Interactive Brokers Fees Review
Out of many brokers that one might find online, Interactive Brokers’ commissions are among some of the lowest you’ll find, especially when it comes to large international brokers. In this review, we’ll cover the main commissions and everything you need to know about
In the beginning, explain that the commissions of an Interactive Brokers are among the lowest among large international brokers. We have prepared a review of the main commissions and everything you need to know about Interactive Brokers’ account minimum.
Start trading or investing in stocks right now with Interactive Brokers!Are Interactive Brokers Fees Low or High?
Interactive Brokers boasts very low fees. In fact, when compared to other similar international brokers, this platform has particularly low fees and no hidden fees
Interactive Brokers Stock and ETF Fees
| Fee Level | Fee Terms | Minimum Fees | |
|---|---|---|---|
US Stocks |
Low |
Free for US clients choosing the IBKR Lite plan. |
$0.005 per share |
US ETF |
Low |
Free for US clients choosing the IBKR Lite plan. |
$0.005 per share |
UK Stocks |
Average |
0.05% of trade value for more than £6,000. |
$4.20 |
European Stocks |
Average |
Trade value that is less than $1 billion is 0.2 bps. |
$2.00 |
Other markets |
Average |
German stock - 0.05% of trade value for more than €6,000. |
$3.60 |
These rates are quite good and very similar to that of their competitor, TD Ameritrade. Both brokers offer free trades, and both charge $0.65 per contract for options trades. Both platforms do not charge exercise or assignment fees. The average cost per trade for Interactive Brokers is $1, but $0 for users of the IBKR Lite plan.
Interactive Brokers Options and Futures Fees
For options, IBKR offers tiered and fixed commissions based on region. We’ll cover the fees for U.S. traders:
Smart Routed Tiered Commissions: For contract volumes under $10,000, IBKR will charge between $0.25 and $0.65 per contract. For contract volumes between $10,001 and $50,000, IBKR will charge between $0.25 and $0.50 per contract. For contract volumes between $50,001 and $100,000, IBKR will charge $0.25. Contract volumes over $100,001 will be subject to a $0.15 fee per contract.
Direct Routed Tiered Commissions: All premiums will be subject to a $1.00 fee per contract.
Fixed Commissions for Lite Plan Users: $0.65 per contract.
Regulatory Fees: IBKR’s options regulatory fee is $0.02235 per contract.
Transaction Fees: IBKR’s options transaction fee is $0.0000051 times the value of aggregate sales. IBKR also charges a FINRA Trading Activity Fee, which is $0.002 times the quantity sold.
OCC Clearing Fees: For trade between 1 and 2,750 contracts, a fee of $0.02 per contract will be charged. For trades over 2,750, a fee of $55.00 per trade will be charged.
The fees for futures follows a similar principle:
Cost-Plus Tiered Commission per Contract: For contracts under $1,000, users will be charged $0.85. For contracts between $1,001 and $10,000, users will be charged $0.65. For contracts between $10,001 and $20,000, users will be charged $0.45. For contracts over $20,000, users will be charged $0.25.
For fixed plans: US-Future and Future Options cost $0.85. NYBOT Russell 1000 and 2000 Index futures cost $0.45. Globex e-mini FX Futures cost $0.50. Globex e-micro FX Futures cost $0.15. CME Bitcoin Futures cost $5.00. CME Bitcoin Futures Options cost $5.00. CME Bitcoin Micro Futures cost $2.25. CME Ethereum Futures cost $3.00.
Compared to TD Ameritrade, IBKR does charge more for options, as TD Ameritrade does not charge commission fees for U.S. options. However, IBKR beats their competitor when it comes to futures, which TD Ameritrade charges $2.25 per contract plus exchange fees. Learn more about Interactive Brokers futures trading options.
Interactive Brokers Forex Fees
IBKR offers two different forms of Forex, including IDEAL Pro for those trading over $25,000, and IDEAL for conversions under $25,000.IBKR’s Forex fees can be summarized as the following:
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Forex trades are subject to fees between 0.20 and 0.08 basis points.
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Typically, a commission per trade will range from $16 to $40 per million round turn.
TD Ameritrade and IBKR both offer forex trading. The EURUSD benchmark fee for TD Ameritrade is $7.10 and the EURGBP benchmark fee is $7.50.
Bonds and Mutual Funds fees
IBKR’s bonds and mutual funds fees can be summarized as the following:
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IBKR does not charge transaction fees for U.S. residents for several thousand different mutual funds, which can be found here. A few well-known mutual funds included on this list are GOPAX, GOPCX, ADAVX, AKFAX, AND AKFCX.
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For mutual funds not included on this list, IBKR charges a transaction fee of $14.95 per transaction.
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For the first $10,000 in face value for municipal bonds, IBKR charges 0.05% times the face value, or 5 bps. For additional face value, IBKR charges 0.0125% times the face value, or 1.25 bps.
TD Ameritrade falls behind IBKR yet again when it comes to mutual fund trades, as each trade is subject to a fee of $49.99.
Interactive Brokers Cryptocurrencies Fees
IBKR’s cryptocurrency fees can be summarized as the following:
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For a monthly trade value of under $100,000, IBKR will charge a fee of 0.18% times the trade value.
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For a monthly trade value between $100,000.01 and $1,000,000, IBKR will charge a fee of 0.15% times the trade value.
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For a monthly trade value over $100,000,000, IBKR will charge a fee of 0.12% times the trade value.
While still quite affordable, IBKR lags behind crypto powerhouse Webull, which does not charge any commission fees for trading cryptocurrency.
CFD Fees
For all IB share CFDs, IBKR charges a commission fee starting at 0.05% on all potential share CFDs. For active traders, this percentage goes lower. Overnight financing is subject to a benchmark that starts at 1.5%.
Interactive Brokers Non-Trading Fees
Does IBKR Charge an Inactivity Fee?
Interactive Brokers does not charge an inactivity fee.
Does IBKR have Deposit and Withdrawal Fees?
Interactive Brokers allows users to make one free withdrawal request per month. After this initial withdrawal, IBKR will charge a variety of different fees that vary from currency to currency. For those trading with USD, wire withdrawals will be $10.00, check withdrawals will be $4, and BACS/GIRO/ACH/EFT/SEPA will be $1.00. Those trading USD will be subject to a 1% and a minimum charge of $50.00.
Does IBKR Charge for Requests to Exercise Dissenter or Appraisal Rights?
Yes. The fee for this is $100, plus additional external costs.
Does IBKR Charge for Stock Options?
IBKR does not charge any fees for stock options.
What are IBKR Financing Rates?
Interactive Brokers has notably low-margin interest rates. For margin balances under $100,000, IBKR will charge 1.5% above the benchmark rate. The more you borrow, the lower that number gets. If you are using the Lite problem, rates start at 2.5% above the benchmark rate. It’s worth noting that compared to other brokers, this is very affordable.
What is the Interactive Brokers Account Minimum?
The account minimum needed to trade with Interactive Brokers is $0.
Summary
Interactive Brokers is an excellent choice for active traders, and it seems as if they will be offering more features that will make the platform ideal for new traders as well. Overall, the fees rates from this broker are excellent. And you definitely can’t beat that fast trade execution and multiple-tier plans to fit your needs. The margin rates for IBKR are uncommonly low, which could be beneficial for sophisticated traders. If the Pro plan’s commission rates don’t appeal to you, then the commission-free Lite plan might just be perfect.
FAQs
Does Interactive Brokers Have Low Commissions?
Yes, Interactive Brokers offers low commissions on trading in stocks, Forex, futures and more.
What are Interactive Brokers' fees for ETF and Options trading?
Interactive Brokers offers 0% ETF trading fees.
Is Interactive Brokers Good For Newbies?
Yes, Interactive Brokers is a good choice for newbies due to its low fees and availability of educational options.
Does IBKR have non-trading fees?
Interactive Brokers only has withdrawal fees. There is no commission for account replenishment and inactivity.
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Team that worked on the article
Rinat Gismatullin is an entrepreneur and a business expert with 9 years of experience in trading. He focuses on long-term investing, but also uses intraday trading. He is a private consultant on investing in digital assets and personal finance. Rinat holds two degrees in Economy and Linguistics.
Gismatullin has been an author at Traders Union since 2019. His focus is creation of detailed reviews of brokerage companies and cryptocurrency exchanges, as well as analytical and educational articles on finance.
Rinat’s motto: Always be open to new experiments. By overcoming the hardships you will reach the stars that open to those who seek.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
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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.