Interactive Brokers Forex Trade Platform and Broker Review

Interactive Brokers Forex Trade Platform and Broker Review

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Interactive Brokers Broker Review

Interactive Brokers is an award-winning broker which was founded in 1978 in the United States. Interactive Brokers is a well-known and trusted provider of CFDs and forex trading and the second-largest brokerage in the US.

Interactive Brokers has 1,600 employees, is headquartered in New York City, and has 24 offices in 14 countries worldwide.

Is Interactive Brokers Regulated?

Yes, Interactive Brokers is regulated by:

  • The US Securities and Exchange Commission and the Commodities Futures Trading Commission (CFTC) in the United States.
  • The Investment Industry Regulatory Organisation of Canada (IIROC) in Canada.
  • The Financial Conduct Authority (FCA) in the United Kingdom.
  • The Commission de Surveillance du Secteur Financier (CSSF) in Germany.
  • The Central Bank of Ireland (CBI).
  • The Central Bank of Hungary (Magyar Nemzeti Bank or MNB).
  • The Australian Securities and Investments Commission (ASIC).
  • The Hong Kong Securities and Futures Commission (SEHK) and HKFE.
  • The Kanto Local Bureau (KLB) in Japan.
  • The Monetary Authority of Singapore (MAS).

Is Interactive Brokers Regulated in the United States?

Yes, Interactive Brokers is regulated in the United States by the US Securities and Exchange Commission and the Commodities Futures Trading Commission (CFTC) in United States.

Is Interactive Brokers Regulated in Europe?

Yes, Interactive Brokers is regulated in Europe by the FCA, CSSF, CBI, and MNB to offer cross-border ancillary and investment services across Europe.

Is Interactive Brokers regulated in a Tier-1 Jurisdiction?

Tier-1 Jurisdiction grants Interactive Brokers with the necessary licenses and permits to provide products and services to brokers in Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Israel, Japan, Luxembourg, Netherlands, New Zealand, Norway, Puerto Rico, Singapore, Sweden, and Switzerland.

According to the official Interactive Brokers website, Interactive Brokers is regulated in Tier-1 jurisdiction.

Is Interactive Brokers regulated in Tier-2 Jurisdiction?

With Tier-2 Jurisdiction, Interactive Brokers is granted the license to offer financial services and operate in the British Virgin Islands, Cayman Islands, Cyprus, Italy, Malaysia, Mexico, Poland, Portugal, Spain, and Taiwan.

According to the official website, Interactive Brokers is regulated in Tier-2 jurisdiction.

What are the Platforms and Tools for Forex Trading in Interactive Brokers?

Interactive Brokers provides forex traders with a variety of ways through which they can manage their trading activities and their accounts. Interactive Brokers offers the use of the Client Portal, IB Trader Workstation (TWS), IBKR Mobile, IBKR WebTrader, IBKR API.

  1. The Interactive Brokers Client Portal is a simple web-based platform that offers forex traders control over their accounts and their trading. It is the perfect platform for beginner forex traders and allows forex traders to view their account information, portfolio performance, and more. forex traders can place orders or modify and close them, customize charting, and more.
  2. Interactive Brokers (IB) Trader Workstation (TWS) is Interactive Brokers’ proprietary trading platform that offers comprehensive and sophisticated trading capabilities such as charting, full reporting on accounts, more than 100 order types, and algorithmic trading options, news and analysis, advanced trading tools, and more.
  3. Interactive Brokers’ proprietary trading platform, IBKR Mobile, offers forex traders with sophisticated mobile trading and gives forex traders access to 125 markets across the world, robust security features, easy access to trades and charting, integrated real-time market scanners as well as alerts, the use of IB SmartRouting to offer forex traders with the best prices.
  4. IBKR WebTrader, Interactive Brokers’ proprietary web-based version of the desktop TWS is available only to Professional forex traders. IBKR Web offers forex traders access to all markets, advanced order management, full reporting in real-time, advanced trading tools, specific news on assets, and full customization.
  5. IBKR API is proprietary Interactive Brokers software that is designed for investors who script their own trading software or who make use of third-party software. IBKR API is only available to Professional Clients and supports a variety of languages including Java, C++, Python C#, ActiveX, and DDE.

Does Interactive Brokers Have a News Blog for Forex News?

Yes, Interactive Brokers has a new blog for forex news on the official website. However, research and news is provided exclusively to registered forex traders. There are different bundles that are charged at varying monthly fees charged per bundle and per jurisdiction.

Does Interactive Brokers Have a Traders Dashboard?

