Interactive Brokers Interactive Brokers Review

Interactive Brokers Review - Forex trading experience and rating
3.3 5 RATING
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22 REVIEWS

Interactive Brokers execution and slippage

1.79 pips

 

Slippage is the difference between the price at which the order has been placed and the price at which it has been executed by the broker. The less slippage you get, the better your trading results will be. 

 

Our slippage data about Interactive Brokers is sampled by 10 of the most popular forex trading strategies in Zulutrade.com.

2.92 pips

Interactive Brokers slippage with Kama-spot trading strategy

Kama-spot is a forex trading strategy, based on technical analysis. It trades mainly EUR/USD, GBP/USD and USD/CHF

Average profit:                14.0 pips
Average trade lifespan:  19 hours
Most traded pairs:               EUR/USD, GBP/USD and USD/CHF

 

1.34 pips

Interactive Brokers slippage with Saved FX trading strategy

Average profit:                  16.0 pips

Average trade lifespan:    1 day

Most traded pairs:                 EUR/USD, GBP/USD, USD/CHF
3.82 pips

Interactive Brokers slippage with Qurenix trading strategy

Average profit:                  9.0 pips

Average trade lifespan:  5 hours

Most traded pairs:             EUR/USD
2.89 pips

Interactive Brokers slippage with Forex Cruise Control trading strategy

Average pips/trade:           5.0

Average trade lifespan:   18 hours

Most traded pairs:              GBP/USD
1.80 pips

Interactive Brokers slippage with For333 trading strategy

Average pips/trade:           12.0

Average trade lifespan:   15 hours

Most traded pairs:              GBP/USD, EUR/USD, AUD/USD
0.14 pips

Interactive Brokers slippage with Azar Consulting trading strategy

Average profit:                   28.0 pips

Average trade lifespan:   3 days

Most traded pairs:               EUR/USD
0.40 pips

Interactive Brokers slippage with Xiaolidao trading strategy

Average pips/trade:           9.0 pips

Average trade lifespan:   1 day

Most traded pairs:               EUR/USD
0.97 pips

Interactive Brokers slippage with Youron trading strategy

Average profit:                  9.0 pips

Average trade lifespan:   11 hours

Most traded pairs:               EUR/USD, GBP/USD

Headquarters:
One Pickwick Plaza, Greenwich, CT 06830 USA

Country: United States 

Regulated by:

CFTC, NFA (US) , FSA (UK), IIROC (Canada)

 


Account Info:

minimum deposit: $10,000 ($3,000 for individuals age 26 or younger)

minimum lot size: 25k

max leverage: 1:50

 

Spread:

Variable, from 0.1 pips

Commissons: 0.2 pips, minimum $2,5

 

Deposit/Withdraw

Bank Wire, Check

 

Platform:

Traders Workstation (TWS)

 

Broker type: ECN

 

Forex Signals:

Interactive brokers partners with Zulutrade to provide traders with access to the best forex signal providers in the world


What we think about Interactive Brokers

Interactive Brokers with 36 years of experience in financial markets. It offers a state-of-art trading platform – Trader Workstation (TWS) that is equipped with everything and anything you may need for your successful trading. 

 
TWS comes in desktop and web versions. By downloading the platform you get a simple, yet comprehensive workspace that includes price quotes, real-time news feeds, margin control system, risk management tools, etc. The TWS desktop application is supported for Windows, Mac and UNIX. 
 
Along with what's already built in, the broker offers additional tools to enhance your entire trading cycle – a portfolio analysis tool and a tax optimizer being a couple of examples. iPod and iPad users can also download the Traders' Calendar, Traders' University Courses, TWS Tour Suite and Options Calculator apps from the Apple store.
 
Interactive Brokers' trading conditions are pretty good – they include tight variable spreads, low commissions, 22 order types, positive price corrections through the SmartRouting system, etc. Keep in mind, though, that the average slippage is a tad high – 1.8 pips.
 
Although the broker's services are intended for advanced and professional traders, it offers a vast educational section where you can find webinars, video courses, tools and widgets, and so on. 
 
Regulation-wise, there is nothing to be concerned about: Interactive Brokers is licensed and regulated by the American CFTC and NFA and falls under their draconian jurisdiction. In the unlikely case that something goes wrong, customer securities accounts are protected by the Securities Investor Protection Corporation ("SIPC") for a maximum coverage of $500,000.
 
U.S. Traders are welcome. 
 
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Spread

Variable spreads
Typical spreads:  EUR/USD -1 | GBP/USD - 2 | USD/CHF -2 | USD/JPY - 1
Commissions:      0.2 pips, minimum $2.50 per side, $5 roundturn.

