Interactive Brokers Stock Trading
Interactive Brokers provides stock trading through multiple platforms, including Trader Workstation (TWS), WebTrader, BKR Mobile, and Client Portal, allowing users to buy and sell stocks across over 90 global market centers. Trading fees on the IBKR platform vary depending on the version of the IBKR app used. The platform offers a range of commission plans with "tiered or fixed" fees. Furthermore, IBKR Lite gives users free trades, allowing them to access real stocks without paying commissions.
With a simplified approach to brokerage services that emphasizes wide market access, affordable prices, and excellent trade execution, Interactive Brokers ensures stock traders have the best time trading shares of top companies. Since the broker does not need any money upfront to begin trading stocks, investors can begin their investing journey with no specific minimum deposit. Expert investors will likely appreciate the broker's fractional stock shares, cutting-edge trading platform, unrivaled selection of tradable securities, including foreign stocks, and $0.005 per share pricing.
In this article, TU experts will guide traders on Interactive Brokers' stocks, including how to trade stocks, Interactive Brokers' stock trading fees, and tips on how to purchase. Continue reading.
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Can you buy stocks with Interactive Brokers?
Yes. Yes. You have the opportunity to purchase stocks from a diverse range of companies listed on stock exchanges in countries such as the United States, United Kingdom, Mexico, Australia, Switzerland, Canada, Hong Kong, Japan, India, China, Luxembourg, Ireland, Hungary, Singapore, Estonia, and other international markets through Interactive Brokers. Generally, customers may trade stocks on more than 90 stock exchanges across 30 nations. IBKR Pro commissions range from USD 0.0005 to USD 0.0035 per share (depending on volume), while IBKR Lite commissions for US-listed stocks and ETFs are USD 0.00.
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Are Interactive Brokers good for stock trading?
Yes, interactive brokers are good for stock trading. The broker's exclusive Trader Workstation platform, diverse global product offering, low commissions, and so on make it an excellent choice for traders.
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Do interactive brokers allow day trading?
Yes, Interactive Brokers permits day trading. In fact, many day traders love it because of its extensive feature set, affordable commissions, and availability of a large variety of financial instruments, such as forex, stocks, options, and futures.
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How do you trade stocks?
Before you trade stocks on IBKR, you must have a fundamental knowledge of the stock market, how it functions, and the factors that affect stock prices. Establish your financial objectives, risk tolerance, and time horizon for investments. Then, register for an account, verify it, and fund it before placing any orders. Observe your portfolio and remain up to date on news and happenings in the market.
Can you trade stocks with Interactive Brokers?
Yes. Most investors primarily use the Interactive Brokers trading platform to buy and sell stocks. Customers of Interactive Broker can purchase and sell shares through this online broker since they have access to actual stocks. You can access a large selection of stocks from over 90 stock exchanges worldwide by using Interactive Brokers.
Below are a few examples of stock exchanges and stocks available for Interactive Brokers traders in different jurisdictions. Notably, certain stocks may not always be available due to fluctuations in the market, but the following are some popular stocks that are usually tradeable at Interactive Brokers:
Countries |
Stock Exchanges |
Shares available |
|---|---|---|
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United States |
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Europe |
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1. Nestle SA (NESN) 2. Siemens AG (SIE) 4. LVMH Moet Hennessy Louis Vuitton SE (LVMH) 5. SAP SE (SAP) |
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Asia |
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1. Samsung Electronics Co., Ltd. (005930. KS) 2. Tencent Holdings Limited (0700. HK) 3. Toyota Motor Corporation (7203.T) 4. Baidu, Inc. (BIDU) 5. Alibaba Group Holding Limited (BABA) |
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Canada |
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1. Shopify Inc. (SHOP) 2. Enbridge Inc. (ENB) 3. Shopify Inc. (SHOP) 4. Toronto-Dominion Bank (TD) 5. Canadian National Railway Company (CNR.TO) |
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Mexico |
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1. American Movil SAB (AMX/B) 2. WAL-MART DE MEXICO(WALMEX) 3. Fomento Económico Mexicano (FMX) 4. Cemex (CX) 5. Grupo Bimbo (BIMBOA) |
Interactive Brokers Stock Trading Fee and Spread
Fees associated with stock trading are divided into two categories: trading and non-trading expenses. Trading fees, which include commissions, spreads, financing rates, and conversion costs, are directly related to trades. Fees like withdrawals or inactivity unrelated to trading are known as non-trading fees. The most significant cost when trading stocks in IBKR is commissions.
On stock trades, IBKR levies commissions but does not specifically charge a spread. The exchange and the size of the trade may have an impact on the commission fees. The fees you pay for trading stocks on the IBKR trading platform also vary depending on which version of the IBKR app you use. IBKR primarily provides "tiered or fixed" fees across a number of commission plans. Put another way, the commission you pay for trading will vary depending on the plan you select. The specific commission rate (USD 0.10 per contract to USD 0.85 per contract) is determined by the volume of contracts traded within a given month. The table below explains the commissions paid for stocks on IBKR.
