Trade Like a Pro

In October, the brokerage unveiled IBKR Lite, which lets investors make unlimited, commission-free trades on U.S. exchange-listed stocks and exchange traded funds (ETFs). The new offering is aimed at investors who want a simple, commission-free way to trade.

Investors who want to utilize IBKR’s smart order routing can opt for the company’s IBKR Pro pricing plan, pay Interactive Brokers’ low commissions, and have orders routed through the firm’s IB SmartRoutingSM system. With the help of this sophisticated technology, during the first half of 2019, clients received price improvement of $0.43 per 100 shares as compared to the industry as a whole, based on independent measurements by IHS Markit.^[1]

Interactive Brokers created IBKR Lite to attract a larger audience of investors who may not trade as frequently as the active traders and institutions the company traditionally catered to.

- Thomas Peterffy, Chairman of Interactive Brokers

“With IBKR, clients can choose to pay no commission, or pay our low commission and get the best prices our algorithms can secure. It’s up to them,” said Thomas Peterffy, Chairman of Interactive Brokers. “We expect that the active traders and institutions we serve will continue to opt for the IBKR Pro plan as it may make the most sense for them in terms of pricing and trading tools.”

IBKR Lite, which is currently available to residents of the US and India, provides clients with many of the same benefits as the professional-level service. Both plans offer access to award-winning trading tools and IBKR’s global product offering. Everyone is eligible for the company’s Stock Yield Enhancement Program, which lets clients earn extra income by lending out their fully-paid shares.

Commissions on asset classes other than U.S. exchange-listed stocks and ETFs, such as trades in options, futures, and equities on international exchanges, will follow the firm's regular, low pricing schedules.

IBKR Lite comes at a time when the battle for investors’ dollars is especially fierce. Within the past month, several other brokerages announced that they are eliminating commissions on U.S. stock and ETF trades. The move comes as legacy online brokerages look to compete with startups that have been offering commission-free trading from the start.

A Broad Suite of Features
IBKR Lite sets itself apart from competing offerings with a host of other benefits. In addition to unlimited, commission-free trading in US-listed stocks and ETFs, IBKR Lite offers the kind of features that truly put investors in the driver’s seat. For starters, there are no account minimums or inactivity fees. So, whether you’re a seasoned investor or someone just starting out, you won’t pay a fee just to have a broker hold your money. In fact, Interactive Brokers pays its clients some of the highest interest rates in the industry on their idle cash in securities accounts – 1.5% under the Federal Funds rate for IBKR Lite and 0.5% under that benchmark for IBKR Pro.^[2]

The firm also offers IBKR Lite clients its Stock Yield Enhancement Program (SYEP), a tool that essentially lets clients earn additional cash on the fully-paid securities in their accounts. IBKR does this by lending shares out to a third party, and then splitting the interest earned on the loan with the client on a 50/50 basis. IBKR Lite clients with equity accounts of $50,000 or more are eligible to participate. Clients maintain the ability to sell their shares at any time and continue to realize any profits and losses on the shares. IRA accounts are also eligible to participate.

Of course, IBKR fortifies its offering with some of the most sophisticated technology available. With decades of experience focusing on automation, the firm provides access to sophisticated trading platforms that streamline trading and put the power of information in investors’ hands. For instance, IBKR Lite clients have access to Client Portal, Interactive Brokers online account management and trading platform. It lets investors view essential account information, such as recent transactions, portfolio positions, and rate of return, all in real-time, and allows them to easily track their portfolio’s performance with cumulative and monthly return charts. For clients on the go, there’s IBKR Mobile, a robust mobile trading app that gives investors the freedom to trade their account anywhere, from the palm of their hand.

All of these features come with the peace of mind that Interactive Brokers Group has over $7 billion in equity capital and has been in business for more than 41 years, and its affiliates serve more than 650,000 clients worldwide. For clients looking for a streamlined approach to trading, with no commissions on US listed stocks and ETFs and unlimited trades with no minimums or maintenance fees, IBKR Lite might just be the best choice.