Why is Interactive Brokers so cheap?

Written by
Bence András R.
Fact checked by
Adam N.
3w ago

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 on).

Visit Interactive Brokers

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 review, we tested the fixed-rate plan.

Interactive Brokers: further reading

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Author of this article

Bence András Rózsa
Bence András Rózsa

Bence is a former broker analyst for BrokerChooser. Having an MSc in international economy and finance, he focused on equities, cryptos and newcomer financial services. He also gained years of experience within the brokerage industry, specializing in stock and CFD/forex brokers, crypto providers and robo-advisors.

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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