IBKR Lite was designed to meet the needs of investors who are seeking a simple, cost-free way to trade US exchange-listed stocks and ETFs and do not wish to consider our efforts to obtain greater price improvement through our IB SmartRouting℠ system. The new offering will complement Interactive Brokers’ existing services, which will be rebranded as IBKR Pro. IBKR Lite will be available in October.
Key IBKR Lite features will include:
- Zero commissions on US exchange-listed stocks and ETFs
- No account minimums
- No inactivity fees
- Free market data for US exchange-traded stocks
- High interest rates paid on idle cash balances (1.5% under Fed Funds rate)**
- Low margin borrowing rates (2.5% over Fed Funds rate)
- Simple-to-use desktop Client Portal and IBKR Mobile trading platforms
- Trading non-US stocks, options, futures and fixed income at the lowest commissions
- Stock Yield Enhancement Program to earn money by lending fully-paid shares
“Interactive Brokers has always been known as the low-cost broker for sophisticated investors and institutions. We are able to provide superior pricing due to our focus on automation,” said Thomas Peterffy, Chairman and CEO of Interactive Brokers. “In order to attract a broader audience, we wanted to remove any impediments to opening an IBKR account. With the addition of no commissions or fees to trade US exchange-listed stocks and ETFs, no account minimums, and no cost to maintain an account for IBKR Lite, we believe Interactive Brokers will offer the best pricing options for both professional and retail investors.”
New and existing clients will be able to select between using IBKR Lite and IBKR Pro and switch between the two levels of service up to three times and then once per quarter. Like many other brokers, Interactive Brokers will route the orders of IBKR Lite clients to market makers in exchange for receiving payment for order flow. Clients that opt to use IBKR Pro will continue to receive the best prices our sophisticated algorithms can secure for them.
“Many brokers sell their clients’ order flow and still charge $4.95 or more to trade stocks and ETFs. With Interactive Brokers, clients can choose to pay no commissions and have their orders routed to market makers like many other retail brokers do or pay Interactive Brokers’ ultra-low commissions and receive professional executions through our IB SmartRouting℠ system,” Peterffy said.
IBKR Lite will be made available to US residents. These clients will benefit from IBKR’s Integrated Investment Management Account, which lets them earn, borrow, spend and invest in stocks, bonds, options, futures, forex and funds worldwide from a single account. Through the Client Portal platform, clients have access to a rich suite of cash and portfolio management tools. They can also borrow money at very low rates.
“In the past few years, many financial firms have lowered their fees, and some have even introduced so-called free trades. But there’s usually a catch, such as a limited number of transactions. IBKR Lite clients will be able to trade US exchange-traded stocks and ETFs as little or as much as they want and it won’t cost them a dime,” Peterffy said. “IBKR Lite clients also benefit from the strength and security of the Interactive Brokers Group, which has over $7 billion in equity capital.”
More information on IBKR Lite can be viewed at: ibkr.com/Lite
*No brokerage account activity fees and no market data fees for US exchange-traded stocks. Clients may incur market data fees for other products, fees to cover regulatory fees incurred by IBKR when customers sell stocks, and service fees such as wire transfer fees.
**Interest will be paid on idle cash at 1.5% under the Fed Funds rate. Accounts with a Net Asset Value (NAV) of $100,000 or more receive interest at the full rate of 1.5% under Fed Funds. Accounts with less than $100,000 NAV receive interest at rates proportional to the account size. There is no interest paid on accounts with less than $10,000 in cash.
About Interactive Brokers Group, Inc.:
Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities and foreign exchange around the clock on over 125 markets in numerous countries and currencies, from a single IBKR Integrated Investment Account to clients worldwide. We service individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios at the lowest cost according to Barron’s Best Online Brokers review, February 25, 2019. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments.