Introduction
Interactive Brokers (IBKR) is a well-known brokerage firm that offers trading services to individual investors, hedge funds, proprietary trading groups, and more. The firm is recognized for its advanced trading platform, extensive range of investment options, and competitive fee structure. However, like any other firm, it also has its downsides. This article will provide a neutral to negative review of Interactive Brokers.
Trading Platforms
Trader Workstation (TWS)
Interactive Brokers’ flagship platform, the Trader Workstation (TWS), is a highly sophisticated tool that offers a wealth of features. It provides access to over 120 markets in 31 countries, and allows for trading in stocks, options, futures, forex, bonds, and ETFs. The platform also includes advanced charting tools, real-time news feeds, and risk management features.
However, the TWS is not beginner-friendly. Its complex interface and multitude of features can be overwhelming for novice traders. While experienced traders may appreciate the platform’s capabilities, beginners may find it difficult to navigate and use effectively.
Web & Mobile Platforms
Interactive Brokers also offers web and mobile trading platforms. These platforms are more user-friendly compared to the TWS, but they still lack the simplicity and intuitive design found in other brokerage platforms. Additionally, some users have reported issues with the mobile app, including slow loading times and occasional crashes.
Investment Options
Interactive Brokers offers an impressive range of investment options, including stocks, options, futures, forex, bonds, ETFs, and mutual funds. This vast selection makes it a suitable choice for advanced traders and investors who wish to diversify their portfolios.
However, the firm’s forex trading offering is not as robust as some of its competitors. Additionally, while it does offer access to international markets, investors may face higher fees and more complex tax implications when trading in these markets.
Fees and Commissions
Interactive Brokers offers competitive fees and commissions, especially for frequent traders. The firm operates on a tiered pricing structure, with lower fees for higher volumes of trades. However, infrequent traders and those with smaller account balances may find the fees to be on the higher side.
Moreover, Interactive Brokers charges inactivity fees, which can be a drawback for passive investors. The firm also charges for certain premium features and services, which can add up and make the overall cost of trading higher than expected.
Customer Service
Interactive Brokers’ customer service has received mixed reviews. Some users have praised the firm for its responsive and helpful support team. However, others have reported difficulties in reaching a representative, long wait times, and unsatisfactory resolutions to their issues. The firm’s customer service may not be up to par with the high standards set by some of its competitors.
Conclusion
Interactive Brokers offers a highly advanced trading platform and an extensive range of investment options, making it a suitable choice for experienced traders. However, its complex interface, higher fees for less active traders, and mixed customer service reviews may deter beginners and passive investors. As with any brokerage firm, potential users should carefully consider their individual needs and investment goals before choosing Interactive Brokers.
