In this Broker Review, ForexInfoBook team presents factual information about Interactive Brokers regulations, trading conditions and advantages of trading with them.
Interactive Brokers is a truly global brokerage with licenses from major regulatory agencies around the world. Interactive Brokers Group exceeds $7 billion in equity capital.
Interactive Brokers (Australia) is regulated by the Australian Securities and Investments Commission (ASIC) with AFSL number 453554
Interactive Brokers (UK) is regulated by the Financial Conduct Authority. FCA register entry number 208159.
Interactive Brokers (US) isregulated by the US Securities and Exchange Commission and the Commodity Futures Trading Commission.
Interactive Brokers is also regulated in Japan, Hong Kong, Canada and India.
Under the Insured Bank Deposit Sweep Program, eligible IBKR clients can obtain up to $2,500,000 of FDIC insurance in addition to the existing $250,000 SIPC coverage for total coverage of $2,750,000. IBKR sweeps each participating client’s free credit balances daily to one or more banks, up to $246,500 per bank, allowing for the accrual of interest and keeping within the FDIC protected threshold. Cash balances above $2,750,000 remain subject to safeguarding under the SEC’s Customer Protection Rule 15c3-3, backed by the firm’s equity capital, which exceeds $7 billion.
Click here for more information about the Insured Bank Deposit Sweep Program and its benefits.
Ease of Operations
- Non-Expiring demo accounts
- Choosing the right account suitable for traders is explained well. Click here for the guide to choosing the right account type.
- Interactive Brokers is one of the major global brokers which provides Forex trading account to residents from US, Canada and Japan
Limitations to be expected
- No MT4 or MT5 platform
- Minimum deposits as high as $ 10000
- With Interactive Brokers, traders can get direct market access to stocks, options, futures, forex, fixed income, and ETFs from a single Account. Trading permissions are required in order to provide clients with all the proper regulatory disclosures and provide clients with the ability to trade.
- Not ideal for less experienced traders.
Low Spreads and Commissions
- Offers the tightest possible spreads on Forex Pairs
- Commissions from $2 per lot
- Interactive Brokers
Traders with larger capital and good trading experience will like the low cost trading offered by Interactive Brokers. With Interactive Brokers, traders can get direct market access to stocks, options, futures, forex, fixed income, and ETFs from a single Account.
Not suitable for beginners and traders with interest only in trading Forex pairs. No MT4 support means most automated strategies available commercially cannot be used on the platforms offered by Interactive Brokers.