Are you confused about whether to choose Interactive Brokers (IBKR) vs Trade Republic as a broker for your investing needs?
In this side-by-side comparison, we analyse Interactive Brokers (IBKR) vs Trade Republic to help you understand how these apps compare on some of the most common features and make a better-informed decision about the best broker for you.
Below, you’ll find the pros and cons of each broker, as well as a comparison table that features the different fees charged, the financial instruments supported, the regulation, and more. Keep reading!
IBKR vs Trade Republic
- Interactive Brokers is our recommended choice overall
- Trade Republic is best for beginners, earning interest, and creating savings plans with stocks/ETFs
IBKR is a more established company, with a strong track record and best for those who don’t mind the extra complexities of the platform.
Trade Republic, on the other hand, is best for earning interest, and beginners who prefer a more user-friendly platform. On the downside, it is a recent company with a short track record.
Side-by-side comparison
| Category | Interactive Brokers | Trade Republic |
| Demo account | Yes | No |
| Account minimum | €/$/£0 | €0 |
| Interest on uninvested cash (annually) | EUR: 2.67%; USD: 4.08%; GBP: 4.198% (as of November 2024) | EUR: 3.25% (as of November 2024) |
| US stocks fees | Tiered plan: $0.0035 per shareMin. $0.35; Max. 1% of trade value. | €0+ €1 settlement fee per trade |
| EU stock fees | Tiered plan: 0.05% of trade valueMin. €1.25; Max. €29. | €0+ €1 settlement fee per trade |
| ETFs | Tiered plan: 0.05% of trade valueMin. €1.25; Max. €99. | €0+ €1 settlement fee per trade |
| Currency conversion fee | 0.0020% | 0% |
| Regulators | FINRA, SIPC, SEC, CFTC, IIROC, FCA, CBI, AFSL, SFC, SEBI, MAS and MNB. | BaFin |
About Interactive Brokers
Interactive Brokers is a global online broker and publicly listed company which surpassed major financial crises, showing resilience and a rigorous risk management process.
It offers an advanced investment platform that includes a wide range of products (stocks, options, mutual funds, ETFs, futures, bonds, and currencies) from 150 markets.
Beginners and intermediate investors have educational tools to explore, but the learning curve will be steep. Interactive Brokers also launched IBKR GlobalTrader, a modern mobile trading app to trade Stocks, Options and ETFs.
Interactive Brokers pros and cons
Pros
- Low commissions on US stock trading
- No monthly inactivity fee
- The broadest product and markets range in the brokerage industry
- Demo account
- Excellent reputation (founded in 1978)
- Extensive research and Education tools
- Has a modern mobile trading app to trade Stocks, Options and ETFs, ideal for novice investors, IBKR GlobalTrader.
- Offers interest on uninvested cash balances
Cons
- Complicated and lengthy account opening process (but fully online)
- Steeper learning curve for beginners
- Website is difficult to navigate
- Interactive Advisors (Robo-advisor feature) is only available for US customers
About Trade Republic
Trade Republic is a discount broker based in Berlin, Germany. It focuses on four types of financial assets: stocks, ETFs, cryptocurrencies, and derivatives.
It uses the motto “From the people, for the people” to express its commitment to its customer by selling itself as a “no order fee” platform.
Nonetheless, a €1 external fee is applied in every single trade (Except saving plans), meaning that in practice, you will charge at least €2 (€1 for buying and another €1 for selling).
Trade Republic pros and cons
Pros
- Automatic saving plans
- Interest paid in idle cash balances
- Invest from only €1
- No minimum deposit
- Direct debit in the share-saving plans
- Supervised and regulated by a top-tier regulator
Cons
- €1 flat external fee in every single trade (Except saving plans)
- No demo account
- Only one base currency (EUR)
- No direct access to US Stock Exchanges - you might not be able to buy some popular US-listed companies, such as Reddit
- Currency conversion fees apply
How to invest in the S&P 500 on IBKR and Trade Republic (videos)
If you’re still unsure about which platform to choose, check our videos where we explain step-by-step how to invest in the S&P 500 on Interactive Brokers and on Trade Republic:
Trade Republic vs IBKR: our veredict
Interactive Brokers
Our recommended choice overallTrade Republic
Best for beginners, earning interest, and creating savings plans with stocks/ETFs
Choosing between these two online brokers isn’t always an obvious decision. The differences between Interactive Brokers (IBKR) vs Trade Republic come from the trading platforms, products, fees, and security. Do you prefer a primary trading platform? Do you want to invest in ETFs only? Do you value security more?
Ultimately, the best online broker for you will depend on your profile, personal preferences, and objectives. Explore the websites above and decide for yourself!
Want to know more about Interactive Brokers (IBKR) vs Trade Republic? Explore our in-depth broker reviews, comparison table, and BrokerMatch tool.
