Interactive Brokers (IBKR) is a global online discount broker known for its exceptionally low commissions, multiple investment options, and access to global markets. The broker offers advantages to Canadian traders especially for its margin trading benefits and low pricings.
The rise of self-directed investing in Canada fueled the demand for cost-effective brokers. IBKR addresses cost-effectiveness through their highly customizable platforms, low-cost fee structure, as well as low margin and FX rates.
Because of this, IBKR is a famous choice for Canadian traders. It is a go-to broker for trading US and international securities while having a low currency conversion fees, translating into significant savings over time.
Key points for Canadian investors
Before diving into details, understand IBKR at a glance. Here is a quick overview of Interactive Brokers Canada, discussing the pros and cons to consider before signing up:
| Pros | Cons |
|---|---|
| ✔ For Active Traders and experienced investors | ✘ Complex platforms |
| ✔ Low margin trading rates | ✘ Leans more towards self-help customer support |
| ✔ Low commission fee structure | ✘ Less ideal for casual or basic buy-and-hold strategies |
| ✔ Low foreign exchange fees | ✘ Challenging educational resources for beginners |
| ✔ Access to 150 global exchanges | |
| ✔ Supports up to 27 currencies | |
| ✔ Fractional Shares Investing (portions of stocks) |
What is Interactive Brokers?
Interactive Brokers is an American multinational brokerage company founded in 1978 by Thomas Peterffy. IBKR pioneers in electronic trading, and provides investors with direct international access. Known for its global market access, IBKR is a solution for active investors in Canada looking to trade beyond domestic markets.
Today, IBKR operates in over 150 countries. Interactive Brokers supports investing in 27 currencies and offers RRSP and TFSA accounts. Because of this, Canadian traders can access both domestic and international stocks, options, futures, ETFs, bonds, and indices in one platform. This makes it easier to manage a diversified portfolio.
Free trading tools on IBKR already offer advanced analysis and sophisticated account management for traders with complex strategies. With over 4 decades in operation, IBKR possesses a wealth of experience and a proven track record. This stability is important for traders who entrust the safety of their assets to a broker.
What is Unique about Interactive Brokers?
Interactive Brokers is unique because it allows trading on the US and global market more affordable for Canadian investors. It stands apart from popular Canadian alternatives like Questrade and Wealthsimple because of its low FX fees and margin rates, which can be beneficial for margin or international market traders. Additionally IBKR provides access to multiple ETFs, FOPs, stocks, options, futures, bonds, event contracts, mutual funds, hedge funds, and US spot gold.
Low foreign exchange fees
IBKR boasts several key advantages compared to other brokers. The first advantage is the dramatically lower Foreign Exchange fees. Traders who regularly convert CAD to other currencies like USD or AUD can benefit from this.
You can see the drastic difference of IBKR currency conversion fees compared to Wealthsimple Trade and Questrade, which are brokers both known for affordable fees. Especially for trading in small amounts, its per-share commissions and fixed FX costs of $2 USD can translate into cost-effective trading.
For 50 shares of US stock worth $2,000 CAD, the commission fee is only $2.52 USD. The next cheapest broker charges $23.58 USD. To explain the favorable foreign exchange rates, let’s say you want to buy $10,000 USD worth of stock. A Canadian broker with a wide FX spread might cost you approximately $147.65 USD. Meanwhile, it only costs you approximately $2.35 USD in IBKR.
Access to global exchanges
The second advantage of IBKR is that Canadian accounts can exchange stocks, options, futures, indices, ETFs, warrants, contracts, and spot currencies on over 150 global markets (mainly in the Americas, Europe, and Asia Pacific). You can trade and fund your account on 24 different currencies with 100+ currency pairs.
For FX Trading, IBKR provides real-time currency quotes with no hidden price spreads and markups. This global access opens up more investment opportunities especially for more advanced traders.
