Table of Contents
Interactive Brokers vs Vanguard
Interactive Brokers vs Vanguard
Trading Costs and Commission prices
| Interactive Brokers | Vanguard | |
|---|---|---|
| Minimum Deposit | $0.00 | $0.00 |
| Penny Stock Fees | $0.00 | $0.00 |
| Stocks and ETFs | $0.005 per share (minimum $1.00) | $7.00 per trade |
| Stock Options | $0.2 to $0.7 per contract (minimum $1.00) | $20.00 + $1.00 per contract |
| Mutual Funds | $14.95 per purchase | $35.00 per purchase |
| Commission Free ETFs | 48 | About 1,800 ETFs from about 100 other companies |
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Margin Rate
| Margin Rate | Interactive Brokers | Vanguard |
|---|---|---|
| Under $25,000 | 7.34% | 13.25% |
| $25,000 to $49,999.9 | 7.34% | 12.75% |
| $50,000 to $99,999.9 | 7.34% | 12.25% |
| $100,000 to $249,999.9 | 7.34% | 11.75% |
| $250,000 to $499,999.9 | 7.34% | 11.25% |
When choosing a broker, the difference in commissions is usually not significant, as most brokers have similar pricing.
However, Interactive Brokers offers lower fees for high-volume traders through their “tiered” commission schedule. Vanguard rewards loyal customers with lower commissions when they invest in their own funds and ETFs, starting at $50,000 in assets.
Some brokers may also provide cash bonuses to attract new customers. So, it’s important to consider these factors and any special offers when selecting a broker.
Benefits and Features
| Interactive Brokers | Vanguard | |
|---|---|---|
| Banking | No | No |
| Mobile App | Yes | Yes |
| Desktop App | Yes | Yes |
| Forex Trading | Only for qualified customer | Yes |
| Futures Trading | Yes | No |
| Locations | No | No |
| Online Community | Yes | No |
| Seminars | Yes | Yes |
| Virtual Trading | Yes | No |
ADRs and International stocks
Interactive Brokers and Vanguard give you more options to trade stocks from around the world, unlike other brokers. But trading international stocks can be more expensive with these brokers due to higher commissions and fees.
| Investment Type | Interactive Brokers | Vanguard |
|---|---|---|
| American depositary receipts (ADRs) | Yes | Yes |
| Stocks traded on international stock markets | Yes (100 markets) | Yes (Vanguard Brokerage Block Desk) |
| ETFs of foreign stocks and Mutual funds | Yes | Yes |
However, you can still invest in foreign companies using their American tickers to avoid extra costs.
Maintenance and Inactivity fees: IRA Fees
When it comes to IRA accounts, there are two important types of fees to pay attention to. The first is a maintenance fee, which brokers may charge for simply having an account. The second is an inactivity fee, which is imposed if you don’t meet the broker’s trading volume requirements.
Vanguard has an account service fee for customers with less than $10,000 invested in their mutual funds or ETFs. However, this fee can be completely avoided by choosing electronic statements instead of paper ones.
On the other hand, Interactive Brokers charges inactivity fees for low-volume traders by requiring a minimum monthly commission charge of $10. If your commissions for a month are below $10, the charge will be increased to reach that minimum. To avoid this fee, you need to either have a balance of at least $100,000 or spend more than $10 on commissions each month. So, it the the benefit of knowing Interactive Brokers vs Vanguard
Interactive Brokers vs Vanguard: Rating
Interactive Brokers
Vanguard
Option Trading
Stock Trading
Mutual Fund Trading
Online Platform
Mobile App
Commission and Fees
Ease of Use
Research
Customer Service
Platform Tools
Education
Overall
Winner
✅
Pros and Cons
Pros:
- Customized Trading Platform
- Tools and Opportunities for research and learning
- Large no. of investment including futures, options and forex
Cons:
- Minimum $10,000 required to open account
- Inactivity fees if doesn’t meet trading commission requirement
- Complicated account opening process
Pros:
- Free Broker Assistance
- Large Mutual Fund and Commission Free ETFs selection
- Easy to Use
Cons:
- Only Basic Platform
- Limited Research and Learning
- Customer Service (Long Waiting Time)
All the ratings are done by research, customer reviews and across multiple platforms for comparison of Interactive Brokers vs Vanguard.
Disclaimer
All the above mentioned platform are t=not the recommendation, These are the facts and data collected over various platforms. Please do a wide range of research before investing.
