Interactive Brokers Fees: What You Need to Know

Interactive Brokers is a popular online broker for investors who want access to international markets and low commissions. In this article, we'll look at the different fees associated with Interactive Brokers, including commissions, options contracts, and mutual funds. We'll also answer some frequently asked questions about these fees.

Commissions

Interactive Brokers offers two commission plans: IBKR Lite and IBKR Pro. For U.S.-listed stocks and ETFs, IBKR Lite customers pay $0 per share while IBKR Pro customers pay between $0.0005 to $0.0035 per share depending on their commission structure and volume traded. Options contracts are priced at $0.15 to $0.65 per contract for both plans, with a minimum commission of $1 for IBKR Lite customers and variable pricing structure for IBKR Pro customers based on monthly contract volume traded. Futures trades are priced at USD 0.85 per contract with no minimum commission or maximum ticket size for both plans.

Mutual Funds

Interactive Brokers offers over 46,000 mutual funds globally, with over 11,000 in the U.S., ranging from no-load funds to load funds with various expense ratios and redemption fees charged by the fund companies themselves. There is no additional fee charged by Interactive Brokers when buying or selling mutual funds through their platform; however, you may be subject to taxes or other charges imposed by the fund company itself when redeeming shares of a fund held in your account at Interactive Brokers.

FAQs

Are there any additional fees associated with trading through Interactive Brokers?

Yes, there are several additional fees that may be charged depending on your account type and activity level such as margin interest rates (for accounts using margin), inactivity fees (for accounts that have not had any activity within a certain period of time), wire transfer fees (for outgoing wire transfers) and currency conversion fees (for converting between different currencies). Please refer to the Interactive Brokers website for more information about these additional fees.

Does Interactive Brokers offer free trades?

Yes, IBKR Lite customers get unlimited free trades on U.S.-listed stocks and ETFs while IBKR Pro customers get discounted commissions based on their monthly trading volume levels up to certain thresholds set by Interactive Brokers themselves. Please refer to the Interactive Broker's website for more information about their commission structure and discounts offered for high-volume traders.

Does Interactive Broker's offer any special promotions or discounts?

Yes, they often run promotional campaigns offering discounted commissions or waived account setup/transfer fees during certain periods of time throughout the year so please keep an eye out for those if you're interested in opening an account with them!

Conclusion

In conclusion, it's important to understand all of the different types of fees associated with trading through an online broker like Interactive Brokers before making any decisions about opening an account or placing trades through them as these can add up quickly if you're not careful! However, if you take advantage of their promotional campaigns or discounts offered for high-volume traders then you can save quite a bit of money in commissions over time which makes it worth considering if you're looking for an online broker that offers access to international markets at competitive prices!