Interactive Brokers Review

Regulation - 10/10

Is Interactive Brokers UK Safe?

Yes, Interactive Brokers is safe for UK traders because they are regulated by the Finacial Conduct Authority (FCA) with firm registration number 208159.

Interactive Brokers is also a member of the Financial Services Compensation Scheme (FSCS), so UK traders get investor protection up to 85,000 GBP if they should become insolvent.

Funding & Withdrawal - 7/10

Interactive Brokers UK Minimum Deposit

Interactive Brokers minimum deposit for UK CFD traders is EUR 2,000 but if you want to trade without using leverage (meaning trade with a cash account), there is no minimum deposit.

Interactive Brokers UK Minimum Withdrawal

Interactive Brokers does not enforce a minimum withdrawal so you can withdraw as little as 1 EUR. However, there is a maximum withdrawal limit up to EUR 1 million per day depending on how secure your selected withdrawal method is.

Interactive Brokers Payment Methods in the UK

• UK bank transfer (CHAPS/BACS/faster payment)
• Cheque deposit
• International wire transfer
• Wise
• U.S. treasury bills (at least $1m worth)

Interactive Brokers Withdrawal Time

Interactive Brokers withdrawals via UK bank transfer are instant. International wire transfer withdrawals can take up to 3 working days. The withdrawal time is based on EST New York time and not London time.

Interest on Unused Deposits

Interactive Brokers pays an annual interest of 2.314% on GBP deposits if your trading account balance is above $8,000 and your Net Account Value (NAV) is below $100,000

For a Net Account Value (NAV) above $100,000, you will earn a higher annual interest of 3.76% on GBP deposits.

Account Types - 6/10

Margin Account

This account is a raw spread account meant for trading CFDs and the minimum deposit to open it is EUR 2,000.

Cash Account

The Cash Account is meant for trading without leverage and it has no minimum deposit requirement.

SIPP Account

If your SIPP administrator has an account with Interactive Brokers, you can then open your own SIPP Account and trade with it.

Investment Account

The Investment Account is for buying and holding real equities such as stocks & ETFs.

Account Management - 7/10

Interactive Brokers Account Currency

Interactive Brokers allows you open your account in a variety of base currencies such as USD, GBP, EUR, HKD, JPY, SGD, etc. You can also change your account currency at any time from your client area, but the change takes 24 hours to reflect.

Number of Accounts Allowed

At Interactive Brokers, you are allowed to open as many accounts as you like but this is subject to the brokers approval as any accounts that are dormant will be closed immediately.

Every account you open will be linked to your master account and you can manage them from your client area.

Downgrading/Upgrading from Cash to Margin Account

Interactive Brokers allows you the freedom to upgrade/downgrade your account from cash to margin and vice versa.

Joint Account Management

Interactive Brokers allows two people to open and operate a joint account and you can also also open a trust account.

Negative Balance Protection

The Negative Balance Protection feature ensures your account balance never slips into the negative, if this happens Interactive Brokers will restore your account balance to zero.

Interactive Brokers Fees - 7/10

1. Interactive Brokers Spread & Commission

Spread at Interactive Brokers depends on your monthly trading volume.

For low volume forex cfd trades (below $1 m per month), a spread from 0.2 pips and $2 per side commission will apply.

At Interactive Brokers, when you trade higher volumes of forex pairs, your spread and commission reduces.

When trading share cfds the commission also depends on your monthly volume traded. For U.S. shares a monthly traded volume below 300k will mean you are charged $0.0050 per share or a $1 per order commission.

For European share cfds, a monthly traded volume below 10,000 means you will be charged a 0.05% fee or $3 per order commission.

Index CFDs such as NAS100, US500 etc. attract a 0.005% fee or $1 per order commission.

When trading gold at Intractive Brokers, if your monthly volume is below 500k, you will be charged a fixed spread from 1.5 pips of a $2 per order commission.

Withdrawal Fees

Interactive Brokers charges withdrawal fees but you get one free withdrawal every month. The IBKR withdrawal fee varies as per the currency you are withdrawing in and your preferred withdrawal method.

Overnight Fees

Interactive Brokers does not do swap-free trading so any cfd positions you leave open overnight will attract a fee.

Stock Borrowing Fees

If you want to borrow real stocks so you can short sell them, you will be charged a daily fee. For popular stock like AAPL, the daily fee is $0.39.

Inactivity Fees

Zero; Interactive Brokers does not charge inactivity fees on dormant accounts.

Range of Markets - 9/10

CFDs

You can trade CFDs on Forex, Metals (gold & silver), Energies, Shares and Indices (NAS100, US30 etc.).

Spot Currencies

IBKR allows you to trade currencies without using any leverage and this is called spot trading.

Bonds

You can buy and hold real Asian, US and EU Bonds .

Futures & Options

You can also access the futures & option markets for America, European and Asian stocks.

Real Stocks & ETFs

IBKR allows you invest in real shares/fractional shares and ETFs from US, EU & Asian markets.

IBKR pays dividend on stocks & ETFs, and Dividend Reinvestments Plans (DRIPs) are available.

Mutual Funds

IBKR allows you to invest in thousands of global mutual funds with starting price from 4.95 GBP.

Platforms - 5/10

Interactive Brokers does not have MetaTrader platform or TradingView, instead they have developed their own trading platforms. However, not all of the platforms they offer support CFD trading.

IBKR Trader Workstation (supports CFD trading)

The Trader Workstation aka TWS (desktop version only) is the most flexible trading platform Interactive Brokers offer, and it supports trading all asset classes including CFDs.

IBKR Mobile App (supports CFD trading)

The IBKR mobile app is compatible with android and apple devices, and it supports CFD trading.

IBKR Web Trader (supports CFD trading)

The IBKR Web Trader can be accessed from your client portal, and you can carry out CFD trading on it.

IBKR Global Trader

The IBKR Global Trader is a mobile app meant for trading equities, mutual funds and options.

IBKR Desktop

This is a desktop platform meant for trading bonds, equities, options, futures and mutual funds.

TradingView

Interactive Brokers have TradingView but you cannot be logged on to TWS and TradingView at the same time.

Tools - 6/10

IBKR API (WEB, FIX, TWS)

API trading is possible at IBKR via their API desktop terminal so you can connect your third-party app/trading bot to IBKR and extract data.

Calculators

IBKR provides calculators for calculating stock borrowing fees, interest to be earned on short-selling, exchange rates conversion etc.

Support - 5/10

Interactive Brokers customer support is not as good as what other brokers offer. Live chat is available 24/5 but the icon is hidden inside the client area, thereby leaving visitors stranded at the home page.

Telephone support is also absent from their website as there is no UK helpline displayed.

However, beginner education is available alongside a help center where frequently asked questions have already been answered in detail.

Final Verdict - 7/10

Interactive Brokers is one of the best forex brokers in the UK for algo trading.