Interactive Brokers vs Swissquote Comparison – 2024

Top Reasons to Choose Interactive Brokers or Swissquote

After thoroughly testing Interactive Brokers‘ versatile offering, I found it ideal for those seeking a diversified trading experience. The broker stands out for its exceptionally low spreads — some of the most competitive in the industry — and a vast selection of over 2 million tradable instruments, including 8,000+ CFDs with varied risk profiles. Clients of Interactive Brokers can engage in CFD trading, earn dividends on stocks, build a robust investment portfolio, and more, all with access to interest-bearing opportunities.

In comparison, I determined that Swissquote is a perfect match for high-volume and high-precision traders. With ultra-fast execution speeds averaging under 9 milliseconds, Swissquote is built for those who demand efficiency and accuracy. Additionally, it offers FIX API solutions for Direct Market Access (DMA), allowing clients to access raw spreads directly from exchange order books.

Interactive Brokers: Snapshot

Interactive Brokers, (or IBKR), was founded in 1978 in the United States. The broker is licensed in multiple jurisdictions by highly trusted financial institutions, such as the FCA, SEC, SFC, MAS, and others. The standout feature of IBKR is its rock-bottom trading fees, which are among the lowest in the industry.

Interactive Brokers: Who is it For?

IBKR is best suited for those interested in long-term trading strategies. With a broad selection of instruments and contract types available at minimal cost, traders can seize a variety of opportunities while managing risk effectively. Besides, we found their Trader Workstation platform to be one of the most advanced platforms accessible to retail traders

What Makes Interactive Brokers Stand Out?

Interactive Brokers is an industry leader when it comes to offering low trading fees and a wide range of trading instruments. Moreover, stock traders especially benefit from the ability to trade US-listed shares without a commission.

Swissquote: Snapshot

Founded in 1996 and headquartered in Zurich, Swissquote is another industry veteran. The broker provides clients with access to millions of tradable and investment instruments across various markets. Its proprietary CFXD platform is versatile and packed with features that support advanced technical analysis and seamless order execution.

Swissquote: Who is it For?

I determined that Swissquote is particularly well-suited for intraday traders and scalpers. With lightning-fast execution speeds, the broker effectively minimizes the risk of negative slippage, enabling high-precision trading.

What Makes Swissquote Stand Out?

Siwssquote stands out with its impressive order execution speeds, averaging around 9 milliseconds. This advantage is largely due to Swissquote’s status as a bank, granting it direct access to deep liquidity at the interbank level. Additionally, the broker offers FIX API, which further supports low-latency trading.

Trust

Interactive Brokers vs Swissquote Trust and Regulation Comparison

Interactive Brokers is authorized by multiple Tier-1 regulators, including the SEC and CFTC in the US, IROC of Canada, FCA in the UK, ASIC in Australia, and more. As a publicly traded company on the Nasdaq with a market cap of approximately $33 billion, IBKR upholds high standards of transparency and financial security. The broker operates on a ‘best execution’ basis and meets all essential safety requirements. In short, Interactive Brokers ranks among the top 1% of brokers with respect to safety.

Swissquote is also a member of a major stock exchange – the SIX exchange in Switzerland – with a market capitalization of CHF 3.65 billion. It holds seven Tier-1 licenses from regulators such as FCA, FINMA, CySEC, CSSF, and others. Swissquote also adheres to all key safety measures, including negative balance protection and participation in compensation schemes, providing strong safeguards for its clients.

If you want to learn more about brokers’ regulations, be sure to check out our article on the top regulated forex brokers.

Fees

Interactive Brokers vs Swissquote Spreads, Fees and Commissions Comparison

Interactive Brokers excels in fee competitiveness, standing well above the competition. The broker offers raw spreads from 0.0 pips on spot currency pairs with volume-based commissions. The commission rate decreases for larger order sizes. A notable advantage unique to IBKR is the ability for clients to trade US-listed stocks commission-free.

Swissquote’s Standard account features commission-free trading and floating spreads starting from 1.4 pips, generally ranging from average to high compared to the industry. Swissquote also charges swaps that are slightly above the industry average. Additionally, there is a relatively high minimum deposit requirement of $1,000 for the Standard account.

Platforms and Tools

Interactive Brokers vs Swissquote Trading Platforms Comparison

Interactive Brokers supports multiple industry-leading platforms, including its proprietary Client Portal and the advanced Trader Workstation (TWS). TWS provides access to a wide range of markets (CFDs, futures, options, warrants, etc), making it ideal for traders looking to diversify their market exposure. With over 90 technical indicators, advanced charting tools, and comprehensive analytical features, it stands out as a top choice for technical traders.

Swissquote has invested heavily in the development of its proprietary CFXD platform. Equipped with over 150 analytical tools and configurations, it supports advanced technical analysis. Powered by TradingView, CFXD delivers a seamless charting experience and includes advanced order types like One-Cancels-the-Other (OCO) orders, catering to the needs of precision traders.

In case you’re looking for brokers that offer third-party platforms, check out our guides on the best MT4 forex brokers, MT5 forex brokers, and cTrader forex brokers.

