Is Interactive Brokers a Legitimate Firm?
Are you wondering if Interactive Brokers is a reliable and trustworthy company? Do you have concerns about its safety? You've come to the right place. We've done thorough research and here are our findings:
Is Interactive Brokers a Scam?
In the U.S., there are two main securities regulators at the federal level: FINRA (http://www.finra.org/) and the SEC. Interactive Brokers is a member of both, and being part of these organizations offers strong protection for the company’s clients.
Interactive Brokers’ FINRA membership number is 36418. You can view the company’s BrokerCheck profile, which shows that Interactive Brokers has been registered since 1994, making it a well-established player in the industry.
On the BrokerCheck profile, you will find 80 disclosures. Typically, the brokerage firm neither admits nor denies any wrongdoing and settles issues with fines. One example is a $5.5 million fine in 2018 for failing to establish an adequate internal supervisory system with written procedures.
Interactive Brokers’ SEC membership number is 8-47257. Similar to FINRA, the SEC enforces numerous rules and regulations and imposes fines when broker-dealers violate those regulations.
Since Interactive Brokers is registered with these major regulatory bodies, it is not required to be registered with state securities regulators. However, as Interactive Brokers also offers trading in futures and forex, it must be registered with the National Futures Association (NFA). The firm’s NFA membership number is 0258600.
Is Interactive Brokers SIPC/FDIC Insured?
The U.S. Congress ensures that insurance is available for securities accounts based in the country. It's important to note that SIPC (Securities Investor Protection Corporation) insurance covers stocks, bonds, and other securities in Interactive Brokers accounts, but positions in futures, forex, or other non-securities assets are not covered by SIPC (https://www.sipc.org).
SIPC provides insurance up to $500,000 per client at Interactive Brokers, with $250,000 of that coverage applying to uninvested cash.
IBKR Pro customers who choose to participate in Interactive Brokers’ FDIC-sweep program are also eligible for insurance on free cash balances from the FDIC, with a total coverage limit of $2.75 million per client.
For larger accounts, Interactive Brokers offers additional protection through a supplemental policy with Lloyd's of London. This policy provides coverage for up to $30 million, with $900,000 of that amount covering free cash balances. The policy applies only if SIPC coverage has been exhausted, and there is a house limit of $150 million.
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Interactive Brokers Better Business Bureau
In addition to the FINRA profile, Interactive Brokers also has a profile on the Better Business Bureau (BBB). The BBB rates companies operating in North America, offering insight into how Interactive Brokers performs according to its customers.
Interactive Brokers has earned an A+ grade from the BBB, which is the highest rating they give. This suggests a strong reputation. BBB reviews consider various factors, such as the number of complaints and how efficiently a business resolves them.
However, there are 20 customer reviews on the BBB profile, with a rating of 1.2 out of 5. Although this rating is low, it’s likely that it reflects a small group of dissatisfied customers who took the time to file complaints.
Is Interactive Brokers Safe Verdict
Interactive Brokers is a reliable, trustworthy, and legitimate investment firm. The company is regulated by several authorities, and securities and cash are insured. However, investing always involves risks, and no insurance protects against market loss. This applies to all brokerages, and based on what we know, Interactive Brokers stands out as one of the safer options.
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Interactive Brokers Review
Having established that Interactive Brokers is a credible and responsible firm, let’s now take a closer look at how they perform in key areas.
Investments Choices
Interactive Brokers primarily caters to experienced self-directed investors. However, it also offers robo services and managed accounts.
Retail and institutional clients can choose from a wide range of investment options. Interactive Brokers offers the following products:
- ETFs
- Closed-end funds
- Mutual funds
- Stocks
- Option contracts
- Forex
- Fixed-income securities
- Precious metals
- Warrants
- Structured products
- Cryptocurrencies
- Futures and options on futures
The equities category includes OTC and penny stocks, and in addition to U.S. exchanges, Interactive Brokers offers access to many global exchanges.
