Interactive Brokers Review - Why It Isn't For Novice Investors

Interactive Brokers Group, Inc. (IB) is one of the largest online discount brokerage firms with headquarters at Greenwich, Connecticut. It is also one of the oldest brokerage firms in the country and one of the most recognized discount brokerage firms in the global industry. It has consistently been rated as one of the lowest cost brokers, if not the lowest, in the industry. This is an important feature for most investors and traders simply because gaining wealth at the least cost - fees and commissions, to be exact - is the best way to go.

Each trade is charged less than $5 on each round on the electronic markets. Keep in mind that this fee already included the regulatory and exchange fees, thus, making for lower fees than most other brokerage firms. Orders made through traditional methods are charged a higher fee of $8 that, again, included the accessory fees. But when you compare these fees to the $10 and upwards charges imposed by competitors, you will agree with the most favorable Interactive Brokers review given on this aspect.

However, the amount required for opening an active account may be prohibitive for small-time or first-time traders. You should deposit at least $5,000 to start trading futures and futures options. You are also well-advised to read the online manual before placing your bets, so to speak, lest you find yourself swamped in a sea of technical jargon, charts and graphs. Keep in mind that opening an account is easy but building your account is a different matter altogether.

And speaking of building your wealth, this is made possible with the use of the Trader Workstation as the trading platform. You have the option of either logging in to the browser-based platform or the downloadable version. Both are excellent at placing your orders as well as in tracking the progress of these orders in an easy, fast and accurate manner, thanks to one-click order entries. In many an Interactive Brokers review, these are common observations among average investors and seasoned veterans.

You can also trade other investments from the Trader Workstation including futures, stocks and options. Such versatility makes it easy to segue from one investment type to the next. Of course, the fact that you can trade in more than 60 global markets add to the versatile ways with which you can add to your investment portfolio.

You may, however, encounter a few bumps with the trading platform. Many customers actually say that the trading platform is not exactly the most advanced or sophisticated in the industry with its charting capabilities as its most notable oversight.

Their customer services also need more than a few improvements. These two bumps are the only cons in this Interactive Brokers review. Overall, the company provides for great service at affordable prices - a combination that few companies can actually lay claim to and still not be accused of lying to their teeth.