U.S. markets open in 4 hours 51 minutes
  • S&P Futures

    4,148.50
    +6.75 (+0.16%)
     
  • Dow Futures

    32,846.00
    +54.00 (+0.16%)
     
  • Nasdaq Futures

    13,197.75
    +14.50 (+0.11%)
     
  • Russell 2000 Futures

    1,946.40
    +5.30 (+0.27%)
     
  • Crude Oil

    89.25
    -1.51 (-1.66%)
     
  • Gold

    1,807.70
    +2.50 (+0.14%)
     
  • Silver

    20.59
    -0.02 (-0.09%)
     
  • EUR/USD

    1.0239
    +0.0044 (+0.43%)
     
  • 10-Yr Bond

    2.7650
    0.0000 (0.00%)
     
  • Vix

    21.47
    +0.32 (+1.51%)
     
  • GBP/USD

    1.2118
    +0.0036 (+0.30%)
     
  • USD/JPY

    134.8920
    -0.0810 (-0.06%)
     
  • BTC-USD

    23,839.86
    -135.80 (-0.57%)
     
  • CMC Crypto 200

    556.72
    +13.84 (+2.55%)
     
  • FTSE 100

    7,491.03
    +8.66 (+0.12%)
     
  • Nikkei 225

    27,999.96
    -249.28 (-0.88%)
     

Interactive Brokers Makes Waves With Inactivity Fee Elimination

  • Oops!
    Something went wrong.
    Please try again later.
·1 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

For 43 years Interactive Brokers has been serving clients from all over the world with access to a suite of investment products. The online broker has always had a singular mission to provide lowest cost access to global trading markets in order to maximize returns. They were the first online broker to offer $0 commissions with their IBKR Lite, while their IB SmartRouting provides more active investors with institutional-level pricing to lower their overall costs with a small commission.

What happened: Effective July 1, 2021 investors can now access IBKR Pro pricing without worrying about the frequency of their trades. Why? Because Interactive Brokers eliminated their inactivity fee. The fee was $20 per month if you had less than $2,000 in your account and if you didn't generate a minimum of $20 in commissions. You would be charged $10 if your account exceeded $2,000 but you traded less frequently.

Why it matters: Interactive Brokers was already deemed one of the lower-cost alternatives despite the inactivity fee but now it just got a whole lot more competitive.

It remains to be seen how other online brokers will match Interactive Brokers overall low-cost offering across stocks, options, futures, funds and bonds, and especially, their industry-low margin loan rates, now that this latest cost barrier has been removed.

Ready to learn more about Interactive Brokers? Read our comprehensive Interactive Brokers Review.

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.