The third advantage is that IBKR’s margin rate is up to 49% lower compared to other Canadian brokers. Its advanced trading platforms (TWS, mobile, GlobalTrader, Client Portal) are intuitive as well.
Advanced features for experienced traders
Lastly, more than 200 premium research and news providers can be accessed for free. IBKR features third party algos, and supports over 100 order types. Therefore, it can provide more order types for traders to choose from.
Is Interactive Brokers a Good Broker?
Yes, Interactive Brokers is a good broker, especially for active and experienced Canadian traders looking for lower fees and advanced tools. Although IBKR can be complex for beginner traders, it can be a good choice for any Canadian resident who wants to invest in US and global securities because of its extensive access to 150 exchanges worldwide.
I have been on Interactive Brokers for just over a year now, moving over from primarily using Questrade and Wealthsimple. While the two were good for learning about investing and executing simple trades, IBKR provided vastly more customization and allowed me to make trades quicker and more efficiently.
Below is a breakdown of traders who should consider IBKR and why it might be the right choice:
- Active traders: since they trade the most frequently, the low commission and margin rates of IBKR can translate into significant savings over time. Active traders can maximize their returns even on small amounts because of low commissions.
- Traders focusing on US & Global Markets: IBKR outweighs other brokers in this department. The low FX per-share commissions and fixed conversion fees benefits Canadian traders who want to invest beyond Canadian equities.
- Experienced Investors: While beginners can still use IBKR, the platform, tools, and resources leaned more favorably for traders with years of experience.
Although IBKR is a go-to broker for experienced investors for its advanced platform, the learning curve is difficult for beginners. It is also important to note that IBKR has limited handholding and a less proactive approach to communication. Their learning materials and customer service offer lesser guidance and support compared to other brokers. IBKR platforms like Trader Workstation, and the self-directed investing approach would work more for traders who already have a deeper understanding of research, strategies, and trade execution.
I also enjoy access to a wealth of research and analytical tools, which help inform my decision-making. In my opinion, no other platform comes close to the amount of information available through IBKR. I particularly like that they continuously innovate, a recent example being the launch of the IBKR GlobalAnalyst, which is definitely a time-saver for me.
Is IBKR Safe & Trustworthy?
Yes, IBKR Canada is a trustworthy online trading brokerage platform. It is safe to invest in IBKR because IIROC oversees its operations.
IIROC is a national self-regulatory organization that enforces strict rules for client protection, financial reporting, and fair trading in Canada. Since IIROC set strict standards to its members, IBKR undergoes extensive oversight to ensure regulatory compliance in protecting Canadian Investors.
Furthermore, Interactive Brokers Canada Inc. is a Member of the Canadian Investor Protection Fund (CIPF), a non-profit organization funded by IIROC. According to CIPF, this means that “your Interactive Brokers Canada account is covered by CIPF for up to $1,000,000 for losses related to securities and cash balances that result only if Interactive Brokers Canada becomes insolvent.”
How does IBKR protect your deposits and investments?
IBKR protects their client’s money by account segregation, separating client funds from IBKR’s own operating money. Segregated accounts protect the assets of IBKR clients in case the broker faces financial difficulties. Since IBKR is a member of IIROC, CIPF, and CIRO, it nurtures a trustworthy investment platform for Canadian traders.
Overall, IBKR has a strong financial standing. Interactive Brokers Group, the parent company, has established a global presence with over 4 decades of experience. While no financial institution is free of issues, IBKR maintains a strong reputation in providing service for their clients.
How does IBKR secure your account?
IBKR employs excellent security systems to protect your account information and assets. The measures reduce cybersecurity, financial, and operational risks that likely occur on smaller, less stable brokers. Here are IBKR’s security measures:
- Data encryption: IBKR data encryption prevents hackers from intercepting your sensitive information (e.g. passwords, financial details), or injecting malicious code and malwares into your account for malicious intents.
