Review of the company
Interactive Brokers belongs to an American company developing in the direction of discount brokerage: providing a limited range of services in the financial markets for a relatively small fee. With Interactive Brokers, traders can trade in more than 100 market centers in 24 countries, including trades in stocks, futures, bonds, forex, options and a number of other instruments. Based on the number of trades with average daily income, it is considered the largest broker in the United States. IB is a member of FINRA and SIPC. Client’s funds in accounts are insured for 250 thousand dollars, and assets – for 500 thousand dollars. Of course, the loss of money due to the wrong forecast of the market price and unforeseen market situations does not apply.
The headquarters of the company, the official name of which is IB, located in Greenwich, Connecticut. Along with the main office, there is an extensive network of representative offices located in the US, Australia, Canada, Singapore, Hong Kong, India, Japan, Luxembourg and UK, serving over 876,000 clients accounts in more than 220 countries and territories.
Interactive Brokers subsidiaries provide access to a range of financial instruments, including commodities, options, futures, currency pairs, bonds, traded index funds and price difference contracts. In May 2007, 10% of the capital of this brokerage firm was placed in the form of 40,000,000 shares on the NASDAQ at $30.01 per share (IBKR ticker). In 2009, Barron’s magazine recognized it as the “most accessible trading platform” for investors – this status is still held by it.
The primary regulator overseeing Interactive Brokers is the US Securities and Exchange Commission. The website of this government department publishes monthly reports on its activities. The broker received licenses from such reputable regulators as FINRA (US), FCA (UK), NYSE and SEC (all from the USA), as well as many other regulatory bodies that protect traders and a presence in the trading industry itself. All accounts are insured by US regulators and insurance companies.
Trading tools and platforms
Interactive Brokers supports several trading platforms (Desktop, Browser and Mobile). The broker offers its own IB Trader Workstation platform, as well as an application programming interface (API) for trading automation:
- WebTrader – own development of IB based on HTML;
- Trader Workstation (TWS) – a full-sized computer terminal with the optional PaperTrader trade simulation function;
- Mosaic – an interface for TWS;
- Mobile applications for Android, iOS and BlackBerry;
- API and FIX CTCI for creating your own automated trading strategies;
- OptionTrader and Probability Lab – simplifies single and complex multi leg option trading.
The trading platform can be tested free of charge, without any additional obligations. This is the perfect way to test strategies, assets and other products with no time limits before trading for real money. You can open an account in a demo mode: for this, the services Trader Workstation (TWS) Demo, WebTrader Demo and Forex Demo (FXTrader) are provided.
Feedback from Interactive Brokers touches on IB SmartRouting technology, which guarantees the execution of orders at the best prices. This system automatically continues to monitor the market after laying the route and redirects the trade order to achieve the most favorable terms of the transaction. Thanks to this approach, the indicators of price performance for shares and options of this company are higher than the average for the United States. As for Forex trading, according to reports published by the broker, 44% of accounts registered on its website have a positive level of profitability.