Home | Interactive Brokers LLC (2024)

FAQs

What is Interactive broker LLC? ›

Interactive Brokers LLC ('IB') is an agency only, direct market access broker that provides execution, clearance, settlement and prime brokerage for customers. Our business encompasses securities and commodities brokerage. IB does not engage in proprietary trading.

Since IBKR does not make proprietary bets, the risk of IBKR going bankrupt and client funds being tied up in a liquidation is significantly less than other broker-dealers that which take proprietary positions.

IBG LLC

Interactive Brokers

Interactive Brokers LLC is regulated by the US SEC and CFTC and is a member of the SIPC (www.sipc.org) compensation scheme.

The company claims client equity of $465.9 billion and 2.75 million client accounts. Unlike many competitors, Interactive Brokers is a true international investing platform. Headquartered in Connecticut, the company employs more than 2,900 people in corporate offices in the U.S. and abroad.

You are protected by the European Investor protection scheme up to €20,000. Interestingly enough, your assets in USD with Interactive Brokers are protected by the Securities Investor Protection Corporation (SIPC). This means that in the event of bankruptcy, customers are protected for amounts up to $500,000.

Interactive Brokers does not have a monthly inactivity fee, and it doesn't charge an account or deposit fee, either. The first withdrawal each month is free of charge while subsequent withdrawals carry a fee (e.g. $10 in case of USD withdrawal).

Unlike a mutual fund investor, you continue to be the direct owner of the underlying securities that are held in your own brokerage account. Your assets are held in an Interactive Brokers LLC brokerage account in your own name.

How do Interactive Brokers make money? ›

The number of active trading accounts is a key metric for brokerages like Interactive Brokers because they make money from users placing trades through their platform. The more people making trades, the greater the amount the company can earn from commissions, margin loans, and other fees.

"Because Interactive Brokers' core clientele are professional traders and institutional investors (e.g., hedge funds), it is crucial to provide the lowest commissions schedule available. In our rigorous assessment, there is no question Interactive Brokers delivers."

Interactive Brokers LLC (IB) is an American multinational brokerage firm. It operates the largest electronic trading platform in the United States by number of daily average revenue trades.

For US Persons, IBKR issues 1099 forms in a consolidated format. Most 1099 forms will appear on one statement rather than as separate forms. Information reported on the Consolidated Form 1099 is also reported to the IRS and should be reported on your federal tax return.

Interactive Brokers LLC: A- Outlook Stable.

We provide direct-access trade execution and clearing services to sophisticated investors, active traders and institutions and have a consolidated equity capital of $14.6 billion.

Interactive Brokers LLC 2 Pickwick Plaza, Greenwich, CT 06830 - member NYSE, FINRA, SIPC.

Under the Insured Bank Deposit Sweep Program, eligible IBKR clients can obtain up to $2,500,000 of FDIC insurance in addition to the existing $250,000 SIPC coverage for total coverage of $2,750,000.

Interactive Brokers attracts active traders with low per-share pricing, an advanced trading platform, a large selection of tradable securities — including foreign stocks — and ridiculously low margin rates. Its base offering, IBKR Lite, offers commission-free trades of stocks and ETFs.