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Interactive Brokers vs Vanguard
Detailed comparison of fees, features and products
4.8
BROKER ONLY4.3
BROKER ONLYFeature Comparison
| Feature Comparison | Interactive Brokers | Vanguard |
|---|---|---|
| Wide Offering | ||
| Fractional Shares & DRIP | ||
| Free Savings Plan | ||
| Cash Sweep Yield | ||
| US Support | ||
| Tax Documents (1099) | ||
| SIPC $500k + FDIC | ||
| Score | 7/7 | 7/7 |
Fee Comparison
| Fee Comparison | Interactive Brokers | Vanguard |
|---|---|---|
| IRA Accounts (Roth, Traditional) | $0 (IBKR Lite) / Tiered | $0 commission |
| Cash Sweep Yield | $0 (IBKR Lite) | $0 commission |
| Crypto Fee | 0.12-0.18% | N/A |
| Margin Rate | 0.03% | N/A |
| Inactivity Fee | None | None |
| Deposit Fee | Free | Free |
| Withdrawal Fee | Free (1/month) | Free |
| Min. Deposit | 0 | 0 |
Product Range
| Product Range | Interactive Brokers | Vanguard |
|---|---|---|
| Stocks | 150+ markets worldwide | All US stocks |
| ETFs | 13,000+ ETFs | All US ETFs |
| Mutual Funds | 40,000+ funds | Vanguard funds + 3,000 others |
| Bonds | 1M+ bonds | Full offering |
| Crypto | BTC, ETH, LTC, BCH | N/A |
Pros & Cons
Pros
- Lowest margin rates in the industry (6% vs 12% at competitors)
- Access to 150 global markets from one account
- Best for professional traders and international investors
- SIPC $500k + Lloyd's excess insurance
- Highest cash interest rates (4.8%+ on USD)
- Best options pricing for complex strategies
Cons
- Trader Workstation (TWS) has steep learning curve
- Customer service not as friendly as Schwab/Fidelity
- Overwhelming for beginners
Pros
- Owned by its fund shareholders: No conflicts of interest
- Lowest expense ratios in the world (VTI: 0.03%)
- Perfect for Bogleheads and passive investors
- SIPC $500k protected
- Target Date Funds for set-and-forget retirement
- Free DRIP on all holdings
Cons
- App and website still basic despite 2025 updates
- No crypto
- Not for active traders
- Customer service can be slow