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Who Is the Best Online Broker?

The best online broker is Interactive Brokers.

I spent most of my career in the brokerage industry and I was the Senior Vice President for a major firm. Fortunately, I knew what to look for when I was developing my trading platform. I did an exhaustive search and Interactive Brokers was the clear winner. It costs thousands of dollars to write into a brokerage API so I had to get this right.

Interactive Brokers has some of the lowest commissions in the industry. Their minimums are two dollars per ticket. Stock rates start at half a penny per share and options rates start at $.70 per contract. They have a volume-based scale and active traders can get their rates down much lower.

With Interactive Brokers, you can trade almost every product in the world (stocks, foreign stocks, bonds, foreign currencies, futures and options) through one trading platform. You can also have your brokerage account denominated in any currency you want.

The real-time data feeds offered through Interactive Brokers are robust and the latency is very low. Even small traders can get the data fee waived if they do a few trades each month.

Interactive Brokers has been catering to institutional traders for more than a decade. Their API is very reliable and in 6 years my feed has never gone down.

Interactive Brokers has a very deep borrow list compared with my other brokerage accounts. This is important when I want to short a stock.

Margin rates are as low as you can find on the street. This lowers my cost when I want to buy stock on margin.

Interactive Brokers won Baron’s online brokerage survey in 2012 and 2013. They rate all of the online brokerage firms each year.

If you are not satisfied with your current broker, consider opening an account with Interactive Brokers