Website
To trade and research various assets, Interactive Brokers offers a well-equipped website. However, two-factor authentication is required to log in, which can be both a benefit and a drawback.
Once logged in, users have access to many useful tools. Charting is provided by TradingView, offering a high-quality experience. During our test, we found 11 plot styles, including Kagi, Renko, and Baseline. There are around 100 technical studies available, along with many customization features.
The trade ticket has six trade types, plus bracket orders (stop loss and take profit). There’s an option to add a price management algorithm for advanced trades.
Users can also access a security screener under the Research tab to find trades across U.S. and foreign markets.
Mobile App
Interactive Brokers' mobile app allows clients to trade from almost any location. It is available on both Android and Apple devices and offers a robust set of features.
The app includes two trade tickets: a horizontal ticket for easy order entry and a vertical ticket for standard orders. You can swipe through charts to review price action before submitting orders.
The app also provides basic charting with several indicators and three plot styles. However, it only displays five years of price data for each security, which could be limiting for some traders.
A demo mode is available, making it easier to practice using the app.
Desktop Platform
For those not on the go, Interactive Brokers' Trader Workstation (TWS) desktop platform offers professional-level features, ideal for serious traders.
The platform supports full-screen charting with numerous technical studies, drawing tools, and right-click trading. It includes multiple trade types, direct-access routing, and streaming Bloomberg TV.
TWS also has a practice mode to help new users get comfortable with the software.
Customer Service
Interactive Brokers offers 24/5 customer support over the phone. While most agents are based in India, there are some U.S.-based representatives.
For 24/7 service, Interactive Brokers offers an AI assistant, iBot, on its website. It’s useful, but not as effective as human support.
The website also features an internal messaging system for client communication.
Pricing
Interactive Brokers has no fees or minimums for accounts, and most trades come with low commissions.
U.S. stocks and ETFs are free for IBKR Lite customers. However, other assets and exchanges incur commissions.
Options trades are $0.65 per contract for Lite customers, with reduced rates for Pro customers who trade more.
Cryptocurrency trades have a commission of 0.12% to 0.18%, depending on the monthly trade volume.
Margin Service
Interactive Brokers offers competitive margin rates, with flat fees for Lite customers and tiered fees for Pro customers.
It’s easy to upgrade to a margin account through the website. Margin requirements are clearly displayed on the platform.
Additional Services
Cash Management Features: Interactive Brokers provides a free debit Mastercard, but doesn’t focus much on banking tools.
Initial Public Offerings: Hong Kong accounts can trade IPOs on the Hong Kong Exchange. U.S. accounts do not have access to IPOs.
Extended Hours Trading: IBKR Lite customers can trade U.S.-listed securities during pre-market and after-hours sessions.
DRIP Availability: Stock dividends can be reinvested in an Interactive Brokers account, but ETFs aren’t supported for DRIP.
Recurring Mutual Fund Purchases: Interactive Brokers does not offer automatic mutual fund investing.
Individual Retirement Accounts: Interactive Brokers offers several IRA options with no ongoing fees.
Fractional Shares: Interactive Brokers supports whole-share trading for stocks, ETFs, cryptocurrencies, and mutual funds.
Recommendations
Small Accounts: IBKR Lite is ideal for small accounts.
Retirement Savers and Long-Term Investors: While IRAs are available, Interactive Brokers doesn’t emphasize long-term investing.
Charles Schwab is a better option for this.
Beginners: Interactive Brokers is more suited for experienced traders. Beginners should consider Charles Schwab.
Mutual Funds: While Interactive Brokers offers some mutual funds, the fund resources aren’t as robust as other firms.
ETF and Stock Trading: Interactive Brokers excels in these areas, especially with its professional-level trading platform.
Interactive Brokers Review Judgement
Interactive Brokers is a legitimate and solid brokerage firm, but it shines brightest for experienced traders. For those seeking a more user-friendly experience, other brokers may be more suitable.
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Updated on 1/20/2026.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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