Interactive Brokers vs. Vanguard – A Detailed Comparison
Discover our detailed comparison of Interactive Brokers and Vanguard to help determine which is best for you. Whether you’re a seasoned trader or just starting out, choosing the right platform can significantly impact your trading experience.
To make your research easier, we manually found key data for Interactive Brokers and Vanguard across the internet and compiled it all in this article.
- Advanced order types
- Best for automated trading
- Low options commissions
Overview of Interactive Brokers
Interactive Brokers (IBKR) is a well-established brokerage firm founded in 1978, known for providing advanced trading and investing services to a diverse clientele, including individual investors, institutions, and professional traders. IBKR offers competitive pricing for options and futures, but lacks when it comes to charting and ease of use.
✓ Advanced order types
✓ Best for automated trading
✓ Low options commissions
Interactive Brokers is Best For
Interactive Brokers is best for advanced traders who prefer to automate their trading strategies. IBKR is far from beginner-friendly, as the platforms are advanced and require some technical knowledge to utilize effectively. If you are looking for a modern, easy-to-use investing platform, IBKR is not your best option.
Overview of Vanguard
Vanguard was founded by the legendary investor John Bogle. Bogle is also credited with creating the first retail index fund, providing retail investors with a low-cost vehicle to invest in the broader stock market. Vanguard is known for offering low-cost mutual funds and ETFs with trillions of AUM.
✓ Best for investors
✓ Low-cost investing funds
✓ Retirement planning tools
Vanguard is Best For
Vanguard is best for long-term investors who want a low-cost set-it-and-forget-it investing approach. It is not great for active traders due to its lack of charting and trading tools. While Vanguard is an excellent and well-established brokerage, it is somewhat dated and not suitable for those who want a lot of control over their investments.
Key Characteristics of Interactive Brokers and Vanguard
| Platform | Platform Type | Tradeable Assets | Charting Features | Data | Premium Pricing |
|---|---|---|---|---|---|
| Interactive Brokers | Brokerage Platform | Stocks, ETFs, Mutual Funds, Options, Futures, Futures Options, Crypto, Bonds | Downloadable desktop platforms, web platform, mobile app | Must buy real-time data | No premium features |
| Vanguard | Brokerage Platform | Stocks, ETFs, Mutual Funds, Options, Bonds | Price history for Vanguard funds | Real-time data with funded account | No premium features |
Trading Features and Tools
| Platform | DRIP | Margin Trading | Insurance | Mobile App |
|---|---|---|---|---|
| Interactive Brokers | Yes, but with fees | Yes | SIPC Insured | Yes |
| Vanguard | Yes, no fees | Yes | SIPC Insured | Yes |
Trading Costs and Commissions Compared
| Fee Type | Interactive Brokers | Vanguard |
|---|---|---|
| Equity Commission | Free | Free |
| Option Commission | $0.65 per contract | $0 + $1-per-contract fee |
| Futures Commission | $0.85 per contract, $0.25 micro | No futures |
| Futures Options Commission | $0.85 per contract, $0.25 micro | No futures options |
| Option Exercise Fee | None | None |
Interactive Brokers vs Vanguard – Bottom Line
Choosing between Interactive Brokers and Vanguard depends on your specific trading needs, preferred trading tools, and the type of assets you’re interested in.
Both platforms offer distinct advantages, but by considering the detailed comparison above, you can select the one that aligns best with your trading strategy and goals.
For more detailed reviews and comparisons, continue exploring our other articles on brokerage platform comparisons.
What is the Overall Best Charting Software?
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- TradingView has an excellent economic calendar and various screeners
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