IG vs Interactive Brokers – Which Trading Platform Is Better?

If you're looking to trade or invest in the UK, two of the most recommended trading platforms you'll encounter are IG Markets and Interactive Brokers.

But when it comes to IG vs Interactive Brokers, who wins?

Both offer plenty of benefits for traders, so it can be hard to choose.

Thankfully we’re here to help.

Here, we’ll give an overview of these two platforms, outlining their functions and benefits for different purposes and needs.

Let’s get started with our look at Interactive Brokers vs IG!

What Is IG and Interactive Brokers?

Interactive Brokers was founded in 1978 by Thomas Peterffy, who remains the company's current chairman. It focuses on providing superior brokerage services and trade execution, establishing broad market access with competitive prices.

Besides the rock-bottom margin pricing, Interactive Brokers is known for its transparent fee structure. It's one of the most compelling platform options for professional traders looking for a broad range of order types.

Founded in 1974 by Stuart Wheeler, IG Markets is a trading platform determined to empower informed, decisive, adventurous traders looking to access trading/investing in financial markets.

With a competitive fee structure, thousands of trading instruments, and a well-established reputation, IG is an excellent option for beginners looking to learn the ins and outs of trading.

IG vs Interactive Brokers: The Functions

It’s important to look into how these two trading platforms compare in all the important areas.

Let's start by looking at the functions and the products available on each platform.

IG

IG stock broker provides clients access to a wide range of asset classes. With this platform, you can trade forex, bonds, indices, ETFs, shares, options, commodities, interest rates and industry sectors.

Cryptocurrency trading is also available.

Through its global network, IG has access to over 17,000 markets, many of them with lucrative trading instruments like options and futures.

IG brokers works with EUR, USD, AUD, GPB HKD and SGD as base currencies; however, you can make deposits and withdraw in other currencies as well, including crypto assets.

The platform has one plan for all accounts, including a Self-Invested Personal Pension (SIPP), an IG ISA, and a general share dealing account. Within these, you can choose between ready-made portfolios (great for beginners) and self-invested ones.

Investing in funds, IG Smart Portfolios and shares are available through the flexible IBKR ISA. However, the platform doesn't have junior, lifetime and cash ISAs.

Interactive Brokers

The platform provides access to an unparalleled range of assets, including futures, stocks, bonds, ETFs, mutual and hedge funds, options, managed portfolios, spot currency pairs, US spot gold and robo-advisor.

International trading is available in 150 exchanges across 33 countries.

From cryptocurrencies, you can trade Bitcoin, Bitcoin Cash and Ethereum.

Base currencies in Interactive Brokers are USD, AUD, GPB, CAD, CHF, EUR, HUF, CZK, DKK, HKD, JPY, SGD, MXN, SEK, NOK and NZD.

Besides the broad array of trading tools, a Self-Investment Personal Plan SIPP for tax-advantaged pension accounts is also available at Interactive Brokers.

Moreover, the platform offers stock and shares ISAs, including Junior ISAs. However, cash or lifetime ISAs aren't available.

Interactive Brokers vs IG: The Fees

Now we know the basics of what these two platforms have to offer, which one offers the cheaper fees?

Here is the cost of each service:

Interactive Brokers Fee Structure

• The cost of signing up – No fees for opening, closing or transferring accounts
• The cost of making a deposit/withdrawing money – There is no withdrawal or deposit fee
• The cost of making a trade – Trading fees are as low as $5 per 1,000 shares. Trading one contract costs $1.00, while trading 50 contracts is $32.50
• Minimum/maximum deposits/withdrawals – There is no minimum deposit
• Inactivity fees – None
• Currency fees – There are cryptocurrency fees based on trade value
• Other fees – Trading ETFs is free until 150 shares. Over that, it's $0.005 per share, and there is a minimum of $1 per order
• Payment options – Bank transfer, Wise transfer, checks

IG Fee Structure

• The cost of signing up – None
• The cost of making a deposit / withdrawing money – There is no withdrawal or deposit fee
• The cost of making a trade – Trading fees for UK shares are £8 (0 to 2), £3 (3+), and £10 (0 to 2), with no charge (3+) for US shares
• Minimum/maximum deposits/withdrawals – There are no minimum or maximum deposits
• Inactivity fees – Apply after three months of inactivity
• Currency fees – There is a standard charge of 0.5% and additional costs for extra services
• Other fees – There is a 0.5% foreign exchange fee on non-sterling trades conducted online. There is an additional fee of £40 to 50 for dealing over the phone
• Payment option – On IG, you can make deposits from the UK through credit or debit cards and bank transfers

Interactive Brokers vs IG Markets: Getting Started

Interactive Brokers

Interactive Brokers is available on mobile (iOS and Android) devices and desktop users.

However, the mobile app has more functionality than the desktop version and is much better for trading on the go.

Here’s how to open your live trading account on Interactive Brokers:

Select Your Preferred Interactive Brokers Account Type:

Go over the account description before submitting your personal information to ensure it's the right fit for you.

Enter Personal Information:

Fill out the files requiring your email address, username and password. Then provide any additional, including your name, address, birth date, employment status and nationality

Enter Your Investment Objective and Regulatory Information:

You will be asked about your goals for using your platform and provide financial data.

Provide Proof of Identity:

Scan and upload your ID, passport or bank statement with your name and address to verify your identity.

Sign Your Contract:

Go over the information you entered, agree to the terms and conditions, and, if everything is in order, sign a virtual contract with the broker.

Fund Your Account:

Once your account has been verified, you can transfer the amount you want to invest and start trading. You'll be able to do this within two to three working days.