- Multiple two-factor: Logging-in to IBKR accounts uses M2FS. It generates unique codes sent to your phone, email, or authenticator app on top of your password.
Additionally, IBKR features secure login Digital Security Card+ for accounts with $1 million USD or more worth of equity. DSC+ is a device that generates a code every time a user logs in.
- Account monitoring: IBKR conducts regular security audits. This account monitoring involves constant monitoring for unusual activities on your account. The system will alert you if it detects suspicious actions or login attempts from unlikely locations.
- Secured connections: IBKR ensures you only access your investment accounts over secured networks (with SSL/TLS certificates and HTTPS in the address bar). These security certificates create an encrypted tunnel, protecting your information from internet spying.
- Setting withdrawal limits: a security measure in case your account is compromised because withdrawal limits can reduce your potential losses by limiting how much an attacker can withdraw at a given time. This can buy you time to contact IBKR to investigate the situation.
Is IBKR a publicly traded company?
Yes, IBKR Canada’s parent company (IBKR Group) is publicly traded on the NASDAQ stock exchange under the ticker symbol IBKR. The group adheres to strict financial reporting set by the Securities and Exchange Commission (SEC) in the US. The requirements include regular disclosures of financial statements, company announcements, and other significant information.
Interactive Brokers’ overall performance and market value can be accessed by investors, analysts, and the public. This public scrutiny displays transparency and company accountability.
Does IBKR receive industry recognition?
Yes, IBKR recently received notable awards from respectable financial publications. In 2023, Barron’s ranked IBKR #1 as “Best Online Broker” for the sixth year in a row. Meanwhile, StockBrokers.com awards IBKR as the best broker for advanced and options traders the same year. Finder also ranked IBKR as #1 overall broker in Canada in 2022, including 6 other stock trading categories.
Why should you trust Interactive Brokers with your money?
You can trust Interactive Brokers because it maintains a financial resilience to withstand market crises. While no broker can guarantee absolute safety, IBKR is an international brokerage that has been operating for more than 4 decades. IBKR’s regulation, security, reputation, and financial strength creates a strong foundation of trust for Canadian investors.
IBKR emphasizes several indicators of their solid financial standing. Being listed on NASDAQ means IBKR maintains high standards.
Additionally, the equity capital of IBKR is $14.1 billion USD. Private owners hold 74.6% of IBKR as well. IBKR holds $10.2 billion USD excess regulatory capital (way more capital than the regulators’ minimum requirements) and manages 2.56 million users with 1.931 million average daily revenue trades.
The high cushion implies that IBKR can absorb potential losses and maintain normal operations even during major crises. Investors and traders from Canada can benefit from IBKR’s strong capital position because it makes the broker less susceptible to fluctuations, and even to unfavorable market movements.
How much does it cost to trade with Interactive Brokers Canada?
IBKR’s low fees is a cost-effective option for active Canadian traders. Their tight FX spreads, competitive margin rates, low commissions on stocks and ETFs can reduce trading expenses in the long term.
Here is a breakdown of the fees:
Tiered pricing structures
The tiered pricing structure of IBKR costs lower for higher volumes. This benefits active traders the most. For example, if you trade a high volume of Canadian stocks in a month, you will likely qualify for a lower commission rate than on a broker with a fixed fee rate.
Here is a screenshot of stocks/ETFs commission on IBKR Pro:
FX Fees
The foreign exchange fees are transparent in IBKR. The FX spreads are lower, making it a major advantage for Canadians trading US securities.
For example, converting $10,000 CAD to USD might incur a $100+ USD spread with some Canadian brokers. IBKR’s tight spread could reduce that cost significantly.
For Canadian residents who trade international assets frequently, you can save money over time if you take advantage of IBKR’s FX fees.
Margin Rates
Margin trading is cost-effective in IBKR because the margin rate is among the lowest in the industry. This means traders pay lesser interests when borrowing money to trade. IBKR charges 7.136% on IBKR Lite while margin interest on IBKR Pro is tiered.
