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Written by Stefan Grasic Edited by Giles Thomas Fact Checked by Tomislav Turcin

7 November 2024

9 September 2024

Page Summary

Below is an Interactive Brokers review for traders and investors in the UAE. It breaks down all aspects of this online broker and compares them with other brokers from the industry. We pay attention to how their platform and features perform for the customers in the UAE to help you get the complete picture of their offering.

Review summary:

Interactive Brokers is a highly regulated online broker with almost flawless offers across all categories. Here is where they stand out from the other brokers in the industry:

Desktop Trading Experience – Trader’s Workstation platform (TWS) is highly intuitive, and offers advanced trading tools, buy/sell options, and a great variety of charting features.
Mobile Trading – IBKR Mobile is intuitively designed and mirrors the desktop platform in available assets, order types, and charting features, making it among the industry’s best trading apps.
Fees – IBKR Pro Pricing Plan offers one of the industry’s lowest commission and margin rates.
Direct AED Deposits – they accept direct UAE Dirham deposits and conversions options in 24 other currencies from their platform
Order Execution – IBKR’s SmartRouting guarantees the most reliable, fast, and cheap order execution in the industry
Market Coverage – access to 150 markets and 24 currencies across 33 countries. It is the best choice for Stocks & ETFs, Options, Bonds, and Mutual Funds.
Research and Analysis Tools – live quotes with single window access, customisable charts, and fundamental analysis tools.

Below is a detailed review of Interactive Brokers’ offerings, including their pros, cons, and key features.

Who It’s For

Interactive Brokers is well-suited for sophisticated individual and professional investors, including buy-and-hold investors utilizing IBKR Lite. The platform offers extensive options for those looking to invest internationally, with access to a broad range of global markets.

Also, the competitive rates and easy debit card access of Interactive brokers benefit margin traders. The platform also provides comprehensive asset screening and analytical tools, making it ideal for those needing detailed insights and data. For investors interested in complex trading algorithms, advanced options, and currency trading, IBKR offers cutting-edge features. Self-directed investors and those looking for the largest selection of mutual funds and bonds will also find Interactive Brokers a highly versatile and resource-rich platform.

Assets (Best Broker For Availability of Stocks, ETFs and Options )

Interactive Brokers offers access to 135 global markets across 33 countries, which include:

87,000 stocks (long, short, penny stocks, fractional shares, CFDs)
45,000 mutual funds (the world’s largest mutual fund marketplace)
13,000 ETFs
50,000 options (Single leg and multi-leg options – up to 8 legs)
3,052 Indices & 13 Indices as CFDs
100,000 bonds (corporate, municipal, treasury, CDs and international)
100 forex pairs (23 currencies, 100 trading pairs)
20 crypto coins

The vast coverage of different markets and asset classes makes Interactive Brokers an interesting choice for global traders looking for variety of tradable instruments. They finish best in class for availability of: stocks & ETFs, Options, Mutual funds and Global Bonds.

Here is How Interactive Brokers Market Coverage Performs Compared With Other Brokers In The Industry

Broker	AvaTrade	eToro	Capital.com	Forex.com	Interactive Brokers	Saxo Bank	TradeStation
Stocks	0	2000	0	0	87000	22,000	15000
ETFs	0	264	0	0	13000	6400	2000
Bonds	0	0	0	0	1,000,000+	4500	6000
Mutual Funds	0	0	0	0	45,000	250	2000
Crypto (spot)	0	74	0	0	20	0	20
Commodities	0	0	0	0	1	0	0
Options	44	0	0	0	50,000	3000	3000
Futures	0	0	0	0	30,000	3000	3000
Forex	59	52	138	91	100	200	0
CFDs	158	2000	4000	9500	8500	0	0
Max. leverage	1:400	1:400	1:500	1:400	1:20	1:20	1:4

Pros and Cons

Pros:

Low Costs: Interactive Brokers is known for its competitive pricing. It offers low commissions and margin rates, making it cost-effective for active and high-volume traders and investors. For stocks, ETFs, and bonds, if it offers a 0.05% commission rate,
Extensive Market Access: The platform provides access to over 150 global markets across 34 countries and 27 currencies, allowing users to trade stocks, options, futures, forex, bonds, and more across multiple countries and currencies.
Advanced Tools and Research: Traders benefit from professional-grade tools, including comprehensive screening, analytical tools, and access to complex trading algorithms for in-depth market analysis.
IBKR Lite: Provides commission-free trading for U.S. stocks and ETFs, making the platform accessible to casual investors.

