Interactive Brokers in Malaysia
Interactive Brokers (IB) is one of the best platforms when it comes to trading options and other things. The platform is fully packed with tools that are sophisticated and makes the lives of the investors easier comparing to other platforms. The firm makes a strong point when it comes to any electronic exchange and you can be sure to trade futures, equities, and options across the world and around the clock.
Interactive Brokers Review
You can trade from your desktop or any mobile device with access to the internet. Company keep on adding new features through IB, and, as the years go by, the experience becomes better and better. However, it might be a little bit difficult for a beginner to cope with these technologically advanced tools, and we recommend you try somewhere else before going into the extensive capabilities of IB.
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ALTERNATIVE BROKER:
A good option you can try out is the IQ Option, which is a better platform for Forex beginners and still have advanced tools that improve your experience.
Briefly About Interactive Brokers
Year founded
Regulation
Instruments
Commission on trades
Deposit options
Withdrawal options
Minimum deposit
OS compatibility
Mobile app
Trading platforms
1978
SEC, FINRA, NYSE, FCA
Stocks, Options, Futures, Spot Currencies, Metals, Bonds, ETF, Hedge Fund Investing
Depend on the region and selected instrument
Wire, check (all checks, including retirement checks), Online bill payment check, ACH transfer initiated at IB, EFT initiated by IB (Canada only), AUD Bill payment (BPAY - for Australian Dollars only) , Direct Rollover (IRA accounts only) , Trustee-to-Trustee (IRA accounts only)
Wire, US ACH transfer initiated at IB (US accounts only), Check (only available for US currency; your mailing address must be in the US), Canadian EFT transfer (Canadian accounts only), SEPA (Single Euro Payments Area) Initiated at IB, BACS (available for GBP withdrawals only), GIRO/ACH (available for HKD, CNH, and SGD), NZD ACH (available for NZD withdrawals only)
$0
Windows, MacOS, Linux
iOS, Android
Client Portal (web), IB Trader Workstation (desktop), IBKR Mobile
Trading Experience
The platform is a Workstation that works on IB, and it is downloadable, hence the reason most of the beginners find it difficult to work with the platform. However, you can still log in to your portal via their web-based client portal and get analysis, market overview and a forum for clients, among other things. The client portal has added some high-end tools to improve your experiences: scanners, global data and watchlists that are customizable. The streaming tools are everywhere, but you can only update data on one device at a time. The orders can be entered from a graph or one can opt the matrix display in TWS.
Overall, the trading experience is good, especially to active traders, but it can prove difficult to most of the new investors.
Trading Technology
Trading is quite easy when you get used to everything as you can access any market venue from TWS and go ahead to place a large order using their built-in algorithm. The IB execution engine is one of the best, and it stays on top of market changes and then re-route all parts of the order you placed to ensure that you get the best execution. IB has recently implemented a new order type that goes by the name 'midprice order'. This order ensures that the placed orders can be routed to several venues, including IEX. The order automatically adjusts to the changes in the market conditions and aims to provide quicker fills and lower the price in the process.
MidPrice Order in Mosaic
Range of Offering
Well, we get to say that, if the brokers are ranked according to the range of the things they offer, IB would have no competition because their range of offering is simply the best in the market. There are 120 direct exchanges, and they have recently added a huge inventory of fixed income products that includes many Euro-dominated bonds. They also offer 11,000 mutual funds, but you can only use the mutual funds to find low-cost exchange-traded funds. The platform also has a low-cost Robo-advisory service where you can get help when you need it.
Customer Service and Help
Customer support is always a very important thing that should be looked at critically when you are deciding to try a platform, especially if the platform deals with money. It turns out that IB offers one of the best customer services in the world of brokers. They've gone a long way to ensure you get all the help that you might need. There is a feature called IIBot that can be used on all mobile devices, and you can talk to the specialist, instead of having to type out your problem. Telephone support has also been greatly improved, but there is always a long cue waiting for their turn, so you might want to use the other means to get help from the customer support. Additionally, they have a mobile app available.
Commissions and Costs
IB are great when it comes to their interest rates and commissions. They are among the platforms with some of the most affordable rates. As a client you can choose a tiered plan or you can choose to go for a fixed plan. The fixed plan is a perfect choice for occasional traders, while the tiered plan is perfect for active traders as it minimizes costs. The fixed-rate requires you to pay 0.05 dollars for a share with a minimum deposit of one dollar.
There are no leg-fee for this platform and the commission ranges from a maximum of 0.70 dollars for every contract to 0.15 per contract, depending on the volume.
Their margin rates are among the lowest if not the lowest in the market, and you are allowed to borrow against your assets for trading reasons, or for other reasons for that matter. IB also pays a 1.7 percent commission on idle cash sitting on the account management, as long as it is 10, 000 dollars or more.
Pros and Cons of Interactive Brokers
Pros
- The margin rates and other fees are way lower compared to most of the platforms available.
- The services of the platform are mostly geared to active traders, so, if you are an active trader, you might want to try out this platform.
- There are 23 currencies available on the platform including bitcoin, and traders can trade on 120 marketers in 31 countries.
Cons
- IB does not support education plans like 401k and 529.
- A very small number may be subjected to data charges or maintenance fees.
- The platform can be a little bit difficult for a new investor.
Frequently Asked Questions
Is interactive brokers legal in Malaysia?
Interactive Brokers does not have an office in Malaysia and is not a member of its Bursa Malaysia stock exchange, so its Malaysian clients cannot trade local markets through this broker.
Is my money safe with Interactive Brokers?
The broker is regulated by several financial authorities globally, including top-tier ones like the UK's Financial Conduct Authority (FCA) and the US Securities and Exchange Commission (SEC). As it has licenses from multiple top-tier regulators, the broker is considered safe.
Which broker is the best in Malaysia?
IQ option works in Malaysia and you can register by link.
What Else to Read
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