What is Interactive Brokers?
Interactive Brokers Canada is part of the parent company Interactive Brokers Group, Inc., which has been around for nearly 50 years and boasts consolidated equity capital of $22.3 billion. Its mission has always been to develop technology to help traders maximize their potential. Interestingly, way back in 1983 they were one of the pioneers of using technology to give their traders an upper hand.
They introduced the first handheld computers used for trading. Since then, they have remained committed to integrating technology to provide mobile and desktop trading platforms for their clients, among other technology-driven services.
Comparing Interactive Brokers to Our #1 Discount Broker: Qtrade
Is Interactive Brokers Safe and Secure for Canadian Users? It’s Complicated
Like other discount brokerages in the Great White North, Interactive Brokers Canada is regulated by the Canadian Investment Regulatory Organization (CIRO) and the Canadian Investor Protection Fund (CIPF). So, as far as regulation goes, your account is well protected.
BUT – and this is a massive BUT – there is a very important question mark when it comes to using any US-based online brokerage as a Canadian resident. This question mark comes in the form of the interpretation of US Tax Law. It’s not that Interactive Brokers is in and of itself unsafe for Canadians to use from a tax standpoint, it’s that the USA has some unique tax rules when it comes to inheritance tax.
It gets complicated in a hurry, but the basic idea is that the US taxes “US In Situs Assets” at the time a person passes away. The estate of any Canadian resident who owns over $60,000 worth of assets at the time of their death must file a tax return in the USA. IB is obviously located in the USA, so the question quickly becomes – do investments in my Interactive Brokers account fall under US inheritance tax law, are they considered “US In Situs Assets”?
The answer is… *drumroll*… no one really knows.
It appears to boil down to whether your investments are considered “domiciled” in the USA. That phrase is being debated by people smarter than myself each year in the USA. I know that my go-to resource for international personal finance is author Andrew Hallam, and he does not use IB for this exact reason.
Now if you’re a USA resident, or a USA Citizen, then you’re going to have to deal with US estate taxes anyway – so this drawback to going with IB is not really relevant. If you live in Canada however, I just don’t think saving a couple of bucks on non-ETF transactions is worth it.
So while your investments are likely as safe as possible from hackers or fraud, it’s perhaps the US taxman that you have to be most careful of.
Can I Buy Canadian Stocks and ETFs on Interactive Brokers?
Yes – you can definitely buy Canadian stocks on Interactive Brokers (IBKR).
You can also buy ETFs, mutual funds, options, and several other Canadian investments using the brokerage.
As of a few years ago, Canadians can also take advantage of the fractional share and ETF purchasing that has been available to US clients for quite some time. This definitely makes trading more accessible for some clients, and is a positive move by the brokerage.
In fact, if you’re looking to purchase stocks from around the world (and not just use a straight forward ETF to get international stock exposure), then International Brokers allows you to buy on 170 markets, in 40 countries, in 29 currencies.
Personally, I’ll stick to the Toronto Stock Exchange and international ETFs, but professional day traders rave about the flexibility that it offers. If you’re looking for more information on ETFs in Canada, you’ll appreciate our Best All-in-One ETFS in Canada 2026 Article.
Interactive Brokers Review: Fees in Canada
Because IBKR operates in such a range of countries and markets, its fee structure is a lot more complicated than most Canadian-only brokerages. The fees depend on what you are trading and how often.
If you are trading stocks and ETFs, there are two structures: fixed rate and tiered rate.
For the fixed rate, you will be charged $0.01 per share for Canadian stocks, with a minimum $1 commission. For the tired rate, which is aimed at professional traders who engage in high volume trades or large orders, you pay a lower cost per share as the volume increases.
The tiered pricing model is really for professional traders making hundreds of trades or making really large trades.
Options trading also has a tiered fee schedule. The more you trade, the less you pay.
Like most online brokerage platforms, the web-based version of IBKR offers users a main client portal page. They have recently made some upgrades to their Client Portal homepage, which offers key account metrics at a glance, portfolio performance, tools and services, and access to quick trade functions.
If you want a bit more, they’ve got it. Detailed quotes, advanced charting, and access to investment news are also available on the Client Portal. Want to see more, but not ready to take the leap? You can try the free trial of the Portal if you’re not quite ready to commit.
As all traders in Canada will be using the regular version of IBKR, they will be using their platform called Trader WorkStation (TWS). While this platform might be great for more experienced traders who trade in high volumes, it might not be so great for the average investor.
Within the Trader WorkStation, there are two workspace options: TWS Mosaic and Classic.
TWS Mosaic is more of an all-in-one, comprehensive work space, making it easy to trade, get quotes, and use technical research tools in one spot. Users can also create and interact with watchlists and charts here.
TWS Classic offers users a quick way to place orders, and has a bit more to offer in terms of tools and algos.
