When it comes to investing, most Malaysians are familiar with local brokerage firms that allow them to buy stocks on Bursa Malaysia. But what if you wanted to invest in global tech giants like Apple, Tesla, or Google? Or explore opportunities in European and Asian markets? That’s where Interactive Brokers (IBKR) comes in.
Interactive Brokers is one of the most powerful and low-cost trading platforms in the world, giving investors access to markets across 33 countries and 150+ exchanges. Whether you're a beginner looking to invest in well-known global companies or an experienced trader seeking advanced tools, IBKR has something for you.
But what makes IBKR stand out? Here are five key features that every investor should know.
Earn Interest on Cash Balances
Most Malaysian brokers don’t pay you anything on your uninvested cash. If you sell a stock and leave the cash sitting in your account, it just sits there—not growing. But with IBKR, your idle cash can actually earn interest, helping you maximize every ringgit.
Here’s how it works:
Unlike local brokers, IBKR lets you earn market-rate interest on your uninvested cash. However, there’s a small catch—IBKR does not pay interest on the first USD 10,000 (around RM45,000) of your cash balance. Interest is only paid on amounts above this threshold, and the rate depends on your Net Asset Value (NAV)—the total value of your IBKR account.
For Malaysian investors, this is a huge advantage, especially if you hold large cash balances while waiting for the right investment opportunity.
Why This Matters for Malaysian Investors:
Higher returns on your cash – Unlike most local brokers that offer zero interest, IBKR helps your uninvested funds grow.
Better than a savings account? – With market interest rates around 3.83% for USD, your cash could earn more than what Malaysian banks offer on savings accounts.
Ideal for investors with large portfolios – If you have USD 100,000 (approx. RM447,000) or more, you qualify for full market-rate interest. If your balance is lower, you still earn some interest, but at a reduced rate.
Example: How Much Can You Earn?
Let’s say you have USD 20,000 (RM90,000) in cash in your IBKR account. Since the first USD 10,000 doesn’t earn interest, you only earn on the remaining USD 10,000.
If the annual interest rate is 3.83%, that’s USD 383 per year (around RM1,700)—just by keeping your cash in IBKR instead of a regular brokerage account.
This makes IBKR one of the best options for Malaysians looking to make the most out of their uninvested cash. While it may not benefit smaller accounts as much, for serious investors, this feature adds real value.
Access to Global Markets
Most Malaysian investors only trade on Bursa Malaysia because that's what local brokers offer. But let’s be honest—Bursa Malaysia is small compared to global markets, and many of the world's biggest investment opportunities lie outside Malaysia.
With IBKR, you get direct access to global markets, including:
U.S. (NYSE, NASDAQ): Invest in companies like Apple, Microsoft, and Tesla.
UK (LSE): Trade stocks of major British firms.
Japan (TSE): Get exposure to big names like Toyota and Sony.
Hong Kong (HKEX): Invest in Chinese tech giants like Alibaba and Tencent.
Why Does This Matter?
Let’s say you believe AI is the future. Bursa Malaysia has very few AI-related stocks. But with IBKR, you can easily invest in companies like NVIDIA (NASDAQ: NVDA), one of the biggest players in AI development.
Or maybe you want to invest in U.S. ETFs that track the S&P 500 or Nasdaq. Again, most local brokers don’t offer this, but IBKR gives you full access. Simply put, IBKR lets you diversify your portfolio beyond Malaysia, giving you access to the best investment opportunities worldwide.
Low-Cost Trading and Transparent Fees
One of the biggest complaints about Malaysian brokers is their high fees. Most charge between 0.1%–0.42% per trade, with a minimum fee of RM8–RM12 per transaction. This might not seem like much, but it adds up, especially for frequent traders.
IBKR, on the other hand, is known for its low-cost trading.
U.S. stocks: Trade for as low as $0.005 per share (with a $1 minimum).
IBKR Lite: Offers zero commission on U.S. stocks and ETFs.
Forex and Options: Some of the lowest spreads in the industry.
The best part? IBKR doesn’t hide fees in small print. Everything is transparent—you know exactly what you’re paying for. Whether you're an active trader or a long-term investor, this can save you thousands in fees over time.
Advanced Trading Tools for Every Investor
Most Malaysian brokerage apps are basic—you can buy and sell stocks, and that’s about it. IBKR, on the other hand, is packed with powerful tools for investors who want more control.
Trader Workstation (TWS): A professional-grade trading platform with real-time market data, advanced charting, and risk management tools.
API and Automation: Want to automate your trades? IBKR allows integration with Python, Excel, and even custom trading algorithms.
Mobile App: A simplified version of TWS, perfect for investors who want to trade on the go.
Even if you’re not a professional trader, IBKR provides all the tools you need to make informed decisions and manage risk effectively.
Margin Trading with Low Interest Rates
Margin trading allows you to borrow money to invest more than your actual capital. Think of it like taking a loan to buy more stocks. This can amplify profits—but also losses—so it should be used carefully.
IBKR offers some of the lowest margin rates in the industry, meaning if you use leverage, you pay much less in interest compared to most brokers.
Example:
Let’s say you have RM10,000 but want to invest RM20,000 in stocks. With IBKR’s low-margin rates (as low as 5.83% for USD), your borrowing cost is significantly cheaper than most competitors who charge double-digit rates.
Of course, margin trading isn’t for everyone. But for traders who know what they’re doing, IBKR’s low rates make it much more affordable.
Is IBKR Right for You?
Now that you know IBKR’s best features, you might be wondering whether it’s the right platform for you. The answer depends on your investing style and needs.
IBKR is a great choice if you’re looking for access to global markets beyond Malaysia. Unlike many local brokers that limit you to Bursa Malaysia, IBKR allows you to invest in stocks, ETFs, options, futures, forex, and bonds from over 150 exchanges worldwide. If diversification is important to you, IBKR gives you a significant edge.
Another key advantage is its low trading fees and transparent pricing. Traditional brokers often charge high commissions, hidden fees, or currency conversion markups. With IBKR, you get some of the lowest rates in the industry, ensuring that more of your money stays invested.
If you tend to keep idle cash in your brokerage account, IBKR offers another benefit—you earn market-rate interest on your uninvested funds. Unlike other platforms where your cash sits idle, IBKR ensures you earn a return even when you’re not actively trading.
For traders who rely on advanced tools, IBKR stands out with its powerful Trader Workstation (TWS), real-time market data, and automation features. Whether you use technical analysis, custom trading algorithms, or need integration with Python or Excel, IBKR provides a robust platform to support your strategy. However, it does come with a learning curve, so it’s best suited for investors who are comfortable with more advanced tools.
That said, IBKR may not be the best fit for everyone. If you only trade Bursa Malaysia stocks, a local broker might be more convenient, offering easier funding options and a more user-friendly experience. Similarly, if you prefer a beginner-friendly app with a simple interface, IBKR’s complexity could feel overwhelming.
Ultimately, IBKR is a powerful platform designed for investors who want global access, low fees, and professional-grade tools. If those features align with your goals, it could be an excellent choice for your investment journey.