Interactive Brokers vs. Forex.com: Which Broker Meets Your Trading Needs?

If you are a trader or an investor, one of the most important decisions you will have to make is choosing a brokerage firm. An online broker allows you to buy and sell securities, as well as manage your portfolio. There are many brokerage firms available, but two of the most popular ones are Interactive Brokers and Forex.com. In this article, we will compare Interactive Brokers vs. Forex.com to help you decide which broker meets your trading needs.

What is Interactive Brokers?

Interactive Brokers LLC is a brokerage firm based in the United States that was founded in 1977. The firm offers a wide range of trading and investment services, including stocks, options, futures, forex, bonds, and funds. Interactive Brokers has a reputation for being a low-cost broker, serving both retail and professional traders.

What is Forex.com?

Forex.com is a global foreign exchange and CFD broker based in the United States. The firm was founded in 1999 and serves over 180 countries. Forex.com offers trading in various financial instruments, including forex, CFDs, stocks, and commodities. Forex.com is known for its quality customer support and education resources.

Trading Platform

The trading platform is an essential tool for traders. Both Interactive Brokers and Forex.com offer advanced trading platforms. Interactive Brokers offers its proprietary platform, commonly known as Trader Workstation (TWS), and WebTrader. TWS is a desktop application that offers advanced trading tools such as real-time charts, market data, and news. WebTrader, on the other hand, is a web-based platform that can be accessed from any web browser. Forex.com offers two trading platforms: ForexTrader and MetaTrader 4. ForexTrader is a web-based platform that provides fast execution and advanced charting tools. MetaTrader 4 is a popular platform among traders that offers a wide range of technical indicators and automated trading options.

Commissions and Fees

Commissions and fees are an essential factor to consider when choosing a broker. Both Interactive Brokers and Forex.com offer competitive pricing, but there are some differences. Interactive Brokers offers a tiered commission structure based on the trader’s trading volume. The more you trade, the lower the commissions you pay. Forex.com, on the other hand, offers commission-free trading, but it charges a spread, which is the difference between the bid and ask price.

Regulation and Safety

Safety is a crucial factor to consider when choosing a broker. Both Interactive Brokers and Forex.com are regulated by top-tier financial authorities. Interactive Brokers is regulated by the U.S. Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the Commodity Futures Trading Commission (CFTC), and other regulatory bodies in different countries. Forex.com is regulated by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA).

Customer Support

Excellent customer support is essential for traders who require assistance during their trading journey. Both Interactive Brokers and Forex.com offer quality customer support, but they have different channels. Interactive Brokers provides support through phone, email, and live chat. Forex.com offers support through phone, email, and live chat, but it also has a comprehensive education section that includes trading guides, webinars, and video tutorials.

Conclusion

Choosing a brokerage firm is a crucial decision for traders and investors. Both Interactive Brokers and Forex.com offer excellent trading services, but they have some differences. Interactive Brokers is a low-cost broker that offers a wide range of financial instruments and advanced trading platforms. Forex.com is a leading forex and CFD broker that offers commission-free trading and quality customer support. When choosing between these two brokers, it’s essential to consider your trading style, preferences, and needs. We hope this article helps you make an informed decision.

Suggestion

If you are a professional trader and have a large trading volume, Interactive Brokers might be the best option for you due to its low commissions, advanced trading tools, and wide range of financial instruments. On the other hand, if you are a beginner or a retail trader, Forex.com may be a better choice for you. Forex.com offers commission-free trading and educational resources that can help you learn more about trading.