Cons:

Complex Platform: The platform can be overwhelming for beginners due to its extensive features, advanced tools, and professional-level interface.
Minimum Activity Requirements: IBKR Pro users must meet minimum activity requirements or face an inactivity fee, which may not be suitable for low-frequency traders.

Learning Curve: New users may require significant time to become familiar with the platform’s many features and capabilities, especially for more complex trading strategies.

Fees and Spreads

Depending on the underlying asset, order frequency, and account type, users can choose between two pricing plans: IBKR Pro and IBKR Lite. Both pricing plans offer competitive fees and the lowest margin rates in the industry.

1. IBKR Pro (for professional and institutional traders)

Interactive Brokers pro pricing plan is aimed at professional traders and institutional investors with trading volumes above 300,000 shares/month and offers the lowest fee structure in the industry. IBKR pro users can choose between 3 different pricing tiers:

Fixed commission for stock trades of $0.005/share trade
Tiered pricing for stock trades based on monthly trading volume ($0.0035/trade for up to 300,000 stock orders/month and per $0.0005/trade for trading volume over 100 million stocks/month)
Commission-free stock and ETF trades on US Equities

Detailed breakdown of the IBKR pro pricing plan

Fee Type	Fees
Stocks and ETF Trading Fees	Either fixed at $0,005 per share or tiered from $0,0005 to $0,0035 per share, capped at 1% of trade value, depending on monthly trading volume
Futures and Futures Options Fees	Either fixed at $0,85 per contract or tiered from $0,25 to $0,85 per contract, based on monthly trading volume
E-micro Futures and Futures Options	Either fixed at $0,25 per contract or tiered from $0,10 to $0,25 per contract, based on monthly trading volume
Cryptocurrency Futures and Futures Options	Between $0,10 and $5,00 per contract, based on cryptocurrency contracts traded
Spot Currency Commissions	Between 0,08 and 0,20 basis points, based on monthly trading volume
E-mini FX Futures	Either fixed at $0,50 per contract or tiered from $0,15 to $0,50 per contract, based on monthly trading volume
E-Micro FX Futures	Either fixed at $0,15 per contract or tiered from $0,05 to $0,15 per contract, based on monthly trading volume
Small Exchange Futures	$0,08 per contract
Corporate & CD Bonds	0,1% of Face Value capped at $250 or 1% of trade volume on the first 10,000 in Face Value and then 0,025% Face Value on bigger transactions
Municipal Bonds	0,05% of Face Value capped at $125 or 1% of trade volume on the first 10,000 in Face Value and then 0,0125% Face Value on bigger transactions
Treasuries	0,002% of Face Value with a minimum of $5 for transactions under $1,000,000 Face Value and 0,0001% of Face Value with a minimum of $5 on bigger transactions
Mutual Funds	$14,95 per transaction, capped at 3% of the Trade Value

Note that IBKR Pro isn’t suited for trading large lots of penny stocks or pink sheets.

2. IBKR Lite (for average and casual traders)

The IBKR lite pricing plan is designed for average traders whose trading volumes don’t exceed 300,000 shares/month. The fee structure comes with a slightly higher cost but is still competitive compared to other brokers.

Detailed breakdown of IBKR lite pricing plan

Fee Type	Fees
US Stock and ETF Trading Fees	Commission-Free
Regulatory Fees	SEC transaction fees $0,0000229, FINRA transaction fees $0,00013
Clearing Fees	NSCC, DTC Fees $0,00020
Pass Through Fees	NYSE Commissions * 0,000175, FINRA * 0,00056
Requests to exercise Dissenter or Appraisal Rights	$100 + external costs
Hong Kong Stock Tenders for Cash	0,1% Stamp Duty
Withholding Tax Voucher Requests for dividends paid on German Stocks	€30 per line
Withholding Tax Reclaim requests for dividends paid on French stocks	€125 per line
Withholding Tax Voucher requests for dividends paid on Swiss stocks	15 CHF per line
Broker-assisted Phone Order	$30 per order
API/CTCI Directed Stock Order	$0,01 per order and $0,25 per API/CTCI Directed execution credit
Options Contracts	$0,65 per contract

Both pricing plans come with additional third-party fees apart from the trading fees listed above.

Non Trading fees

Interactive Brokers charges currency conversion fees on all trades, instruments and deposits denominated in a different currency than the one in which your account is set. There are no inactivity fees, but IBKR charges overnight fees between 2,1% and 5,3%, depending on the financial instrument and asset class traded.

