Interactive Brokers (IBKR) is the gold standard for margin trading in traditional markets. Founded in 1978 by Thomas Peterffy, a pioneer of electronic trading, IBKR offers the lowest margin rates in the industry and access to 150+ markets across 33 countries. With over $400 billion in client equity, it is trusted by both retail and institutional traders worldwide.
Pros & Cons
✅ Pros
- Lowest margin rates in the industry (5.33% benchmark)
- Access to 150+ global markets
- Portfolio margin for experienced traders
- Professional-grade trading platforms (TWS)
- Extensive range of tradable products
- 45+ years of operational history
- Regulated in major jurisdictions worldwide
❌ Cons
- Complex platform not ideal for beginners
- Trader Workstation (TWS) has steep learning curve
- Inactivity fees may apply
- Customer service can be impersonal
- Account approval process can take time
Fee Structure
Margin Tiers
| Tier | Max Position | Max Leverage | Maintenance Margin |
|---|---|---|---|
| Reg T | Varies | 2x | 25% |
| Portfolio Margin | Varies | 4x | 15% |
How to Sign Up for Interactive Brokers
Interactive Brokers FAQ
IBKR offers the lowest margin rates in the industry, starting at the Fed Funds benchmark rate +0.5% for balances over $1M, up to benchmark +1.5% for smaller balances. This is significantly lower than most brokers.
Portfolio Margin at IBKR uses risk-based calculations instead of fixed percentages, potentially offering 6:1 leverage on diversified portfolios. It requires a minimum $110,000 account balance and approval.
IBKR is one of the safest brokerages globally, publicly traded (NASDAQ: IBKR), regulated by SEC/FINRA in the US, and insured by SIPC for up to $500,000 per account.
IBKR has no minimum deposit for individual accounts. However, Portfolio Margin requires $110,000 minimum equity, and some features require minimum account values.