InteractiveBrokers
ref: The Poor Swiss
Overview
InteractiveBrokers (IB) is a well-established brokerage firm from the United States. IB was founded in 1978.
Read here for the list of available countries to open account.
Fees
Interactive Brokers has two fee systems:
- Fixed Fee System
- The fixed fee system is straightforward. You will pay a fixed fee for each exchange. For example, you will pay 0.10% on transactions on the Swiss Stock Exchange (with a minimum of 10 CHF)
- Tiered Fee System
- The tiered fee system is much more complicated. You will pay all the individual fees, such as clearing fees, trade reporting fees, and transaction fees. And the rules are different for each stock exchange
- If you want the lowest fees possible, you should opt for the tiered system
There are no custody fees or inactivity fees at IB.
Regulations
In overall, IB is extremely well-regulated. For instance, Interactive Brokers LLC works in the US, and it is regulated by the Security Exchange Commission (SEC). Interactive Brokers (U.K.) Limited works for European clients, and it is regulated by the Financial Conduct Authority (FCA).
Protection in case of bankruptcy is critical. Your protection with IB will depend on where you are domiciled.
- The SIPC will protect US Investors. SIPC protects your assets up to 500K USD. On the other hand, SIPC will only protect your cash up to 250K USD.
- For European investors, Your protection will depend on what you are trading
- With forex, CFDs, and non-US options and futures, you are protected by the FCA, up to 85K GBP
- For stocks, bonds, funds, and US options, you are protected by the SIPC, up to 500K USD (cash is only protected with 250K USD)
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