Tradable Instruments

Interactive Brokers vs Swissquote Instruments Selection Comparison

Interactive Brokers provides access to over 2 million instruments across 150 markets, including more than 8,000 CFDs The greatest advantage of its diverse instruments offering is the ability to effectively hedge trading risks. Beyond CFDs, Interactive Brokers also offers a wide range of warrants, bonds, mutual funds, futures, and options. These allow traders to speculate on anticipated price changes and also to navigate expected and unexpected volatility changes.

Swissquote offers an extensive selection of over 1 million trading and investing instruments. Traders can choose from lower-risk securities, such as ETFs and bonds, as well as higher-yield/risk assets, like share CFDs and cryptocurrencies. This diverse range caters to traders with varying strategies.

Customer Support

Interactive Brokers vs Swissquote Customer Support Comparison

Interactive Brokers offers multilingual support 24/5 via live chat, email, and phone. The customer support team is responsive, addressing queries promptly, and demonstrates a solid understanding of the broker’s extensive services and tools.

Swissquote provides support through email and phone, with live chat available exclusively for registered clients. Additionally, an intuitive chatbot is available for addressing general inquiries, offering quick and helpful assistance. Emails are typically answered within one business day. Overall, Swissquote’s customer support is reliable and responsive, making it a dependable resource for traders.

Research

Interactive Brokers vs Swissquote Research Tools Comparison

Interactive Brokers provides comprehensive research materials sourced both in-house and from third-party providers. The content offers deep insights into current market developments and potential trading opportunities. I appreciated the nuance of Interactive Brokers’ content, most of which combines aspects of technical analysis, fundamental analysis, and the psychology of trading.

Swissquote’s research offering is diverse and caters to both novice and experienced traders. It includes unique in-house content, such as the proprietary Swissquote Magazine, and actionable trading signals powered by Autochartist. This mix of resources provides traders with a holistic view of market trends and trading opportunities, ensuring they are well-equipped to navigate the markets effectively.

Deposits & Withdrawals

Interactive Brokers vs Swissquote Deposit and Withdrawal Methods Comparison

Interactive Brokers processes payment requests fairly quickly, usually within 1 business day. The broker does not charge handling fees for deposits or withdrawals, although third-party banking fees may apply. The one major drawback is that payments are currently only supported via bank wire.

Payments to and from Swissquote can be processed via bank wire, credit card, or debit card. Deposits are free of charge, but withdrawals incur a handling fee, which depends on the account’s base currency. Payment requests are processed within one business day, ensuring timely transactions.

Account Types and Terms

Interactive Brokers vs Swissquote Account Types Comparison

Interactive Brokers offers a diverse range of account types, including individual, joint, trust, money managers, and small business accounts. These options cater to individual, professional, and institutional traders and investors, accommodating various trading and investing strategies. Whether clients are focused on short-term speculative trading or longer-term value investing, Interactive Brokers provides flexible solutions. Additionally, the broker supports 19 base currencies and imposes no minimum deposit requirement.

Swissquote provides three retail account types, all of which support high-frequency trading. The Standard account requires a relatively high minimum deposit of $1,000 but includes valuable features such as complimentary access to Autochartist’s seamless market analysis. Swissquote also prioritizes trader safety with mechanisms like a 100% margin call and a 30% stop-out level. The broker offers 10 base currencies and supports swap-free trading via its Islamic accounts.

Education

Interactive Brokers vs Swissquote Educational Content Comparison

Interactive Brokers’ educational content is extremely, well, interactive. The broker offers comprehensive courses covering technical, fundamental, and psychological analysis. To reinforce learning, traders can complete quizzes designed to test their knowledge and application skills. Overall, Interactive Brokers’ nuanced educational content provides invaluable guidance for identifying viable trading and investing opportunities.

Swissquote delivers a robust selection of educational materials, primarily focused on technical analysis. The content is diverse, presented in formats such as ebooks, courses, and articles. These materials provide beginners with balanced and detailed insights into the fundamentals of technical analysis. However, less emphasis is placed on topics like fundamental analysis and trading psychology, leaving room for improvement in these areas.

Our Methodology

Since 2011, FX Empire has developed a detailed methodology for evaluating CFD brokers, involving over 250 variables across nine crucial categories. Our team of experts, with deep industry knowledge, conducts live testing and research by interacting with the brokers directly. We check regulations, open accounts, test spreads, account costs, platform functionality, instrument variety, customer support reliability, and the quality of research and educational content. This granular analysis helps us identify each broker’s strengths and weaknesses, keeping our comparisons current with market trends and ensuring our guides meet traders’ needs.

We strive to evaluate each broker objectively, considering how their offerings align with the diverse trading goals and preferences of our readers. Our focus is on providing a balanced overview of each broker’s strengths and weaknesses. This method ensures that our readers receive clear, insightful comparisons to aid in making well-informed trading decisions.

We employ a comprehensive rating system across nine key categories:

• Trust
• Fees
• Platforms and Tools
• Tradable Instruments
• Customer Support
• Research
• Deposits and Withdrawals
• Account Types and Terms
• Education

In each category, we conduct an in-depth analysis for both brokers, outlining features, advantages, and disadvantages and determining their suitability for different trader profiles. By blending insights from our extensive reviews with first-hand experiences and observations, we ensure each comparison is balanced, informative, and tailored to the trader’s unique needs. You can read more about our review process here.

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