Interactive Brokers Canada Review 2025: 3.5/5

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Interactive Brokers in Brief

Our opinion of Interactive Brokers

We particularly liked the extensive range of tradable assets available with Interactive Brokers, spanning global markets and offering access to stocks, ETFs, options, and more. The advanced Trader Workstation (TWS) platform stood out for its robust features and customizability, making it ideal for experienced traders. Additionally, the competitive fees on stock and forex trading are a strong advantage for high-volume and active traders.

We would have liked a more beginner-friendly platform interface, as the steep learning curve of the TWS can be a significant barrier for new investors.

Customer support response times could also use improvement to better serve users in need of timely assistance. The absence of copy trading and Islamic trading options makes the broker less appealing to certain trader demographics.

Who is Interactive Brokers designed for?

Interactive Brokers is best suited for professional or highly experienced traders seeking advanced tools and broad market access.

Before zeroing in on Interactive Brokers, check out the other options in the market:

Let's find out more about our test results.

Security and reliability 3.5/5

Interactive Brokers has been a prominent name in the trading industry since its establishment in 1978, offering over four decades of experience in global financial markets. The broker has earned the trust of a substantial user base, with over 2 million active accounts worldwide. It is recognized for its innovative trading technology and has received multiple awards, including accolades for Best Online Broker from Barron’s and Best Trading Platform by Investopedia.

For Canadian traders, Interactive Brokers operates under the regulation of the Investment Industry Regulatory Organization of Canada (IIROC), ensuring compliance with strict financial standards. While it is not explicitly registered with the OSC, BCSC, or ASC, the IIROC regulation provides nationwide oversight, offering strong protection for traders.

Interactive Brokers also maintains a high level of international credibility by being regulated by other major authorities, such as the SEC (United States), FCA (United Kingdom), and ASIC (Australia). These multiple layers of regulation highlight its commitment to transparency and investor protection.

To help users control risks, the broker provides advanced tools like margin management features, customizable alerts, and the IB Risk Navigator, which offers real-time insights into portfolio risk exposure. However, it lacks features like two-factor authentication (2FA) by default, which may raise concerns about account security for some users.

Market and asset diversity 4/5

Interactive Brokers stands out in the trading industry for its extensive range of tradable assets, catering to investors seeking access to both domestic and international markets. The broker offers a diverse portfolio that includes stocks, ETFs, options, futures, forex, mutual funds, and more, enabling traders to build well-rounded investment strategies.

With access to over 150 markets in 33 countries, Interactive Brokers positions itself as a strong choice for traders seeking global exposure. However, the broker’s focus on advanced tools and professional trading may make its offering less approachable for beginners compared to competitors.

The following table highlights the asset types available with Interactive Brokers compared to market averages:

Our opinion on offerings from Interactive Brokers

Interactive Brokers excels in offering a broad array of assets and unparalleled global market access. Its deep selection of investment options sets it apart from competitors, although the complexity of its platform might limit its appeal to novice investors.

Platforms and tools 3.5/5

Interactive Brokers provides a suite of powerful platforms tailored to meet the needs of experienced and professional traders. These platforms are equipped with advanced tools, extensive market access, and features designed for in-depth analysis and efficient execution of trades.

Trader Workstation (TWS)

Trader Workstation is Interactive Brokers’ flagship platform, offering an extensive range of features for professional traders. It includes advanced charting tools, customizable layouts, and over 100 technical indicators. TWS supports complex order types, including bracket orders, trailing stops, and algorithmic trading strategies. Its IB Risk Navigator is a standout tool for monitoring real-time portfolio risk.

IBKR Mobile

The IBKR Mobile app provides a comprehensive trading experience on the go. It includes features like real-time market data, portfolio management, and advanced order types. The app also integrates with the desktop platform, allowing seamless synchronization between devices.

Client Portal

The Client Portal is a web-based platform designed for less active traders or investors who prefer a simpler interface. It provides access to account management, basic charting tools, and real-time quotes, making it a more user-friendly option compared to TWS.

IBKR API

For tech-savvy traders, the IBKR API allows users to build custom trading applications. It supports Python, Java, and other programming languages, offering extensive flexibility for algorithmic trading and data analysis.

IBKR GlobalTrader

This mobile-focused platform is aimed at international stock trading. It simplifies access to global markets and is best suited for traders looking to invest across various regions without extensive technical tools.

