I have now been using Interactive brokers for 4 months and have placed roughly 500 trades so far. I have traded options exclusively so far, and have been pretty happy for the most part. I primarily wanted to write this review to clear up a few things I did not think were currently correct on a couple other reviews. This is probably because they update their software very frequently.

First, you do have the choice between using a browser-based or Java-based execution screen. I would recommend using the Java software on your home or work computer because you have a little more control and it is more secure. Still, it is nice to have the ability to log into your account from anywhere, view the market, and place trades if you need to.

There are Level II Quotes available on all NASDAQ stocks. On other exchanges you will get the main market maker's order book. I also have eSignal, PCQuote, and AT Financial data feeds and I have found the quotes through Interactive Brokers is just as fast or faster than any of these and just as accurate. You can route your order to the exchange you choose, or simply choose the "Best" option which will automatically route it for you to get the best price. When i first started, I tried both ways, and found the "Best" option works very well, even for option trades, and have rarely chosen to route it myself now, although you will want be more careful when routing spread trades.

The main drawback I have found relates to the execution of option trades. If you are placing your trades at the Bid or Ask Price (or as a market trade which I do not recommend for options except on the most liquid markets) execution is very fast, often almost instant. However, if you are try to execute between these prices very often, Interactive Brokers is probably not the Broker for you. They simply put the trade in and do not try to work it whatsoever, and it will often take all day to execute, if indeed it gets done at all.

Finally, I have noticed some problems when I have done spread trades, especially Bull Call Spreads. You need to close each position individually, and it does not treat it as a covered call, but rather requires you have the correct margin when closing the short side. I have not tried to use the telephone option yet, since I have always had enough margin to cover this anyway.

Overall I am very happy with Interactive Brokers. I am able to do most of the trades I want at the best price available. It is true that the tax reporting (especially if you are an active options trader)will be a nightmare at the end of the year. This is not a problem for me since I also log all my trades in OptionVue 5, which automatically prints out a schedule D at the end of the year for all your accounts. You will probably want to do something similar, even if it is simply keeping a separate log in Excel.

This Service is designed for people that know what they are doing and need little to no help for anything related to trading, investing, or using an online trading interface. They basically give you the data and you are on your own.


Recommended: Yes