Making it Easier for Investors to Trade
IBKR Lite allows investors to make unlimited, commission-free
trades on U.S.-listed stocks and exchange traded funds (ETFs).
Technologies such as artificial intelligence and machine learning are dramatically reshaping the landscape for investors. With more information at their fingertips, traders are empowered with insights to better evaluate risk than ever before. Interactive Brokers Group and its affiliates have been leveraging technology in new and ground-breaking ways for its clients for more than 40 years. The Greenwich, Connecticut-based firm understands that access to quality information gives investors the best chance to achieve their goals using the tools made available on IBKR’s trading platforms.
A new offering from IBKR is now bringing this experience and expertise to those who want a simple, yet comprehensive way to access global markets. IBKR Lite allows investors to make unlimited, commission-free trades on U.S.-listed stocks and exchange traded funds (ETFs). The service was introduced in October and is aimed at the needs of investors who want a straight-forward trading experience.
“Removing the price barrier is yet another way Interactive Brokers has made investing easier and more cost-effective.”
IBKR Lite will complement the firm’s traditional pricing plan, now called IBKR Pro, which allows investors to get professional trade executions by using the IB SmartRouting system while paying a low commission. There is no change to IBKR’s traditional commission structure for Pro accounts. Commissions for an IBKR Lite account dealing in asset classes other than U.S.-listed stocks and ETFs (such as options, futures and equities on international exchanges) will follow the firm's fixed pricing schedule where available.
Some key IBKR Lite features include:
- Unlimited, commission-free trading on U.S.-listed stocks & ETFs
- No account minimums or inactivity fees
- Free snapshot market data for U.S.-listed stocks and ETFs
- Stock Yield Enhancement Program (SYEP) to earn money by lending fully-paid shares
- Competitive interest rates paid on idle cash balances
- Low margin borrowing rates
A New Trading Landscape
With the emergence of new trading technology, brokerages have made it easier to invest. “Removing the price barrier is yet another way Interactive Brokers has made investing easier and more cost-effective,” says Thomas Peterffy, founder and chairman. Peterffy believes that this will allow the firm to attract a broader audience.
IBKR will route the orders of IBKR Lite clients to select market makers for those trades in U.S. exchange-listed stocks and ETFs. “Many brokers sell their clients’ order flow, yet still charge a fee to trade stocks and ETFs,” Peterffy said. “With us, clients can choose to pay no commission, or pay our low commissions and get the best prices our algorithms can secure. It’s up to them.”
IBKR Lite gives eligible clients the opportunity to make additional income from their investments with access to its Stock Yield Enhancement Program (SYEP). The tool allows investors to earn cash on the fully-paid securities in their accounts. IBKR lends out the shares to a third party, and then splits the income earned with the client, 50/50. Clients with $50,000 or more in their accounts are eligible for the program. IBKR Lite also pays a competitive interest rate on idle cash in a qualifying account—1.5% under the Federal Funds rate.
And of course, Interactive Brokers makes this all seamless with some of the most sophisticated financial technology available today. Client Portal, the firm’s online account management and trading platform, provides clients with visibility into essential account information. Recent transactions, portfolio positions, and rate of return are all easily tracked, and clients can monitor their performance with cumulative and monthly return charts. While using IBKR Mobile, investors can manage and trade their accounts at their convenience, right from their smartphone or other connected devices.
Investors are looking for every edge they can get, and with sophisticated technology, serving more than 650,000 clients worldwide, Interactive Brokers, has the kind of experience and expertise that provides premier electronic access to global markets. Its focus on technology and automation gives investors the data and support they can use to make smart decisions today—and in the years ahead.
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