Interactive Brokers offers a range of trading platforms tailored to meet the requirements of active traders and long-term investors. Its platform receives high acclaim from active traders who value the comprehensive features available on the desktop trading platform.

Interactive Brokers at a glance

Client securities accounts at Interactive Brokers LLC are protected by the Securities Investor Protection Corporation ("SIPC") for a maximum coverage of $500,000 (with a cash sublimit of $250,000).

The number of active trading accounts is a key metric for brokerages like Interactive Brokers because they make money from users placing trades through their platform. The more people making trades, the greater the amount the company can earn from commissions, margin loans, and other fees.

Best stock brokers for Europeans in 2023

• Interactive Brokers. Stock score: 5.0/5.
• eToro. Stock score: 4.9/5.
• Fidelity. Stock score: 4.6/5.
• TD Ameritrade. Stock score: 4.4/5.
• Merrill Edge. Stock score: 4.4/5.
• Charles Schwab. Stock score: 4.4/5.
• Zacks Trade. Stock score: 4.3/5.
• SoFi Invest. Stock score: 4.3/5.

In order to day trade, the account must have at least 25,000 USD in Net Liquidation Value, where Net Liquidation Value includes cash, stocks, options, and futures P+L.

The NYSE regulations state that if an account with less than 25,000 USD is flagged as a day trading account, the account must be frozen to prevent additional trades for a period of 90 days.

The interest rates for margin trading on Interactive Brokers (IB) may appear low for several reasons: Low Base Rates: The primary factor influencing margin interest rates is the base rate set by central banks, like the Federal Reserve in the United States.

A few decades ago, if you wanted to become a day trader, you had to have a lot of money, access to brokers, and extensive skills. Today, it's possible to start day trading with as little as $1,000 or less. This is especially true when talking about trading in the Forex arena.

Is Interactive Brokers better than eToro? In our analysis of 23 international regulators across 62 of the best forex brokers, Interactive Brokers is considered Highly Trusted, with an overall Trust Score of 99 out of 99. eToro is considered Highly Trusted, with an overall Trust Score of 90 out of 99.

Why are Interactive Brokers margin rates so low? Interactive Brokers ' margin rates are low because they monetize other aspects of their service (like subscription to market data, pro account monthly fees, and so on).

We have a custodial arrangement with Interactive Brokers LLC to provide these services to you. Unlike a mutual fund investor, you continue to be the direct owner of the underlying securities that are held in your own brokerage account.