No, Interactive Brokers does not have a forex traders dashboard on the official website.

Does Interactive Brokers Have an Educational Section?

Yes, Interactive Brokers has an educational section on the official website. The educational tools, materials, and resources offered by Interactive Brokers are comprehensive and provide forex traders with all they need to excel in forex trading. 

What is the content of Interactive Brokers Forex Education?

Interactive Brokers offers a comprehensive collection of forex education which is spread across the following:

  1. IBKR Campus
  2. Short Videos
  3. forex traders’ Glossary
  4. forex traders’ Calendar

The IBKR Campus helps forex traders learn about trading, financial markets, and IBKR trading tools. This helps forex traders understand the markets and keep updated on current events. The IBKR Campus consists of the following sections:

  1. forex traders’ Academy
  2. IBKR Webinars
  3. forex traders’ Insight
  4. IBKR Quant
  5. Student Trading Lab

The forex traders’ Academy consists of a range of courses that covers the following:

  1. Free online courses regarding the concepts and the tools of financial trading.
  2. Courses for active forex traders, investors, educators, and students.
  3. Lessons on how forex traders can use award-winning tools offered by Interactive Brokers.
  4. Notes and quizzes to help reinforce every lesson.

The IBKR Webinars offer forex traders with current and upcoming market topics. forex traders can view and register for the upcoming webinars under this section free of charge.

forex traders’ Insight offers forex traders with market commentary as well as analysis from more than 70 industry professionals.

IBKR Quant is a blog for quantitative professionals who have a keen interest in programming, deep learning, blockchain, and several other transformative technologies that are currently influencing the modern markets.

Student Trading Lab is a free online resource that caters to educators who seek to blend finance or computer science classwork with a variety of real-world trading experiences and occurrences.

The Short Videos section of the education section features more than 200 short videos covering the following:

  1. TWS
  2. International 
  3. Account Management 
  4. Institutions

The forex traders’ Glossary is a comprehensive guide that offers forex traders access to all the concepts, terms, and definitions that forex traders are likely to encounter when they trade. These are alphabetically organized, and forex traders can either use the search function to search for a specific term or select the letter on the left side of the glossary to navigate to their term.

The forex traders’ calendar is a comprehensive tool that covers an International Trading Calendar, IBKR Events Calendar, and Forex Calendar. With this educational tool, forex traders can stay updated on all events in the financial markets.

Is Interactive Brokers Legit?

Yes, Interactive Brokers is a legit Forex Broker and Trade Platform with regulation through CFTC, IIROC, FCA, CSSF, CBI, MNB, ASIC, SEHK, KLB, and MAS.

Is Interactive Brokers Safe?

Yes, Interactive Brokers is a reliable and safe Forex Trade platform that is regulated and authorized by several reputable entities including:

  • The US Securities and Exchange Commission and the Commodities Futures Trading Commission (CFTC) in the United States.
  • The Investment Industry Regulatory Organisation of Canada (IIROC) in Canada.
  • The Financial Conduct Authority (FCA) in the United Kingdom.
  • The Commission de Surveillance du Secteur Financier (CSSF) in Germany.
  • The Central Bank of Ireland (CBI).
  • The Central Bank of Hungary (Magyar Nemzeti Bank or MNB).
  • The Australian Securities and Investments Commission (ASIC).
  • The Hong Kong Securities and Futures Commission (SEHK) and HKFE.
  • The Kanto Local Bureau (KLB) in Japan.
  • The Monetary Authority of Singapore (MAS).

Client funds are kept in segregated accounts in the special bank and/or custody accounts. These are designated for the benefit of clients of Interactive Brokers. A portion of client funds is also kept invested in US Treasury securities.

Is Interactive Brokers a Good Broker?

Yes. According to a Forex Suggest review done, Interactive Brokers is a good broker in terms of security, online support, and trading speed but not cryptocurrency trading.

  1. In terms of security, Interactive Brokers offers a secure login system and makes use of Two-factor authentication, a digital security card+. forex traders’ privacy is also protected and safeguarded through the latest and most robust technologies.
  2. Interactive Brokers offers forex traders some of the most robust trading technology, with orders that are sent to top liquidity providers, ensuring that forex traders are granted the best possible pricing, minimal slippage requotes.
  3. Interactive Brokers offers traders the option of using a live chat function to access online support.
  4. Interactive Brokers does not offer the trade in cryptocurrencies.

What is the Offering of Investment in Interactive Brokers?

Offerings of Interactive Brokers can be found below.

