Interactive Brokers has made long progress with its brokerage in recent years and will be able to attain the top of the list in 2022. The broker has always catered to professionals and active traders, and it has been working to improve its platforms as well as customer support to make them more accessible and user-friendly. Investors have access to an unbeatable range of mutual funds that do not charge any transaction fees as well. According to Interactive Brokers review 2022, interactive Brokers has increasingly made its platform suited to younger investors. It is also an excellent choice for those who are determined to invest.
Top Features
Trader Workstation
The platform is Interactive Brokers’ flagship trading platform, and it is one of the top line in the business. It’s not a platform designed for investors who have previously not had the opportunity to use it However, it is a great platform for those who have never used one before. It is a sophisticated, full-featured application that appears like it can do all the things. Furthermore, it provides real-time monitoring of market data, customizable charts, live news, and many more.
The platform also comes with tools for managing risk like option analytics, so you can understand the impact of price fluctuations on the value of options. You will be able to access more than 100 markets across the globe accessible via your computer, and you will be able to trade practically everything.
If it is too much for you, investors could switch to the standard client portal, a system that can complete the trade using its extremely efficient and straightforward interface.
ESG Scoring
If you are interested in socially responsible investing, Interactive Brokers has what it declares to be the first of its kind in the market: a thorough scoring system that considers ESG (environmental social, societal, and governance) elements. The system evaluates companies on particular areas of focus, like reduction of emissions or engagement with workers’ rights or human rights in a way, before calculating the scores on each ESG category as well as the overall.
You will be able quickly to search for companies that score well and then evaluate them by using simple graphic representations. If you are looking to assess their investment in these dimensions this model provides an easy way to implement it. You can read here to know more about Interactive Brokers.
Pros What Interactive Brokers Has To Offer Out
Commissions On Trading
Commissions for trading are among the major benefits for customers. Interactive Brokers trumpets its pricing structure, which is geared towards the most high-volume traders. Interactive Brokers has removed its minimum monthly activity fee, which usually costs clients at least $10 per month if they don’t rack up at minimum the same amount of commissions. This makes it easier for investors who are new to the market to start on the right foot.
The broker offers two service levels that are called Pro and Lite which are the free and paid levels respectively.
Investors with less money can now enjoy an unlimited supply of shares and ETF trades as members of their Lite program. In addition, you will be able to enjoy some features offered by the main program.
Margin Rates
The reputation of Interactive Brokers in margin loans with low costs is a prerequisite for it. It is among the top attributes of their Pro program that is different from other brokers which makes Interactive particularly popular with more advanced traders. If your margin balance is less than $100,000, the broker will charge only 1.5 percent higher than the benchmark rate. The rates are reduced when you take out more. In some instances, Interactive Brokers is charging just half what its competitors charge, which means customers who are using margin should be sure to take a look at this broker with care.
If you are using the Lite program, you will not get low rates. The rates here begin at 2.5 percent over that of the standard rate. It is still superior to comparable brokerages, but if you do not make use of margin, it is not that important.
The low-cost margin might let some investors make use of the Interactive Brokers account as an option to finance bigger purchases with a low cost, but the margin rate can be varying and, therefore, if the overall rates increase as well, so will the price of the loan.
A Variety Of Investment Options
If it is traded through a public exchange it’s a sign that it’s traded through Interactive Brokers. Obviously, the broker provides the most common options including bonds, stocks ETFs, mutual funds, and options, but it is even more. The traders can also locate metals and futures (gold as well as silver) on the site as well as trade stocks in foreign exchange, and also you will feel as though you can trade everything on Interactive Brokers.
Furthermore, to that, the broker also has cryptocurrency trading available, which is not something you will find in all of the competitors. You can make trades in Bitcoin, Bitcoin Cash, Ethereum, and Litecoin for a fair commission.
Account Management Interface
How handle all the details related to trading is difficult when the account management section of a broker’s website is not well laid out. Who would want to search through tax documents? In the past, we slapped Interactive Brokers for its clunky page for managing accounts. It was unorganized, confusing, and slow. It is not the case anymore and the company has made significant advancements.
It is a refreshing improvement over the previous layout, and it could soon be the easiest-to-use account site of the leading online brokers.
Cons: What Could Interactive Brokers Do To Enhance
New Investors Need To Be Educated
If you are a novice investor seeking educational features in your broker, Interactive Brokers might not be suitable for you. The broker offers fundamental lessons, such as those about options and stocks, as well as tests to test your knowledge for instance. However, you will need to determine what is most important, and then choose from the lessons available, since they are scattered throughout a set of classes that are more relevant to new investors. The broker also instructs how to use their trading platform, but a lot of this may be unnecessary for new investors.
Yet, Interactive Brokers offers fundamental analysis and market analysis with access to a wide range of free research tools and paid research services. All of these can be attractive to both novice and experienced investors.
Retirement Accounts That Are Limited In Size
If you are looking to find several of the more niche retirement account kinds, Interactive Brokers may not be the right choice for you. Of obviously, the broker provides the major retirement account types, including the traditional IRA, Roth IRA, rollover IRA, and SEP IRA However, it’s not offering a few other types that have become popular in recent years, such as those that are called SIMPLE IRA (which is organized by a company) and the single 401(k) that could be a superior alternative in comparison to SEP IRA. Interactive Brokers provides a variety of other accounts, including other retirement accounts that are essential, and the absence of these types is not an issue for the majority of individuals.
The incredibly small margin costs, ESG scoring, and a strong platform for trading make Interactive Brokers a great place for sophisticated investors.
