https://www.businesswire.com/news/home/20190926005753/en/Interactive-Brokers-Launch-IBKR-Lite Gotta give up direct market access and being able to use desktop platform. But no fees, account minimums, or commissions on equity trades. Thoughts? IB's information site https://www.interactivebrokers.com/en/index.php?f=45196
I believe commissions will still be on futures. So yeah I guess. But the no desktop platform is a big hold for me that will keep me on the "pro" account.
There apparently is no API for IBKR Lite. Click on the "Compare Plans" button from this link: https://www.interactivebrokers.com/en/index.php?f=45196 Another significant difference, the margin loan rate is at least 1% higher for IBKR Lite and the interest paid on idle cash is at least 1% lower for the Lite version. So the difference in the idle cash payment between the two plans would more than cover what I lose in commissions by using the non-lite version. I think this only really benefits people only trade stocks. Makes sense. They gave their plan some thought. They don't want all their customers going to the Lite account. The only want to keep the ones who would otherwise go to Robin Hood.
https://www.businesswire.com/news/home/20190926005753/en/Interactive-Brokers-Launch-IBKR-Lite It says orders will be routed to market makers who will pay IBKR. So, price to pay is poorer execution. Hard to quantify whether this is worth the commission saved.
INdeed. It targets the Robin Hood market. This Lite plan is only available to U.S residents and not international customers of IBKR who are not eligible for Robin Hood. If Robin Hood is a listed company, the price will crash double-digit on this announcement. IBKR is big giant which is not to be trifled with.
It's great if I decided to change away from an active trader to long term buy and hold. Don't have to worry about account minimums, account maintenance fees, etc. It sucks to only be able to switch back and forth once a quarter though.