Interactive Brokers Review
Interactive Brokers (IBKR) is the premier broker for sophisticated investors, offering access to over 150 markets worldwide. In 2025, they introduced "Forecast Contracts" (prediction markets) and continue to lead with the industry’s lowest margin rates (~5.14% USD) and high interest paid on idle cash (up to 4.83% USD).
Pros
- Unbeatable margin rates (Starts ~5.14%)
- Global access (150+ markets in 34 countries)
- High interest on uninvested cash (up to 4.83% USD)
- New "Forecast Contracts" for event trading
Cons
- Complex fee structure (Pro vs Lite)
- TWS platform has a steep learning curve
- Strict KYC and compliance checks
Forecast Contracts (New 2025)
Margin & Interest
FAQs about Interactive Brokers
What is the difference between Lite and Pro?
IBKR Lite (US only) offers $0 stock commissions but sells order flow. IBKR Pro charges low commissions but offers better execution (SmartRouting) and lower margin rates.
What are the margin rates?
As of 2025, IBKR Pro margin rates start around 5.14% USD for large balances, blending higher for smaller amounts, but still far below industry averages.
Is there a minimum deposit?
No, there is $0 minimum to open a cash account. Margin accounts require at least $2,000.
What are Forecast Contracts?
New in 2025, these allow you to trade "Yes/No" outcomes on economic events (like CPI releases) or climate data, offering a new way to hedge risk.
Does IBKR offer crypto?
Yes, eligible clients can trade major cryptocurrencies (BTC, ETH, etc.) alongside stocks from a single account.
Regulatory Risk Warning
Margin borrowing is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment.