Interactive Brokers
Investment Details
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Review of Interactive Brokers Singapore
Also known as IBKR for short, US-based Interactive Brokers (IBKR) is already a popular trading platform among investors despite being a recent entrant in Singapore’s stock-trading market.
This NASDAQ-listed brokerage has been a pioneer of global electronic trading with over 40 years of track record. It is also well-known for its commission-free benefit when you’re trading US Exchange-Listed Stocks or ETFs. But IBKR offers more than just that.
Low commission rates, premier technology incorporated into mobile and online trading platforms, the exclusive IBKR “Education” suite, and extensive access to 150 markets in 33 countries, in 27 currencies, all in one integrated platform — something which not many brokerages have and it’s probably what you and other fellow investors are looking for.
With so many products and services in this single platform, it may be a little daunting to decide on where to start. But fret not, we’ve got the gist of it all which can help you figure out if IBKR is suitable for you, whether you’re a serious or casual investor. First, let’s take a look at the pros and cons of this Investments.
Pros
- Over 40 years of track record as a globally renowned brokerage
- Low commission fees
- Access to 150 markets in 33 countries, in 27 currencies
- Simple fee structure: Volume-Tiered Pricing (broker commission which decreases based on volume) or Low, Fixed Rate Pricing (fixed commission per share or a percentage of trade value)
- Exclusive IBKR “Education” suite which includes IBKR’s advanced trading analytics features, insights and research tools, free webinars, and courses for investors
- Can link to Individual, Joint, Trust, IRA and IB Canada RSP accounts
- Overnight trading hours for US ETFs
Cons
- Deposit and withdrawal fees
- Exchange, regulatory, and clearing fees
- Not able to link your CDP account
Interactive Brokers Singapore’s List of Exchanges
You’ll be able to trade on more than 60 exchanges in Asia, North America, Europe, Pacific and other markets via IBKR Singapore’s platform. Here’s a list of some of the exchanges by geographical location.
Note that the trading hours will vary for different products on different exchanges.
Asia/Pacific
- Singapore Exchange (SGX)
- Australian Stock Exchange (ASX)
- Hong Kong Futures Exchange (HKFE)
- Hong Kong Stock Exchange (SEHK)
- Shanghai-Hong Kong Stock Connect (SEHKNTL)
- Shenzhen-Hong Kong Stock Connect (SEHKSZSE
- National Stock Exchange of India (NSE)
- CHI-X Japan (CHIXJ)
- Osaka Exchange (OSE.JPN)
- Tokyo Stock Exchange (TSE.JPN)
- Korea Stock Exchange (KSE)
North America
- New York Stock Exchange (NYSE)
- NASDAQ Stock Market (NASDAQ)
- NYSE American (AMEX)
- OTC Markets Pink (PINK)
- ArcaEdge (ARCAEDGE)
- Philadelphia Stock Exchange (PHLX)
- Chicago Stock Exchange (CHX)
- CME (GLOBEX)
- Small Exchange (SMFE)
- Long-Term Stock Exchange (LTSE)
- Canadian Securities Exchange (PURE)
- Montreal Exchange (CDE)
- Toronto Stock Exchange (TSE)
- TSX Venture (VENTURE)
- Mexican Stock Exchange (MEXI)
- Mexican Derivatives Exchange (MEXDER)
Europe
- Vienna Stock Exchange (VSE)
- Bats Europe (BATEEN)
- CHI-X Europe Ltd Clearnet (CHIXEN)
- Euronext Brussels (BELFOX)
- Turquoise (TRQXEN)
- Nasdaq Baltic (N.TALLINN)
- Euronext France (SBF)
- Euronext France (MATIF)
- Bats Europe (BATEDE)
- CBOE EU
- Frankfurt Stock Exchange (FWB)
- Stuttgart Stock Exchange (SWB)
- Tradegate Exchange (TRADEGATE)
- Budapest Stock Exchange
- Tel Aviv Stock Exchange
- Borsa Italiana (BVME)
- Borsa Italiana (IDEM)
Interactive Brokers Singapore Trading Products
- Stocks
- ETFs
- Warrants
- Mutual Funds
- Options
- Futures
- Currencies
- Bonds
- Metals
Interactive Brokers Singapore Platform and Commission Fees
For commission fees, it is charged in two ways by IBKR — Volume-Tiered Pricing or Fixed Rate Pricing, depending on how often you trade and in smaller or bigger volumes.
Volume-Tiered Pricing
This form of pricing works for larger trades as the higher volume is traded (higher monthly trade value), the lower the commission fee charged.
