockBrokers.com Award
  • #1 Futures Trading in the 2020 StockBrokers.com Award
  • #1 Innovation in the 2020 StockBrokers.com Award
  • Best Broker for Low-Cost Investing in the 2020 NerdWallet Award
  • Best Broker for Stock Trading Platform and Research (tie) in the 2020 NerdWallet Award
  • Best Online Broker for International Trading by Investopedia
  • Best Online Broker for Advanced Traders by Investopedia
  • 2020 Benzinga Best Trading Technology
  • Top Prime Broker in the 2020 Preqin Awards
  • Top Hedge and Fund in the 2020 Preqin Awards
  • Best Futures & Options Broker in the 2020 Good Money Awards
  • Best International Share Trading Account in the 2020 Australian Finder Awards
  • Best Share Trading Platform (Active Traders) in the 2020 Australian Finder Awards
  • Best Low-Cost Brokerage in the 2020 Australian Finder Awards
  • Best Broker-Dealer Client Service in the 2020 Fund Intelligence Technology & WSL Awards
  • Bet Futures Trading Broker in the 2020 Fund Intelligence Technology & WSL Awards
  • 2019
  • 2019 Barron’s Best Online Brokers
  • Editor’s ChoiceTM Award Top low cost-broker by CardRate.com
  • #1 for “Commission & Fees” by Stockbrokers.com
  • #1 for “Offering of Investments”. by Stockbrokers.com
  • #1 for “Active Trading”. by Stockbrokers.com
  • #1 for “Professional Trading”. by Stockbrokers.com
  • #1 for “International Trading”. by Stockbrokers.com
  • Interactive Brokers was rated “Best Overall”. By Investopedia
  • Interactive Brokers was rated “Best for Low Costs”. By Investopedia
  • Interactive Brokers was rated “Best for International Trading”. By Investopedia
  • Interactive Brokers was rated “Best for Options Trading”. By Investopedia
  • Interactive Brokers was rated “Best for Day Trading”. By Investopedia
  • Interactive Brokers was rated “Best for Penny Stocks”. By Investopedia
  • Best Broker-Dealer Futures in the 2019 Fund Technology and WSL Awards
  • Best trading platform overall in the Fund Technology and WSL Awards
  • Best options trading platform – broker in the Fund Technology and WSL Awards
  • 2018
  • Best FCM – Technology in the CTA Intelligence US Services Award
  • Best Mobile Application in the HFMWeek US Hedge Fund Services Awards
  • Best Prime Broker in the HFMWeek US Hedge Fund Services Awards
  • 2017
  • Best Broker-Dealer Futures in the Fund Technology and WSL Institutional Awards
  • Best Broker-Dealer Options in the Fund Technology and WSL Institutional Awards
  • Best Prime Broker – Technology in the HFMWeek US Hedge Fund Services Awards
  • Best FCM – Technology in the CTA Services Awards
  • 2016
  • Best Options Trading Platform – Broker in the WSL Institutional Awards
  • Best Broker-Dealer Futures in the WSL Institutional Awards
  • Best Prime Broker – Start-ups in the HFMWeek US Hedge Fund Services Awards
  • Best Trading and Technology in the CTA Services Awards
  • 2015
  • Best retail FX platform in the FX Week Award:
  • Best FCM – Innovation in the CTA US Service Awards
  • Best cross-asset trading solution in the WSL Institutional Awards
  • 2014
  • Best prime broker – technology in the HFM US Hedge Fund Services Awards
  • Best Broker-Dealer Overall in the WSL Institutional Awards
  • Best Broker-Dealer Options in the WSL Institutional Awards
  • 2013
  • Best Broker-Dealer Options in the WSL Institutional Awards
  • Best Broker-Dealer Futures in the WSL Institutional Awards
  • Best Innovation by a Bank, Broker or FCM in the FOW International Awards
  • FX Broker of the Year. in the OW Awards for Asia
  • 2012
  • “Best Broker-Dealer Options” in the WSL Institutional Awards
  • “|Best Use of Technology Broker-Dealer” in the WSL Institutional Awards
  • 2011
  • Gold (1st prize) for “Best Equities Broker” in the Trade2win Awards
  • Gold for “Best Futures Broker” in the Trade2win Awards
  • Gold for “Best Spot Currency Broker” in the Trade2win Awards
  • Gold for “Best Options Broker” in the Trade2win Awards
  • Gold for “Best Mobile Trading Application” in the Trade2win Awards
  • Gold for “Best Software for Options Traders” in the Trade2win Awards
  • Silver (2nd Prize) for “Best Realtime Data Feed” in the Trade2win Awards
  • 2010
  • Gold (1st prize) for “Best Stockbroker” in the Trade2win Awards
  • Gold for “Best Spot Currency Broker” in the Trade2win Awards
  • Gold for “Best Futures Broker” in the Trade2win Awards
  • Gold for “Best Options Broker” in the Trade2win Awards
  • Silver (2nd Prize) for “Best Software for Options Traders” in the Trade2win Awards
  • 2008
  • best online options provider in the oney Am Award
  • 2007
  • Gold (1st prize) for “Best Professional Trading Platform” in the Trade2win Awards
  • Gold for “Best Software for Options Traders” in the Trade2win Awards
  • Gold for “Best Stockbroker” in the Trade2win Awards
  • Gold for “Best Direct Access Broker” in the Trade2win Awards
  • Gold for “Best Futures Broker” in the Trade2win Awards
  • Gold for “Best Options Broker” in the Trade2win Awards
  • Bronze (3rd Prize) for “Best Realtime Data Feed”. in the Trade2win Awards
  • Bronze for “Best Spot Currency Broker” in the Trade2win Awards
  • 2006
  • The 2007 readers poll award for best international stockbroker for lowest cost in the Investors Chronicle Award
  • 2005
  • Gold (1st prize) for “Best Professional Trading Platform” in the Trade2win Awards
  • Gold for “Best Software for Options Traders” in the Trade2win Awards
  • Gold for “Best Portfolio Management Software” in the Trade2win Awards
  • Gold for “Best Stockbroker” in the Trade2win Awards
  • Gold for “Best Direct Access Broker” in the Trade2win Awards
  • Gold for “Best Futures Broker” in the Trade2win Awards
  • Gold for “Best Options Broker” in the Trade2win Awards
  • Silver (2nd Prize) for “Best Realtime Data Feed” in the Trade2win Awards


Leave a Reply