Interactive Brokers Review: How Competitive Is This Brokerage?

Interactive Brokers Review: How Competitive Is This Brokerage?

Interactive Brokers is the best platform for Singaporeans seeking to invest in international markets exclusively.

Good for

  • Investors seeking a low cost platform to trade international securities

Bad for

  • Singaporean investors hoping to trade Singaporean stocks, bonds and indices

Editor's Rating

4.5/5.0

Interactive Brokers charges the lowest trading fees and offers competitive access to international markets, making it a great option for investors in Singapore. The only catch to this platform, is that it is not registered by the Monetary Authority of Singapore (MAS), which means that Singaporeans cannot use it to purchase securities in Singapore. However, it is still a great option for investors seeking a platform to trade international securities.

Summary of Interactive Brokers' Online Brokerage
Lowest commission fees for international trading
Premium pricing for high-volume traders
Not registered by MAS

Table of Contents

What Makes Interactive Brokers Stand Out to Investors

Interactive Brokers charges market-leading trading fees, which makes them a great option for individuals seeking to buy and sell international securities. However, it is crucial to note that the platform is not registered with MAS, which means that Singaporean users will not be able to purchase stocks and bonds in Singapore. Therefore, Interactive Brokers is best used by Singaporean investors that want to trade international securities exclusively.

Fee Comparison: Interactive Brokers & Saxo Markets Fee Comparison

Interactive BrokersSaxo Markets
U.S. Stocks Commission Fee (Min. Fee)$0.0035 ($0.35)0.04% - 0.06% ($4)
Hong Kong Stocks Commission Fee (Min. Fee)0.08% (HKD 12)0.15% (HKD 90)
Japan Stocks Commission Fee (Min. Fee)0.050% (JPY 80)0.15% (JPY 1500)

To get a sense of how competitive Interactive Brokers' commission charges are, it is helpful to compare their fees to Saxo Markets, which typically leads the market in low fees. Still investors should be aware that Interactive Brokers charges a minimum monthly fee of S$10 for accounts with balance between S$2,000 and S$100,000, which can materially increase the cost of using this brokerage for some individuals.

Investment Opportunities at Interactive Brokers

The brokerage offers a number of asset classes including Stocks, ETFs, Warrants, Forex, Metals, Fixed Income and Mutual funds. Interactive Brokers also offers options and futures trading, which can be attractive to savvy investors that can best leverage these tools. The platform also offers trading in 24 international markets, giving individuals increased investment opportunities.

Investor Eligibility Requirements

Consider this if you want to international securities while minimising commission fees

Interactive Brokers gives individual investors a great platform to invest in international securities. While the platform does not allow Singaporeans to invest in Singaporean stocks, it charges some of the lowest commission fees for international securities. On top of the brokerage's competitive introductory pricing, it offers even better rates to investors that trade in high volume or total value. To get a breakdown of Interactive Brokers' tiered pricing by country, click on the dropdown menus below.

Trade Volume (US Shares)Commission Fee per Share
300,000 or less$0.0035
300,000 - 3 million$0.002
3 million - 20 million$0.0015
20 million - 100 million$0.001
100 million+$0.0005
Min. fee $0.35 per order, Max. fee 1% of trade value
Monthly Trade Value (HKD)HK Commission FeeMin. Fee (CNH Denominated)
HKD 15,000,000 or less0.08%CNH 15
HKD 15 million - 300 million0.05%CNH 10
HKD 300 million - 900 million0.03%CNH 7
HKD 900 million - HKD 2 billion0.02%CNH 5
HKD 2 billion+0.015%CNH 3
Monthly Trade Value (JPY)Commission FeeMin. Fee
JPY 150 million or less0.05%JPY 80
JPY 150 million - 3 billion0.04%JPY 70
JPY 3 billion - 9 billion0.03%JPY 60
JPY 9 billion - 20 billion0.02%JPY 40
JPY 20 billion - 100 billion0.015%JPY 30
JPY 100 billion+0.01%JPY 20

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