Country |
Commission of shares based on their volumes and trading plans |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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USA |
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CANADA |
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MEXICO |
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Third parties, such as stock exchanges and regulatory bodies, may impose additional fees on IBKR traders. Below are some top examples of these fees:
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Regulatory Fees
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Exchange Fees
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Clearing Fees
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Pass-Through Fees
For example, in the US.
| SEC Transaction Fee | USD 0.000008 * Value of Aggregate Sales |
|---|---|
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FINRA Trading Activity Fee |
USD 0.000166 * Quantity Sold |
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Clearing Fees: NSCC, DTC Fees |
USD 0.00020 per share |
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Pass-Through Fees 1. NYSE Pass-Through Fees 2. FINRA Pass-Through Fees |
1. Commissions * 0.000175 2. Commissions * 0.00056 |
Is Interactive Brokers a good place to buy stocks?
Yes. Interactive Brokers is a good place to buy stocks, as it is typically regarded as a reputable and trustworthy platform. Traders can purchase and sell stocks listed on significant international exchanges by using this platform, which gives them access to a variety of global markets. This international broker offers opportunities to diversify portfolios and profit from worldwide market trends. They also offer strong risk management instruments, such as other risk-reduction measures and stop-loss orders.
Interactive Brokers offers educational resources, including webinars, tutorials, and documentation, to help users advance their trading knowledge and skills. It supports fractional shares and unlimited free trades for stocks and exchange-traded funds (ETFs) listed on American exchanges for IBKR Lite users. Traders can trade stocks from their phones or tablets and deposit money in their local currency. The following are other excellent reasons why IBKR is a great place to buy stocks:
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Well-known for its competitive pricing structure, Interactive Brokers offers relatively low commission costs per trade.
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IBKR offers a variety of research and analysis tools, including financial news, complex charting, and real-time market data.
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For both new and seasoned traders, Interactive Brokers offers a sophisticated and feature-rich trading platform with advanced order types, risk management tools, and customizable interfaces.
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Interactive Brokers is renowned for offering prompt customer service to help users with questions, technical difficulties, and account-related concerns when they are trading stocks, though individual experiences may differ.
How to trade stocks with Interactive Brokers
The most popular type of investing on the IBKR platform is buying, selling, and trading stocks.
To start trading stocks with Interactive Brokers:
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Create an account with Interactive Brokers and finish all required paperwork, such as funding your account and proving your identity.
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Add funds to your account.
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Select an ETF or stock on the trading platform that you wish to purchase. Utilize market data and research tools on the platform to analyze stocks. News, charts, and financial statements are just a few of the research tools that Interactive Brokers offers.
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Once you have decided which stock to trade, submit an order. Pick an order type (market, limit, stop, etc.), indicate the quantity, and choose the stock symbol.
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Review your positions frequently and think about implementing stop-loss orders or other risk management techniques to help reduce possible losses.
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Sell when the stock price has gone up.
Note:
Interactive Brokers clients can trade stocks as well as stock CFDs. Keep in mind that contracts for difference, or CFDs, are derivative products that carry a higher risk. With its AlgoTrader platform, Interactive Brokers provides algorithmic trading. Using parameters like order size, timing, and execution conditions, users can design and modify algorithms according to their trading strategies.
Tips for Trading Stocks with Interactive Brokers
If you trade stocks on IBKR, it is a good idea to research the markets for the companies whose shares you want to buy. Here are a few more tips for aspiring stock traders:
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Acquire as much information as you can regarding stock investing. Discover which stocks are the best to buy and which to hold.
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Developing a dividend stock investment plan for the long term is a prudent approach to stock trading. You can use this strategy to hold large-company stocks in your portfolio and increase the dividends you receive from them.
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If a trader lacks experience trading stocks, it is advised that they practice with a virtual account. By using a demo account to practice stock trading, you can gain experience managing trades if the market moves against you.
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Investing experts advise allocating no more than 5–7% of total funds to stock purchases. Establish a budget, buy a few stocks, and monitor their investment growth. Purchase more securities after that, but do not forget to integrate risk management strategies into your trading tactics.
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Team that worked on the article
Peter Emmanuel Chijioke is a professional personal finance, Forex, crypto, blockchain, NFT, and Web3 writer and a contributor to the Traders Union website. As a computer science graduate with a robust background in programming, machine learning, and blockchain technology, he possesses a comprehensive understanding of software, technologies, cryptocurrency, and Forex trading.
Having skills in blockchain technology and over 7 years of experience in crafting technical articles on trading, software, and personal finance, he brings a unique blend of theoretical knowledge and practical expertise to the table. His skill set encompasses a diverse range of personal finance technologies and industries, making him a valuable asset to any team or project focused on innovative solutions, personal finance, and investing technologies.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.