For example, when you trade with a monthly value of SGD 2,500,000 for SGX stocks, the minimum commission fee is 0.08% per trade value (min. SGD 2.50), while the minimum fee for a monthly trade value of up to 50,000,000 will be 0.005% per trade value (min. SGD 0.15), and vice versa. Also, in cases where an exchange provides a rebate, IBKR will pass some or all of the savings directly back to you.
Fixed Rate Pricing
A fixed commission rate, more commonly used by many brokerages, is simply just a fixed commission fee charged per share or as a percentage of the trade value. Again, if we use SGX stocks as an example, you’ll be charged a minimum of 0.08% per trade value (min. SGD 2.50).
And if you’re trading US Exchange-Listed Stocks or ETFs, you may be really glad to know that there’s no commission fee for that. For commission fees on trading stock and ETFs in other markets, you’ll be able to find the details on MoneySmart’s Interactive Brokers Singapore Investments page.
Interactive Brokers Singapore Foreign Currency Exchange
IBKR supports a total of 26 types of currencies including AUD, CAD, CNH/CNY, CHF, CZK, DKK, EUR, GBP, HKD, HUF, INR, JPY, KRW, MXN, NOK, PLN, NZD, RUB, SEK, SGD, TRY, USD and ZAR. Moreover, IBKR offers over 100 currency pairs on the 27 currencies available on their trading platforms.
Currency exchanges can be done in-app, and tight spreads can be as narrow as 0.1 PIP with low commissions of 0.08 to 0.20 bps times the trade size, with no hidden spreads or markups. You’ll also get access to real time prices from 17 of the world's largest FX dealers.
Type of Account on Interactive Brokers Singapore
IBKR Pro
As the name implies, IBKR Pro is designed more for advanced traders and for intermediate traders who are looking to become more serious traders.
IBKR Pro account holders have the option to pick fixed or tiered commission fees for most trading products, and they are entitled to both the Stock Yield Enhancement Program and FDIC Promontory Program, as well as IBKR Web Trader and IBKR APIs trading technology.
The interest charged for margin loans begins at benchmark plus 1.5% and there’s an account maintenance fee of up to USD 10 per month (less the commission paid that month).
Interactive Brokers Singapore Trading Platforms
From simplified single and complex multi-leg option trading, to lower cost ETF alternatives, IBKR offers you a wider range of trading platforms as compared to many other brokerages.
Currently, its trading platforms are available for mobile, desktop and web with iOS, Android, Excel API, and FIX API versions.
Trader Workstation (TWS)
IBKR's flagship desktop trading platform is called the Trader Workstation (TWS) which you can download from their website.
The user interface is more suitable for seasoned traders (with IBKR Pro account) who already have a good grasp on the complex workings of a trading platform, as there’s a variety of indicators and software including over 400 data columns, option exercise and spread templates, news, research, charting and scanners, all of which may be too overwhelming for a beginner trader. Order presets can also be created via TWS, which prefill order tickets for fast entry. Presets set up on TWS are also available from the mobile app.
IBot
If you're a beginner, you might find IBKR's IBot pretty useful – it’s basically a natural-language chatbot which answers your questions with relevant trading information. So, all you need to do is to launch a chat, type in your question, and view the answer.
Client Portal
The Client Portal is a website-based administrative and trading platform which allows you to conveniently access your account and trading information anywhere – so long as you have access to the internet.
How safe is it to invest via Interactive Brokers Singapore?
Interactive Brokers Singapore Pte. Ltd. is one of the 11 affiliates of NASDAQ-listed Interactive Brokers Group, Inc., which has an impressive track record of over 40 years as one of the more established Investmentss on the market.
Licensed by Monetary Authority of Singapore (MAS)
Interactive Brokers Singapore Pte. Ltd. is licensed and regulated by the Monetary Authority of Singapore (License No. CMS101000), complying with regulatory requirements set out by the MAS to protect consumers.
Strong capital position and risk management
With $10.9 billion in equity capital, over $7.7 billion in excess of regulatory requirements and no long-term debt, IBKR maintains its capital position through a conservative strategy.
This is reflected in the way they manage their brokerage and market making businesses in separate companies, which are registered with local securities and/or top-tier financial and commodities regulators such as UK's Financial Conduct Authority (FCA) and the US Securities and Exchange Commission (SEC).
In terms of risk management, IBKR ensures that the resulting payables/receivables are reconciled to outside sources automatically. Its automated real-time margining system will mark all client positions to market continuously, and credit-vetting is done for every order, with automatic liquidation of accounts with inadequate margin deposits.
