Interactive Brokers

*Est. $0.005 per share

Reviewed

March 2011

Pros

Low trading costs
Sophisticated trading tools
Direct-access trading
Access to more than 90 markets worldwide

Cons

$10,000 minimum to open most accounts
Trading platform not user-friendly
Best for professional traders, not average investors

Our Analysis

Interactive Brokers (IB) offers services that that the average investor may seldom need: a customizable trading platform, cutting-edge charting and research services, dynamic streaming quotes, tools for risk management and the ability to place orders that go directly to the market. IB stands out as well for its low cost and access to foreign markets. If you want the low trading costs but not the bells and whistles, TradeKing may be a better option, according to reviewers.

One of our top-ranked reviewers, Barron's, includes IB among the online brokers whose products and services they test and review. We found another mention of IB in the 2010 Readers' Choice Awards in the publication Technical Analysis of Stocks & Commodities.

Our Sources

1. Barron's

This year, Barron's rates 22 online brokers. Interactive Brokers is ranked third of the 22 overall. IB is named best broker for international traders and third best for frequent traders. Barron's also ranks IB second in a list of the three lowest-cost brokers for frequent traders, and third of the three lowest-cost brokers for occasional traders. The review warns, however, that IB's trading platform is not easy to learn.

Review: Newest Trading Play: Screen Savings, Theresa W. Carey, March 10, 2010

2. Technical Analysis of Stocks & Commodities MagazineDetails/Subscribe

Subscribers to the magazine Technical Analysis of Stocks & Commodities name Interactive Brokers the best stock brokerage, best futures brokerage and best foreign exchange brokerage. However, you need to buy the article to see the full report.

Review: Readers' Choice Awards 2010, Editors of Technical Analysis of Stocks & Commodities

Charles Schwab *Est. $8.95 per trade

7 picks including: Barron's, Forbes…

Scottrade *Est. $7 per trade

5 picks including: Barron's, SmartMoney.com…

TD Ameritrade *Est. $9.99 per trade

5 picks including: Barron's, Kiplinger.com…

E*Trade *Est. $9.99 per trade

4 picks including: Barron's, Keynote Systems…

OptionsXpress *Est. $9.95 per trade for up to 1,000 shares

3 picks including: Barron's, Kiplinger.com…

Interactive Brokers *Est. $0.005 per share