Interactive Brokers vs Vanguard 2023 | Which is Better?

Which is better Interactive Brokers vs vanguard
Which is better Interactive Brokers vs vanguard

Interactive Brokers vs Vanguard

Interactive Brokers vs Vanguard

Trading Costs and Commission prices

Interactive BrokersVanguard
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 ETFs48About 1,800 ETFs from about 100 other companies

Read Also👉: What is the Stock Market? How does it Work and How is it Beneficial?

Margin Rate

Margin RateInteractive BrokersVanguard
Under $25,0007.34%13.25%
$25,000 to $49,999.97.34%12.75%
$50,000 to $99,999.97.34%12.25%
$100,000 to $249,999.97.34%11.75%
$250,000 to $499,999.97.34%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 BrokersVanguard
BankingNoNo
Mobile AppYesYes
Desktop AppYesYes
Forex TradingOnly for qualified customerYes
Futures TradingYesNo
LocationsNoNo
Online CommunityYesNo
SeminarsYesYes
Virtual TradingYesNo

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 TypeInteractive BrokersVanguard
American depositary receipts (ADRs)YesYes
Stocks traded on international stock marketsYes (100 markets)Yes (Vanguard Brokerage Block Desk)
ETFs of foreign stocks and Mutual fundsYesYes

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

Rating: 5 out of 5.

Rating: 4.5 out of 5.

Stock Trading

Rating: 5 out of 5.

Rating: 3.5 out of 5.

Mutual Fund Trading

Rating: 4 out of 5.

Rating: 5 out of 5.

Online Platform

Rating: 5 out of 5.

Mobile App

Rating: 5 out of 5.

Rating: 3.5 out of 5.

Commission and Fees

Rating: 4.5 out of 5.

Rating: 4.5 out of 5.

Ease of Use

Rating: 4 out of 5.

Rating: 5 out of 5.

Research

Rating: 4.5 out of 5.

Rating: 3.5 out of 5.

Customer Service

Rating: 4 out of 5.

Rating: 3.5 out of 5.

Platform Tools

Rating: 5 out of 5.

Rating: 3 out of 5.

Education

Rating: 3.5 out of 5.

Rating: 4 out of 5.

Overall

Rating: 4.5 out of 5.

Rating: 3.5 out of 5.

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.

5/5 - (1 vote)
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