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Why are Interactive Brokers margin rates so low?

Interactive Brokers' margin rates are low because they monetize other aspects of their service (like subscription to market data, pro account monthly fees, and so).

 

How Interactive Brokers fees work

Interactive Brokers trading fees are low. This is beneficial if you do a lot of trades frequently.

You can choose between Interactive Brokers's fixed rate and tiered price plans:

  • The fixed-rate price plan typically charges a fixed rate per contract or share. This charge covers all commissions and exchange fees.
  • The tiered price plan charges fees based on your monthly trading volume. The more you trade, the lower the commissions are. However, exchange, regulatory and clearing fees may be charged additionally.

Starting the end of 2019, US clients can also choose a new service plan, called IBKR LITE. With this service plan, they can trade US-listed stocks and ETFs commission-free.

In our reviewwe tested the fixed-rate plan.

 

Interactive Brokers: further reading

Author of this article

Bence András Rózsa

Author of this article

Bence’s purpose is to help you to understand the logic behind financial services. In his master’s studies, he specialised in business economy and finance to be able to give you a clear picture of the brokerage world. Having reviewed multiple brokers and robo-advisor services, his goal will always be to guide you in the world of investing as it is.

Bence András Rózsa

Broker Analyst

Bence’s purpose is to help you to understand the logic behind financial services. In his master’s studies, he specialised in business economy and finance to be able to give you a clear picture of the brokerage world. Having reviewed multiple brokers and robo-advisor services, his goal will always be to guide you in the world of investing as it is.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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