Analysis Tools and Order Types

• IB Risk Navigator: Monitors and manages risk exposure across portfolios.
• Probability Lab: Helps traders visualize and create options strategies.
• Advanced Charting: Includes customizable indicators and multi-timeframe analysis.
• Algorithmic Trading: Supports execution algorithms to optimize trade performance.
• Order Types: Includes complex options strategies, bracket orders, and market-on-close orders.

Fees, spreads and commissions 3.5/5

Interactive Brokers positions itself as a cost-effective option for active and professional traders due to its competitive fees and transparent pricing. The broker offers tiered pricing structures that benefit high-volume traders, but its fee system may not always appeal to casual or low-frequency traders. While its forex spreads and stock commissions are among the lowest in the industry, additional fees such as inactivity fees and withdrawal charges can detract from its overall value.

Fees and Spreads Comparison Table

Other Fees

• Deposit/Withdrawal Fees: Bank transfers are free for deposits but may incur a fee of $10-$30 for international withdrawals.
• Inactivity Fees: $10 per month for accounts that do not generate at least $10 in commissions (waived for accounts with balances above $100,000).
• Overnight Financing Fees: Applicable for margin positions, varying based on the currency and market.
• Data Subscription Fees: Charges for accessing live market data, ranging from $4-$20 per month depending on the exchange.

How is the price positioning of Interactive Brokers?

Interactive Brokers scores well in terms of low stock commissions and forex spreads, making it ideal for active traders and high-volume participants. However, its inactivity fees, withdrawal charges, and costs for market data subscriptions can make it less appealing for casual or beginner investors. While its fees are competitive for advanced users, traders with simpler needs might find better value elsewhere.

Customer reviews 2.9/5

Interactive Brokers has a Trustpilot rating of 2.9 out of 5 based on 3,067 customer reviews, reflecting mixed experiences with the broker, ranging from its robust features to frustrations with customer service and platform usability.

Here are some recent testimonials from Canadian users:

• Amanda J (February 7, 2025): "I signed up for Interactive Brokers because of their low fees and access to global markets, but the experience has been disappointing. The interface is overly complicated, and it took me weeks to figure out how to place a basic trade. I once had an issue with my account balance not updating properly, and when I contacted customer support, it took over three days to get a response. I expected better for a platform that advertises itself as professional-grade."
• Daniel K (October 25, 2024): "As a day trader, I was initially drawn to Interactive Brokers for its advanced tools and real-time data. Unfortunately, the frequent system glitches have been a major headache. Just last week, I couldn’t access the platform for two hours during peak trading hours, which cost me a significant opportunity. The customer support was unhelpful and didn’t offer any compensation. The platform is powerful when it works, but reliability has been a consistent issue."
• Priya M (June 12, 2024): "I switched to Interactive Brokers from another broker hoping to save on fees, but I’ve had a mixed experience. While the fee structure is competitive, I’ve had trouble with the withdrawal process. It once took over a week to receive my funds, and the explanation I got from customer service wasn’t clear. The trading tools are great, but the poor service and delays make me hesitant to recommend it to others."

How is Interactive Brokers positioned in relation to its competitors?

Conclusion of our review of Interactive Brokers

Interactive Brokers stands out with its extensive asset offerings and competitive fee structure, making it an appealing choice for experienced investors seeking global market access.

However, the platform's complexity and the lack of copy-trading features may deter beginners or those seeking a more user-friendly experience. While its regulation is robust, other brokers provide more straightforward platforms and additional features, such as integrated copy trading services.

Before opening an account with Interactive Brokers, compare the best brokers in Canada.

What types of accounts are available with Interactive Brokers in Canada?

Interactive Brokers offers a variety of account types tailored to meet the diverse needs of its clients. Below is a summary table comparing the key characteristics of these accounts:

Individual Account

The Individual Account is designed for single users seeking complete control over their trading activities. This account allows the holder to access all trading and management features, including the ability to trade in multiple asset classes such as stocks, options, futures, forex, and more. Margin options include Cash, Reg T, and Portfolio Margin.

Joint Account

The Joint Account is ideal for two users who want to share control over a single account. Users can choose from various ownership configurations such as Tenants with Rights of Survivorship or Tenancy in Common. Both account holders have equal access to trading and management tools, making it a flexible option for families or business partners.