Third-party fees

Interactive Brokers charge additional third-party fees that are industry average.

Detailed breakdown of Interactive Brokers third-party fees

Third-Party Fee Type	Fee
Options Regulatory Fee (ORF)	$0,01815 per contract
SEC Transaction Fee	$0,0000229 * Value of Aggregated Sale
FINRA Transaction Activity Fee	$0,00218 * Quantity Sold
OCC Clearing Fees	$0,02 per contract up to 2750 contracts/month and $55 per trade after that
NANOS Options on CBOE	$0,065 per contract

Margin rates

Interactive Brokers’ margin rates vary depending on the currency and trading volume and are among the lowest in the industry.

Detailed breakdown of Interactive Brokers margin rates

Currency	Tier	IBKR Pro	IBKR LITE
$	0 ≤ 100,000	5,33% (BM + 1,5%)	6,33% (BM + 2,5%)
$	100,000 ≤ 1,000,000	4,83% (BM + 1%	6,33% (BM + 2,5%)
$	1,000,000 ≤ 50,000,000	4,58% (BM + 0,75%)	6,33% (BM + 2,5%)
$	50,000,000 ≤ 200,000,000	4,33% (BM + 0,5%)	6,33% (BM + 2,5%)
$	> 200,000,000	4,33% (BM + 0,5%	6,33% (BM + 2,5%)
AED	0 ≤ 350,000	6,32% (BM + 2,5%)	7,32% (BM + 3,5%)
AED	350,000 ≤ 3,500,000	5,82% (BM + 2%)	7,32% (BM + 3,5%)
AED	3,500,000 ≤ 350,000,000	5,32% (BM + 1,5%)	7,32% (BM + 3,5%)
AED	> 350,000,000	5,32% (BM + 1,5%)	7,32% (BM + 3,5%)

Account Opening

Here is the step-by-step process for account opening with Interactive Brokers:

Step. 1: Visit the Interactive Brokers Website & Choose Account Type: Head to the website and click “Open Account.” Select your account type—Individual, Joint, IRA, or Institutional—and decide between IBKR Lite for commission-free U.S. stock trading or IBKR Pro for advanced traders with more competitive pricing.

Step 2: Fill Out the Application & Provide Personal Information: Complete the online form with your details, including name, contact information, employment status, and investment experience. This information helps tailor your account and assess product suitability.

Step 3: Verify Identity & Provide Documents: Upload identification documents like a passport, driver’s license, or national ID card, along with proof of address (utility bill or bank statement) for identity verification, a key requirement for regulatory compliance.

Step 4: Set Trading Preferences & Review Terms: Choose your base currency, indicate the assets you plan to trade (stocks, options, futures, etc.), and select features like margin trading if desired. Review the terms, fee structures, and risk disclosures before agreeing to the conditions.

Step 5: Submit, Fund Your Account & Start Trading: Submit your application for review (approval usually takes 1-2 business days). Once approved, fund your account using bank transfer, wire transfer, or other methods. After the account is funded, you can start trading across Interactive Brokers’ vast markets.

Trading Platforms and Tools

Interactive Brokers users can choose between 6 different trading platforms depending on their experience level (beginner to advanced) and preferred device (desktop, web, mobile):

Trader Workstation TWS: is the advanced desktop version suitable for experienced traders and institutional investors.
Client Portal: is the beginner-friendly web trading platform for regular day-to-day trading activities.
IBKR mobile app: is the main mobile app that mirrors the TWS desktop trading experience and offers access to the same assets, order types and trading tools (advanced trading shortcuts, over 400 data columns, the latest news, charting tools, indicators, and a built-in stock scanner).
IMPACT app: allows users to invest in ESG equities and companies based on pre-set parameters (green energy, blockchain, driverless cars).
IBKR GlobalTrader App: is a simplified version of TWS for beginners that allows investing in 90 global stock markets in your local currency.
IBKR EventTrader: is an add-on that can be accessed from the IBKR mobile app and allows users to speculate on the price movements of key assets, including commodities and futures.

Below is a detailed breakdown of Interactive Brokers two main trading platforms:

1. Trader Workstation (TWS) – For Professional Traders and Institutional Investors

The Trader Workstation is Interactive Brokers advanced desktop trading platform that offers professional-grade customisation capabilities, complex order types, and integration of bots, algorithms and third-party tools (TradingView, TC 2000, and Expert Advisors). This makes TWS supportive of advanced trading styles (Day trading, Swing trading, Scalping, Algorithmic, Auto trading) and is therefore an interesting choice for advanced and institutional traders.