IG Markets

Here’s how to open your live trading account on IG:

Fill in the Initial Questionnaire:

Register your account by providing your email and password. Then, you’ll be asked about your previous trading experience to ensure you get started with the right account.

Get Verified:

Provide name, address, and any other information asked by the broker, along with proof of identity. Wait until your identity is verified.

Fund Your Account:

Once IG verifies your account, you can deposit funds into your account and start the trading journey. You can typically start trading/investing in one to three business days.

The IG platform is available on desktop and mobile devices (Android and iOS), with both having excellent functionality. You can also use L2 Dealer, MetaTrader 4, and ProRealTime third-party platforms.

Interactive Brokers Education and User Experience

Interactive Broker has numerous education programs for investors and traders.

The platform offers short videos in several languages and teaches beginners how to navigate the platform.

Traders Academy is an Interactive Brokers online database with resources for investors, educators, financial professionals, and everyone else who wants to learn more about currencies, assets, trading tools, markets and the Interactive Brokers platform.

Additional classes and research tools make the user experience with this platform exceptional.

The demo account is a great place to start.

Once you've mastered the basics and opened a live account, you can continue pursuing the online curriculum and daily webinars to continue your learning journey.

A version of the Interactive Brokers platform called IBKR Lite is available for new and non-frequent investors who don't want to use advanced features like the SmartRouting trade routing order, which is available on the full version and is highly praised by seasoned investors.

IBKR Pro, on the other hand, is recommended for high-volume traders because it has lower prices for large orders.

The more you trade, the lower your fees will be, motivating advanced, institutional and professional traders to use the platform.

IG Markets Education and User Experience

IG's educational tools include an extensive library, and the IG Academy, both of which are designed to will help newcomers to the platform integrate quickly.

Seasoned practitioners can take advantage of additional trading strategy resources and resource tools.

IGs online webinars introduce users to the platform and provide a walk-through of available trade opportunities.

IG Academy (also available through the mobile app) has courses for people in different stages of the trading spectrum. No matter how much experience you have or what tools you're looking to use, here, you can learn how to use them.

IG Markets vs Interactive Brokers: Customer Service and Security

When looking at IG Markets vs Interactive Brokers, it’s important not to forget about the importance of customer service and security.

Both of these can have a significant impact on your user experience, so let’s see how they compare.

IG Customer Service and Security

UK clients have a toll-free number at their disposal from 8 am on Saturday to 10 pm on Friday for all their trading concerns.

Prospective users can also inquire through the live chat, although this is only available when the platform is open.

Besides this, customer service is also available in several languages through social media and email. Clients can also file a complaint and describe their issues or questions.

Not only is IG registered with the NFA and the CFTC in the US, but the platform is also governed by the FCA in the UK

For added reassurance, the has signed up for the FX Global Code of Conduct and is listed on the UK’s FTSE 250.

Under the watchful eyes of all these financial authorities, IG Markets is one of the safest trading platforms across the globe.

In the UK, there are even regulations to ensure that the client's money remains safe in segregated accounts at regulated banks and is never mixed with corporate funds.

Clients also gain extra asset protection via the Financial Services Compensation Scheme (FSCS) for up to £85,000.

IG broker can guarantee that you'll never lose more than you have in your account because it enforces the negative balance protection rule mandated by the ESMA.

If required, you can also get a guaranteed stop-loss order and limit your exposure to unforeseen losses in extremely unfavourable market conditions.

IG's software security has a two-factor and biometric authentication system. After a period of inactivity, the system automatically locks out users.

The company has several dealing desks established to deal with client issues, including managing trades even in cases of technological glitches when the apps aren't working.

Plus, it's another way to legitimize this excellent broker.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of IG retail investor accounts lose money when trading spread bets and CFDs with IG. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Interactive Brokers Customer Service and Security

While the platforms still have much to improve, their response time and access have grown considerably over the last few years.

Keeping up with technology, Interactive Brokers has a handy AI-powered IBot answering clients' questions on the website and trading platforms.

It's only available in English, but it can help you find answers to commonly asked questions, saving you time.

If you prefer to deal with a human agent and learn more than what's in the FAQ section, you can request a message through an online chat or the secure message centre on the trading platform or website.

Customer service is also available through phone, 24 hours a day, 6 days a week.

In case you call but need to hang up, there is a callback service, so you won't have to worry about losing your place and still have your questions or concerns addressed in a timely manner.

IBKR has comprehensive security protocols for all aspects of trading. It protects your trading data, personal information and account privacy.

Clients are also safeguarded by the Securities Investor Protection Corporation (SIPC) for up to $500,000 (although there is a sub-limit of $250,000).

Mobile app users are protected with a biometric recognition system but can request additional security measures for their individual devices.

For accounts over $1 million, clients can get a digital security card.

The platform's Securities Class Action Recovery service detects eligibility to file a claim for securities sold or bought through Interactive Brokers.

If found eligible, your claim is automatically submitted and you will be assisted in recovering your funds (minus a 20% contingency fee).

In the past three years, there haven't been any reported breaches or regulatory actions against the platform.

Interactive Brokers vs IG Markets – Frequently Asked Questions

Final Thoughts

When looking at Interactive Brokers vs IG, it can be a tough call.

Generally IG typically appeals to experienced investors wanting to diversify their portfolios.

These are either frequent traders who want to take advantage of low UK trading shares or confident clients looking to access to advanced trading tools.

Another reason IG is more suitable for frequent traders is because, unlike other clients, they pay no platform fee.

With its diversified educational program, Interactive Brokers is an excellent choice for beginners. Through this comprehensive platform, anyone can learn and master trading and investing.

The highly functional mobile trading apps and the low fees across the exchange further add to the platform's appeal as a beginner-friendly trading entity.