Interactive Brokers

Interactive Brokers

Interactive Brokers

Rating:

Commissions:

.005 / share which is $1 per 200 shares traded or 0.5% of total trade value, whichever is less expensive.

Required Initial Deposit:

$10,000 (no requirement to maintain $10,000 in account beyond opening) or $3,000 if you’re under 25 years old.

Trade Execution:

In general, my experience has been that Interactive Brokers offers good execution for most things – better than discount brokerages.

Trader Workstation 4.0

Trading platform:

Trader Workstation 4.0

TWS is a very complicated piece of software – its basic functions are order entry, book keeping and charting. Overall, TWS is somewhat clunky (its appearance hasn’t changed in 10 years) but it is usable. If you decide to open an account with Interactive Brokers I would use a different platform such as TOS Thinkorswim, by far my favorite platform and it’s free if you open an account with TD Ameritrade ($0 minimum deposit).

Interactive Brokers is best for:

-Low commissions

-Fast trade executions.

-Short selling small caps.

-Short selling stocks under $2

-Holding short positions past 3 days

My Experience:

Interactive Brokers has been a great broker for me, I’ve been using them for a few years and the main strengths are their availability of shares to short, and low costs commissions.  They issue their shares to short on a “first come, first served basis, and given limited number of shares they usually have, they run out quickly. if you’re looking to short and hold long-term, Interactive Brokers gives you the best chance of being able to hold a shares beyond the typical three-day period. They’re also one of the best short selling brokers for stocks under $2, If you plan to use their platform just know they do not offer level 2 data for OTC stocks.

Demo Account:

Interactive Brokers offers a very functional “demo” account feature along with your real account or free trial account. This account has $1M of fake money, and instead of executing trades in the market executes them against Interactive Brokers’ simulation engine. Compared to most other paper trading environments the Interactive Brokers demo account is very realistic in terms of the price trades execute at and things like that.

This allows you to learn the features of TWS and test out trading strategies in a more realistic environment without risking any real money.

If you would like to start your free trial account, click here for more information.

Customer Service:

Interactive Brokers customer service has been consistently professional and helpful, When I had to deal with them. Deposits and withdrawals have gone smoothly. I have heard this same positive sentiment echoed by other customers.

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