Trading from the correct account type will ensure you have the trading tools necessary to succeed. During my review, I examined the Interactive Brokers account types. Learn the pros and cons of the Interactive Brokers account types, read about the Interactive Brokers account features to understand if and where you get a step-by-step guide on how you can open your Interactive Brokers account, and understand which of the Interactive Brokers account types is the best one for your trading requirements.

Interactive Brokers Account Types

Traders have sixteen Interactive Brokers account types to select from, three of which are for individual traders, three more catering mostly to retail traders, and ten institutional account type options. Since most traders will choose the individual Interactive Brokers account, and the features are identical across most account types, I will focus on that. Traders can take it for a test drive using the Interactive Brokers demo account.

Interactive Brokers Account Types Features
Individual
Minimum Deposit
$0
Minimum Forex Spreads
0.1 pips
Commissions
From $1.00 per 1.0 standard round lot
Maximum Leverage
1:500
Minimum Trade Size
0.01 lots
Account Base Currencies
AUD, CAD, CHF, CZK, DKK, EUR, GBP, HKD, HUF, JPY, MXN, NOK, NZD, SEK, SGD, USD, INR, JPY

Interactive Brokers Account Features

Interactive Brokers offers a competitive trading environment, including low swap rates for traders using Interactive Brokers leverage.

All Interactive Brokers account types offer traders the following:

  • An average order execution speed between 95 and 250 milliseconds
  • An excellent asset selection
  • An Interactive Brokers demo account
  • Tight spreads from 0.1 pips for commissions between $1.00 and $2.00 per order
  • Many commission-free assets
  • Cutting-edge trading platforms and algorithmic trading infrastructure
  • Interest of up to 3.83% on free margin in USD accounts
  • A Stock Yield Enhancement Program paying income on fully owned shares

Noteworthy:

Interactive Brokers Account Pros and Cons

Before funding an account, traders may consider the pros and cons of the Interactive Brokers account types.

The Pros of the Interactive Brokers Account Types

  • No Interactive Brokers minimum deposit requirement
  • A choice of cutting-edge trading platforms
  • Algorithmic trading
  • 150 markets across 36 countries in 28 currencies
  • An unlimited demo account
  • Fast order execution
  • Deep liquidity

The Cons of the Interactive Brokers Account Types

  • No volume-based rebates for high-volume traders
  • Data mining during the account registration
  • Limited payment processors

How to Open an Interactive Brokers Account - Step-by-Step

An online application process exists for new accounts. Please note that the geographic location of traders determines the operating entity of Interactive Brokers and the competitiveness of trading conditions.

Below is a step-by-step guide on how to open Interactive Brokers account types:

1. Click “Open Account” and “Start Application” on the Interactive Brokers homepage.

2. Submit your e-mail address, desired username and password, and country of residence. Click “Create Account” and follow the on-screen instructions. Given the vast choices, the process may take a bit longer than most competitors, and Interactive Brokers engages in data mining. However, the application remains straightforward to complete.

3. Interactive Brokers complies with global AML/KYC requirements, making account verification mandatory. Most traders pass it by uploading a copy of a government-issued ID and one proof of residency document.

Restricted countries

During my Interactive Brokers review, I noted that Interactive Brokers did not list accepted or restricted countries.

Interactive Brokers Account Types Bottom Line

The Interactive Brokers account types offer nearly identical trading conditions to all traders, with different legal structures for entities, joint accounts, and retirement accounts. Trading fees are the most notable difference, but IBKR Lite and IBKR Pro offer competitive costs. The only drawback is the Interactive Brokers withdrawal methods, which are limited to bank wires and payments processed by Wise for most traders.

Broker Comparison

FAQs

Is IBKR Lite available for non-US residents?

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IBKR Lite is only available to US residents.

Do professionals use Interactive Brokers?

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Professional traders use Interactive Brokers, which has several account types catering to their requirements.

Can you switch between IBKR Pro and Lite?

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Traders can switch between IBKR Pro and IBKR Lite without restrictions.

Which platforms are supported by Interactive Brokers?

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Interactive Brokers offers a web-based client portal, IBKR Desktop, IBKR Mobile, Trader Workstation (TWS), IBKR GlobalTrader, and the specialty alternatives IBKR ForecastTrader and IMPACT.

Should I get Interactive Brokers Lite or Pro?

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Since IBKR Lite and IBKR Pro do not require a minimum deposit and the latter has lower trading fees, active traders should consider IBKR Pro.

By Tobi Amure
Tobi Opeyemi Amure has more than seven years of experience as a financial market analyst. He holds a Bachelor's Degree from Obafemi Awolowo University. Tobi's main area of expertise is in personal finance and the Forex industry. He has contributed to top platforms such as Investopedia, GoBankingRates, and Investing.com, where his expertise in Forex markets and digital assets is widely recognized. Tobi’s engaging storytelling and data-driven analysis have earned him a feature on Forbes and TheStreet, setting him apart as a trusted voice in Forex and online finance. In his free time, he explores emerging Forex trends, refines his market strategies, and actively engages with the global finance community.