Interactive Brokers review in Europe in 2025: interest rates, safety, & more!

Interactive Brokers (IBKR) is widely regarded as one of the most robust brokers worldwide, having been in the market since 1978. It does, however, have a reputation for being “complex” and not particularly beginner-friendly - mainly due to its primary platform, the Trader Workstation (TWS). Still, IBKR has introduced more accessible options, such as the Client Portal and the mobile app IBKR GlobalTrader.

Who is it for?

IBKR can be a good fit for those looking to invest long-term in stocks and ETFs, explore more “exotic” instruments (like options), and who value competitive currency exchange rates and advanced portfolio management features.

While it does not offer commission-free investing, it’s one of the oldest and most reputable brokers in the market, generally featuring very competitive spreads. Even though it may be more demanding to use, its resilience and track record make it particularly appealing to investors seeking a reliable, long-term solution. Remember, investing is a long-term commitment - better safe than cheap when selecting a broker you’ll rely on for years.

IBKR is regulated by multiple authorities worldwide, including the Central Bank of Ireland, which supervises Interactive Brokers Ireland Limited - the subsidiary through which many European investors open an account. Client assets are protected up to €20,000, covering up to 90% of any loss (cash + assets) under the investor compensation scheme.

In this article, we’ll delve into the key features of Interactive Brokers in Europe, covering fees, functionalities, advantages, and drawbacks, so you can decide whether this broker is the right fit for you!

_{Disclosure: I hold both personal and business accounts with Interactive Brokers.}

IBKR Highlights

Pros and cons

Pros

• Low commissions for stocks, ETFs, and options
• Very low currency conversion fee
• Widest product range in the brokerage industry
• Excellent reputation (founded in 1978)
• Extensive research and educational tools
• Modern mobile app (IBKR GlobalTrader) for stocks, options, and ETFs—great for beginners

Cons

• Complicated, time-consuming account opening process
• Steeper learning curve for beginners (especially if using TWS)
• Website navigation can be confusing
• No interest on uninvested cash below €10,000

Interest on uninvested cash

One standout aspect of Interactive Brokers Europe is that it pays interest on clients’ idle balances. However, there is a significant caveat: you only earn interest on cash above €10,000. In other words, if you hold €15,000 uninvested, interest is only paid on €5,000. As of the date of this article, the interest rate offered in euros was 1.992%.

Furthermore, if your total account balance is below €100,000 (or equivalent in another currency), you still earn interest but at a proportional rate based on your account’s value.

For example, if you hold €50,000 in total assets and €40,000 is uninvested cash, you would only earn the full rate on €30,000. Applied to your entire portfolio, that results in an effective rate of around 0.846%:

Your uninvested funds are typically held in a mix of short-term deposits or money market instruments (e.g., short-term government debt).

This interest feature is particularly appealing to higher-net-worth investors. In March 2025, the average account at Interactive Brokers had about $158,600 in equity (calculated by dividing total “Client Equity” by “Total Accounts”).

Fees and commissions

Interactive Brokers has a complex yet very transparent fee structure. European investors typically choose between two pricing models: “Tiered” or “Fixed.” The choice depends on the type of assets you plan to trade and the amounts involved.

Tiered Plan

• U.S. Stocks/ETFs: $0.0035 per share (min. $0.35; max. 1% of the transaction value)
• European Stocks/ETFs: 0.05% of the transaction value (min. €1.25; max. €29 per transaction)
• Options: $0.65 per contract (min. $1)

Fixed Plan

• U.S. Stocks/ETFs: $0.005 per share (min. $1; max. 1% of the transaction value)
• European Stocks/ETFs: 0.05% of the transaction value (min. €3; no maximum)
• Options: $0.65 per contract (min. $1)

Note: Commissions typically decrease as your monthly trading volume grows. For more specifics, consult the official Interactive Brokers website.

Currency Conversion

You should also consider currency conversion fees, especially when buying assets in a different currency (e.g., U.S. equities). Interactive Brokers offers some of the lowest conversion rates in the market, around 0.002%.

• Example: Converting €10,000 to USD would cost roughly €20.

Additional money-saving features

• Stock Yield Enhancement Program: Interactive Brokers shares 50% of the revenue generated by lending out your shares to third parties (commonly for short selling).
• Reduced Spreads (Smart Routing): Interactive Brokers uses a highly intelligent order-routing system (Smart Route), which aims to secure better execution—you pay less when buying and earn more when selling by finding the best counterparties at any given moment.

Safety and regulation

If safety is your top concern, Interactive Brokers might be exactly what you’re looking for.

