Interactive Brokers Review

Interactive Brokers was founded in 1977 in the U.S. As a NASDAQ-listed company, IBKR offers transparency through regular financial reporting. Around 25% of the company is floated, the rest held privately, with the largest share held through a holding company by the founder 2013 Thomas Peterffy. As of Feb. 2026, the Market Cap is $125bn. At a HoldCo level, the company is rated BBB+ by S&P Ratings, which in 2022 upgraded the rating by one notch citing very strong risk-adjusted capital and high profitability. It remains at the same level as of Feb 2026.

At a subsidiary level, the rating is A-, which means the estimated probability of default is very low, as measured by 10-year peer cohort probability of default. Based on historical data, 1 out of 100 similarly rated financial companies went out of business over a 10-year period. While not formally listed as a systemically important entity, IBKR may be large enough to possibly increase chances of some form of state intervention in case of bankruptcy, but it is not a guarantee.

US and Swiss Investors (Interactive Brokers LLC, regulated by FINRA/SEC) - the protection is up to $500,000 (with a $250,000 cash limit). Swiss Investors may open a US or a UK account, but will benefit from US protection levels.

UK Investors (Interactive Brokers U.K. Limited, regulated by the FCA) - clients are protected up to £85,000 on shares.

EU Investors (Interactive Brokers Ireland Limited, regulated by the Central Bank of Ireland) - offers a protection amount of €20,000. Applies to Eastern Europe following recent IBKR Irish and Hungarian Entity Merger. This protection is low, and valid for most EU Brokers.

Other Investors Canadians are protected up to CAD 1m. In Australia, India, Japan, Hong Kong, or Singapore, the respective financial authorities regulate local entities.

For your shares, Interactive Brokers is your direct custodian. The broker owns and operates safekeeping depositories in almost all global markets they offer. Exceptions include Japan or Singapore, where partners are acting as local custodians. Your cash is held with major international banks.

Interactive Brokers has a great reputation, as one of the best brokers. However, the track record is not perfect, as it did have a few regulatory fines in the past. Interactive Brokers faced significant regulatory actions in 2025, including a landmark $11.8 million OFAC settlement - the first brokerage firm ever fined for sanctions violations, specifically related to trades involving sanctioned entities and Chinese Military-Industrial Complex sanctions. FINRA also imposed fines totaling $800,000 ($650,000 for options approval failures and $150,000 for market data display issues) in 2025.

Interactive Brokers offers two pricing plans – Tiered Pricing and Fixed Pricing. In both cases, trading commissions are extremely competitive. Working out the cheapest solution may be complex if you are trading across different markets (Tiered fees can be different for each Stock Exchange). As a rule of thumb, if you’re buying mainly EUR ETFs on Xetra, then the Tiered plan often comes out cheaper due to a €29 cap. Conversely, given the lack of such a cap for ETFs in GBP, the Fixed plan is generally cheaper on the London Stock Exchange, unless your trades are small. Euronext is generally cheaper with the Fixed Plan. Check the link section at the end of this review to use our IBKR plan calculator. 

Check out our IBKR Plan Calculator: Not sure whether a Tiered of Fixed plan is best for you? We have a calculator below to help you make the right choice.

If you're trading ETFs in EUR on the XETRA Market, the Maximum €29 fee through the Tiered Pricing makes this plan cheaper for small and very large transactions. Medium to large sized monthly trade volume (e.g. €10–20k) can be a bit more expensive with Tiered Plan.

If you're trading ETFs in EUR on EuroNext (Paris, Amsterdam or Brussels), the Maximum fee of €29 through the Tiered Pricing means that the plan is generally cheaper for very large transactions. Medium and large-sized monthly trade volume (e.g. €5–50k) are cheaper with the Fixed Plan. For smaller transactions the difference is less significant than with XETRA as the Exchange fee is higher, while the Clearing fees are similar.

