Interactive Brokers Australia Review in 2024
Interactive Brokers Australia Pty Ltd (“IBKR Australia”), which holds an Australian Financial Services License (No. 453554), has been established in the country for decades.
It was founded in the United States over 40 years ago and has had offices in Australia since 1997.
The Australian branch of IBKR was founded in order to serve the needs of its Australian clients. Because of this, when compared to the Interactive Brokers global account and product suite, IBKR Australia clients, products, and services have certain distinctions.
Interactive Brokers Australia - General Information
Interactive Brokers has a number of excellent features. It allows you to trade with a wide variety of equities, mutual funds, bonds, and other assets. This makes it an ideal option for individuals interested in building and maintaining a diversified portfolio.
The following provides a quick overview of some of the main tenets of Interactive Brokers Australia's services.
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💰 Account currency:
USD, EUR, GBP, AUD, CAD, CZK, DKK, HKD, HUF, ILS, JPY, MXN, NZD, NOK, PLN, SGD, SEK, CHF, CNH
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🚀 Minimum deposit:
Before you can open an account with Interactive Brokers, you must have a minimum of $20,000 in liquid assets.
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⚖️ Leverage:
Depends on the asset
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💱 Spread:
From 0 pips
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🔧 Instruments:
Stocks, options, futures, currency, metals, bonds, ETF, mutual funds, CFD, EPF, Robo-portfolios, hedge funds
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💹 Margin Call / Stop Out:
Depends on the asset
Pros and Cons
Interactive Brokers Australia offers many interesting and unique features, which can be considered both benefits and disadvantages depending on what kind of trader you are. The following are some of the most notable pros and cons.
👍 Pros
• Many Options
Interactive Brokers Australia offers a multitude of options for trading a wide variety of assets. When trading shares, it provides a large range of order types, including market, stop, stop loss and bracket orders. This is ideal for individuals who seek to diversify their investment endeavors.
•Low Fees
Fees at Interactive Brokers are among the lowest in the sector. Therefore, it is quite appealing to traders who value a low-cost investment experience.
• Advanced
If you're a seasoned trader searching for a fully customizable service, this platform is worth considering. It offers a plethora of advanced features which are ideal for expert traders looking for a tool that matches their knowledge.
•All In One Platform
Unlike other trading platforms where you must have numerous accounts to trade different assets, Interactive Brokers allows you to access Australian stocks, foreign equities, futures, options, fixed income, CFDs and ETFs all from a single account.
• Fractional Trading
Interactive Brokers now offers fractional trading for US stocks, with no minimum trade quantity. This means you can trade in dollars rather than individual shares. Fractional trading is considered an asset for many platforms, as it offers a higher degree of specificity and adaptability for investors.
👎 Cons
• American Focused
To discover relevant Australian information, you'll have to scroll through a lot of US data, and many of the services advertised are only available to US clients.
• Complex User Interface
The Interactive Brokers share trading platform has a wide selection of tools for active or professional investors. The intricate design of its interface will be tough for some novices to navigate.
Interactive Brokers Australia Review
Overall, Interactive Brokers Australia is a great choice for experienced traders who are looking for a variety of options when trading different assets. Its low fees and wide range of features makes it an attractive platform for those who want to Trade smarter, not harder. While its user interface may be daunting for novice traders, with a little practice it can become a great option for those looking to diversify their trading experience.
Broker’s Fees
Interactive Brokers prides itself on having the lowest trading platform cost on the market. That may be accurate, but there are limitations to consider.
While the brokerage (commission) fees are modest, you'll be charged a clearing fee, an exchange fee, a monthly inactivity charge, and a subscription charge to access real-time data. In addition, the costs are determined by the fee structure you choose (tiered or fixed), the investment products you're buying, and the country in which those items are marketed.
US Stocks and ETFs
The cost of investing in international stocks may vary based on the country in which the stock is listed and the fee structure you've selected (tiered or structured). The costs associated with trading Stocks listed in the United
States, Canada, and Mexico are calculated per stock rather than value, making predicting future purchases or sales of US stocks difficult.