For example, borrowing $500,000 CAD might cost more than 7% with other brokers, while IBKR Pro’s rate charges 5.636%. Active traders who utilize margin will find IBKR’s rates highly competitive.
Margin rates vary between brokers, and account size can also influence the rates offered. Here is a comparison of current margin rates on popular Canadian brokers vs IBKR:
| Broker | Margin Interest Rate |
|---|---|
| IBKR Pro | 5.136-6.136% (decreases with higher tier) |
| IBKR Lite | 7.136% |
| Questrade | 7.20% |
| QTrade | 7.20% (base) + 1.50-1.55% (spread) |
| CIBC Investor’s Edge | 8.75-9.75% |
Inactivity fees
IBKR does not charge a monthly inactivity fee for individual accounts on IBKR. The account holder will not be charged a fee for not meeting a certain threshold of trades or commissions. This policy relieves users of pressure of having to constantly trade to avoid fees.
Other Fees
Consider that additional fees may include account maintenance, reporting fees, security transfer fees, corporate actions, dividend processing fees, and other trading-related fees aside from commissions.
What assets can you trade on Interactive Brokers?
The assets available for you to trade on Interactive Brokers include a vast array of stocks, ETFs, options, futures, and forex on over 150 global exchanges. Below are the assets that Interactive Brokers feautures:
Global reach
The global reach is where IBKR stands out from other Canadian brokers. This allows traders to connect to 150 markets in North America, Europe, and Asia-Pacific. The wide scope of markets provides more opportunity to further diversify your portfolio. This is because you can tap into growth opportunities worldwide, which other brokers do not offer.
The exchanges include NASDAQ, NYSE, CBOE, and TSX (Canada). Specialized exchanges like NASDAQ BX, NASDAQ PSX, TSX Venture Exchange, and NYSE Arca are available as well. Lastly, IBKR offers popular exchanges from Europe and Asia-Pacific like London Stock Exchange, SIX Swiss Exchange, Tokyo Stock Exchange, and ASX.
Stocks and ETFs
Stock and ETFs commissions in IBKR cost zero dollars on 90+ market centers. Apart from Canadian products, traders can choose stocks/ETFs from the US, Europe, and Asia-Pacific. This includes US stocks like Microsoft, Amazon, and Apple, as well as US ETFs like S&P 500, Blackrock, and Invesco QQQ Trust.
Also, offering a wide selection of global stocks and ETFs provides more global exposure for Canadian clients. The examples of popular European and Asia-Pacific stocks include Peugeot Invest, Lenovo Group, Renault, and PG&E Corp.
Options, Futures, Bonds, Mutual Funds
Interactive Brokers cater options, futures, bonds, indices, and mutual funds to experienced Canadian traders looking for more complex trading. With IBKR, you can opt in for futures or options on popular products like Dow Jones, S&P 500, FTSE 100, and NASDAQ 100.
Additionally, IBKR accommodates trading not just individual stocks but also indices, bonds, and mutual funds. This opens up more opportunities for trading strategies beyond the basics.
Forex
IBKR excels in the foreign exchange market because the spread can be as narrow as 1/10 PIP. Including low commissions and 100+ currency pairs, Forex in IBKR can lead to cost-effective and more flexible ways to trade currencies.
Aside from spot currencies, IBKR users can also trade event contracts, US spot gold, and hedge funds.
What trading platforms do Interactive Brokers offer?
Interactive Brokers offers several platforms designed to cater different experience levels and trading styles. Choosing the right platform on IBKR should consider trader preferences, convenience, and accessibility. Here are the platforms IBKR offers:
Trader Workstation (TWS)
TWS is the flagship desktop platform known for its depth, customizability, and sophisticated tools. The optimized speed and efficiency when trading in TWS makes it an ideal choice for active traders and investors.