Pros

Cons

Low Spreads

 

 

 

Commissions

Spreads widen during Asian session

Spreads widen during volatile market

Spreads widen up to 20 pips during news releases 

 

Slippage

Pros

Cons

No

 

Slippage during news releases

1-2 pips slippage during normal market conditions 

 

Requotes

Pros

Cons

No requotes 

1-2 pips market order slippage during volatile market 

Price feed

Pros

Cons

ECN

No Spikes

No Stop Hunting 

No

 

 

Platform

Pros

Cons

Customizable Platform

Wide variety of order types

 

 

User unfriendly platform

No hedging

Ugly chats

No Autotrading 

Deposit/Withdraw

Deposit

Withdraw

Bank wire 
Check 

Bank wire 
Check 

Customer service

Pros

Cons

Live Chat

Phone

E-Mail

 

Arogant customer service reps

 

 

 

 

Summary

Pros

Cons

Market Itself
Low spreads
ECN price feed
US Regulated 

Market Itself
User-unfriendly platform
Slippage during normal market conditions
Market order slippage 

 

Traders` reviews for Interactive Brokers Add review

IB does charge commission on forex , but spread is ultra tight

I've been with IB for more than 10 years and I have traded stocks, options, futures and forex with them. They do charge a commission on forex trades, but the spreads are ultra tight interbank spreads and their commissions are some of the lowest in the business, on all of their products. They do give lower leverage in forex than many others, but requiring more than 50 to 1 leverage is not a factor in my trading (and probably shouldn't be in most others', I'm sure).

I give only 4 stars because: YES, I know their customer service can be questionable, which I know from years ago and from other traders, but this is because IB is not interested in having to walk people through the basics or answer newbie questions. They expect their customers to have at least some experience before opening with them... you know when most people open an account and lie on their ap that they have years of "extensive" experience in trading and a $1M + net worth, and then call them up to complain about normal slippage that cost them 50 bucks... this pisses IB off, as it prob should. I haven't had to contact their customer service in over 4 years anyway.

AW, forexrealm.com 06/27/2010

Interactive brokers is great broker

Trade with this broker for over a year and have only positive feedback about it. Very good service works to provide customer support. Collected earned money without any problems.

Alexey Gorin, forexrealm.com 06/27/2010

PROS:

1. A commission structure of $0.005 cents per share with a minimum cost of $1.00 per trade is pretty hard to beat.

2. Their software. Extremely bare bones (which is a good thing), but also extremely customizable. There are many third-party software packages that can be used in conjunction with IB that will enhance your experience.

3. The Universal Account. Trading 80 worldwide markets through one single account.

4. Cheap fees. Data fees are extremely cheap at Interactive Brokers.


CONS:

1. Customer Service is just OK. The customer service at IB isn't BAD, but it isn't spectacular either. They haven't made me a "raving fan" like ThinkorSwim's customer service reps did.

2. Lack of "bells and whistles" might be off-putting to some people. If you are expecting Interactive Broker's trading package to come pre-packaged with all sorts of bells and whistles, then you should probably look elsewhere.

3. Not a fan of their margin call liquidation policy.

Overall, Interactive Brokers is highly recommended. There are some things that I don't like about them, but no broker is 100% perfect. If their customer service was a little bit better.

DaveManuel.com 10/29/2009

I personally use and recommend Interactive Brokers for active traders as it will save most traders a bundle of money in commissions (only $1USD/200 shares (US), $0.005 / share > 200 shares (0.05% max)). The powerful interface along with fast execution times make it an extremely competitive brokerage for traders.
This platform is not only for traders, long term investors who spend more than $120USD/year in commissions should also consider this brokerage.

milliondollarjourney.com 10/18/2009

Pros
Extremely low commissions.
Able to trade more than 60 global markets.
Interactive Brokers provides an abundance of education and research.
Cons
As you might expect with the lowest commission rates, their customer service is not the best.
Their trading platform is not the most advanced and charting capabilities could use an upgrade.

C. Kowalsky, About.com 09/19/2009

Interactive Brokers customer service is horrendous

The biggest problem with Interactive Brokers is that after you close a trade, you often are stuck with foreign currency in your account (what they call non-base currency) and then you have to convert that money to your base currency.

Their customer service is horrendous. Their reps are argumentative and very obstinate. They are not able to answer questions and are all attitude.

Their accounting system is bizarre beyond belief and inaccurate. It is impossible to get tax information in a reportable fashion from them.

Their spreads are tight however.

Bob, Goforex.net 08/28/2009

TWS is utter rubbish, fortunately IB offers Ninja Trader

Good.
Commission = Great.
Choice of Markets = None better.
3rd Party Software = Good choices (Ninjatrader etc).
Account Insurance.

Bad.
TWS Software = Utter rubbish, trying to do too much at once and failing spectacularly, seasoned users never upgrade until forced due to piss poor testing of new releases.
FX Trading = Confusing, all coversion back to base currency must be done manually.
Customer Service = Utter bullshit, as one user said 'the Communist party of Russia had better customer service'.
API = Buggy bullshit, each release breaks something new, need to run TWS on the same machine.

