Introduction
Interactive Brokers is one of the leading online brokers in the world. It offers a wide range of investment products and services to traders and investors. However, like any other broker, Interactive Brokers charges fees for its services. In this article, we will discuss the different fees that Interactive Brokers charges.
Account Fees
Interactive Brokers charges an account maintenance fee of $10 per month. This fee is waived for clients who maintain a minimum account balance of $100,000 or who trade at least $10 per month. The account maintenance fee is charged to cover the cost of maintaining your account.
Commissions
Interactive Brokers charges commissions on trades. The commission rates vary depending on the type of asset you are trading. For example, the commission for trading stocks is $0.005 per share, with a minimum of $1 per trade. The commission for trading options is $0.65 per contract, with a minimum of $1 per trade.
Exchange and Regulatory Fees
In addition to commissions, Interactive Brokers also charges exchange and regulatory fees. These fees are charged by the exchanges and regulatory bodies that oversee the markets. The fees vary depending on the asset you are trading and the exchange on which you are trading.
Margin Fees
Interactive Brokers offers margin trading, which allows you to borrow money to trade. However, margin trading comes with additional fees. Interactive Brokers charges interest on margin loans, which is calculated based on the amount of money you borrow and the prevailing interest rates.
Withdrawal and Transfer Fees
Interactive Brokers charges fees for withdrawing and transferring funds. The fees vary depending on the method you use to withdraw or transfer funds. For example, the fee for transferring funds via wire transfer is $10 for domestic transfers and $20 for international transfers.
Inactivity Fees
Interactive Brokers charges an inactivity fee of $20 per month if you do not trade or maintain a minimum account balance of $2,000. The inactivity fee is charged to cover the cost of maintaining your account when you are not actively trading.
Conclusion
Interactive Brokers charges a variety of fees for its services. It is important to understand these fees so that you can make informed decisions about your trades and investments. By understanding the fees that Interactive Brokers charges, you can better manage your costs and maximize your returns.
