Global Stock and Cross-Asset-Class Broker Recommendation: Interactive Brokers | Hacked: Hacking Finance
user

Brokers

Global Stock and Cross-Asset-Class Broker Recommendation: Interactive Brokers

Posted on .

Global Stock and Cross-Asset-Class Broker Recommendation: Interactive Brokers

Introduction

This article was posted on Tuesday, 01:16, UTC.

Pros

  • Great global asset coverage and availability (100+ markets)
  • Very low fees and margin rates
  • No proprietary trading, no risk of default
  • Good mobile offering and versatile trading platforms
  • API integration, automated trading options,

Cons

  • $10,000 minimum capital ($5000 for US IRA accounts)
  • User Interface not the easiest
  • Customer support issues
  • No social or copy trading
  • Relatively low leverage allowance
  • Large one-time orders are cheaper elsewhere

Tradable Assets

// -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- //

There is no broker matching the offering of IB, with stocks (24 countries), bonds, indices, forex, options, futures, mutual funds, warrants, turbos and everything else in the traditional asset classes being available. In one platform with a searchable quote list, you can access all products very quickly. Also, ever since (10+ years) I have been following the company, they have been constantalbeitbeit slowly) adding new markets and products.

Recommendation

We recommend Interactive Brokers for all active, cross asset class traders who are willing to spend the time to set up the trading platform and customize the User Interface. The service is available in most countries of the world, with access to a wealth of asset classes and a wide range of countries. Prices in every dimension are very low, although they do charge a $10 “inactivity fee”. That might seem steep, but if you hold any margin positions, the very low margin rates will make IB the cheapest choice in no time for investors with large value positions as well.  Compared to retail forex (IB offers ICN forex trading) and some full-service stock brokers trading fees are simply stunning. This means that with retail brokers you might be paying several times more for margin positions than with IB, but other discount brokers are also trailing the company.

Beginners and investors with a lower budget should look elsewhere, although we have to note that having a UI that is not optimized to “urge” trading is not a definite disadvantage. Sadly it is true that with brokers as well that if you are not wealthy you cannot afford a bad product or service.Customer support could be erratic, but your money is safe with IB and usually, all issues are solved; just you need to push them a little bit.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Availability

IB accepts clients from practically every country in the world, and although applying for an account is not as easy as with some other brokers, active traders will make the hassle up very quickly with the low fees. Want to invest in less known markets and assets? You have it all here, with full access to all major global marketplaces.

Trading Platforms

The Trader WorkStation (TWS) is the main desktop platform of the broker, with great versatility, lots of order types quick access to all markets and asset classes, but with a relatively high level of resource need, and a steep learning curve and way too many options for the beginner trader.

Mobile trading is great and reliable on all platforms, although charting is not perfect and some functions are dearly missed from the desktop version. There is also the fully functional WebTrader for the occasional on-the-road trade. Through its great API you are able to connect all kinds of trading and charting software, algorithmic systems, or other third-party applications. Two-factor authentication is available on all platforms, and safety functions are generally at a high level across the applications.

There is also a very helpful and perfectly functional Simulated Trading account, where you can get to know the user interface the different order types (with even simulated deep order book trading) and practice your strategies without limitations.

Other Tools

Analysis tools are great, with only some special ed (TradeStation, Optionshouse) brokers beating the company in some

Where IB is lacking, is the in-house research tools and the access to mutual funds and other investment options. Don’t get us wrong, those are all there, but other (non-discount) brokers make it a lot easier to access information and invest in third-party funds. Again, if you have your information sources or you are willing to pay up for an outside provider- which a serious investor would do eventually- these are non-issues. That said, it is fair to say that the system is not geared towards beginners.

Final Words

With all the limitations and issues in mind, Interactive Brokers is not for everyone, but above an intermediate level, and for a global approach it’s hard to find a better choice. With over 40 years of history, the company is here to stay, and as it doesn’t conduct trading on its own account, your funds are secure, and “blowing up” is not a realistic risk for the firm.

What’s your experience with the company? Did you have any issues with the service or did we miss something vital? Let us know in the comment section. We will focus on forex-brokers int he next part of our review series.

Featured images form Shutterstock and company website.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Mate Cser

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

There are no comments.

View Comments (0) ...
Navigation
The team:
Dmitriy Lavrov
Analyst
Dmitriy Lavrov is a professional trader, technical analyst and money manager with 10 years of trading experience. He covers Forex, Commodities and Cryptocurrencies. He is among the top 10 most Read More
Jonas Borchgrevink
Founder
Jonas Borchgrevink is the founder of Hacked.com and CryptoCoinsNews.com. He is a serial entrepreneur, trader and investor. He shares his own personal journey on Hacked.com. // -- Discuss and ask Read More
Mate Csar
Analyst
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive Read More
Mati Greenspan
Analyst
Senior Market Analyst at Etoro.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Important: Never invest Read More
Rakesh Upadhyay
Analyst
Rakesh Upadhyay is a Technical Analyst and Portfolio Consultant for The Summit Group. He has more than a decade of experience as a private trader. His philosophy is to use Read More
Pamela Meropiali
Account Manager
Pamela Meropiali is responsible for users on Hacked.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Read More
Joseph Young
Journalist
Joseph Young is a finance and tech journalist & analyst based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering Read More
Today I've transferred 30 000 NOK ($3 600) to my…