IBKR vs Alternatives: A Global Investor's Honest Comparison

The table below shows indicative FX conversion costs per $10,000 invested for an investor based outside the US buying US-listed stocks.

• Interactive Brokers: ~$10 (0.1% markup over mid-market)
• Trading 212: ~$15 (0.15% — competitive but slightly higher)
• Saxo Bank: ~$50–$100 (0.5–1% depending on account tier)
• eToro: ~$150 (1.5% FX fee, disclosed in T&Cs)
• Charles Schwab International: ~$30 (0.3%)
• CommSec International (Australia): ~$50–100
• HL (UK): ~$100 (1% FX fee)

Trading 212 has emerged as a genuinely competitive alternative, particularly for smaller portfolios. It offers fractional shares (IBKR does too but more limited internationally), a cleaner mobile-first UX, and a Stocks & Shares ISA for UK investors — something IBKR lacks. Its FX cost of 0.15% is only marginally above IBKR. For UK investors with small-to-medium portfolios, Trading 212's ISA wrapper often makes it the better overall choice despite the slightly higher FX cost.

eToro's 1.5% FX spread is its defining weakness for serious investors. On a $10,000 portfolio, eToro costs $150 to enter and $150 to exit — $300 round trip vs IBKR's $20. eToro's social trading and copy trading features appeal to new investors, but for anyone building a real long-term portfolio, the FX tax is too steep to ignore. The one caveat: eToro has no commission on individual stock trades; for very frequent small-amount equity purchases, the math may differ.

• Choose IBKR if: you're investing $10,000+, want access to global markets, and can handle a complex platform
• Choose Trading 212 if: you're a UK investor who wants an ISA, or you prefer a cleaner UX for US stocks
• Choose Saxo if: you want a premium platform with local support in many countries
• Avoid eToro for long-term investing due to the 1.5% FX margin