Comparing two brokers is seldom an easy task. In this article, we will compare IG vs Interactive Brokers two forex brokers in terms of regulation, fees, investment options, market research&analysis, and platforms.
IG vs Interactive Brokers – Regulation
Contents
Six international Tier-1 licenses are held by both IG & Interactive Brokers. Interactive Brokers has one international Tier-2 license, whereas IG has three.
IG is regulated by:
- ASIC (Australian Securities & Investment Commission)
- JFSA (Japanese Financial Services Authority)
- MAS (Monetary Authority of Singapore)
- FINMA (Swiss Financial Market Supervisory Authority)
- FCA (Financial Conduct Authority)
- CFTC (Commodity Futures Trading Commission)
Interactive Brokers is regulated by:
- IIROC (Investment Industry Regulatory Organization of Canada)
- SFC (Securities Futures Commission )
- JFSA (Japanese Financial Services Authority)
- FCA (Financial Conduct Authority)
- MAS (Monetary Authority of Singapore)
- CFTC (Commodity Futures Trading Commission)
IG vs Interactive Brokers – Investment Options
IG
The majority of IG’s customers can only buy and sell CFDs, FX, and options. There are so many CFDs to choose from. Real stock trading is also available to individuals who reside in the United Kingdom and a few other nations. Other common assets, such as mutual funds & bonds, aren’t accessible.
IG specializes in CFDs and FOREX trading. Only FX products are available to US users.
Users can also trade stocks if they live in one of the few nations that allow it, such as the United Kingdom.
- Forex
- CFDs
- Tradeable Symbols: 11927 in total
- Forex Pairs: 158 in total
- Int’l Stock Trading (Non-CFD)
- Cryptocurrency (CFD)
- Social (Copy) Trading
Interactive Brokers
The broker provides a wide choice of international marketplaces that may be traded. The accessibility to certain markets, though, will be determined by the user’s location and the Interactive Brokers branch that owns the user’s account. Retail spot FX trading, for instance, is not accessible to individuals who reside in the United States (unless they qualify as an ‘Eligible Contract Participant’ as defined by Interactive Brokers), and CFDs are not accessible to residents of the United States, Canada, or Hong Kong.
Crypto trading is not possible via CFDs, although it is possible to trade the underlying asset (for example, purchasing Bitcoin) via the company’s collaboration with Paxos.
- Forex Trading
- CFD Trading
- Tradeable Symbols: 7400 in total
- Forex Pairs: 91 in total
- US Stock Trading (Non-CFD)
- Int’l Stock Trading (Non-CFD)
- Cryptocurrency (Physical)
IG vs Interactive Brokers – Pricing
IG
The lowest CFD or MetaTrader 4 account fees (spread) and the Spread Bet minimum size, which also changes depending on which IG branch the users trade with, are regarded as reasonable by IG spread analysis and trading expenses. In addition, IG businesses in various jurisdictions will provide the users with unique trading circumstances. Cryptocurrencies aren’t allowed for trade in Japan or the United Kingdom. We have also looked at additional expenses, such as deposit or withdrawal expenses, as well as non-trading fees.
Finally, there seems to be an inactivity fee that will be charged if the trading account is unused for six months or more. This cost may differ depending on the jurisdiction.
- Minimum Deposit is £250.00
- Average Spread EUR/USD – Standard 0.828
- All-in Cost EUR/USD – Active 0.365
- Active Trader or VIP Discounts
- Execution: Agency Broker
- Execution: Market Maker
Interactive Brokers
Although Interactive Brokers appears to have competitive rates, it is hard to do an exact comparison because the company does not reveal its typical FX spreads. Nonetheless, we were able to collect some data of one week’s worth of standard spread regarding the EUR/USD currency pair, which came to 0.6 pips after the broker’s commission.
Commissions for each side in FX trading begin at 0.00002 (0.2 BPS) of the United States dollar transaction value, along with a minimum of $2 for every order ($4 every round turn), yet can reduce to 0.08 BPS if the user is an active trader.
- There is no minimum deposit
- Average Spread EUR/USD – Standard 0.6
- All-in Cost EUR/USD – Active 0.6
- Active Trader or VIP Discounts
- Execution: Agency Broker
IG vs. Interactive Brokers – Platforms
IG
Newbies and professionals alike will benefit from IG’s online trading platform. It’s simple to use, contains all of the essential features, and can be modified. IG’s proprietary trading platform and MT4 (MetaTrader 4), a third-party trading platform, are both available. The IG trading interface is among the most user-friendly and attractive web trading systems we’ve encountered.
It’s simple to configure, and the versatile design lets users relocate windows around and keep different configurations. There is a one-click trading tool as well as the ability to build watchlists.
- Virtual Trading (Demo)
- IG’s own Platform
- Desktop Platform (Windows)
- Web Platform
- Social (Copy) Trading
- MetaTrader 4 (MT4)
- Charting – Indicators / Studies: 32 in total
- Charting – Drawing Tools: 20 in total
- Charting – Trade From Chart
- 14 Watchlists – Total Fields
- Order Type – Market
Interactive Brokers
The broker is known for its trading platforms, which contain its primary desktop program and online trading application, and both platforms offer extensive trading instruments and access to international financial markets (as well as FX and CFDs). The web-based platform of the broker is designed for regular retail traders, but the desktop one is sophisticated and tricky to use and adapt — even for pros.
Summary of Platforms: Its primary desktop trading platform, TWS (Trader Workstation), is better defined as complex. It has a lot of features that include a wide range of trading instruments, however, its complexity can make it difficult for new traders to use.
- Virtual Trading (Demo)
- Proprietary Platform
- Desktop Platform (Windows)
- Web Platform
- Charting – Indicators / Studies: 127 in total
- Charting – Drawing Tools: 9 in total
- Charting – Trade From Chart
- 651 Watchlists – Total Fields
- Order Type – Market
IG vs Interactive Brokers Research and Analysis
IG
IG provides easy-to-use research instruments. It has excellent news circulation and chart tools. Fundamental data, though, isn’t available. On the trading platform, users will discover the broker’s research tools. Both the tools and the platform are solely available in English. Thomson Reuters powers the broker’s news service, which is rather strong. The news may be obtained immediately from the online platform. On the mobile app, there isn’t any distinct news section, but users may get related updates for certain financial products.
- Daily Market Commentary
- Forex News (Top-Tier Sources)
- Autochartist
- Social Sentiment – Currency Pairs
- Economic Calendar
Interactive Brokers
The research information provided by the broker will please the great majority of users – but the users must know where to look for it. The TWS (Trader Workstation) and the Client Portal have a lot of third-party information. The Traders’ Insight blog features materials from in-house and other authors, with pieces released during the whole trading week. The broker also provides market updates and stories via Reuters, Dow Jones, as well as MNI (Market News International), along with an economic calendar provided by Econoday. Lastly, UBS Live Desk market research is available to institutional investors.
- Daily Market Commentary
- Forex News (Top-Tier Sources)
- Trading Central (Recognia)
- Social Sentiment – Currency Pairs
- Economic Calendar
Final Thoughts
We analyzed the two brokers in detail and found the overall winner to be IG. In terms of trading tools, research capabilities as well as mobile apps, IG provides a better trading experience.
See also: Plus500 vs FP Markets