Summary.
Cheap commission, but you get what you pay for, good for day trading stocks and futures.
__________________

Craig, Forexfactory.com 07/27/2009

Interactive brokers have worst forex platform ever

Stay AWAY!!!

Bad Customer service - totally rude bunch of low lives...

The worst platform ever. Confusing, slow, charts are from 19th century.

The most complicated accounting. You'll always end up with a position even if you open and close the position with the same lot amount.

I can write many more things but short of long is I'd not recommend them to my enemy...

Levent, forexfactory.com 07/27/2009

Interactive brokers charting sucks, the support guys are rude

I had almost 3 years of experience with them in Stocks (2002-2004). Their platform is OK apart from charting, which I didn't need as I relied on other tools. Their prices were the best.

However, their customer support have attitude. That was even very apparent when I tried to open a FOREX account early 2005. I had to discuss with them the documents that I should send and the customer support were so rude and they even ignored my posts.

As you may see, they do not support Live Chat except for clients. Yes, I remember something very important. They can easily put you in a mess with respect to tax calculations. Their reporting system sucks! (again until 2005's experience).

walad 07/27/2009

IB is a real ECN, but their trading platform is pretty confusing

There a good broker there leverage is low its 40:1 though, There a ECN and the smallest lot size can only be 50k, there platform they offer is pretty bad, but you can use other Front ends like Quotetracker or ninja trader and a few others i think.

nexx2k8, forexfactory.com 07/27/2009

It's hard to find your way through IB's trading station

This broker has one of the worst trading platforms I've seen. If you can find your way through it, you'd be doing allright.

PipStar, forexfactory.com 07/27/2009

Interactive brokers is the best forex broker?!

They're the best forex retail broker according to Stocks & Commodities Magazine. next runner up is FXCM.

Well if they show FXCM as #2 then I would highly question them listing IB as #1.

Frank, forexfactory.com 07/27/2009

IB is a good broker and you can trade anything you want

IB is a good broker and you can trade anything you want there, however their platform is NOT the most user friendly and the FX side of things still really needs some work. JMHO

johnedow, forexfactory 07/27/2009

It's quite expensive to convert the profits to your base currency

If customer service and a bit user friendly interface make sense to you (and they should, in my opinion) stay away from IB. As a side note: their commissions are among the lowest, but who cares when you have to convert "worthless pennies" to your base account and paying commissions on them (minimum is 2.5 USD for each conversion?).

johnlucas, forexfactory.com 07/27/2009

IB help desk sucks, but I'm happy with their trading conditions

IB is one of the best.
The help desk sucks ,but the rest is 5 stars.
"according to Stocks & Commodities Magazine. next runner up is FXCM"
Can you give us a link where we can check?Where is this "according to Stocks & Commodities Magazine"?

ILclitoride 07/27/2009

Interactive Brokers is much better broker than Oanda and FXCM

Out of the 3 I've traded with, I would rank them thusly:

1. IB

2. Oanda

3. FXCM (A very distant third I might add).

knightsy 07/27/2009

Interactive Brokers execution is immaculate and spreads are low

...I have used many different brokers and none compare, virtually no slippage, execution immaculate and incredibly low spreads, commissions, costs in general. Charting sucks and so do their help desks, but then again, what help desks are ever any good...

razldazl, forexfactory.com 07/27/2009

If you are looking to trade mini lots, the commission will kill you

You have to realize it's not for everyone. If you are looking to trade small trades, then the $5 round turn will kill ya. But if it's saving you 7 pips on 2 full lots in a AUD/JPY trade - that's a whole different story.

The customer service sucks ass though. I agree 150%

clockwork 07/27/2009

Interactive Brokers fills big orders first

I`m with IB and what I do notice is the following.

suppose I place my buy order at 1.4650 and when it reaches that price I see 12.1m at the bid.
12m goes and my 100,000 are left.
In come more orders, 5.1m now and those 5m get matched.

in short, the big orders always seems to be filled first.

yonnie, forexfactory.com 07/27/2009

IB doesn't provide TWS demo, it's a shame

It's a shame that IB doesn't provide a fully functioning demo so that traders may get aquainted with TWS before an account is opened.

fxterra 07/27/2009

Interactive brokers review: Low spread and low commissions

I am live with them now best broker I have have used.

.5 spreads on cable tonight with lowest retail coms for ecn on a 10K deposit.

No complaints from me, never leaving EVER!

may plug into paid Ninja in future.

Apocalypto, forexfactory.com 07/27/2009

IB system is much more transparent than the retail forex brokers

I find IB the best forex broker I know, but only if one has a sufficiently capitalized account.
Their system is much more transparent than the retail forex brokers.
But for trading anything below a standard lot one is much better off with Oanda.

pescador, forexfactory.com 07/27/2009