If you're trading ETFs in GBP on the London Stock Exchange (LSE), the Tiered Pricing comes out cheaper only for smaller transactions, given the lack of a cap on fees in the Tiered plan. Medium and large monthly trade volumes come out cheaper with the Fixed Plan.

Below $1m of monthly trade value the fee is a very competitive 0.2 bps with a minimum of $2. For a transaction of $100,000 or below, you will pay $2. Spread are as tight as 0.2 PIP or $0.2 for $10k.

Deposits are free of charge. The first withdrawal per month is free of charge. All subsequents are charged €8 or £7. For Stock Lending, IBKR pays you 50% of a market-based rate through the Stock Yield Enhancement Program for accounts with equity greater than $50k.

Interactive Brokers is sophisticated. It serves as a leading Prime Broker for hedge funds and institutional investors worldwide. For individual investors with larger portfolios, this institutional heritage translates into several advantages:

• Professional-grade tools - portfolio analytics, risk management, and reporting that rival institutional platforms.
• Securities lending - earn additional income by lending your shares. IBKR shares 50% of the lending revenue with you.
• Multi-asset access - trade stocks, bonds, options, futures, and forex from a single account across 150+ markets.

For investors running a small family office or managing substantial personal wealth, IBKR's infrastructure is hard to match.

Interest on cash is not the most generous in the market but still competitive for a brokerage account. IBKR pays interest on settled cash balances above a minimum threshold (currently $10,000 or equivalent). Rates are benchmarked to central bank rates minus a spread.

For smaller balances or those seeking higher cash yields, consider a dedicated savings account alongside your brokerage account. IBKR's cash interest is best viewed as a bonus rather than a primary savings vehicle.

PRIIPs is an EU rule that prohibits buying US-listed ETFs, including Factor ETFs from e.g. Avantis or Dimensional Fund Advisors. One of the reasons is tax implications. This rule also applies to UK Investors. In theory, high-net-worth or professional investors can bypass PRIIPs, allowing them to buy US-listed ETFs. This exemption is related to your ‘MiFID status’ being an Elective Professional Client. In practice, most brokers don’t give clients this option. Interactive Brokers is the only broker that effectively facilitates this.To apply for an Elective Professional Client Status, you must meet two out of three criteria below:

• Professional Experience – Work in financial sector for at least one year in a professional position, which requires knowledge of the transaction or services envisaged.
• €500k+ Portfolio – The size of the financial instrument portfolio in investment accounts, defined as including cash deposits and financial instruments, exceeds €500k.
• High Volume Trades – (€200k+) on the relevant market at an average frequency of 10 per quarter over the previous 4 quarters; and at least €50k account equity at present.

Interactive Brokers offers two main account types – Cash or Margin:

• Cash Accounts – Cash accounts restrict trading to the funds you have available in the account. This is the account type we would suggest for the vast majority of individuals – including all Golden Retrievers and Cyclists.

• Margin Accounts – You may purchase securities using funds loaned by the broker. For example, with $10,000 in cash and a 5:1 margin ratio, you could trade with up to $50,000. Margin trading involves significant risks. In rare cases, it may be attractive for Banker-style Investors, e.g. with Risk Parity Portfolios. Margin financing rates are very competitive, e.g. 100k-1M has a total cost of Benchmark Rate +1%.

Interactive Brokers provides access to Options and Future Markets, including the ability to create complex strategies or synthetic leverage using Box Spreads. Selling In The Money Puts may also allow indirect access to US ETFs through physical delivery.

For advanced investors, this opens strategies not available on simpler platforms:

• Options - buy and sell calls/puts on stocks and ETFs. Useful for hedging, or sometimes income generation.
• Futures - trade index futures (S&P 500, Euro Stoxx 50), bond futures, and commodity futures with low margin requirements.
• Box spreads - a sophisticated options strategy that can replicate borrowing at near risk-free rates, sometimes cheaper than IBKR's margin rates.

Derivatives are powerful but carry significant risk. They require a solid understanding of the instruments and are not suitable for most passive investors.