While Trader Workstation isn’t compatible with MetaTrader 4, users can use the oneZero Hub Gateway to connect their Interactive Brokers trading account with MetaTrader 5.

Professional trading tools on TWS include: Portfolio Builder, Options Strategy Lab, Algo Trading, Risk Navigator, Strategy Builder, Market Scanner, and Volatility Lab. Users also have access to watch lists on equities, individual options contracts, futures, forex, warrants, CFDs and more.

IBot Integration: Interactive Brokers AI tool (IBot) quickly handles customer requests (orders, quotes), portfolio information and can even find analytic tools and advanced order types through the chat feature. This feature is available directly via voice or typed commands, for example: “What’s the last price of GOOG?” or “Chart AAPL vs. MSFT” or “Buy 100 shares of FB.” IBot also remembers and keeps links to your frequently used tools.

Charting: traders can access 100+ predefined charting indicators and toggle and zoom between 15-time frames. The platform’s advanced settings help integrate trading systems and build custom dashboards.

2. Client Portal – For Average and Casual Traders

The Client Portal is Interactive Brokers web-based trading platform that offers beginner-friendly trading tools and portfolio management features and is therefore a great choice for beginner traders. Users can access key account metrics in real-time such as Net Liquidation Value, P&L, and Buying Power and can also track the performance of their portfolio with easy-to-read return charts.

Additional features and platform add-ons:

Stock Yield Enhancement is a program that allows users to earn an extra income on the fully-paid shares of stock held in their accounts
IB SmartRouting system ensures users get the best possible order execution by searching for the best available prices of stocks, options, and other assets across brokers, exchanges, and dark pools.
Interactive Advisors is a relatively new feature that allows users to participate in social trading and robo-advisory services through Interactive Brokers.

Deposits and Withdrawals

Interactive Brokers offers multiple methods for depositing and withdrawing funds. Users can deposit via bank wire transfers, ACH (Automated Clearing House) transfers, checks, and online bill payments. Withdrawals are primarily processed through bank wire transfers, with some regions offering ACH withdrawals or direct transfers to linked bank accounts.

Interactive Brokers does not charge any fees for deposits. However, withdrawal fees may apply depending on the method used. Typically, IBKR allows one free monthly withdrawal, after which fees are applied (e.g., $10 for U.S. wire transfers, higher for international wires). ACH withdrawals are usually free for U.S. customers. Bank wire transfers typically take 1-2 business days, while ACH transfers may take 2-3 business days. Withdrawals through bank wires usually take 1-3 business days to process, depending on your bank’s processing times and location. ACH withdrawals can take 2-4 business days for funds to arrive in your account.

Deposits:

The minimum deposit to open a trading account at Interactive Brokers is $100. The account needs to get funded within 90 days of its opening.

The minimum deposit to open a portfolio margin account is $110,000.

Withdrawals:

Interactive Brokers users are only allowed to use the same withdrawal methods as the user chose to deposit money into the account.

There is no charge for the first withdrawal (of any kind) in a calendar month, but IBKR charges fees for each subsequent withdrawal. Account holders not using a security device have a limited daily withdrawal of $50,000.

Account Types

Interactive Brokers offers 5 different account types for UAE traders:

Individual Account – is the standard account with no restrictions for the single account holder.
Joint Account – has the same features as the individual account but can have two or more account holders.
Trust Account – is meant for legal entities where one party holds the assets on behalf of another party.
Islamic Account – is the Islamic swap-free account for Muslim traders. Users can not convert their live trading account into an Islamic (swap-free) version but need to open an Islamic account at first.
Demo Account – is a risk-free paper trading account meant for beginners to trade with virtual money.

*Note that UGMA/UTMA and IRA accounts are unavailable to UAE traders.

All Interactive Brokers trading accounts allow traders up to 1:2 leverage on stocks and up to 1:50 on other assets.

Research and Education

Interactive Brokers research and education offers beginners to advanced research tools, analysis reports and educational materials which makes it a great fit for traders looking to step up their knowledge.

Education

They have a Traders Academy with 45+ courses for beginners, professionals, investors and students to help them understand markets, currencies, tools and functionality available on IBKR platforms.

