Interactive Brokers (IBKR), which has been listed on the NASDAQ since 2007, is a low-cost online brokerage service that allows you to invest worldwide in a range of asset classes. This includes stocks, options, futures, currencies, bonds and funds.
Why is IBKR the most comprehensive platform out there NOW?
Product summary (based on IBKR Pro):
- What you can invest in: Stocks, Options, Futures, Currencies, Bonds and Funds
- Minimum balance required: US$0
- Maintenance fee: None — IBKR has recently removed this fee, which was previously up to US$10 per month, less commission paid that month.
- Fees for Singapore stocks:
- (Fixed Pricing): 0.08% of trade value (min. S$2.50 per order)
- (Tiered Pricing): 0.08% of trade value (min. S$2.50 per order)
- Fees for US stocks:
- (Fixed Pricing): US$0.005 per order (min. US$1 per order, max. 1.0% of trade value)
- (Tiered Pricing): US$0.0035 per order
- Fees for HK stocks:
- (Fixed Pricing): 0.08% of trade value (min. HK$18 per order)
- (Tiered Pricing): 0.05% of trade value (min. HK$18 per order)
Tiered vs Fixed pricing
There are two types of pricing structures offered by Interactive Broker.
Tiered pricing: For tiered pricing, your commission fee depends largely on your trading volume. There might also be extra costs in exchange, regulatory and clearing fees.
Fixed pricing: For fixed pricing, you are charged a fixed rate per share that includes all exchange and regulatory fees. This could be a fixed amount per share, such as US$0.005 per trade for US stocks; or a set percentage of the trade value, such as 0.08% of trade value for Hong Kong stocks.
| Pros | Cons |
|---|---|
| Low Commission Cost | Not the Most User-Friendly Interface |
| No Minimum Balance Required | |
| No Maintenance Fee | |
| Invest globally in a variety of products through a single account |
How to open and fund your IBKR account? (6 Simple Steps)
1. Step 1: Click on this link and Click on “Open account”.
2. Step 2: Create a username and password, confirm your email address and select the country/region.
3. Step 3: Verify your email account.
4. Step 4: The application will require your personal information, income, tax residency information and more. To speed up your application, you can select the option to retrieve MyInfo from your SingPass account. This will share your personal details that will help to prefill your application.
Step 5: Finish filling up the form.
Step 6: Fund your account to start investing!
To fund your account, you will have to transfer funds via a method such as bank wire.
This can be done in multiple currencies, including SGD, USD, HKD, CNH and GBP. Once the funds are in your account, you’re good to go!
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Disclaimer: The information provided by LearnToInvest serves as an educational piece and is not intended to be personalised investment advice. ​Readers should always do their own due diligence and consider their financial goals before investing in any stock.