Can You Trade Forex on Interactive Brokers?

The foreign exchange (forex) market is the largest financial market in the world, with a value of $2.73 quadrillion (that’s 273 followed by 13 zeros). Its popularity has soared in recent years with the advent of online brokers. That might leave you asking: Can you trade forex on Interactive Brokers? 

Yes, Interactive Brokers supports forex trading. Known across the trading industry as IBKR, the online broker is unmatched in global market reach and professional-grade features. If you have asked, “Can you trade forex on Interactive Brokers?” find out how to get started here.

Forex Trading on Interactive Brokers: An Overview

Interactive Brokers was founded in 1978 by Thomas Peterffy, one of the early innovators in computer-assisted trading. With the mission of competing on price, speed, size, global products and trading tools, IBKR offers forex traders industry-leading perks and capabilities to trade currencies online.

Interactive Brokers offers more than 100 currency pairs on 26 currencies, giving traders access to an array of global forex markets. The currency pairs include major ones, such as EUR/USD and USD/JPY and minor and exotic pairs.

Interactive Brokers also promises direct access to interbank quotes from 17 of the world’s largest forex dealers, providing deep liquidity and real-time quotes for transparency in spreads and cost.

If you trade forex on Interactive Brokers, you also gain access to FX Trader, IBKR’s optimized interface for trading currency markets. FX Trader provides real-time quotes, indicators, trading volumes, executions, positions, etc.

While the professional-grade trading platform may challenge new traders, Interactive Brokers is built to accommodate both retail and institutional traders.

Key Features for Forex Traders

• Trader Workstation (TWS) platform and Client Portal
• Spreads and pricing model (commission-based, not spread marked up)
• SmartRouting technology for price optimization
• Margin and leverage options (varies by region)

Account Requirements and Regulations

To trade currencies online at Interactive Brokers in the United States, you can open an account without depositing any money. This allows you to deposit as little as you want to start trading. However, IBKR does require a $2,000 minimum deposit for a margin account. Also, certain types of trading such as day trading require a minimum deposit of $25,000.  

Whatever capacity you’re trading in, you can find a variety of account types to choose from on Interactive Brokers. Here are the different account types available:

• Individual
• Joint
• Individual retirement account (IRA)
• Uniform Gift to Minors Act/Uniform Transfers to Minors Act (UGMA/UTMA)
• Non-professional Advisors
• Family Office
• Small business
• Advisor
• Money Manager
• Broker & Futures Commission Merchant (FCM)
• Proprietary trading group
• Hedge fund and mutual fund
• Compliance officer
• Administrator
• International hedge fund investor

On Interactive Brokers, you can trade in 36 countries and reach 160 markets 24 hours a day, six days a week.

As a registered Futures Commission Merchant, IBKR is regulated by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). It is subject to the rules of the exchanges where it holds membership, including the New York Stock Exchange. 

The broker is also subject to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) rules and regulations. Interactive Brokers is also regulated by several global bodies.

Pros of Trading Forex on IBKR

• Favorable spreads
• Institutional-grade tools
• Deep liquidity
• Simultaneous trading across assets
• High regulation

Cons of Trading Forex on IBKR

• Steep learning curve
• Sophisticated, complex interface
• Inactive account fees

Comparison With Other Brokers

If you want to trade currencies online, the broker you choose can depend on how often you trade and your experience trading. Interactive Brokers ranks among the best forex brokers for trading in the United States, but your experience on IBKR may differ significantly from trading on OANDA or FOREX.com because of differences in focus and features.

OANDA and FOREX.com are focused on retail traders. Interactive Brokers is geared more toward experienced, active traders, offering an array of markets and tools. OANDA and FOREX.com target a wider audience.

The proprietary trading platform on IBKR, Trader WorkStation (TWS), is advanced and complex – easily navigated by experienced forex traders. For beginners, it is a challenge that presents a steep learning curve. You can also access TradingView on Interactive Brokers. 

Platforms on FOREX.com and OANDA are popular with retail forex traders worldwide: MetaTrader 4 (MT4) and TradingView on OANDA and MT4 and MetaTrader 5 on FOREX.com. The MetaTrader platforms and proprietary platforms from OANDA and FOREX.com are more user-friendly – simpler and more intuitive. It’s easier for a less-experienced trader to find their way around on those platforms. 

Interactive Brokers has low commissions and fees, making it suitable for high-volume and institutional traders. However, FOREX.com and OANDA, which target retail forex traders who buy and sell less frequently, could have higher costs than Interactive Brokers, including commissions and spread costs.

You can determine whether Interactive Brokers or another forex broker is a better fit for you with this side-by-side comparison:

Determine Which Forex Broker Is Right for You

Now you have an answer to the question, “Can you trade forex on Interactive Brokers?”

Interactive Brokers is an ideal forex broker for advanced traders because of its competitive pricing, global market access and advanced trading tools. IBKR offers some of the lowest fees in the forex trading industry, including low commission, low margin rates and no hidden spreads or markups. This can help keep the costs down for high-frequency traders and institutional traders.

Professional traders also need access to markets and Interactive Brokers delivers, reaching 160 markets across 34 countries. Traders also get a suite of advanced trading tools, such as FX Trader and access to free, premium research and news providers. A client portal offers account details, statements and reports. It also allows traders to monitor markets and build watchlists.

While IBKR markets itself to retail and professional traders alike, the broker is built for seasoned active traders, not someone new to forex trading. If you’re new to forex trading and want to take the time to learn your way around Interactive Brokers, there’s plenty to be gained. However, you might consider starting your forex trading journey with a broker geared toward retail traders. 

Frequently Asked Questions