In terms of complexity, TWS has a steep learning curve. However, its power lies in its adaptability to your specific trading strategies, especially a well-informed, skilled, and knowledgeable trader.
TWS allows you real-time monitoring on over 150 markets worldwide. In a single platform, you can monitor your account, charts, market quotes, daily executions, and net trading activity. On top of that, TWS is highly customizable and lets you choose different themes so you can set it up to the most convenient.
Traders can also choose over 100 order types and algos. It offers features like Risk Navigator, Model Navigator, and Option Analytics to manage your risks. Seasoned traders, like those who trade multiple asset classes and use algorithmic strategies, make an ideal user for TWS.
IBKR Mobile
IBKR Mobile provides mobility and a streamlined experience for frequent trading, basic account management, and real-time market monitoring on your phone or tablet. Since the mobile version is focused on ease of navigation and simplicity, it is not rich with features compared to Trader Workstation. The good thing is, it is easy to place trades, navigate through charts, and stay on top of your portfolio.
Active traders who need simple trade executions can make use of the mobile version because you can use it anywhere and anytime. Although the interface is simplistic, IBKR mobile still lets you execute advanced order types that are generally available on the web version. The mobile still has access to major products, real-time quotes, and research. This ensures traders and investors apply their strategies, from rudimentary to advanced, conveniently.
IBKR Global Trader
IBKR Global Trader is another mobile app from IBKR that lets you trade on 90+ global stock markets including NASDAQ and NYSE. The app also lets users trade cryptocurrencies (Bitcoins, Ethereum, altcoins) and ETFs.
IBKR Global Trader is a simplified alternative for the complex platforms for trading global stocks because it still features options trading on 30+ global markets on top of trading US stocks and ETFs. Also, IBKR Global trader can be a great training ground for beginners, or any seasoned traders who are new to global trading because you can create a simulated account. The simulation grants you $10,000 USD worth of simulated cash for you to practice and experiment before you decide to trade live.
IBKR Client Portal
IBKR Client Portal is a web-based platform for essential account functions. IBKR users can manage deposits, make withdrawals, view statements, and access tax documents without needing to download an app.
All IBKR clients can take advantage of the Client Portal because you simply need to login on a browser to do certain administrative tasks. IBKR Client Portal is simple and intuitive enough for you to quickly have a look at your account for updates, major market news, a brief glance of your portfolio, or make a quick trade.
IBKR APIs
IBKR’s Trading API Solutions is a powerful custom trading platform for advanced traders and developers. Interactive Brokers provides these application programming interfaces so you can build your own custom tools and applications.
Users can set an automation where they design and implement algorithms directly connected to IBKR. Trading API Solutions can enhance your analysis because it lets you personalize your own dashboard, analytical tools, and backtesting systems with IBKR’s real-time and historical market data.
Lastly, the platform is also flexible because it supports programming languages like Python, Java, C#, and C++. This is an ideal platform for traders who know coding and quantitative analysis (IBKR Quant). It is easier to get started because it features IB SmartRouting that enhances trading executions, and it has TWS and Client Portal’s APIs.
What are the account types available in Interactive Brokers?
The account types available in Interactive Brokers for Canadians include RRSP, TFSA, Margin Accounts, and Cash Account. Let us explore each account types:
- RRSP (Registered Retirement Savings Plan)
RRSP is a tax-advantaged account whose main purpose is to help Canadian investors save money for retirement. The contributions are tax-deductible, while investment growth is tax free until you withdraw it. RRSP helps reduce your current tax burden while building funds for your retirement.
- TFSA (Tax-free Savings Account)
A TFSA is a flexible savings account where your investment earnings grow tax-free, even when you withdraw it. This is because you contribute to your TFSA with money you have already paid income tax on. Tax-free savings account helps you achieve short-term financial goals because you can withdraw your TFSA money anytime without incurring income tax.
