Interactive Brokers Eliminates Monthly Account Inactivity Fees

The US-listed brokerage argues that its decision is aligned with the industry standards.

Interactive Brokers LLC (NASDAQ: IBKR) announced on Thursday that it has removed its monthly account inactivity fees. The measure has been taking effect since July 1, 2021, and users will no longer be charged for the $10 fee to maintain a minimum balance in their trading accounts, the broker said in an email sent to the customers.

“This change will be reflected in your August 2021 account statement. Our decision to remove inactivity fees aligns us with industry standards and reflects our ongoing commitment to provide clients with low-cost trading solutions,” the US-listed brokerage noted in the email addressed to their users. According to their report for June, interactive Brokers had been witnessing positive numbers across all its fronts in terms of metrics, including Daily Average Revenue Trades (DARTs) and ending client margin loan balances.

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The broker reported that 2.471 DARTs were seen in the firm over the month, which is 10% higher than the prior month. Additionally, ending client equity was $363.5 billion in June, which represented a surge of 79% compared to the last year’s figure. Still, it was slightly higher month-over-month. In terms of clients’ accounts, Interactive Brokers said it had witnessed 1.41 million accounts created, which is 61% higher than 2020 and 2% higher than the prior month. However, the annualized average cleared DARTs per client account was 401. The so-called DART is a critical indicator used by most US brokers to measure their clients’ activity.

Interactive Brokers and Cryptos

Moreover, the company is reportedly treading the crypto waters as mentioned in the latest words from its CEO. “Customers certainly are asking for [crypto trading], and we expect to be ready to offer it to them by the end of the summer,” Thomas Peterffy, Interactive Brokers Chairman and CEO, said at the Piper Sandler Global Exchange & FinTech Conference early in June. Despite this being the full inception of the US-listed brokerage firm within crypto trading, trading of Bitcoin futures has already been available on its platform for a long time.

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