Interactive Brokers Fees Uncovered: Maximize Your Trading Potential

Trading fees directly impact profitability, determine the trading environment’s competitiveness, and reveal which strategies a broker actively supports and passively discourages. Therefore, I rank them as the most defining aspect of any broker. I evaluated Interactive Brokers’ trading and non-trading fees as part of my broader Interactive Brokers review to help you understand and compare them to the fee structures offered by other brokers. So, how competitive are Interactive Brokers' fees? Let’s find out below.

Overview of Interactive Brokers Fees

The various Interactive Brokers account types offer commission-free and commission-based costs. Forex traders get tight spreads from 0.1 pips for commissions between $1.00 and $2.00 per order. Equity traders trading US-listed shares pay a commission between $0.0000 and $0.0035 per share per deal.

Here is a snapshot of Interactive Brokers' fees:

Interactive Brokers Fees, Spreads, and Commissions Explained

Traders must understand Interactive Brokers' fees to know what they pay per trade and compare costs to other brokers to determine if Interactive Brokers offers a competitive cost structure. Traders can evaluate trading fees in the Interactive Brokers demo account.

Interactive Brokers Trading Fees

• Spreads (Interactive Brokers has spreads from 0.1 pips)
• Commissions (charged per order if applicable)
• Swap rates (charged on leveraged overnight positions)
• Currency conversion fees (Interactive Brokers levies a 0.03% currency conversion fee)

Interactive Brokers Non-Trading Fees

• Deposit fees (Interactive Brokers does not charge deposit fees)
• Withdrawal fees (Interactive Brokers offers one free monthly withdrawal)
• Inactivity fees (Interactive Brokers does not charge inactivity fees)
• Currency conversion fees (Interactive Brokers levies a 0.03% currency conversion fee)

Interactive Brokers Trading Fees

Interactive Brokers trading fees depend on the asset, apply to each transaction, and are the most frequent fees traders pay. Currency conversion fees apply if the asset quote currency differs from the account base currency.

Here is an overview of the minimum Interactive Brokers trading fees in the Prime account:

Overnight Fees (Swap rates)

Swap rates are the most ignored trading costs and could become the most significant fee per trade, depending on the strategy. They apply to leveraged overnight positions, which triple on Wednesday to account for trades kept open over the weekend. Interactive Brokers has swap rates as low as 4.83% for traders using Interactive Brokers leverage.

Interactive Brokers Non-Trading Fees

Non-trading fees are notably less frequent and apply to deposits, withdrawals, and inactivity. Traders must know them to avoid confusion and avoidable costs.

Currency Conversion Fees

My Interactive Brokers review found that currency conversion fees apply each time Interactive Brokers exchanges one currency for another, including trading, and traders are often unaware of this hidden fee. For example, traders buy a Euro-denominated asset in a US Dollar base account. Interactive Brokers charges a 0.03% currency conversion fee.

Interactive Brokers Deposit Fee

Traders can make their Interactive Brokers minimum deposit without internal Interactive Brokers deposit fees.

Interactive Brokers Withdrawal Fee

The first monthly Interactive Brokers withdrawal is free before withdrawal fees apply, which are payment processor-dependent and start at $1.

Interactive Brokers Inactivity Fee

Interactive Brokers does not charge inactivity fees.

Interactive Brokers Safety and Security

Interactive Brokers complies with ten regulators, has $11.7B in excess regulatory capital, is a publicly listed company, and segregates client deposits from corporate funds.

Interactive Brokers Fees Bottom Line

Interactive Brokers' fees rank among the lowest industry-wide, offering traders a distinct competitive advantage and allowing them to earn more per trade.

FAQs

What is the 25k rule on Interactive Brokers?

The $25K rule applies to US day traders, who must have a maximum account balance of $25K to trade without regulatory restrictions.

How much commission does IBKR take per stock?

Commissions depend on the stock, but US-listed shares cost between $0.0000 (IBKT Lite for US residents) and $0.0035 per share per deal.

How much does Interactive Brokers charge per withdrawal?

Traders receive one monthly free withdrawal before a fee applies, which depends on the payment processors and starts at $1.

Does IBKR have high fees?

IBKR fees rank among the lowest industry-wide, with a $1 minimum for IBKR Fixed and $0.35 for IBKR Tiered.

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.