Interactive Brokers Assets Under Management (AUM)

2024 IBKR assets under management (custody). Interactive Brokers AUM: client assets and number of customers (user accounts)

Interactive Brokers Assets Under Management

Are you interested in the financial strength of Interactive Brokers? We’ve done all the research for you, and the answers may surprise you. Read below.

Interactive Brokers AUM

Client assets $373 billion
Number of customers 2.56 million
Daily average revenue trades 1.93 million
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Interactive Brokers is a mid-size broker by AUM. However, it is extremely small when comparing total assets under management to Charles Schwab, who has $8.7 trillion in AUM and over 34.8 million customers.

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IBKR Assets Under Management

Interactive Brokers Number of Customers

Interactive Brokers has about 2.56 million customers. This number is 23% higher than the prior year.

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Top Interactive Brokers Complaints

In addition to those aforementioned advantages of Interactive Brokers, there are also a number of disadvantages or downsides that potential clients should be aware of before signing up. Here is a list of the most impactful disadvantages.

Lots of Hidden Fees

Although Interactive Brokers has some of the lowest trading commissions in the business, it is very important that potential clients understand that the trading fees are not all the fees required to be a customer of the broker.

For example, Interactive Brokers does offer a free quote and data service, however to get real-time quotes at Level I or Level II extra fees are required. And those extra fees are different depending on which exchanges you want real-time data for. If you want to trade both NASDAQ and NYSE you will need to sign up for data packages for each of those markets which runs about $10 per month per market.

Another additional fee that may apply to some accounts is the $7.50 per quarter charged for IRA accounts.

Interactive Brokers AUM

Trading Platform

At first the sophistication and versatility of Interactive Broker’s platforms, especially the desktop version, would seem to be a plus. However, depending on the client’s needs the platform may be overkill or just too difficult to navigate.

Interactive Brokers is not geared towards casual investors who make an investment here and there. It is designed for people who are more active in their trading and investment management as the platforms are designed around that. It takes a good amount of time for a user to become comfortable with all the versions features. For example, a rather simple task of buying and selling a stock can be complicated depending on how the platform is set up. It takes a lot of time to get the platform set up to meet individual needs.

Customer Service

Again, since Interactive Brokers is primarily intended for investors and traders that are more active and require more complicated tools, the service offerings are geared towards people who do not want or need to pay for extra hand holding. As a result, customer service at Interactive Brokers can seem cold and unforgiving for people used to more personalized service at bigger banks like Merrill Lynch or Bank of America.

There are very few tutorials on how to use the trading platforms, and any account issues can be dealt with via chat or phone, but that service will be impersonal and expedient. They expect that traders and investors who sign up with Interactive Brokers have some knowledge of trading and using more advanced platforms.

Charting is Just Alright

Depending on what a trader or investor who is interested in technical analysis is after, the Interactive Brokers charting tools are not as robust as other platforms. Furthermore, when comparing the charts to a service like Worden’s TC2000, the differences are very apparent.

The Interactive Charts will allow you to insert a wide range of indicators like moving averages, Bollinger Bands, or Relative Strength. However, visually the charts can be difficult to read and maneuver. When you want to view different time periods on the chart, there are way too many steps and tweaks to get it to look how you want.

Interactive Brokers Advantages

Interactive Brokers has a lot of things going for them, and the sheer number of customers who use the broker is a testament to that. There are thee key advantages that customers get when using Interactive Brokers as their primarily broker.

Low Cost Trades

When people first sign up for an account with Interactive Brokers it is usually because of their low cost commissions. Whether the trader or investor is trading stocks, options, ETFs, mutual funds, forex, or futures Interactive Brokers definitely has some of the lost commissions in the business.

Best Price Execution

The second advantage Interactive Brokers offers its customers is really fast execution, which typically results in the best price per share. The way most brokers structure their business is that they sell a client’s order to other market makers who will trade against them. This can lead to paying a higher per share price than clients need to.

Interactive Brokers uses its SmartRouting technology to quickly (milliseconds) scan the market for the best prices for stocks and options and executes at that lower price. Over time, and with enough trading volume this can greatly enhance returns.

Excellent Trading Platforms

A discount broker is only as good as its trading platform. Offer a poor platform and traders and investors will be unsatisfied, no matter how cheap the fees are. Simple platforms can be alright if all the traders do is simple order execution, however if more complex trades like option credit spreads or forex trades are required than a solid platform is critical.

Interactive Brokers has invested a lot of time and money in developing a strong suite of trading platforms. From the basic web version, to the smartphone version, all the way up to the full-featured, fully customizable desktop version, customers have access to one of the best trading platforms available in the market.

The desktop version is especially good in that it is fully-customizable depending on the needs of the trader and the markets traded. Add that to the instant access to multiple markets around the globe and you get a really good set of trading platforms to work with.

Interactive Brokers AUM Summary

Overall, Interactive Brokers offers a solid trading service, especially for those investors and traders looking for a more advanced platform with lots of available customizations and low commissions. However, this needs to be balanced with Interactive Brokers complaints: lower than average customer service, high minimum deposit levels, higher hidden fees, and a charting package that is only adequate when making the ultimate decision on whether to sign up or not.

Updated on 1/22/2024.

About the Author
Arthur Chachuna is a professional personal finance blogger, and the owner of Brokerage-Review.com. He has been an avid investor for 25 years, and has a background in both applied math and programming.