There aren’t as many brokerage companies in the U.S. as there are in Europe, but most of them have a rich and long history. Interactive Brokers, was founded in 1977, in 2007, this company was listed on the New York Stock Exchange. The client base has 876 thousand active clients.
Interestingly, forex is not available to Americans in this company, but if the client’s assets exceed 10 million dollars, and the contract the trader has an ECP level, then trading on currency pairs becomes active.
The company offers low fees and sophisticated trading, including forex, to professional market participants.
Basic Information Interactive Brokers:
Year founded 1977, the company is listed on the NASDAQ exchange, regulators are located in six Tier-1 jurisdictions, which shows the company is trustworthy for trading.
For beginners, the platform TWS is quite complex and uncomfortable, however, for professional market participants will seem quite useful. There is also a mobile version called IBKR Mobile, which has the same variety of functionality, but is not designed for clients who are only interested in FX, because it does not have a simpler interface. Note that you will not see MT as an additional platform here.
Interactive Brokers offers a diverse range of global financial markets. These are stocks, futures, options, CFD trading, cryptocurrency
The company does not run a bank, full information about the controlling organizations is provided in an extended form on the brokerage firm’s website. It should be noted that the total number of regulators exceeds ten. In general, we have noticed that American companies are working hard to create an image of a reliable company working in the legal field of several regulatory organizations.
Generally, a broker has access to a sufficient number of markets, but it is necessary to consider the residence of the client, for example company offers a wide range of global markets. To learn more about the tools available for trading in your state. read the information on the website or contact customer service. CFDs are not available to Canadian, US or Hong Kong residents.
Cryptocurrency: no cold storage is possible, only by trading CFDs.
Company s customers have access to a variety of investment options, as shown in the table below.
Interactive Brokers asset
Number of currency pairs 105
Cryptocurrency (cold storage) No
Cryptocurrency (CFD) Yes
No spreads are published, monthly account maintenance fee is charged.
Forex commissions: start from 0.2 pips, but the minimum is $4 per cycle. It is possible to considerably decrease commissions if you actively work on the market.
Commissions and execution method: for the currency market, the broker receives quotes from sixteen liquidity providers. The company has decided not to increase the spreads but to charge a commission of 16-40 USD per million rounds for a transaction.
Active traders: In order to get a discount on commission you need to trade at least 1 billion dollars per month, then the discount will reach 50 cents per order. If the volume of trades exceeds five billion, you can expect a 50 percent discount. Larger orders are filled with RFQs, so the best terms are given.
Minimal costs: Again, trading large volumes is profitable, and only brokers with big experience and big streams can afford that, newbies can be scared away by the monthly commission and the commission per transaction at the same time.
Platforms and Tools
TWS, is a proprietary program and extremely rich in useful and necessary tools for the professional, but at the same time difficult for the newcomer to the market.
Forex Scheme: Through TWS FXTrader, the client gets access to trade 92 CFDs on forex or 105 currency pairs. When you add pairs to your watch list, you can choose between spot or CFD.
Desktop charts: 104 types of charts are available, which is high among competitors.
Advanced Orders: advanced orders are possible, and basket orders, as well as One Cancels All and other orders, can be combined. It’s a wonderful option for traders who want to construct high-level tactics.
Complexity of the platform: as mentioned above, it will be extremely difficult for an untrained trader to understand the intricacies of the platform. Especially striking is the observation list with more than five hundred columns.
The Customer Portal (trading through a browser): it is more convenient for new clients, a total of 16 forex indicators, news broadcasts and economic calendar are available. Just remove unnecessary things and get a comfortable platform with the necessary minimum of functions.
Other platforms are not available, but there is a possibility of synchronization through API.
Research comes from twenty-three vendors, nine of them are focused specifically on the currency pairs market. This is provided on a fee basis.
Research summary: Interactive Brokers is really a unique broker with an amazing platform functionality, you just need to choose the tools you need for the job. There is a blog that publishes thoughts from in-house and third-party authors.
Forex news: the site has live feeds from the world’s news portals reviewing financial markets.
Forex research: Because there are so many resources and they are all on different topics, it took a long time to find particular data on the Forex market. Asbury Research, for example, solely publishes data on the US currency and interest rates, whereas Tradeable Patterns focuses on spot trading.
Video materials on Forex: once again, Forex is not the major direction, and finding the information you need right now can take a long time. Bloomberg, on the other hand, provides access to a television channel.
We have noted that we have invested a lot of resources to fill the resource with a lot of information, but it can only be understood by an experienced trader. The fees are profitable for professionals. Beginners may be put off by the fees for using the platform every month.
We would not recommend using Interactive Brokers’ resources when you start trading on global financial markets.