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Interactive Brokers regulation & licences

Multi-asset broker Founded 1978 🇺🇸 United States Listed: NASDAQ:IBKR

Licence ScoreVery strongHow it's calculated

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Our take

Interactive Brokers, founded by Thomas Peterffy in 1978 and listed on NASDAQ, is one of the largest electronic brokers in the world. It offers spot forex through its IDEALPRO venue alongside stocks, futures and options, and holds licences in the US, UK, Ireland, Australia, Hong Kong, Singapore, Japan and Canada. Its capital base and public reporting are among the strongest in retail brokerage.

Best suited to: Professional and cost-conscious traders who want direct market access

Licences on record 8

1 Tier 1 — top-tier regulation

ASICAustralian Securities & Investments Commission🇦🇺 Australia
Reference: check the register
Compensation: No statutory compensation fund for OTC derivatives; complaints go to AFCANegative balance protection: Required for retail clients
CBICentral Bank of Ireland🇮🇪 Ireland
Reference: check the register
Compensation: Investor Compensation Company (ICCL) — 90% of loss up to €20,000Negative balance protection: Required for retail clients
CFTC / NFACommodity Futures Trading Commission & National Futures Association🇺🇸 United States
Reference: check the register
Compensation: No compensation scheme for retail forex (SIPC does not cover spot FX)Negative balance protection: Not a regulatory requirement
CIROCanadian Investment Regulatory Organization🇨🇦 Canada
Reference: check the register
Compensation: CIPF — up to CAD 1,000,000 per account categoryNegative balance protection: Not a regulatory requirement
FCAFinancial Conduct Authority🇬🇧 United Kingdom
Reference: check the register
Compensation: FSCS — up to £85,000 per eligible client per firmNegative balance protection: Required for retail clients
JFSAFinancial Services Agency of Japan🇯🇵 Japan
Reference: check the register
Compensation: No compensation fund, but client funds must be held in a mandatory trust (kubun kanri shintaku)Negative balance protection: Not a regulatory requirement
MASMonetary Authority of Singapore🇸🇬 Singapore
Reference: check the register
Compensation: No compensation scheme for leveraged FXNegative balance protection: Not a regulatory requirement
SFCSecurities and Futures Commission🇭🇰 Hong Kong
Reference: check the register
Compensation: Investor Compensation Fund does not cover leveraged OTC FXNegative balance protection: Not a regulatory requirement

Licences are matched from public sources and regulator registers, and entities change over time. A licence held by one company in a group does not cover clients of another. Always confirm on the official register.

Regulatory profile

Interactive Brokers is a multi-asset broker founded in 1978 and headquartered in United States. Its parent company is publicly traded (NASDAQ:IBKR), which means audited financial statements are published regularly — a meaningful transparency advantage.

In our database Interactive Brokers is matched to 8 licences from ASIC, CBI, CFTC / NFA, CIRO, FCA, JFSA, MAS and SFC. Most importantly, the ASIC (Australia), the CBI (Ireland), the CFTC / NFA (United States), the CIRO (Canada), the FCA (United Kingdom), the JFSA (Japan), the MAS (Singapore) and the SFC (Hong Kong) are among the regulators we classify as tier 1 — bodies with strict capital, client-money and conduct rules.

Depending on the entity, eligible clients may be covered by Investor Compensation Company (ICCL) (CBI), CIPF (CIRO) and FSCS (FCA). Negative balance protection is mandatory for retail clients under ASIC, CBI and FCA rules. Retail leverage caps apply at the ASIC, CBI and CFTC / NFA-regulated entities (for example 30:1 on major FX pairs at ASIC).

Interactive Brokers offers its own proprietary platform. The advertised minimum deposit starts at zero (no minimum) — minimums often vary by account type and entity.

Regulatory strengths

  • Very strong capital and public disclosure
  • Tier-1 licences globally
  • Institutional-style pricing

Points to check

  • Platform has a steep learning curve
  • Spot FX leverage lower than CFD brokers

Protection by entity

RegulatorCompensationRetail leverageNegative balance protectionDisputes
1 ASICNo statutory compensation fund for OTC derivatives; complaints go to AFCA30:1 on major FX pairs for retail clients since March 2021Required for retail clientsAustralian Financial Complaints Authority (AFCA)
1 CBIInvestor Compensation Company (ICCL) — 90% of loss up to €20,00030:1 on major FX pairs (ESMA rules)Required for retail clientsFinancial Services and Pensions Ombudsman
1 CFTC / NFANo compensation scheme for retail forex (SIPC does not cover spot FX)50:1 on major FX pairs, 20:1 on other pairsNot a regulatory requirementNFA arbitration
1 CIROCIPF — up to CAD 1,000,000 per account categoryMargin set by CIRO rules; up to roughly 50:1 on major pairsNot a regulatory requirementOBSI (Ombudsman for Banking Services and Investments)
1 FCAFSCS — up to £85,000 per eligible client per firm30:1 on major FX pairs for retail clients (20:1 minors, gold and major indices)Required for retail clientsFinancial Ombudsman Service (FOS)
1 JFSANo compensation fund, but client funds must be held in a mandatory trust (kubun kanri shintaku)25:1 on FX for individual tradersNot a regulatory requirementFINMAC (Financial Instruments Mediation Assistance Center)
1 MASNo compensation scheme for leveraged FX20:1 on major FX pairs for retail investorsNot a regulatory requirementFinancial Industry Disputes Resolution Centre (FIDReC)
1 SFCInvestor Compensation Fund does not cover leveraged OTC FX20:1 on FX for retailNot a regulatory requirementFinancial Dispute Resolution Centre (FDRC)

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Interactive Brokers regulation FAQ

Is Interactive Brokers regulated?

Yes — in our database Interactive Brokers is matched to 8 licences: ASIC (Australia), CBI (Ireland), CFTC / NFA (United States), CIRO (Canada), FCA (United Kingdom), JFSA (Japan), MAS (Singapore) and SFC (Hong Kong). Which of these protects you depends on the legal entity you open an account with. Always confirm the licence on the regulator's official register.

Is Interactive Brokers a tier-1 regulated broker?

Interactive Brokers holds 8 licences from regulators we classify as tier 1: ASIC, CBI, CFTC / NFA, CIRO, FCA, JFSA, MAS and SFC.

Does Interactive Brokers accept US clients?

Interactive Brokers is matched to a CFTC/NFA registration in our database, so a US-regulated entity exists. US accounts are subject to 50:1 leverage caps, FIFO and no-hedging rules.

Is my money protected with Interactive Brokers?

Clients of Interactive Brokers's CBI, CIRO and FCA-regulated entities may be eligible for statutory compensation (Investor Compensation Company (ICCL) — 90% of loss up to €20,000; CIPF — up to CAD 1,000,000 per account category; FSCS — up to £85,000 per eligible client per firm). Clients of other entities rely on segregation of funds and the firm's financial strength.

What is the minimum deposit at Interactive Brokers?

Interactive Brokers advertises no fixed minimum deposit on its standard account, although some account types, payment methods or entities may require one.

How can I verify Interactive Brokers's licence?

Find the company name and licence number in Interactive Brokers's client agreement or website footer, then search it on the regulator's official register (linked from each licence on this page). Confirm that the website domain you use is listed on the register, and check the regulator's warning list for clones.

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Risk warning: CFDs and leveraged forex are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading CFDs. Consider whether you understand how they work and whether you can afford to take the high risk of losing your money. Read more.