Feature Interactive Brokers
Forex Trading Yes
CFDs Yes
Forex Pairs Yes
Cryptocurrency (Physical) No
Cryptocurrency (CFD) No
Social Trading  No

Does Interactive Brokers have Nasdaq?

Nasdaq is the second-largest stock exchange which tracks the top technology stocks in the United States.

Yes, Interactive Brokers has Nasdaq. As a Nasdaq owner, Interactive Brokers offers the trade-in indices and share CFDs.

What are the Awards of Interactive Brokers?

Forex Trading Platform Interactive Brokers’ awards are listed below.

  1. Best Online Broker (2021)
  2. Winner of the 2021 Stock, Futures, and Forex Brokerage.
  3. Best Online Broker (2020) – Barron’s Best.
  4. Stockbrokers.com 2020 Award for Commission and fees, offering of investments, professionals, international trading, futures trading, and innovation.
  5. NerdWallet Award (2020) as the Best broker for low-cost investment and best broker for stock platform and research.

How to Use Interactive Brokers for Forex trading?

To use Interactive Brokers, a forex trader should have the necessities below:

  1. Forex traders must be 18 years, or older to register with Interactive Brokers.
  2. Forex traders must have a valid ID and proof of residence.

Once a forex trader meets the conditions above, they can register a forex trading account to use the services of Interactive Brokers.

How to open a Forex trader account with Interactive Brokers?

To open a Forex Trading account with Interactive Brokers, a trader should follow the steps below.

  1. Forex traders can navigate to the Interactive Brokers website and select the option to “Open Account” from the top of the homepage.
  2. Forex traders must create a username and password by providing their email address, choosing a username, a password, and by confirming the password followed by providing the trader’s region of legal residence.
  3. Forex traders must check their email to confirm their email addresses. Once forex traders have received the email, they can click on the embedded link.
  4. Forex traders will be redirected to the Interactive Brokers website where they must enter their username and password to continue with the application.
  5. Next, forex traders can select between the account types that they wish to open.
  6. For an individual account, forex traders can make the necessary selection and forex traders will be prompted to provide their State or Province to start the application.
  7. Forex traders must complete the required fields in the relevant sections regarding contact information, personal information, Identification, employment information, source of wealth, account information.
  8. Lastly, forex traders must select two security questions with answers before they submit their application.
  9. To finish the application and to verify the account, forex traders must upload a copy of their ID and proof of residence as per AML and KYC procedures.

What are the Forex Trader Account Types with Interactive Brokers?

Forex Trading Platform and Financial Asset Management Institution Interactive Brokers have 4 different account types that are offered.

Interactive Brokers Account Types are listed below. 

  1. Demo Account

  2. IBKR Lite

  3. IBKR Pro

  4. Account Options on IBKR Lite and IBKR Pro

 

  • Demo Account

Interactive Brokers offers forex traders a demo account that can be used by beginner forex traders to practice trading, test their trading strategies, or explore what Interactive Brokers offers.

  • IBKR Lite Account

The Interactive Brokers IBKR Lite Account is the entry-level retail account for Interactive Brokers that has the following features:

  • Commission-free trading on US Exchange-Listed Stocks and ETFs.
  • Fixed commissions on other stocks, ETFs, Options, Futures, and mutual funds.
  • Tiered pricing on forex and bonds.
  • Minimum account balance of $0.
  • $0 maintenance fee.
  • Benchmark minus 1.5% interest paid on any idle cash balances.
  • Benchmark fees plus 2.5% interest which is charged for margin loans.
  • Stock yield enhancement program access.
  • Free real-time streaming data which is non-consolidated for primary exchanges.
  • Low-cost data bundles as well as a la carte subscriptions to choose from.
  • Access to Client Portal, IBKR Mobile, Ibot, TWS, and Algos.
  • Access to condition orders as well as advanced order types.
  • Access to a demo account
  • Replicator for mutual funds and ETFs.
  • Risk Navigator and backtesting capabilities.

 

  • IBKR Pro Account

The Interactive Brokers IBKR Pro Account is the professional retail account that is offered. This account has the following features:

  • Fixed or tiered pricing where US Exchange-Listed Stocks and ETFs are concerned.
  • Fixed and tiered pricing other stocks, ETFs, Options, Futures, and Mutual Funds.
  • Tiered pricing on forex and bonds.
  • Minimum account balance of $0.
  • Up to $10 per month charged as a maintenance fee on accounts.
  • Benchmark minus 0.5% interest paid on any idle cash balances.
  • The interest which is charged for margin loan begins at benchmark plus an additional 1.5% with lower rates available for higher loan values.
  • Stock yield enhancement program access.
  • Access to the FDIC Promontory program.
  • Low-cost data bundles as well as a la carte subscriptions to choose from.
  • Access to Client Portal, IBKR Mobile, Ibot, TWS, IBKR Web Trader, and IBKR APIs and Algos.
  • Access to condition orders as well as advanced order types.
  • Access to a demo account
  • Replicator for mutual funds and ETFs.
  • Risk Navigator and backtesting capabilities.

