IBKR Lite vs. IBKR Pro: Which Brokerage Account Is Right for You?
Published Sept. 3, 2024
If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
Interactive Brokers has two service plans available: IBKR Lite and IBKR Pro. IBKR Lite offers commission-free trading on stocks and exchange-traded funds (ETFs). IBKR Pro charges commissions, but it offers IB SmartRouting℠ to help you get the best available prices, and it has lower margin rates and higher interest rates on cash.
For most buy-and-hold investors, IBKR Lite has everything you need. If you're a more advanced investor or a day trader, then IBKR Pro could have some advantages. Keep reading for a full breakdown of these two plans.
On Interactive Brokers' Secure Website.
A great low-cost option for small trade volume. While the interface isn't as clean or modern as that of other brokers, it gets the job done. Interactive Brokers is also a great choice for options investors, traders, and those trading on margin.
As low as $0 stock trades
$0
On Interactive Brokers' Secure Website.
Commission-free trading has become the norm with top online brokers, and that's what IBKR Lite has. It allows you to invest in stocks and ETFs on U.S. exchanges without paying any fees.
IBKR Pro used to have a monthly fee of $10, unless you met a minimum balance requirement. Interactive Brokers got rid of that, and now both service plans are available without any monthly fees. You do, however, pay commissions on stock and ETF orders if you have an IBKR Pro plan.
With IBKR Pro, you choose between fixed and tiered pricing. Fixed pricing is the predictable option, while tiered pricing is variable depending on what you're buying and your monthly volume.
| IBKR Lite | IBKR Pro | |
|---|---|---|
| Stock & ETF commissions | $0 | $0.005 (IBKR Pro - Fixed); $0.0005 to $0.0035 (IBKR Pro - Tiered) |
| Options commissions | $0.65 per contract | $0.15 to $0.65 per contract based on monthly volume and premium |
| Crypto commissions | 0.12% to 0.18% based on monthly trade volume | 0.12% to 0.18% based on monthly trade volume |
| Mutual fund commissions | $0 on no-transaction fee mutual funds | $0 on no-transaction fee mutual funds |
| Account transfer fee | $0 | $0 |
| Account maintenance fee | $0 | $0 |
Interactive Brokers is known for its wide selection of investments. If you just want the basics, you'll have access to stocks, ETFs, mutual funds, CDs, and bonds, and you can buy fractional shares of many stocks.
This broker also offers options trading, futures, crypto, and foreign currencies. All these investments are available with both the IBKR Lite and IBKR Pro service plans.
| IBKR Lite and IBKR Pro | |
|---|---|
| Stocks and ETFs | Yes |
| Fractional shares | Yes |
| Options | Yes |
| Mutual funds | Yes |
| CDs | Yes |
| Bonds | Yes |
| Futures | Yes |
| Crypto | Yes |
| Currencies | Yes |
Interactive Brokers offers plenty of account options, whether you're on its IBKR Lite or IBKR Pro plan.
In addition to a standard taxable brokerage account, it has individual retirement accounts (IRAs), including traditional and Roth IRAs. It has robo-advisory services for those who prefer completely hands-off investing. Its margin accounts also stand out, as its margin rates are much lower than those of most brokers.
Unlike some competitors, Interactive Brokers is strictly a broker. It doesn't offer checking accounts, savings accounts, or credit cards. If you're looking for a one-stop shop to manage all your money, Interactive Brokers isn't right for that.
| IBKR Lite and IBKR Pro | |
|---|---|
| Taxable brokerage | Yes |
| Joint tenant | Yes |
| Margin | Yes |
| Robo-advisor | Yes |
| Traditional IRA | Yes |
| Roth IRA | Yes |
| Other IRA | Yes |
| Custodial | Yes |
| Checking | No |
| Savings | No |
| Credit card | No |
Interactive Brokers has multiple mobile investing apps and trading platforms. They're all available on both the IBKR Lite and IBKR Pro service plans.
If you want to trade online, you can do so through the client portal on the Interactive Brokers website. Here are the other trading platforms it offers.
IBKR Mobile is the more advanced mobile investing option from Interactive Brokers. It provides advanced order types and access to a variety of investments across over 150 markets worldwide. This app gets excellent reviews, with an average rating of 4.5 stars from iOS users and 4.7 stars from Android users.
IBKR GlobalTrader is this broker's more beginner-friendly mobile investing app. It doesn't have as many features, but it still lets you invest in over 90 stock markets worldwide.
Reviews aren't the best for IBKR GlobalTrader. It currently has an average rating of 2.4 stars from iOS users and 3.4 stars from Android users.
Trader Workstation (TWS) is this broker's flagship desktop trading platform. It's designed for intermediate to advanced investors and provides a customizable workspace with interactive charts, real-time news, technical research, and analysis tools.
Both of the service plans available on Interactive Brokers have their benefits. IBKR Lite is better for most investors because of its commission-free stock and ETF trading, which will keep your investing costs down. I have an Interactive Brokers account, and I personally use the IBKR Lite plan.
IBKR Pro serves a much smaller niche. It's well-suited for highly active traders, since it could get you lower prices. If you plan to invest on margin, IBKR Pro is worth it for the lower rates.
If you're not entirely sure which to choose, keep in mind that you're not locked into a plan. Interactive Brokers lets you switch your plan at any time, so you could give them both a try and see which one you like more.
At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.
See our full methodology here: Ratings Methodology
IBKR Pro is designed for active traders, with IB SmartRouting℠ to search for the best available prices on stocks and options. It also has higher interest rates on uninvested cash and lower margin rates, but it charges trading fees.
IBKR Lite is designed for retail investors who want to keep fees to a minimum. It offers commission-free trading of stocks and ETFs listed on U.S. exchanges.
Yes, you can upgrade from IBKR Lite to Pro at any time. Here's how:
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
Interactive Brokers disclosure:
The inclusion of Interactive Brokers’ (IBKR) name, logo or weblinks is present pursuant to an advertising arrangement only. IBKR is not a contributor, reviewer, provider or sponsor of content published on this site, and is not responsible for the accuracy of any products or services discussed.