Interactive Brokers Account Types: TFSA, RRSP, Non-Registered
Interactive Brokers Canada offers most account types, but the glaring omission of RESPs and RRIF options really hurts them in cross Canadian comparisons. Here is a list of the accounts they do offer:
- Non-registered accounts (both CAD and USD)
- Joint Accounts
- Margin Accounts
- RRSP
- TFSA
- FHSA
- Informal Trust
- Formal Trust
IBKR Mobile App Review
The Good: The Interactive Brokers mobile app probably has more features than any other broker app out there. You can exchange forex, futures, and much more.
The Bad: The complaint about this broker has always been… the number of complaints. In fairness, they are trying to troubleshoot and answer questions from investors all over the world, so it isn’t exactly an apples-to-apples comparison with a Canada-only brokerage.
The Ugly: It is needlessly complex and the user experience continues to be a bit lacking. However, it seems as though they have been working hard to rectify the issues. Since our update, they have gone from a 1.6 on the Google Play store to a 4.5. The reviews still mention lots of bugs that need to be worked out before it can earn a better rating.
Frequently Asked Questions
Is IBKR Lite Canada available?
No, there is no IBKR lite available in Canada. IBKR Canada customers are forced to use the IBKR Pro platform – which has some great perks for high volume traders, but was never really intended for average investors.
What is Interactive Brokers Canada’s margin rate?
The IBKR Canada margin rules dictate that margin requirements can be as low as 30%. The IBKR Canada margin rates are calculated off of a Canada Reference Benchmark that currently sits at about 2.7%. From there, an additional fee is added depending on the value of your assets that you have invested with IBKR Canada.
Most investors will pay the benchmark rate, plus 0.5%, 0.75%, 1% or 1.5%, meaning that the overall Interactive Brokers Canada margin rate is about 3.7% at the current time, and will float up or down depending on the benchmark rate.
Is Interactive Brokers the best for currency conversion?
Yes. IBKR prides itself on being the best option for exchanging currencies around the world. The thing is that the vast majority of Canadian investors will never need to exchange currencies, and even those who do will only need US Dollars in addition to Canadian Dollars (and many other brokers offer this feature of CAD to USD).
Is the Interactive Brokers Canada Trader Workstations worth it?
Probably not. Because IBKR Canada customers don’t get to choose between IBKR Lite and IBKR Pro, everyone will get access to the TWS platform that professional traders love. It has some great options for that group, but the average person will likely never make use of them.
Does Interactive Brokers Canada have an account minimum?
There is no account minimum for an IBKR Canada individual, joint, or trust account.
Does Interactive Brokers Canada have a TFSA option?
Yes. IBKR Canada does offer TFSA and RRSP accounts, in addition to non-registered personal joint accounts. Notably absent from the list though are RESP and RRIF accounts.
Does Interactive Brokers Canada offer RESP accounts?
No, Interactive Brokers Canada does not offer RESP accounts.
How long does it take to open an account at Interactive Brokers Canada?
Approval generally takes 1-2 business days after you have completed the necessary on-line account registration and application tasks, and after we receive the required identification document.
Interactive Brokers Cryptocurrency Trading
In September of 2021, Interactive Brokers Canada opened crypto trading in partnership with Paxos Trust Company. IBKR’s global clients can access major cryptocurrencies such as Bitcoin, Ethereum and even Bitcoin Cash.
It’s important to note that IBKR does not offer a crypto wallet, so you will still need a cold wallet, or seedless smart card.
While you won’t get the widest crypto exposure with IBKR, it allows you to access a light and regulated version of crypto trading, which in our view, is more than enough.
IBKR Margin Interest Rate and Currency Conversion
One of the ways in which IBKR really tries to differentiate itself from other brokerages when it comes to attracting day traders and professionals, is by offering very low margin rates.
For folks that aren’t sure what margin rates are – don’t worry, you probably don’t need to know!
“Trading on the margin” is when you borrow money from a brokerage (it acts sort of like a bank in this instance) and then you use that borrowed money to purchase investments. IBKR can decide to recall the loan at any time (often referred to as a “margin call”). Clearly this is a risky proposition for the average investor.
If you’re into leveraging up using borrowed money however, then it’s probably important to note that International Brokers Canada is consistently amongst the lowest margin rates in Canada, with a 0.5-1.5% margin in addition to their benchmark rate.
Similarly, the vast majority of Canadian investors will never need to use currency conversion through their brokerage account. That said, if you’re planning to invest in a wide variety of stock exchanges around the world, then the IBKR currency conversion advantage could be a deal breaker.
Who Is Interactive Brokers Best For?
As you can see from our Interactive Brokers review, the brokerage has indeed made real improvements over the years. They have responded to customer feedback and have made a strong effort to keep up with market changes and demands. However, those improvements are just not enough to make IBKR the best fit for most DIY Canadian investors.
On the other hand, if you are, or aspire to be, a professional day trader, options or forex trader, IBKR could be a good option for Canadians, with one key caveat: U.S. tax implications. This is another reason Canadians who just need the best brokerage for straightforward, long-term investing might want to avoid IBKR altogether.
The bottom line is that there are simpler, cheaper and better options for Canadian investors, and you can find them all on our list of the Best Canadian Discount Brokerages. One of the best options, Qtrade, offers low fees, provides excellent customer service, and a full range of account types, without any outside tax complications.
