Interactive Brokers Canada Review: The Best Choice for Active Traders

Unfortunately, this stock trading app does not allow Canadian citizens to open accounts. IBKR Pro’s platform was designed by market-makers and offers real-time price monitoring, in-depth analysis, and research. Their tiered commission structure, with declining fees based on volume are perfect for active traders. IBKR also allows for stock lending and margin purchases, allowing you to leverage your returns.

There is also an offer for active traders to get a month’s worth of free trades. To make use of these promotions, all you need to do is open a Canadian brokerage account using the promotional code that can be found on the website. Interactive Brokers offers two plans, IBKR Lite and IBKR Pro. The difference between the two is whether the pricing is tiered or fixed. For instance, in terms of stocks, for IBKR Lite, the commission is fixed, and it’s $0 per share for US exchange-listed stocks and ETFs.

Paid Transfer Fees:

IBKR Lite is the trading platform for more casual investors — it offers unlimited free trades on US exchanged-listed stocks and ETFs with no commissions. IBKR Pro account holders can also use customized API software to design their own trading applications and market-monitoring programs. We service individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. For the fifth consecutive year, Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars in its March 25, 2022, Best Online Brokers Review. For the fifth consecutive year, Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars in its March 25, 2022, Best Online Brokers Review.

There are certain risks and potential downsides to be aware of. Extra features have a different range of possibilities in each separate platform. We’ve listed the security measures exchanges take , and they’re pretty much all the same.

Other Limitations – The IBKR mobile app is not the most user-friendly. Some Services Aren’t Available to Everyone – Canadian investors can’t access IBKR Lite, while US investors can’t access IBKR’s SmartRouter. Exchange-Traded Funds – You can use IBKR Canada to trade equity and bond ETFs on exchanges, such as OMEGA ATS, PURE and Chi-X. $50 sign-up bonus and up to $2,000 cashback with newly funded accounts. CIPF–membership means that your investment account is insured for up to $1 million against bankruptcy of the firm.

This can be because many of the brand’s customers are professional dealers and institutions. As a result, beginners with limited personal capital may be put off. There are other brokers who work under Interactive Brokers, they require a lower minimum deposit and send the order flow directly to IB.

  • The Wright FIRST investment research Chart File provides an extensive resource with insightful graphs and tables that can be included in client account review presentation.
  • However, beginners may be overwhelmed by the Trader Workstation.
  • For example, you can create an order to sell $1,330 CAD and buy $1,000 USD (or whatever the market value is.) Now you have $1,000 USD as cash in your account.
  • Keep in mind you need to cover commissions, monthly data fees and the most important margins on the products you plan to trade.
  • In last 2-3 years tickets have been left open or somehow rejected.

The information on their site will always be what ultimately dictates the current rules of their program, software or other. While we are independent, we may be compensated for advertisements, sponsored products, or when you click on a link on our website. The contributors and authors are not registered or certified financial advisors.

TD Ameritrade The consistent top overall choice when reviewers rated the discount brokers. TD Ameritrade has brick and mortar offices and may have one near you. A top overall choice of Barron’s, Consumer Search, Stock Brokers, and Investor Junkie.

IB’s fees on international stocks depend on which country the stock is listed in and whether you’ve chosen a tiered or fixed fee structure. Stocks listed in the US and Canada charge brokerage fees per share rather than as a percentage of trade value. Most stocks listed in Europe and Asia-Pacific use trade value to set the fees. You can buy and sell stocks and other securities from over 30 different countries using one account 24 hours a day, 6 days a week. The broker charges you $1 min per order for trading US-based options, as well as a fee of $0.60 per contract. However, while IBKR looks like a good deal for Canadian traders, is this the right broker for executing your strategy?

Worst customer support ever

Interactive Brokers is another company suitable for those who would like to trade online in Canada. This US-based company is headquartered in Greenwich, Connecticut, but it allows traders to invest in 33 countries and 150 global markets. Let’s look at some of the most popular online trading options available to Canadian traders and review their pros and cons. In the table below, you can see an overview of our top five choices for a quick comparison. Choosing an adequate trading platform can be quite overwhelming, as options are abundant.