• Multi-Regulated Broker: IBKR is overseen by several major financial authorities, such as the U.S. SEC, FCA (U.K.), and other top-tier regulators. While regulation doesn’t eliminate the risk of bankruptcy, it provides an essential layer of protection.
• Investor Protection Schemes: Your account typically falls under the jurisdiction of the legal entity you open it with. Many European investors use Interactive Brokers Ireland Limited, supervised by the Central Bank of Ireland, which provides investor compensation of up to €20,000, covering 90% of losses (cash + assets).
• Publicly Traded Company: IBKR is listed on the NASDAQ, meaning it must publish quarterly and annual financial reports. This transparency allows investors to assess its financial health. Our analysis shows solid financial standing, with no long-term debt and robust capital reserves:

• Proven Reputation: Founded in 1978, Interactive Brokers has weathered multiple market crises, including the 2007–2009 global financial crisis, emerging even stronger. While past performance doesn’t guarantee future results, top-tier regulatory oversight and transparent financials give considerable confidence in IBKR’s stability.

In many countries where it operates (including Portugal), Interactive Brokers is also registered with local financial authorities. For instance, it’s recognized by the CMVM in Portugal as an “investment firm providing cross-border services.”

If security is your priority, Interactive Brokers ranks among the industry’s best.

Trading platforms offered

IBKR offers different trading platforms for users with different experience levels:

Advanced customization on TWS

TWS offers an exceptional level of customization, with dedicated tabs for risk management, options trading, and the ability to create advanced conditional orders such as “one-cancels-another” and “one-triggers-another.” These features let you tailor the platform to your specific trading or investment strategies.

Alternative platforms: Web & Mobile

In addition to TWS, you can also use the Client Portal (web-based) or IBKR Mobile. Both are easier to navigate and still offer all the essential functionalities—real-time monitoring, favorites/watchlists, alerts, and more.

IBKR GlobalTrader, a modern mobile app designed for less experienced investors, provides a simple and intuitive interface for trading stocks, ETFs, and options. Key features include automatic currency conversion and fractional shares, among others.

Financial products and markets supported

A key differentiator of Interactive Brokers in Europe is its vast range of global markets and products, making it one of the most comprehensive platforms for investors at any level.

You can access more than 150 markets across 30+ countries, allowing you to build a truly diversified, international portfolio.

Whether you’re a casual investor or an experienced trader, IBKR’s extensive product lineup offers an unparalleled breadth of opportunities.

Through Interactive Brokers, you have access to an extensive variety of financial instruments, including:

• Stocks listed on the major global markets (U.S., Europe, Asia, Canada, and more)
• Bonds issued by governments and corporations
• ETFs (Exchange-Traded Funds)
• Forex (currency trading)
• Mutual Funds
• Commodities
• Options and futures, for more advanced hedging or speculative strategies
• CFDs (Contracts for Difference), which allow for leveraged positions
• Fractional shares, ideal for those looking to invest in high-priced stocks without buying a whole share

It’s important to note that Interactive Brokers generally does not offer direct cryptocurrency trading to European investors in certain regions. Instead, only crypto futures may be available. This broad product selection makes Interactive Brokers a solid choice for both conservative investors and experienced traders looking for exposure to specific markets or more sophisticated strategies.

Customer support

Interactive Brokers offers functional but sometimes less intuitive support for European investors, especially beginners. Support channels include:

• Live Chat (iBot): A virtual assistant for frequently asked questions.
• Contact Form: For more complex inquiries.
• Phone and Email: Available, but response times can vary.

Support is predominantly in English, and responses may sometimes take longer than desired.

Opening an account

You’ll open an account under IBKR PRO, choosing between a “Fixed” or “Tiered” pricing structure for all products. This fee model might be less straightforward than other low-cost brokers, so ensure you understand which assets you’ll trade and the amounts involved.

• All-Digital Registration: The process can be detailed, requiring personal information and your investment experience. This helps IBKR set appropriate trading permissions. You can adjust these later if you find them too restrictive.
• Verification and First Deposit: Once you verify your identity and residency and make your initial deposit, your account is generally active within 2 business days (based on our experience).
• Funding Methods: You can fund your account via bank transfers (Wire/SEPA). Debit/credit cards, PayPal, or other methods are not accepted.
  • Wire Transfers: You get one free withdrawal per month; subsequent withdrawals cost €8 each.
  • SEPA Transfers (in euros only): You also get one free withdrawal per month; additional withdrawals cost €1 each.

Final verdict: Is Interactive Brokers worth it?

Interactive Brokers is undeniably one of the most comprehensive and robust brokerages worldwide, and this reputation is well-earned. If you’re seeking a well-regulated, financially solid broker with an extensive product lineup, competitive fees, and advanced trading/portfolio management tools, then IBKR could be an excellent fit.

That said, it’s not for everyone:

• Ideal for experienced investors: If you have a larger portfolio and value sophisticated tools, IBKR is hard to beat. You can trade fractional shares, earn interest on idle cash, benefit from minimal FX fees, and even lend your shares through its stock yield program.‍
• Potentially challenging for beginners: The main TWS platform has a steep learning curve. The account opening process can feel bureaucratic. However, IBKR has introduced more user-friendly solutions like IBKR GlobalTrader, making it easier for new investors to get started.