How to Compare Interactive Brokers Fees and Commissions

It can be quite shocking to learn that there are many Brokers Fees and commissions out there these days. I’m sure that at least one person reading this article has heard the term “Interactive Brokers” and have an idea of what this is. For those who don’t know, Interactive Brokers are third party financial advisors that allow the investor to trade in many different shares. An investor will create a brokerage account, set up a savings or money market account, open a debit card account, and then place their trades using their debit card. Once the transaction is complete, they make their profits through  commissions.

There are many good places to find Interactive Brokers and some of them are: FX Club, TradeKing, Trade RT Venture Inc Interactive Brokers Fees Review., E-Trader Inc., and TD Ameritrade. All of these companies allow for the trading of cash funds, equities, derivatives, options, and mortgage backed securities. However, it is important to understand that each company differs slightly, and may have other fees or charges as well. Some include: fees for minimum account size, transaction fees, order fees, and platform fees. It is recommended that you compare each brokerage to get an accurate assessment of fees you will incur.

The Interactive Brokers are the most expensive service providers out there. This is due to the fact that they receive their commissions directly from the brokers who manage the funds. While the commission is usually not as much as you would pay to a full service stockbroker or discount broker, it is still an expense that you should review and consider before you choose to pay for the service.

Some of the other fees include: minimum account size, clearing fees, and order fees. These fees are typical of all online brokers. You will pay for minimum account sizes as well as for the fees required to place orders. Most of the time you don’t need to use the services of an Interactive Broker but it’s still nice to know what you’re paying for. If you’re just beginning to trade or do small volume trades then paying for an account is often cheaper than utilizing the services of a discount or full service broker.

Another thing you should review is the trading platform and the commission charged by each Interactive Broker. Many of the new Interactive Brokers charge much less than traditional full service brokers because they operate on a commission based platform. These brokers also allow traders to place smaller trades and limit the amount of times they can open new accounts. These brokers do not require traders to have a minimum or even a maximum account balance. The platforms are comparable to a discount broker where trades are executed via phone, internet, or through mobile devices.

Most of the top Brokers will offer a free trial account and demo accounts. These will allow you to practice all of the features and rules of trading without using real money. These trial accounts are great for beginners and are generally free or come with a low per-transaction fee. You’ll get your feet wet and learn how the interactive platform works, the way the market does, and how you can place orders and make profits. These brokers are the most secure and profitable when it comes to futures options and forex trading.

Finally, you should review the fees and commissions charged by each broker. You will need to know how much they will charge you monthly, quarterly, semi-annually, or annual. You’ll also want to review the transaction fees, account fees, and the maintenance fees that may be charged. Many of the top brokers offer no minimum transactions or maintenance fees. These are the absolute lowest priced fees and you’ll be paying less than minimums if you’re not using any cash assets.

Once you’ve reviewed all of the fees and charges then you can determine which brokers best suit your needs. If you find that some brokers have more charges then others then simply switch brokers until you find one that you feel is the right fit for you. With the right broker you can find the most competitive prices on all of your Forex, CFD, and futures transactions, plus exchange rates.