Interactive Brokers (IBKR) is known for its global market access and low costs. It caters to a range of clients, including individual investors, active traders, institutions, hedge funds and financial advisors.
Since its creation in 1977, IBKR has grown to become one of the largest securities firms globally. It offers electronic trading of stocks, options, futures, currencies, bonds, gold, cryptocurrencies and bonds in 36 countries from a single integrated platform.
IBKR emphasizes technological advancements, competitive pricing and broad product offerings to provide clients with an efficient and powerful platform for managing their investments globally.
Interactive Brokers’ pricing is competitive, but the brokerage often sweetens the deal with promotional offers, such as its referral program.
It doesn’t always offer cash bonuses for new sign-ups, but its referral program benefits both the referrer and the referred client.
For the Referred Client:
- Bonus: Interactive Brokers offers up to $1,000 in IBKR stock to new clients who sign up using a valid referral link.
- How it Works: New clients earn $1 in IBKR stock for every $100 deposited in cash or assets during their first year.
- Maximum Bonus: The bonus is capped at $1,000 in IBKR shares, so to receive the full bonus, you must deposit $100,000.
- Vestment: The awarded IBKR shares must be maintained in the account for at least one year to fully vest and be sellable. The value of the gifted stock adjusts daily based on net deposits.
For the Referring Client:
- Bonus: UA flat payment of $200 for each eligible referral.
- Referral Limit: Referrers are limited to 15 referrals per calendar year and 30 referrals total.
- Conditions: The referred client must open an individual or joint account, deposit at least $10,000 within 30 days of opening and maintain that balance for one year.
Important Considerations
Interactive Brokers provides compelling features and cost-effective trading, but it’s important to understand the terms and conditions associated with promotional offers, including the Refer a Friend program.
Key disclosures for Refer a Friend:
- Eligibility Restrictions: Not all clients or account types are eligible to participate as either a referrer or a referred client. Financial advisers, hedge funds and institutional accounts are typically excluded. Geographic restrictions also may apply.
- Deposit and maintenance requirements: For the referred client to receive the IBKR stock bonus, a minimum deposit of $10,000 or equivalent in other assets must be made within 30 days of account opening. The balance must be maintained for at least one year.
- Bonus Vestment Period: IBKR shares awarded to the referred client are not immediately sellable. They are subject to a one-year vestment period during which they must remain in the account.
- Referral Limit: Referring clients are limited to 15 referrals per calendar year and 30 total referrals.
- Tax Implications: Any bonuses received, whether cash or stock, may be considered taxable income. Consult with a tax professional regarding tax treatment of bonuses received.
Review the terms and conditions on the Interactive Brokers website to ensure you understand the requirements and potential implications of participating in promotional offers.
Benefits of Trading on Interactive Brokers
Even without a promotional offer, Interactive Brokers has plenty to offer active traders, from free trades to interest on cash balances.
IBKR Lite:
Through its IBKR Lite plan, Interactive Brokers provides retail investors with zero commissions on U.S. exchange-listed stocks and exchange-traded funds (ETFs), low margin rates and access to a variety of global markets.
The blend of commission-free access, competitive interest rates on cash balances (benchmark minus 1.5% for balances over $10,000) and market breadth makes IBKR Lite a good choice for retail investors who want a powerful platform without high trading costs.
IBKR Lite offers basic functionalities like Client Portal and IBKR Mobile.
IBKR Pro:
IBKR Pro is geared toward active traders, institutional clients and professionals.
The platform has low commissions on U.S. stocks and ETFs and offers advanced trading tools, faster execution and access to more complex order types.
IBKR Pro clients get better interest rates on uninvested cash (benchmark minus 0.5% on balances over $10,000).
Why Interactive Brokers is a Good Choice
Interactive Brokers provides global market access, cutting-edge technology and competitive pricing rather than frequent, large-scale signup bonuses. While direct cash incentives for new accounts are rare, its ongoing Refer a Friend program offers valuable rewards to new and existing clients.
Beyond promotions, IBKR’s value is its core offerings: commission-free trading on U.S. stocks and ETFs for IBKR Lite users and low commissions for active traders on IBKR Pro, attractive interest rates on uninvested cash and access to a variety of global products.
The benefits provide a compelling proposition for serious investors who want a powerful and cost-efficient platform.
Frequently Asked Questions
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Interactive Brokers does not consistently offer direct cash bonuses for new account sign-ups. Instead, its primary promotional offer is a Refer a Friend program that provides IBKR stock for new clients and a flat cash payment for the referrer.
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New clients who sign up using a valid referral link can earn up to $1,000 in IBKR stock. They receive $1 in IBKR stock for every $100 deposited in cash or assets within their first year, up to $1,000. The awarded shares must be maintained in the account for at least one year to fully vest.
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IBKR Lite is designed for retail investors and offers zero commissions on U.S. exchange-listed stocks and ETFs. It provides basic platform access and pays a competitive interest rate on uninvested cash. IBKR Pro is geared toward active traders and professionals. It has low commissions on U.S. stocks and ETFs, offers advanced trading tools, faster execution and provides better interest rates on uninvested cash.
