|
IBKR Lite vs Pro in 2025
Interactive Brokers Lite vs Pro cost and fees: are they the same? Differences between
IBKR Lite and Pro pricing plans for online stock and options trading.
|
IBKR Lite vs IBKR Pro
If you have a U.S.-based brokerage account with Interactive Brokers, it will be either a Pro or Lite account. Since you can pick either plan, it’s good to know what makes them different before choosing.
Difference between IBKR Lite and Pro
A lot of traders think the only difference between IBKR Lite and IBKR Pro is the commission. While the two have different commission setups, there are other differences as well.
For example, IBKR Pro accounts can start trading at 4:00 am EST on major U.S. exchanges. Lite accounts can’t trade until 7:00 am. Also, Pro customers (with qualifying account types) can use the FDIC-sweep program for their extra cash. Lite customers can’t use this service.
Eligibility
Any account can sign up for Pro. Not all can sign up for Lite, though. For example, institutional accounts can only use Pro. Lite is only for accounts based in the U.S.
IBKR Pro vs Lite Trading Technology
Both Lite and Pro accounts get to use the same trading tools, with two exceptions: APIs and IB SmartRoutingSM. Only Pro accounts can use application programming interfaces and Interactive Brokers’ special smart-routing technology.
The main desktop trading platform, Trader Workstation, is available to both Lite and Pro accounts.
Open Interactive Brokers Account
Visit IB Website
IBKR Pro vs Lite Interest Rates
Lite and Pro accounts earn and pay different interest rates on U.S. dollar balances. For uninvested cash, Pro accounts get the benchmark rate minus 0.5% (currently, that’s 4.83%) on balances above $10,000. Below $10,000, there’s no interest. Lite customers have the same two tiers, but the interest is benchmark minus 1.5% (currently 3.83%). Other currencies have similar rules.
Lite customers also pay higher margin rates. The Lite margin rate is a flat 6.83% across all balance tiers. Pro accounts have a sliding rate that starts at 5.83% and can drop to 4.83%. Usually, Lite is benchmark plus 2.5%, while Pro is between benchmark plus 1.5% and 0.5%.
Best Interactive Brokers Alternatives
IBKR Pro vs Lite Commissions
It’s true that one of the biggest differences between IBKR Lite and IBKR Pro is commissions. For U.S.-listed stocks and ETFs, Lite customers pay nothing. Pro customers pay commissions for these trades, and they can pick fixed or tiered pricing:
Fixed:
0.5¢ per share with a $1 minimum commission and 1% maximum.
Tiered:
Here, the commission depends on the number of trades in a month. Fees range from 0.35¢ to 0.05¢ per share with a $0.35 minimum commission (and 1% maximum).
All three commission types (Lite, Pro-Tiered, and Pro-Fixed) pass regulatory fees to the client. Pro-Tiered also passes along exchange, clearing, and other fees.
Some assets have the same commission under either plan. This includes currencies and fixed-income products. Other assets, like futures and options, can be traded under fixed or tiered pricing in Pro, but only under fixed pricing in Lite.
What Doesn’t Change
Both IBKR Pro and Lite accounts can use the broker’s stock yield enhancement program. There are no minimum account values or initial deposits needed for either plan. Interactive Brokers does not charge ongoing fees, like inactivity or annual charges, for either option. Market-data subscriptions cost the same for both.
Switching Between IBKR Lite and Pro
Accounts that can use Lite can switch back and forth between Lite and Pro whenever they want. Just log into the website, go to account settings (under the head-and-shoulders icon at the top right), and scroll to the Account Configuration section. There, you’ll find the link to change your pricing plan.
IBKR Lite vs Pro: Judgment
While IBKR Lite seems like the best deal with no commission trading, accounts that use margin or keep a lot of cash might actually save more by switching to the Pro plan.
Interactive Brokers Review
Open Interactive Brokers Account
Visit IB Website
Updated on 6/12/2025.
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.
|