- Margin accounts
Margin accounts allow you to borrow funds from your broker to increase your buying power. Margin trading amplifies your potential returns. However, the risk becomes higher the more money you borrow. Unlike registered accounts, any profits from a margin account are subject to capital gains tax.
- Cash accounts
Cash accounts are standard investment accounts. IBKR offers cash accounts (subset of an individual account) for simple investing. However, it does not include the tax benefits of registered accounts like RRSP and TFSA. You can’t trade on margin, and you are usually restricted to primarily buying stocks outright with settled funds.
- Other account types
Aside from the account types mentioned, you can also open Spousal RRSPs, Trust, Joint, and other non-registered individual accounts.
Does Interactive Brokers provides learning materials?
Yes, Interactive Brokers provides free resources to help users understand the platform and necessary trading concepts. However, the complexity of its navigation, tools, and knowledge base approach might overwhelm beginners.
IBKR targets clients with a solid foundation and pre-existing knowledge about trading. IBKR offers an extensive knowledge base with articles, FAQs, and tutorials covering platform features, market analysis, and trading strategies.
IBKR has a dedicated “IBKR Campus” section. IBKR campus is a broad educational platform offering webinars, podcasts, API education, financial education, latest news, and market commentaries.
As part of the IBKR campus, Trader’s Academy offers structured courses for trading education. Additionally, it offers courses on how to use TWS, Client Portal, as well as courses on how to use API, algo, and advanced tools.
The educational materials on Trader’s Academy are categorized into finance and platform courses for beginners, intermediate, and advanced. It also offers a category for topics relevant in trading like taxation, fundamentals, and mostly-used investment products.
How to open an Interactive Brokers account in Canada?
Opening an account on Interactive Brokers for Canadian residents is straightforward and can be done conveniently online. Just like opening an account on any brokers, users should meet certain requirements to become eligible. Here are the things you need to know, as well as the step-by-step guide in opening an Interactive Brokers account in Canada:
What are the eligibility requirements to open an IBKR account in Canada?
The requirements to become eligible for an IBKR account in Canada varies based on what type of account you want to open. Generally, you must be at least an 18 years old Canadian citizen or permanent resident to qualify for opening an account on IBKR Canada.
On the start of your application, prepare your Social Insurance Number (SIN) or Business Number (BN). You are required to complete a form so prepare your basic information (IDs, Proof of Address, and Bank Information for funding) and tax information.
What are the steps in opening an IBKR account?
- Visit the IBKR Canada website: Begin the application process on the official Interactive Brokers Canada website to avoid phishing scams or fraudulent sites that imitate real companies.
- Choose your account type: Select the accounts you want to open. IBKR offers Individual accounts, TFSA, RRSP, Joint, Trust, IRA, UGMA/UTMA, Hedge funds, Mutual funds, Advisor accounts, and more. Make sure you already have one in mind before moving to the next step. Carefully consider your financial goals and risk tolerance when making your choices.
- Provide your information: Fill out the application form. It will ask you to create a username and password, then you have to confirm your email address. Make sure you prepare your personal details, proof of identity (preferably government-issued IDs), and financial information to complete the application. Note that IBKR’s general requirements for individual accounts are different from institutional accounts.
- Fund your account: Once you are done filling out the information. Funding your account can further speed up the approval process.
- Await approval: IBKR will review your application. Account approval usually takes about 2 business days. While you do this, you can always check your emails or login to their platform to track the progress.
How to deposit and withdraw on my Interactive Brokers account?
You can deposit and withdraw funds on your Interactive Brokers account through bank wire transfers, bill payments, and potentially electronic funds transfers (ETFs). Just be mindful of the fees to set up your expectations. However, IBKR’s competitive FX spreads can help you save more money when converting into different currencies.
How to fund your account?
For accounts based in Canada, you can fund your account on at least 20 different currencies. You can deposit Canadian dollars via Bank Wire, Online Bill Pay, or connecting your bank via EFT. First, you have to notify IBKR of each deposit before making the transfer. However, you can simply use your IBKR login to transfer via EFT, if connected. Fees also depend on the bank except via EFT, which is free but takes about five or more business days.
