Interactive Brokers Canada Review 2025

IBKR Pro and Lite explained — ultra-low commissions, global markets, USD accounts, and best-in-class margin rates

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IBKR Canada at a Glance

★★★★★ 4.6 / 5 — Best for active, sophisticated, and international investors
FeatureIBKR LiteIBKR Pro
Canadian stock commissions$0$0.005/share ($1 min)
US stock commissions$0$0.005/share USD ($1 min)
Options$0.65 USD/contract$0.65 USD/contract
Margin ratesStandardIndustry-low (benchmark + spread)
USD accountsYesYes
Global marketsLimited135+ markets, 33 countries
CIPF/SIPCYes (CIPF in Canada)Yes

Overview: Who Is Interactive Brokers?

Interactive Brokers (IBKR) is a US-founded global brokerage established in 1978. It is one of the largest electronic brokerages in the world by daily average revenue trades. In Canada, IBKR operates as Interactive Brokers Canada Inc., registered with CIRO and a member of CIPF.

IBKR is not designed for beginners — its platform can be overwhelming at first. But for sophisticated investors, it offers capabilities that no Canadian-only broker can match: access to 135+ global markets, rock-bottom margin rates, advanced options strategies, futures, bonds, currencies, and one of the most powerful trading platforms in the industry (Trader Workstation).

IBKR introduced its "Lite" tier in 2019, making commission-free trading available to casual investors while preserving the advanced Pro tier for active traders.

IBKR Lite vs IBKR Pro

IBKR Lite

IBKR Lite is the zero-commission tier designed to compete with Wealthsimple Trade and Questrade. Canadian and US stock and ETF trades are free. Options are $0.65 USD per contract. Lite uses PFOF (payment for order flow) for US equities, which means orders may not always receive the best available price — though this is standard across zero-commission brokers.

IBKR Pro

IBKR Pro is the institutional-grade tier. Commissions are extremely low on a per-share basis (typically $0.005/share with a $1 minimum). The major advantages are: best order routing (SmartRouting), lowest margin rates in Canada, access to all global markets, advanced order types, and no payment for order flow. For anyone trading more than a few times per week, Pro's execution quality often makes up for the small per-trade cost.

Key difference: IBKR Pro's margin rates are typically 0.5–1.5% above benchmark (e.g., SOFR or Bank of Canada rate), which is far lower than the 5–7% charged by most Canadian discount brokers. If you use margin at all, IBKR Pro is almost certainly the cheapest option in Canada.

USD Accounts and Currency Handling

IBKR is exceptional at multi-currency management. You can hold CAD, USD, EUR, GBP, and many other currencies in the same account. You can convert currencies at the mid-market rate plus a tiny spread (~0.002%), far cheaper than the 1.5–1.75% that Wealthsimple or Questrade charge.

The "Norbert's Gambit" technique — buying an interlisted stock in CAD, journalling it over, and selling in USD — is also supported at IBKR, letting you convert large amounts at near-zero cost. IBKR's native FX conversion is so cheap that you may not even need the gambit.

Options Trading at IBKR

IBKR is widely considered the best platform for options trading in Canada. It supports all major strategies: covered calls, cash-secured puts, spreads (vertical, calendar, diagonal), straddles, strangles, iron condors, butterflies, and more.

The Trader Workstation (TWS) platform has dedicated options analytics including the Options Strategy Lab, probability calculator, P&L graph, and Greeks display. The mobile app also supports options trading for common strategies.

Options approval levels are assigned based on your experience and financial profile. Most Canadians can get level 2 (covered calls and cash-secured puts) easily; higher levels for spreads and naked options require more documentation.

Account Types in Canada

IBKR Canada supports TFSA, RRSP, and personal non-registered (cash and margin) accounts. Notably, IBKR does not currently support FHSA or RESP accounts — a gap compared to Questrade. RRSP accounts at IBKR do support US-listed ETFs with no withholding tax on US dividends (due to the Canada–US tax treaty), which is a significant advantage for investors holding VTI, SPY, or similar US ETFs.

Pros and Cons

Pros

  • Lowest margin rates in Canada
  • Access to 135+ global markets
  • Excellent FX conversion rates
  • Advanced options platform
  • IBKR Lite: zero commissions
  • Futures, bonds, forex available
  • Interest earned on cash balances
  • Best-in-class order routing (Pro)

Cons

  • Steep learning curve
  • No FHSA or RESP
  • TWS platform complex for beginners
  • Customer support can be slow
  • US-based company (USD-centric UX)

IBKR vs Questrade vs Wealthsimple

FeatureIBKR CanadaQuestradeWealthsimple
Commission-free ETFsYes (Lite)Yes (buy only)Yes (CAD)
Margin ratesLowest in CanadaModerateN/A
USD accountsYesYesPremium only
Global markets135+ marketsTSX + US onlyTSX + US only
FHSA/RESPNoYesFHSA only
Ease of useComplexModerateEasy
Best forActive/sophisticatedETF + activeBeginners

Frequently Asked Questions

Is Interactive Brokers available in Canada? +
Yes. Interactive Brokers Canada Inc. is registered with CIRO (formerly IIROC) and is a CIPF member. Canadian residents can open accounts for TFSA, RRSP, and personal accounts.
What is the minimum deposit for IBKR Canada? +
There is no minimum deposit for a cash account. For a margin account, you typically need at least CAD $2,000 or USD equivalent.
Does IBKR charge inactivity fees? +
IBKR waived its monthly inactivity fees in 2021. There are no more inactivity charges for most account types.
Is IBKR good for beginners? +
IBKR Lite can work for beginners who want free trading, but the platform complexity is better suited to intermediate and advanced investors. Wealthsimple Trade or Questrade are easier starting points.

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