Interactive Brokers and TD Ameritrade are online forex brokers that offer their trading services to traders and investors. Interactive Brokers is a highly regulated and trusted forex broker. It is regulated by multiple regulatory authorities including SEC, CFTC, FCA, FSCS, FINRA, FCM, IIROC, MAS, FSA. Similarly, TD Ameritrade is also a regulated forex broker. TD Ameritrade is regulated by multiple regulatory bodies around the world including SEC, FINRA, SIPC. Both brokers have their own strengths and weaknesses.
In this article, we will review and compare the brokerage services offered by Interactive Brokers and TD Ameritrade. We will explore options such as regulations, reputations, fees, features, leverage, and more. Additionally, we will analyze and rate the brokers based on macro and micro categories and options. By reviewing these aspects, you will get a clear idea of which broker suits you best for your trading journey
Interactive Brokers vs TD Ameritrade: In a Nutshell
Interactive Brokers
Founded in New York, USA in 1978 by Thomas Peterffy, Interactive Brokers has grown into a global brand with over 2.1 million clients. It is an American Multinational brokerage firm headquartered in Greenwich, Connecticut. It has become one of the leading online trading solutions for traders, investors, and advisors. The brokers give access to over 5000+ tradable assets including forex, CFDs, warrants, ETFs Options, Futures, Mutual Funds, and Bonds. To trade online, IBKR offers WebTrader, FIX API, MobileTrader (MobileApp), and TWS trading platforms.
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TD Ameritrade
Founded in 1971 as Ameritrade, TD Ameritrade is a well-known American online brokerage firm that offers a wide range of financial services including stocks, Forex, options, ETFs Mutual Funds, fixed income, and other investment products TD Ameritrade went through a couple of acquisitions and mergers. In 2006, it acquired the US operations of TD Waterhouse, followed by the acquisition of Scottrade in 2017. Finally, in 2020, Charles Schwab Corporation acquired TD Ameritrade. TD Ameritrade provides access to both US and non-US traders to trade on this platform.
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Interactive Brokers vs: TD Ameritrade Features
Interactive Brokers
- Trading Instruments: 5000+Trading instruments including forex, CFDs, warrants, ETFs Options, Futures, Mutual Funds, stocks, options, and Bonds
- Maximum leverage: 50:1 for US Clients, 30:1 for EU clients, and 400:1 for global clients.
- Minimum Deposit: The Interactive Brokers minimum deposit is $0 for a cash account, $2,000 for a T Reg margin account, and $110,000 for a portfolio margin account. The minimum deposit is subject to change depending on the trading account opened and the base currency selected.
- Trading Fees: spreads starting from as low as 0.1 pips, Stock fees USD 0.005 per share.
- PAMM/ MAM: Not Available
- Scalping: Allowed
- News Trading: Allowed
- EA/ Robot Trading: Allowed with Capitalise.ai
TD Ameritrade
- Trading Instruments: 4,700+ trading instruments including Stocks, ETFs, mutual funds, options, fixed income, futures, and forex, as well as margin lending and cash management services
- Maximum Leverage: 50:1. Offers both leverage and non-leverage assets.
- Minimum Deposit: TD Ameritrade does not require a minimum deposit to open a trading account
- Account Type: Brokerage and Trading, Retirement Account, Education and Custodian, charitable giving, lending, Small business retirements, Checking and Savings, Robo and Dedicated Advice, credit cards, Annuities, Trust and Estate, Insurance
- Trading Fees: TD Ameritrade offers a $0 account minimum with no charges for trading stocks and ETFs. Bond trades are $1 per bond, and most options contracts cost $0.65 each. Mutual fund trades typically cost around $50, but the firm also provides access to over 3,600 no-transaction-fee funds
- PAMM/MAM: Not Available
- News Trading: Allowed
- Scalping: Allowed
- Automated Trading: Allowed
Interactive Brokers vs TD Ameritrade: Pros and Cons
Interactive Brokers Pros & Cons
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TD Ameritrade Pros & Cons
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Interactive Brokers vs TD Ameritrade: Side-by-Side Comparison
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Interactive Brokers Vs TD Ameritrade: Our Scores and Ratings
We rated both brokers, Interactive Brokers and TD Ameritrade, on a scale of 1 to 10, with 0.1 increments. To achieve a comprehensive rating, we broadly grouped all services offered by brokers into 6 macro categories and assigned percentage weights to them. Each macro category is subdivided into several data points which contributes to the total score of 1.0-10.0 assigned to each macro category. Since all categories are not equally important, our weight percentage plays a significant role in assessing the broker accurately. For example, Regulation and Security contributes a total weight of 40% to the whole ratings because this is the most important rating category. To learn more, read our methodology.
Interactive Brokers :
TD Ameritrade
Final Verdict :
Both Interactive Brokers and TD Ameritrade offer similar trading services worldwide. Both brokers are regulated in the USA and accept US clients. The minimum lot size for both is as low as 0.1.
However, there are some differences. For example, Interactive Brokers is regulated by 9 regulatory authorities including SEC, CFTC, FCA, FSCS, FINRA, FCM, IIROC, MAS, FSA. while TD Ameritrade is regulated by 3 regulatory authorities including SEC, FINRA, SIPC. The trading cost for Interactive Brokers is Spread starting from 1 pips, while the trading cost for TD Ameritrade is Spread starting from Commission from $7 to $9.99. Our score for Interactive Brokers is 9.1, and for TD Ameritrade, it is 8.8 (according to our expert ratings, brokers that achieve a score of 8.00 or higher are considered safe and trustworthy).
So, if you are looking for a low-cost broker for forex trading, you can choose Interactive Brokers. If you want to use a widely recognized broker, you may consider TD Ameritrade.
