Overview of Interactive Brokers

Interactive Brokers, founded in the United States, offers a wide array of trading assets including stocks, ETFs, forex, bonds, options, and futures, providing traders with various opportunities across global markets.

However, risks have been raised about its legitimacy, with reports of the platform being identified as a suspicious clone. Traders are directly impacted by the platform's regulatory status, influencing oversight, transparency, and legal protections. Adherence to regulatory standards instills confidence among traders regarding the platform's reliability and security, while any suspicion or regulatory ambiguity may undermine trust and deter participation, emphasizing the importance of due diligence.

Is Interactive Brokers legit or a scam？

Interactive Brokers is identified as Suspicious Clone under various regulatory bodies such as the Australian Securities and Investments Commission (ASIC), the Financial Conduct Authority (FCA) in the United Kingdom, the Central Bank of Ireland (CBI), and the Monetary Authority of Singapore (MAS).

However, the presence of “Suspicious Clone” designations in some regions suggests potential regulatory risks. Traders on the platform are directly impacted by the regulatory status, as it influences the level of oversight, transparency, and legal protections afforded to their investments.

Adherence to regulatory standards instills confidence among traders regarding the platform's reliability and security, while any suspicion or regulatory ambiguity may undermine trust and deter participation. Thus, traders are likely to favor jurisdictions where Interactive Brokers maintains clear and reputable regulatory standing, ensuring a safer trading environment.

What are Clone Brokers？

The prevalence of clone brokers is increasingly alarming, as deceptive entities exploit the names of reputable firms to lure unsuspecting clients into believing they are trading with regulated forex firms.

These fraudulent companies go to great lengths, even utilizing the license numbers of legitimate brokers, to deceive traders into opening accounts with them. Remaining vigilant is paramount to avoid falling prey to such scams. Additionally, these unscrupulous entities resort to aggressive tactics, akin to boiler room operations, pressuring clients into opening accounts or increasing their deposits.

It's crucial to heed the adage: if something sounds too good to be true, it likely is. Traders must exercise caution and conduct thorough research before engaging with any brokerage firm to safeguard their investments and financial security.

Pros and Cons

Pros:

• Wide range of tradable assets: Interactive Brokers offers an extensive selection of tradable assets, including stocks, ETFs, forex, bonds, options, and futures. This diversity provides traders with ample opportunities to diversify their portfolios and explore various investment strategies, catering to different risk appetites and objectives.

• Access to global markets: The platform grants users access to a broad range of global markets, enabling them to trade securities and currencies from around the world. This global reach allows traders to capitalize on international market trends, economic developments, and geopolitical events, enhancing their trading flexibility and potential for profit.

Cons:

• Identified as Suspicious Clone: Some users have reported instances where Interactive Brokers was identified as a suspicious clone, potentially raising risks about the platform's legitimacy and trustworthiness. Such allegations can undermine user confidence and deter participation in trading activities.

• Limited customer support options: Interactive Brokers may offer limited options for customer support, which can lead to delays in addressing user inquiries, resolving issues, or providing assistance when needed. This lack of robust support channels may frustrate users and hinder their overall trading experience.

• Potential for technical glitches: Like any online platform, Interactive Brokers is susceptible to technical glitches or system failures, which can disrupt trading activities, cause delays in order execution, or lead to inaccuracies in account information. These technical issues may impede users' ability to trade effectively and impact their overall experience on the platform.

• Risk of exposure to scams: Users may face the risk of exposure to scams or fraudulent activities associated with Interactive Brokers, such as clone brokers attempting to deceive traders. Falling victim to such schemes can result in financial losses and damage to one's reputation, highlighting the importance of vigilance and due diligence when engaging with the platform.

Market Instruments

Interactive Brokers offers a wide range of tradable financial instruments on its platform.

Traders can access a variety of assets including Stocks, ETFs, Forex, Funds, Bonds, Options, Futures, CFDs, Cryptocurrencies, Warrants, and Structured Products.

This extensive selection provides traders with opportunities to diversify their investment portfolios and pursue different trading strategies across global markets.

With access to such a broad array of instruments, traders have the flexibility to capitalize on market opportunities and manage risk effectively.

Deposit & Withdrawal

Interactive Brokers offers a variety of payment methods to fund your account:

• Bank wire transfer: This is the most common and preferred method. It's free for most currencies.

• ACH transfer: This is another electronic transfer option available for US accounts. It's also free.

• Check: You can mail a check to Interactive Brokers. However, there may be processing fees and delays associated with this method.

• Wire transfer from another brokerage: You can transfer funds from another brokerage account to your Interactive Brokers account. This may be subject to fees from both brokers.

