Interactive Brokers
Global leader in online futures trading with advanced technology and competitive pricing
About Interactive Brokers
Interactive Brokers (IBKR) is one of the world's largest electronic trading platforms, serving institutional and professional traders as well as sophisticated individual investors. Founded in 1978, IBKR offers access to futures markets across 150+ global exchanges with industry-leading technology and competitive pricing.
Key Features
Trading Platforms
- Trader Workstation (TWS): Professional desktop platform
- IBKR Mobile: Full-featured mobile app
- WebTrader: Browser-based platform
- API Access: For algorithmic trading
Market Access
- 150+ exchanges worldwide
- All major futures contracts
- 24/7 trading availability
- Direct market access
Advanced Tools
- Real-time market data
- Advanced charting
- Risk management tools
- Portfolio analytics
Account Types
- Individual accounts
- Joint accounts
- Corporate accounts
- Institutional accounts
Futures Trading Commissions
| Market | Commission per Contract | Exchange Fees | Total Cost |
|---|---|---|---|
| US Index Futures (ES, NQ, YM) | $0.85 | $1.28 | $2.13 |
| US Energy Futures (CL, NG) | $0.85 | $1.50 | $2.35 |
| US Agricultural Futures | $0.85 | $1.25 | $2.10 |
| European Futures (EUREX) | €1.50 | €0.90 | €2.40 |
| Asian Futures | Varies | Varies | $2.50-$5.00 |
Note: Pricing is subject to change. Volume discounts available for high-frequency traders.
Margin Rates
Interactive Brokers offers competitive margin rates for futures trading:
- Intraday Margins: Reduced margins for day trading (typically 25-50% of overnight)
- Portfolio Margining: Risk-based margining for complex strategies
- Real-time Calculations: Dynamic margin requirements based on market volatility
- Cross-margining: Offset positions across related instruments
Pros and Cons
Advantages
- Extremely competitive pricing
- Advanced trading technology
- Global market access
- Professional-grade tools
- Strong regulatory oversight
- API for algorithmic trading
- Comprehensive research
Disadvantages
- Complex platform for beginners
- Minimum account requirements
- Limited educational resources
- Customer service can be slow
- Inactivity fees apply
- Data fees for some markets
Account Requirements
Minimum Deposits
- Individual Accounts: $0 minimum (but $10,000+ recommended for futures)
- Margin Accounts: $2,000 minimum
- Portfolio Margin: $110,000 minimum
Eligibility Requirements
- Must be 18+ years old
- Valid government-issued ID
- Proof of address
- Financial information disclosure
- Trading experience questionnaire
Trading Platforms
Trader Workstation (TWS)
IBKR's flagship desktop platform offering professional-grade trading capabilities:
- Advanced order types and algorithms
- Real-time risk monitoring
- Customizable interface
- Multi-asset trading
- Advanced charting and analytics
IBKR Mobile
Full-featured mobile trading app with:
- Complete trading functionality
- Real-time quotes and charts
- Account management
- Risk monitoring tools
- News and research
Client Portal
Web-based platform for account management and basic trading:
- Portfolio overview
- Trade execution
- Account statements
- Funding and withdrawals
Research and Education
While IBKR focuses primarily on execution rather than education, they do provide:
- Market Data: Real-time and historical data
- News Feeds: Reuters, Dow Jones, and other providers
- Analyst Reports: Third-party research
- Webinars: Platform training sessions
- Help Center: Comprehensive documentation
Customer Support
Interactive Brokers provides support through multiple channels:
- Phone Support: 24/7 for urgent issues
- Live Chat: Available during market hours
- Email Support: Secure messaging system
- Help Center: Extensive FAQ and tutorials
- Video Tutorials: Platform training materials
Note: Support quality can vary, with some users reporting longer wait times for non-urgent issues.
Regulation and Safety
Interactive Brokers is regulated by multiple authorities worldwide:
- United States: SEC, FINRA, CFTC
- United Kingdom: FCA
- Canada: IIROC
- Australia: ASIC
- Hong Kong: SFC
Client Protection
- SIPC Insurance: Up to $500,000 per account
- Excess Coverage: Additional $30 million through Lloyd's of London
- Segregated Funds: Client assets held separately
- Strong Capital: Well-capitalized with excess regulatory capital
Getting Started
Account Opening Process
- Online Application: Complete the digital application form
- Identity Verification: Upload required documents
- Funding: Deposit initial funds via bank transfer or check
- Trading Permissions: Apply for futures trading approval
- Platform Setup: Download and configure TWS
Tips for New Users
- Start with the paper trading feature to learn the platform
- Take advantage of free webinars and tutorials
- Begin with small position sizes
- Familiarize yourself with risk management tools
- Consider starting with more liquid contracts like ES or CL
Who Should Choose Interactive Brokers?
Best For:
- Experienced traders seeking low costs
- Professional and institutional traders
- Algorithmic and high-frequency traders
- Traders needing global market access
- Those who value advanced technology
Not Ideal For:
- Complete beginners to trading
- Traders seeking extensive educational resources
- Those preferring simplified platforms
- Infrequent traders (due to inactivity fees)
- Traders needing extensive hand-holding support
Alternatives to Consider
If Interactive Brokers doesn't meet your needs, consider these alternatives:
- TD Ameritrade - Better for beginners with more education
- IG Group - Strong in CFDs and spread betting
- E*TRADE - Good balance of features and ease of use
- Charles Schwab - Comprehensive financial services
Final Verdict
Interactive Brokers stands out as the premier choice for serious futures traders who prioritize low costs, advanced technology, and global market access. While the platform may be overwhelming for beginners, experienced traders will appreciate the professional-grade tools and competitive pricing.
The combination of industry-leading commissions, robust technology, and extensive market access makes IBKR an excellent choice for active futures traders. However, those seeking extensive educational resources or simplified platforms may want to consider alternatives.