Interactive Brokers Canada is the Canadian arm of this global brokerage — otherwise known as IBKR — offering access to the US and global markets. IBKR has top-level trading tools, affordable fees, and low commissions on trades. The trading platform cost varies across different companies and can include monthly or annual subscription fees and transaction fees for each trade you make. Be sure to compare the fees charged by different platforms before selecting one so that you don’t end up paying more than you have to. Qtrade’s trading platform is easy to learn for beginners and meets the needs of active and experienced investors looking for an intuitive, user-friendly way to trade stocks, options, and other securities.

interactive brokers reputation

The bottom line is that it is most suited to professional day traders & options traders, so if that’s you, Interactive Brokers makes a lot of sense. The low margin rates and currency exchange options make the brokerage an interesting option for those investors interested in using those semi-exotic tools. interactive brokers forex review Like most online brokerage platforms, the web-based version of IBKR offers users a main client portal page. They have recently made some upgrades to their Client Portal homepage, which offers key account metrics at a glance, portfolio performance, tools and services, and access to quick trade functions.

Top Five Trading Platforms in Canada

This app offers the best and lowest fees and opportunities compared to competitors. However, while focusing on stocks and ETFs + mutual funds, there’s no option to trade crypto. Active investors can enjoy the special iClub membership based on the total number of investments and assets made. That said, some customers feel that Scotia iTrade fees are a bit high, however, note that you can completely waive it by maintaining a $10.000 minimum account balance.

Ending client equity of $314.6 billion, 10% lower than prior year and 3% lower than prior month, primarily due to an omnibus broker that is now using a trust company for custody. Surveys are not the only way to generate discount broker ratings. An interesting review by Weiss Research considered the financial stability of the brokers.

interactive brokers reputation

A long-term trader buys stock in a blue-chip company and holds it for years, seeking to profit gradually over time. Questrade is one of the only full-service brokers that allows investors to trade forex. It offers competitive pricing with target spreads as low as 0.8 pips. The “spread” is the difference between the bid price that someone is willing to pay and the ask price that someone is willing to sell at.

What can you trade with Interactive Brokers?

The only reason I am keeping Questrade is for diversification, i.e. not all eggs in one single basket. I also keep my long equity positions in Questrade as their stock commissions are quite competitive. “It appears to boil down to if your investments are considered “domiciled” in the USA.

There is also a promotional offer for traders aged 18 to 30, which includes commissions for stock and ETF trades that amount to $7.75. The latest challenger is Wealthsimple Trade, which is a stock-trading mobile app that offers commission-free ETFs and stocks . Questrade is still, by far, the more robust trading platform. They offer some of the lowest foreign currency exchange fees globally, which is something professional traders will love. In addition to the low fees, they also provide trading access to more stock markets than any other discount broker in Canada.

Personally, I found that the time it took to set up the platform was slightly longer than with other brokerages. However, with some time and patience, I was able to gradually figure out the platform and even began taking advantage of the more advanced features. Many comments online have mentioned the online and mobile platforms as one of the biggest negatives about IBKR. I also enjoy access to a wealth of research and analytical tools, which help inform my decision-making.

It appears to boil down to if your investments are considered “domiciled” in the USA. Interactive Brokers Canada is part of the parent company Interactive Brokers Group, Inc., which has been around for over 40 years and boasts a consolidated capital of over $10 billion. Its mission has always been to develop technology to help traders maximize their potential. Interestingly, way back in 1983 they were one of the pioneers of using technology to give their traders an upper hand.

This means that at least 35% of my stock holdings have to be covered by my own money. In other words IB will lend me no more than 65% of the value of my portfolio. It compares favourably with IBKR when it comes to fees, but it lacks the pro features that most active traders covet. The trading platform is limited to mobile; there is no desktop version, and the research tools are minimal.

Despite all the advanced tools, TWS does make the process quite complicated if you want to perform more straightforward research compared to other platforms. The higher the number of shares you trade per month, the lower your fee becomes per share. Interactive Brokers Canada allows you to capitalize on its proprietary ‘SmartRouting’ technology to search for and avail the best market prices, connecting to 125 markets in 31 countries.

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