• Bill pay: This option is available for US accounts only. It allows you to pay your Interactive Brokers account from your bank's online bill pay service.

• Third-party deposits: Interactive Brokers generally discourages and rejects third-party deposits due to potential fraud and money laundering risks.

There is no minimum deposit required to open an Interactive Brokers account. This makes it a good option for beginners who want to start with a small amount of money.

Customer Support

Interactive Brokers provides the following contact information for customer support:

1. Twitter: @IBKR

2. Facebook: Interactive Brokers

3. Instagram: Interactive Brokers

4. YouTube: Interactive Brokers

5. LinkedIn: Interactive Brokers

These social media platforms serve as channels for reaching out to Interactive Brokers for support and assistance. However, Interactive Brokers' customer support lacks efficiency and responsiveness. Traders often encounter significant delays in receiving assistance, with support tickets remaining unresolved for extended periods. Communication channels such as Twitter, Facebook, Instagram, YouTube, and LinkedIn are available, but their effectiveness in addressing customer risks is questionable.

Exposure

Users have reported a single instance of exposure related to a pyramid scheme complaint, which unveiled a potential scam on the Interactive Brokers platform.

The complaint alleges that the platform induced clients to participate in activities, promising withdrawal options upon event completion. However, upon attempting to withdraw profits, users encountered obstacles, including unexpected tax requirements not deducted from the platform. The inability to access funds and unresponsive customer service exacerbates the situation for affected users. Such exposure to fraudulent activities undermines trust and confidence in the platform, potentially dissuading traders from engaging in further transactions.

Conclusion

This instance of Interactive Brokers is suspected to be a clone operated by a company known as Interactive Brokers Group, Inc. Notably, this particular iteration of Interactive Brokers lacks regulation, posing potential risks for traders. Therefore, it is advisable for traders to refrain from engaging with this broker.

General Information & Regulation

MONEY SQUARE, INC. was established in October 2002 as a company mainly engaged in over-the-counter foreign exchange trading. The company is authorized and regulated by the Financial Services Agency of Japan (FSA) under License No. 5010401112058. Also, MONEY SQUARE is authorized and regulated by the Securities Dealers Association of Japan under Financial Instrument Operator No. 2797 of Kanto Finance Bureau Director (Financial Instruments).

Market Instruments

Users can trade 15 currency pairs, generally 1,000 currency units at a time, except for 10,000 units for South Oran/JPY and Mexican Peso/JPY.

Spreads

MONEY SQUARE does not set transaction fees for users, but charges a certain amount of spreads, for example, from 0.1 pips for USD/JPY, 0.1 pips for GBP/JPY and 0.1 pips for NZD/JPY.

Margin & Leverage

If placing an order, individual users must guarantee at least 4% margin (25:1 leverage) on the value of each currency pair traded. However, corporate users have a slightly different margin rate, which is 0.96% for USD/JPY for example.

Open an account

MONEY SQUARE only supports online account opening, if a client needs to apply for both Forex and CFD accounts, then he/she needs to apply separately. In addition, MONEY SQUARE does not charge any account opening fees and account maintenance fees.

Trading Platform

MONEY SQUARE provides clients with access to the world financial markets through Tralipi®, a trading platform developed by the trader itself, which supports both PC and cell phones.

Deposit & Withdrawal

Users can make deposits via both quick deposit and transfer payments. MONEY SQUARE recommends the former because it is instant and free of charge, while the latter requires the client to bear the transfer fees. Note that MONEY SQUARE only accepts Japanese Yen for deposits/withdrawals.

Trading Hours

MONEY SQUARE offers forex trading hours based on the US market, including daylight saving time - Monday: 7:20am to 5:50am the next day; Tuesday to Friday: 6:20am to 5:50am the next day; winter time - Monday: 7:20am to 6:50am the next day; Tuesday to Friday: 7:20am to 6:50am the next day.

Pros & Cons

Frequently Asked Questions

Does MONEY SQUARE offer leverage？

MONEY SQUARE provides leverage capped at 1:25.

What deposit and withdrawal payment does MONEY SQUARE accept ？

MONEY SQUARE support payment through quick deposit and transfer payments.

Does MONEY SQUARE offer demo accounts ？

No clear information about this part is disclosed.

Does MONEY SQUARE charge a commission？

No, MONEY SQUARE does not charge commissions, only spreads calculated.

What is trading hour set by MONEY SQUARE ？

MONEY SQUARE offers forex trading hours based on the US market, including daylight saving time - Monday: 7:20am to 5:50am the next day; Tuesday to Friday: 6:20am to 5:50am the next day; winter time - Monday: 7:20am to 6:50am the next day; Tuesday to Friday: 7:20am to 6:50am the next day.