Trust Account

The Trust Account is structured for entities where assets are managed by a trustee on behalf of beneficiaries. This account type offers the same trading features as the Individual and Joint Accounts but includes additional controls for trustees and grantors.

IRA Account

The IRA Account is tailored for individual U.S. residents who want to save for retirement with tax-advantaged features. This account provides the same trading capabilities as the Individual Account while complying with retirement-specific regulations.

Demo Account

Interactive Brokers offers a Paper Trading Account that simulates a live trading environment with a virtual balance of $1,000,000. Users can access the same trading platforms as live accounts, including the Trader Workstation (TWS), IBKR Mobile, and the Client Portal. This account is available indefinitely, allowing both new and experienced traders to test strategies risk-free.

No halal trading options

Interactive Brokers does not offer a dedicated Islamic or swap-free account at this time. This may be a drawback for traders who require Sharia-compliant account options.

Deposits and withdrawals at Interactive Brokers: How does it work?

Interactive Brokers offers a solid range of deposit and withdrawal methods, focusing on secure and traditional banking options such as bank wires and ACH transfers. While these options are reliable and widely used, the lack of support for modern payment methods like credit cards and e-wallets may be a drawback for clients seeking faster or more convenient funding solutions.

Additionally, the policy of offering only one free withdrawal per month, with fees applying thereafter, sets it apart from some brokers that provide unlimited free withdrawals. Overall, while Interactive Brokers provides secure and efficient processing for deposits and withdrawals, it may not fully meet the expectations of clients looking for diverse, instant payment methods.

Does Interactive Brokers offer copy trading?

Interactive Brokers does not offer dedicated copy trading or social trading features on its platform. While it provides access to advanced trading tools, a wide range of assets, and global market connectivity, it is not designed to facilitate the replication of other traders’ strategies or to engage in community-driven trading.

For clients interested in features like copying professional traders’ portfolios or interacting with a social trading community, Interactive Brokers may not be the ideal choice. Its focus is primarily on providing institutional-grade trading tools for self-directed investors and active traders. Additionally, there are no third-party integrations or proprietary platforms that support copy trading within its ecosystem.

What is the tax treatment of income generated by Interactive Brokers?

In Canada, income generated through trading with Interactive Brokers is subject to taxation, and the applicable tax regime depends on how the Canada Revenue Agency (CRA) classifies your trading activity. This classification determines whether your income is treated as capital gains or business income.

Applicable Taxation

• Capital Gains Tax:If your trading is considered an investment activity (e.g., long-term holding of stocks or other securities), profits are typically taxed as capital gains. Only 50% of your capital gains are subject to taxation, which are then added to your total income for the year and taxed at your marginal tax rate.
• Business Income Tax:If trading is your primary activity and you trade frequently or professionally, your profits may be classified as business income. In this case, 100% of your trading profits are taxable and must be declared as part of your total income. Expenses related to trading, such as platform fees, subscriptions, and internet costs, may be deductible.
• Dividend and Interest Income:Dividends from Canadian companies are eligible for a dividend tax credit, whereas dividends from foreign companies and interest income are taxed as regular income.

How to declare your trading income

To declare your trading income in Canada, you will need to do the following:

• Track All Transactions: Keep detailed records of all your trades, including purchase and sale dates, amounts, fees, and realized gains or losses.
• Capital Gains: Report gains and losses on Schedule 3 of your tax return and carry forward any capital losses to offset future gains.
• Business Income: If classified as business income, report your profits on a T2125 (Statement of Business or Professional Activities) form. Ensure you include any deductible trading-related expenses.
• Foreign Income: If your income includes dividends, interest, or gains from foreign markets, report these under foreign income and apply any applicable foreign tax credits to avoid double taxation.

Contact: How do I contact Interactive Brokers customer service?

FAQs

Nishadh Mohammed

Nishadh Mohammed is a seasoned news editor and financial writer, working with HelloSafe since May 2023. Nishadh has developed expertise in financial markets, insurance, and investment products, with a deep understanding of the Canadian financial landscape. He has honed his SEO skills and content marketing strategies while writing for Canadian publishing houses. Armed with a master's in Business Analytics and extensive journalistic experience, Nishadh uniquely combines data proficiency and thorough research to deliver comprehensive and accessible information.