Secure authentication systems
There are 3 options to ensure safe logins for all IBKR accounts: IB Key feature through IBKR mobile app, 2-step authentication through SMS messaging, and Secure Login System in which a plastic code card is used.
Strict deposit and withdrawal procedures
You’ll need to complete a deposit notification or withdrawal request on the Transfer Funds page in Client Portal for either request.
For deposit notifications, you’ll have to contact your bank or broker to complete the transfer after completing the deposit notification process via IBKR’s mobile or desktop app.
To make a withdrawal of funds, you’ll need to complete a withdrawal request on the Transfer Funds page in the Client Portal. IBKR allows only one free withdrawal request every month. After the first withdrawal, there will be fees charged for any subsequent withdrawal.
Compare Interactive Brokers vs Tiger Brokers vs Moomoo
As IBKR continues to maintain its competitive rates, many other newer entrants such as Tiger Brokers and Moomoo are catching up by offering low cost trades. Currently, IBKR doesn’t charge any platform fees (for IBKR account holders) unlike Tiger Brokers and Moomoo, but let’s compare these 3 platforms in detail to help you come to a conclusion.
In the table below, we looked at the key factors which are commission fees (on the Singapore stock exchange), platform fees, market access and trading products available. IBKR’s commission fee seems to be the highest with a minimum of SGD 2.50 per trade as compared to Tiger and Moomoo.
Although a brokerage with lower commission fees may sound appealing, you’ve got to take into consideration the variety of markets and trading products available as well. If you’re an investor who doesn’t mind paying a little more for greater accessibility to a wider range of products and services (which may or may not increase your investment profits), IBKR would be more suitable for you.
| Interactive Brokers | Tiger Brokers | Moomoo |
|---|---|---|
| Interactive BrokersCommission Fee: 0.08% of trade value (min. SGD 2.50 per trade) | Tiger BrokersCommission Fee: 0.04% of trade value (no minimum) | MoomooCommission Fee: 0.03% of trade value (min. SGD 0.99 per trade) |
| Interactive BrokersPlatform Fee: None | Tiger BrokersPlatform Fee: 0.04% of trade value (no minimum) | MoomooPlatform Fee: 0.03% of trade value (min. SGD 1.50 per trade) |
| Interactive BrokersMarkets Available: 150 markets in 33 countries, in 27 currencies | Tiger BrokersMarkets Available: 10 markets in Singapore, US, Hong Kong, China, Australia in 9 currencies | MoomooMarkets Available: Singapore, US, Hong Kong, China |
| Interactive BrokersTrading Products: Stocks, ETFs, warrants, mutual funds, options, futures, bonds, currencies, metals | Tiger BrokersTrading Products: Stocks, ETFs, mutual funds, futures, options warrants, CBBCs, REITs | MoomooTrading Products: Stocks, ETFs, options, futures, ADRs, REITs |
Compare Interactive Brokers vs TD Ameritrade vs Saxo
Besides Tiger Brokers and Moomoo, you might have chanced upon TD Ameritrade and Saxo which are also among the other popular platforms on MoneySmart’s Investmentss wizard.
For US stocks, these two competitors of IBKR provide low cost trades on US stock exchanges as well. Here’s an overview of the similarities and differences in their commission fees (for US stocks), market access and trading products.
In summary, TD Ameritrade appears to be the most cost-effective platform for trading US stocks as it doesn’t charge any commission or platform fees, as compared to IBKR which has a minimum of USD 1 per order, and Saxo that charges an even higher minimum of USD 4 per order.
| Interactive Brokers | TD Ameritrade | Saxo |
|---|---|---|
| Interactive BrokersCommission Fee: USD 0.005 per share (min. USD 1 per order) | TD AmeritradeCommission Fee: None | SaxoCommission Fee: 0.06% of trade value (min. USD 4 per order) |
| Interactive BrokersPlatform Fee: None | TD AmeritradePlatform Fee: None | SaxoPlatform Fee: 0.12% annual custody fee |
| Interactive BrokersMarkets Available: 150 markets in 33 countries, in 27 currencies | TD AmeritradeMarkets Available: US only | SaxoMarkets Available: Over 37 markets in US, Europe, Asia and Australia, in 21 currencies |
| Interactive BrokersTrading Products: Stocks, ETFs, warrants, mutual funds, options, futures, bonds, currencies, metals | TD AmeritradeTrading Products: Stocks, ETFs, options, futures | SaxoTrading Products: Stocks, ETFs, mutual funds, options, futures, bonds, currencies, CFDs, commodities, cryptocurrency |