What is IBKR Lite
IBKR Lite account is the latest offering by Interactive Brokers. It offers unlimited, commission- free trading on US exchange listed stocks and Exchange Traded Funds (ETFs). IBKR Lite account is a low cost trading account because there is no account minimums to maintain or inactivity fees.
IBKR Lite pays competitive interest on your idle cash balances and offers low financing rates for borrowing against your account i.e margin loan.
This new offering will complement Interactive Brokers existing account, which is re-branded as IBKR Pro.
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Those who are interested to apply for Interactive Brokers account can do so by clicking on this link.
READ: How to Do a Fund Transfer for Interactive Brokers
Who are eligible for IBKR Lite?
To account holders in the United States.
How to apply for IBKR Lite?
Through the Interactive Brokers Client Portal. Your first three requests for reclassification will be processed on the Friday following your request. After three reclassifications, subsequent reclassifications will be processed on a quarterly basis.
Comparison Between IBKR Pro vs IBKR Lite
Screenshot taken from IBKR site
IBKR Pro is a legacy IBKR pricing plan designed for the active trader and sophisticated investors.
READ: Interactive Brokers Versus Saxo Markets Comparison
Conclusion
IBKR Lite is a hassle free trading account recommended for investors who do not trade frequently and does not require sophisticated features from Interactive Brokers platform to perform analysis and backtesting on trades. Do note that the commission free trading only applies to US Exchange listed stocks and ETFs. The commission free cost for trading US Exchange listed stocks and ETF and zero charges for inactivity is definitely an attractive option to many of us.
However, if you are looking to trade outside the US market and if you are a sophisticated investor who requires access to the Trader Workstation (TWS) a desktop application for in depth analysis, IBKR APIs and Algos then IBKR Pro account will be more suitable for you.
For IBKR Pro accounts, Effective 1 July 2021, clients will no longer be charged USD 10 for not maintaining a minimum balance or transaction activity. Interactive Brokers’s decision to remove inactivity fees aligns them with industry standards and reflects their ongoing commitment to provide clients with low cost trading solutions.
Those who are interested to apply for Interactive Brokers account can do so by clicking on this link.
Which account is more suitable for you? Are there any brokerages offering something better? Feel free to let me know by leaving a comment!