 

  • Account options on IBKR Lite and IBKR Pro

When trading with Interactive Brokers, forex traders have the option of the following account types under the main retail accounts:

  1. Individual, Joint, Trust, IRA, and UGMA/UTMA Accounts
  2. Friends and Family Accounts
  3. Family Office Accounts
  4. Small Business Accounts
  5. Advisor Accounts
  6. Money Manager Accounts
  7. Broker and FCM Accounts
  8. Proprietary Trading Group Accounts
  9. Hedge and Mutual Fund Accounts
  10. Compliance Officers
  11. Administrators
  12. Institutional Hedge Fund Investors

How to Withdraw Money from Interactive Brokers?

To withdraw money from Interactive Brokers, the following should be done:

  • Forex traders can visit the official Interactive Brokers website and select “Funding” and “Fund Transfers”.
  • Forex traders can select “Withdraw” followed by selecting their currency and their withdrawal-type from the method list.
  • Forex traders can provide the amount they wish to withdraw. forex traders who have previously saved bank account details can select the option to use this, or forex traders can add new bank information.
  • Forex traders must select the country in which their account is based, the routing number, and select whether forex traders want to make their withdrawal a recurring transaction.
  • Forex traders can select “Continue” to submit their withdrawal request and an email with a confirmation number will be sent to the trader’s registered email address.
  • Forex traders must provide their username and password and insert the confirmation number that they received after which forex traders can confirm and submit their withdrawal request.

How many days do deposits take with Interactive Brokers?

This will depend on the deposit method used with Interactive Brokers. Some methods take a few minutes whereas others take several business days.

What are the costs and fees with Interactive Brokers?

There are four types of costs and fees charged with Interactive Brokers namely spreads, commissions, swap fees, and margin requirements.

The spread is the difference between the bid and asks price which is indicated in pips while commissions with Interactive Brokers are tiered and fixed.

Swap fees are debited/credited on overnight positions that are held open for longer after the trading day has concluded while margin requirement is the fee required by Interactive Brokers as collateral for the trade.

The swap fees, as well as margin requirements, can be viewed when forex traders have logged into their trading account and platform under their market watch.

What are the Trading Fees with Interactive Brokers?

The Forex Trading Fees with Interactive Brokers are below. 

  1. Spreads: variable and tight spreads from lower than 1 pip.
  2. Tiered commissions from $1 and lower on high-volume trades.
  3. Fixed commissions from $1 and lower on high-volume trades.
  4. Margin Requirement starting from 0.5% on IBKR Pro according to trading volume.
  5. Margin Requirement starting from 2.5% on IBKR Lite according to trading volume.

What is the minimum deposit in Interactive Brokers?

According to the official website, there is no minimum deposit requirement in Interactive Brokers.

What are the contract specifications in Interactive Brokers?

Feature Interactive Brokers
Forex Trading Yes
CFDs 1,000+
Forex Pairs 22
Cryptocurrency (Physical) 0
Cryptocurrency (CFD) 0
Social Trading  No

Does Interactive Brokers have promotional offers?

Yes, Interactive Brokers has promotional offers including:

  1. Refer a friend bonus.

Does Interactive Brokers have a welcome bonus?

No, Interactive Brokers does not have a welcome bonus.

Does Interactive Brokers have a deposit bonus?

No, Interactive Brokers does not have a deposit bonus.

Is there a commission-free trade bonus in Interactive Brokers?

No, Interactive Brokers does not offer forex traders a commission-free trade bonus.  

Is there a VIP bonus in Interactive Brokers?

No, Interactive Brokers does not offer forex traders a VIP bonus.

Can you start trading with no money at Interactive Brokers?

No, you cannot start trading with no money at Interactive Brokers. Despite there not being a designated minimum deposit requirement, forex traders must deposit enough to cover the margin requirements before executing a trade.

How does leverage work with Interactive Brokers?

Interactive Brokers offers leverage that starts from 1:5 up to a maximum of 1:400 (under ASIC regulations).

Leverage is a useful tool that is offered to forex traders, allowing them to maximize their profit potential by being allowed to open larger positions despite their initial deposit.

Where are the headquarters of Interactive Brokers?