IBKR supports Automated Transfer Online Notification (ATON), Direct Registration System (DRS), and FOP in transferring positions. While you can only use ATON if you want to transfer your retirement account from other brokers. Note that transfer methods may differ if you use other currencies.
What is the minimum deposit for Interactive Brokers?
IBKR requires no minimum deposit for individual and other client accounts on either IBKR Pro or IBKR Lite. There are also no inactivity fees, and no minimum balance for opening an account. The only exception is a margin account, which requires a $2,000 USD minimum balance.
How to withdraw your funds on Interactive Brokers?
To withdraw your funds on IBKR you have to go to “Transfer & Pay” on the menu, click on “Transfer Funds”, then “Make a Withdrawal”. Interactive Brokers supports Wire, Canadian EFT transfer, and Wise for Canadian accounts.
Take note that the maximum amount you can withdraw per day varies depending on your level of authentication. For instance, if your 2FA is not configured, you can only withdraw $50,000 USD per day. On the contrary, you can withdraw up to $200,000 USD per day with Security Code Card, and unlimited withdrawal with Digital Security Card+.
How can I contact Interactive Brokers for my concerns?
To contact Interactive Brokers for your concerns via email, phone support, and live chat. Here is how you can contact IBKR:
- Email: clients can submit their concerns on the Interactive Brokers Help Desk. you can also access this through the Message Center in the Account Management.
- Phone: IBKR has a regional Client Services Center in the Americas. In Canada, the toll-free hotline number is 1 (877) 745-4222. You can also contact them on their direct dial number 1 (514) 847-3499. IBKR support operates on Mon-Fri from 08:00 – 17:30 GMT -5.
In Vancouver, Canada, the toll-free number is 1 (877) 745-4222 and the direct dial number is 1 (604) 661-4300. They are open from Mon-Fri at 11:00-20:30 GMT -5.
- Chat: you can access the live chat support on the Client Portal for both general inquiry and urgent account inquiry. The Chat room is open 24 hours on weekdays and 13:00-19:00 GMT -5 on Sunday.
IBKR’s customer support favors traders who love to learn independently. If you have questions or concerns, IBKR provides troubleshooting tutorials and general answers to your queries. Their Knowledge Base, FAQs, or IBKR for Support Individual Accounts is likely sufficient for experienced traders addressing basic concerns on their own. This results in less hassle because you don’t have to wait or contact customer support, which takes a lot of time. Besides, it is not a preference for some people.
However, there are users who experienced long waiting times and slow responsiveness compared to other brokers. Since IBKR leans towards self-directed investing, they encourage self troubleshooting first, making it harder to immediately contact their live agents. However, the best way to reach out to their customer support channels is via Client Portal.
Are there other alternative options for Interactive Brokers?
Yes, there are other alternatives options for Interactive Brokers like Questrade and Wealthsimple. Here are the breakdown of two other alternatives:
Questrade
Questrade is a full-service brokerage with a simple platform. It charges managed portfolios with low fees (0.25%). The low fees makes it ideal for investors seeking expert guidance. Generally, funding your account on Questrade is much faster compared to IBKR as well. It takes around 1-2 business days. While both brokers charge low stock trading fees, Questrade may be more cost-effective for less active traders, casual investors, and long-term investors. Click here for a full Interactive Brokers vs Questrade comparison.
Wealthsimple Trade
Wealthsimple Trade is a discount broker with commission-free trading. The platforms have simple interfaces and provide comprehensive educational resources from beginners to advanced. The broker primarily offers Canadian and U.S. stocks & ETFs. Check out our IBKR vs Wealtsimple Trade comparison.
Although the investment options are not as vast as IBKR or Questrade, Wealthsimple Trade offers enough products to get you started in trading because it is less overwhelming.