US (<= 300,000 shares per month)
Tiered: $0.0035 per share capped at 1.0% of trade value
Fixed: $0.005 capped at 1% of trade value
Australian Stocks And Options
To trade ASX-listed stocks and options, you must pay a clearing charge of 0.011695% of the trade value plus an exchange fee of 0.00165% of the trade value. Additional clearing and exchange costs are incurred based on the exchange where the security is listed.
The online broker fee for the fixed fee structure is 0.08% or $6, whichever is higher.
The fees for the tiered structure are as follows.
| Monthly trade value (Tiered fee structure) | Online broker fee |
|---|---|
First $3,000,000 |
$5 |
$3,000,000 – $30,000,000 |
$4 or 0.05% of trade value |
$30,000,000 – $100,000,000 |
$3 or 0.03% of trade value |
$100,000,000 – $300,000,000 |
$2 or 0.025% of trade value |
> $300,000,000 |
$1 or 0.015% of trade value |
Forex
Interactive Brokers offers a comprehensive futures trading experience, with access to over 100 global exchanges and a range of products including commodities, interest rates, equity indices and foreign exchange. However, you'll only be able to trade in certain low-leverage derivatives and unleveraged spot forex with Interactive Brokers.
Trading Assets
From a single integrated account with Interactive Brokers, invest in equities, options, futures, currencies, bonds and funds from all over the world. You can contribute funds to your account in a variety of currencies and have access to market data 24 hours a day, six days a week.
In total, there are 135 markets, 33 countries and 23 currencies to explore with Interactive Broker. Some of the more prominent exchanges include the following.
United States
Arca (NYSE)
ArcaEdge
BATS
Long-Term Exchange (LTSE)
New York Stock Exchange
Chicago Stock Exchange (CHX)
Direct Edge
EDGEA
IB VWAP Dealing Network
IEX
INET
ISE Stock Exchange
Knight Securities
NSX
NYSENAT
NYSE American
Pink OTC Markets
MEMX
MIAX PEARL
NASDAQ
NASDAQ BX
NASDAQ PSX
Australia
Australian Stock Exchange (ASX): ptions, Stocks, Warrants, ETFs)
ASX24 (SNFE): Futures, Futures Options, Indices
Chi-X Australia: Stocks, ETFs, Warrant
Is Interactive Brokers Australia Regulated? Is This Сompany Safe?
Yes, Interactive Brokers is safe. It is regulated by some of the most reputable financial authorities in the world, and client funds are segregated from the company's own funds. In addition, Interactive Brokers is a signatory of the global code of conduct for the securities industry, which binds it to a number of best practices in relation to safeguarding customer assets.
Interactive Brokers Australia Pty. Ltd. is a member of the Australian Financial Complaints Authority and is licensed and regulated by the Australian Securities and Investments Commission (AFSL: 453554). It is also a participant of ASX, ASX 24, Chi-X, as well as an official member of the Australian Securities Exchange (member number 38492).
How to avoid Forex trading scams?Interactive Brokers - Best for Experts
Interactive Brokers is best for those who want to execute trades with the least amount of fuss and at a low price. Despite its sometimes arcane user interface, Interactive Brokers' incredible depth and quality of service make it a standout among discount brokerages.
Summary
Interactive Brokers is a leading global brokerage firm, offering traders access to over 135 markets worldwide. It's an extremely complex platform that offers a lot of flexibility, making it ideal for those who have high level knowledge and experience.
Because of regulatory adherence, low costs, and a wide range of accessible markets, it is considered a good choice for investment by Australians.
FAQs
How do you set up an account?
You can open and fund your IB Australia account through the company's online application.
What payment methods are available?
IB Australia offers a variety of payment methods, including credit cards, debit cards, bank wire transfers and ACH payments.
What currencies can I trade?
You can trade in 23 currencies on the Interactive Brokers platform, including the US dollar, Euro, British pound, Japanese yen and Swiss franc. You can also trade in Australian dollars on ASX and Chi-X.
What products does Interactive Brokers Australia offer?
Interactive Brokers Australia offers access to over 100 global exchanges and a range of products, including commodities, interest rates, equity indices and foreign exchange.
Team that worked on the article
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