Interactive Brokers is headquartered in Greenwich, Connecticut, United States.

Who is Interactive Brokers’ CEO?

The CEO of Interactive Brokers is Milan Galik who has held the position since October 2019 and who has an M.S. in Electrical Engineering from the Technical University of Budapest.

What are the social media accounts of Interactive Brokers?

Forex traders can follow Interactive Brokers on the following social media accounts:

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

How many employees do work for Interactive Brokers?

According to official sources, Interactive Brokers has 1,600 employees.

What are the opinions about Interactive Brokers?

Interactive Brokers has nothing but excellent reviews and an exceptionally good reputation as an online broker. Forex traders who trade with Interactive Brokers are happy with the service and products that they receive, and there are numerous positive reviews on Interactive Brokers from trusted, reliable sources.

What are Interactive Brokers Contests?

Interactive Brokers does not run any contests.

Interactive Brokers’ official website does not indicate any past, present, or future contests.

Does Interactive Brokers have online support?

Yes, Interactive Brokers offers online support by providing a chat room on the website. forex traders can use this option to get assistance on any questions or queries that they may have.

Does Interactive Brokers offer demo accounts for Forex trading?

Yes, Interactive Brokers offers a free demo account for all new forex traders. The demo account can be opened with the following steps:

  1. Forex traders can visit the official Interactive Brokers website and select the option for a “Free Trial” from the bottom of the homepage.
  2. Forex traders will be redirected to a new page that provides the information that forex traders need on the demo account and a short online application that must be filled out.
  3. Forex traders must indicate a valid email address and provide a user-selected username and password along with their country of residence.
  4. Once forex traders have provided this, forex traders can select “Create Account” to proceed.
  5. The information forex traders have provided will be captured and forex traders will be redirected to a new page that will confirm the registration of their trial account.
  6. Forex traders can log into the Client Portal using the username and the password that they selected and from here, forex traders can use their demo account.

Does Interactive Brokers have a mobile app for Forex trading?

Yes, Interactive Brokers has a mobile app for forex trading.

The IBKR Mobile app that is provided by Interactive Brokers is innovative and provides forex traders with the functionality they need to manage their accounts and trading activities while they are on the move.

With this Interactive Brokers app, Forex traders can access more than 135 markets, and they have powerful trading tools through the mobile app. forex traders also have access to advanced quotes and research, innovative trading tools, and the most robust security available.

With Interactive Brokers and the mobile forex trading app, forex traders also have access to quick deposits and withdrawals that are secured with an IB key for two-factor authentication.

Does Interactive Brokers publish an economic calendar?

Interactive Brokers publishes an economic calendar.

An economic calendar is one of the most vital tools that forex traders can have access to. With this, forex traders can get in-depth information on events, announcements, and releases that could influence the financial markets, pricing, and trading activities of forex traders.

With Interactive Brokers, forex traders are provided with three separate calendars that they can use to stay updated with everything that happens in each financial market. This allows forex traders to plan their trades and prepare their trading strategies in anticipation of different market conditions that may occur.

What is the communication information of Interactive Brokers?

Interactive Brokers has four main telephone numbers, one main business address, and several additional addresses for each of its offices around the world.

Interactive Brokers can be contacted telephonically on the following numbers:

  • United States: 1 (877) 442 2757
  • Canada: 1 (877) 745 4222
  • Europe: 00800 42 276537
  • Hong Kong: +852 2156 7907

Interactive Brokers is based in the following areas at the following business addresses:

  • United States: One Pickwick Plaza, Greenwich, CT 06830.
  • Canada: 1800 McGill College Avenue, Suite 2106, Montreal, Quebec, H3A 3J6.
  • United Kingdom: Level 20 Heron Tower, 110 Bishopsgate, London EC2N 4AY.
  • Germany: 4 rue Robert Stumper, L-2557, Luxembourg.
  • Ireland: 10 Earlsfort Terrace, Dublin, D02 T380.
  • Hungary: 1075 Budapest, Madach Imre ut 13 – 14.
  • Australia: Level 40, Grosvenor Place, 225 George Street, Sydney, 2000, New South Wales.
  • Hong Kong: Suite 1512, Two Pacific Place, 88 Queensway, Admiralty.
  • India: 503/A, Times Square, Andheri Kurla Road, Andheri East, Mumbai 400059.
  • Japan: Kasumigaseki Building 25F, 2 – 5 Kasumigaseki 3-chome, Chiyoda-ku, Tokyo, 100-6025.
  • Singapore: #40-02A, Asia Square Tower 1, 8 Marina View.