In addition, they are featuring the IBKR Campus, Traders’ Insight, IBKR Podcast, the IBKR Quant Blog, webinars, the Student Trading Lab, the Trader’s Glossary, and short video tutorials on how to trade and invest, which is a great choice if you are a casual trader looking to step up your game. Users are can also download a demo version of Traders Workstation to practice placing complex trades.

Research

The Fundamentals Explorer is Interactive Brokers’ research tool providing access to fundamental data, news services from Refinitiv, Thomson Reuters, TipRanks and analyst ratings on over 5,000 companies. Users get access to a dividend calendar, environmental, social, and governance (ESG) scores and income statements of the past six years for every company that users can trade stocks. Users can also access the IBKR GlobalAnalyst stock screener and free daily ETF trading ideas from Trading Central.

Customer Service & Support

Interactive Brokers offers various customer support channels, including live chat, phone support during office hours, and a comprehensive FAQ section. The platform is known for its responsive and knowledgeable customer service, particularly through live chat, which offers quick and efficient responses to user queries.

Phone support is available across different regions, though wait times can sometimes be longer during peak hours. Interactive Brokers also offers a ticketing system for more detailed inquiries, allowing users to submit queries and receive email responses.

They are NOT available on weekends and holidays, which is a major drawback for beginners.

Interactive Brokers support is available in different languages, but NOT in Arabic.

Regulation and Reputation

Interactive Brokers is a publicly traded company regulated by multiple tier-1 financial institutions, including the US Securities and Exchange Commission (SEC), the UK Financial Conduct Authority (FCA), FINRA, SIPC, the CFTC and is therefore considered a safe broker.

Interactive Broker is not licensed by the two local UAE regulators (DFSA and ADGM). Although they offer negative balance protection, UAE traders are not insured by the UAE Central Bank investor compensation scheme.

The following security precautions additionally protect Interactive Brokers users’ accounts

Interactive Brokers UAE Special Features

UAE users can deposit money directly in UAE Dirhams (AED) and convert them in 24 base currencies on the lowest conversion rates (average conversion costs for AED/USD are $2)
Interactive Brokers is not regulated in the UAE and does not operate a local UAE office.
The broker offers an Islamic swap-free account (that allows trading in compliance with the Sharia law) and customer support in English and Arabic language.

Conclusion

Being a publicly traded company and licensed by multiple tier-one regulators, Interactive Brokers is a reputable multi-asset broker known for its various trading platforms, support for different trading styles (day trading, automated, copy trading, bot integration, scalping), and low trading commission and margin rates.

Following their vast market coverage, fast and reliable order execution, and extensive selection of research and analysis tools, Interactive Brokers is an interesting choice to consider for retail and advanced stock, ETF, options, and bonds traders.

Interactive Brokers compared to other brokers:

FAQs

Q. Are Interactive Brokers trusted?

A. Interactive Brokers is a well-established global brokerage firm with a strong reputation. It’s regulated by multiple financial authorities worldwide, including the Securities and Exchange Commission (SEC) in the U.S. and the Financial Conduct Authority (FCA) in the UK. However, as with any financial institution, conducting your own research and due diligence is essential before opening an account.

Q. Is Interactive a good broker?

A. Whether Interactive Brokers is a good broker depends on your trading needs and preferences. It’s known for offering a wide range of products, advanced trading tools, and competitive pricing. However, its platform can be complex for beginners. Interactive Brokers could be a great choice if you’re an experienced trader or willing to invest time in learning its platform.

Q. What is the disadvantage of an interactive broker?

A. One of Interactive Brokers’ main disadvantages is its complex platform. It’s designed for experienced traders and may be overwhelming for beginners. Additionally, while it offers competitive pricing, fees can increase if you make frequent trades or use certain services.

Q. Does Interactive Brokers charge a monthly fee?

A. Interactive Brokers does not charge a monthly fee for most individual accounts. However, it charges various services, including commissions, exchange, and market data fees. Your specific fees will depend on your trading activity and the services you use.

Disclaimer

Stefan Grasic

Stefan Grasic (Dipl.-Jur) is the owner of Business24-7 and has considerable experience in the financial and investment niche, but also enjoys writing articles for the general readership. Stefan is an active stock, CFD, crypto and general investment researcher, advising blockchain companies such as Blockbird, GoCrypto, Hive Terminal at their start up level. Stefan began trading in 2010 as a college student. Money was tight,…

Interactive Brokers Review For UAE Users | 2023 Award Winner in 3 Categories