Interactive Investor Review (2022) – ☑️Pros and Cons Revealed.

Overall INTERACTIVE INVESTOR has no minimum deposit required to open an account. INTERACTIVE INVESTOR uses its website as a platform. The web trading platform is easy to use, but there is no two-step login option, and the platform cannot be customized. INTERACTIVE INVESTOR has an overall rating of 8/10.

INTERACTIVE INVESTOR at a glance

INTERACTIVE INVESTOR Review – 12 Key Point Quick Overview Revealed (2022):

1. INTERACTIVE INVESTOR Overview
2. IFGM Safety and Security
3. INTERACTIVE INVESTOR Pros and cons
4. INTERACTIVE INVESTOR Leverage
5. INTERACTIVE INVESTOR Accounts
6. INTERACTIVE INVESTOR Market instruments
7. INTERACTIVE INVESTOR Fees
8. INTERACTIVE INVESTOR Deposit and withdrawal
9. INTERACTIVE INVESTOR Trading platforms
10. Conclusion
11. Disclaimer
12. Frequently asked questions

INTERACTIVE INVESTOR Overview

According to research in South Africa INTERACTIVE INVESTOR is a forex broker company in the United Kingdom.

INTERACTIVE INVESTOR was originally founded in 1995 but the current company is a private limited company incorporated in 2003 which since then has acquired finance magazine Moneywise and investment magazine Money Observer, as well as TD Direct Investing, Alliance Trust Savings, and Share PLC.

With current assets of £30 billion and more than 300 000 customers and over one million users, it is the UK’s second-biggest online investment services provider.

INTERACTIVE INVESTOR is regulated by the Financial Conduct Authority (FCA) and offers a range of investments that is likely to suit more confident investors and those more interested in share dealing.

IFGM Safety and Security

One of the best benchmarks to measure the safety of a broker like INTERACTIVE INVESTOR, is to establish which regulating authorities are watchdogs over its actions.

INTERACTIVE INVESTOR is regulated by the top-tier FCA, making traders eligible for £85,000 of investor protection. It is a private company and not listed on any stock exchange but its long track record speaks for itself.

INTERACTIVE INVESTOR Pros and cons

INTERACTIVE INVESTOR Leverage

Leverage is a facility that enables you to get a much larger exposure to the market you are trading than the amount you deposited to open the trade. Leveraged products, such as forex trading, magnify your potential profit – but also increase your potential loss.

Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1. INTERACTIVE INVESTOR does not give any indication of leverage ratios on its website.

INTERACTIVE INVESTOR Accounts

A forex account at INTERACTIVE INVESTOR is a trading account that you will hold and that will work similarly to your bank account, but with the difference that it is primarily issued with the purpose of trading on currencies.

Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against Islamic faith.

INTERACTIVE INVESTOR offers the following types of accounts:

Trading Account – A basic investment account; a Joint Trading Account is also available

Stocks and Shares ISA – ISA account to invest tax-free up to the yearly limit

Self-Invested Personal Pension (SIPP) – Tax-efficient pension investment account

Junior Stocks and Shares ISA – ISA account to invest tax-free on behalf of a child

Company Account- Trade in the name of a UK Limited Company

Pension Trading Account – Invest in assets (e.g. property) that aren’t tradeable via Interactive Investor

Free Research Account – A demo account

Cash Savings Account  – A standalone account that gives access to interest rates from different banks

INTERACTIVE INVESTOR Market instruments

The most popular market instruments available from most brokers for trading include:

Forex

Forex trading describes the currency exchange market which refers to the global, decentralised marketplace where individuals, companies and financial institutions exchange currencies for one another at floating rates.

Commodities

Commodity markets offer many investment opportunities for traders. Soft commodities have been traded for centuries and plays a major role in portfolio diversification and risk management. Investing in contract-based tradable goods is a reliable way to mitigate risk during times of economic uncertainty.

Indices

Equity, or stock indices, are actual stock market indexes which measure the value of a specific section of a stock market. They can represent a specific stock market or a specific set of the largest companies of a nation.

Precious metals

The trading of gold and other precious metals, along with crude oil, copper or petroleum, are hard commodities that play a major role in the commodities market and are contract-based tradable goods.

Energy

The typical feature of energy prices is high volatility due to the influence of political and environmental factors, supply and demand, extreme weather conditions and global economic growth.

Cryptocurrencies

Bitcoin (BTC) is the digital currency with the largest market capitalisation.

Litecoin (LTC) is similar to Bitcoin but differs in terms of scalability

Ripple (RPL) is popular among big banks with the Ripple network a next generation real-time gross settlement system.

Ethereum (ETH) is the second largest cryptocurrency after Bitcoin and allows developers to create smart contracts on a platform.

Bitcoin Cash (BCH) was created by the Bitcoin hard fork in 2017 as a new version of the blockchain with different rules.

INTERACTIVE INVESTOR offers the following of the above: Stocks, ETFs, funds, and bonds, but funds and bonds cover only the UK market.

INTERACTIVE INVESTOR Fees

Cost depends on different factors, like spread and margins, and INTERACTIVE INVESTOR clients may also experience different fee structures according to their country or place of residence.

Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position and the leverage applied to your trading account.

INTERACTIVE INVESTOR has several service plans that will determine your cost for UK shares and ETF trades. The three Service Plans are Investor (£9.99 per month; £7.99 per trade), Funds Fan (£13.99 per month; £3.99 per fund trade, £7.99 per share trade), and Super Investor (£19.99 per month; £3.99 per trade).

There is no charge for account inactivity. The Investor Plan comes with one free trade per month, while the Funds Fan and Super Investor plans come with two free trades per month.

INTERACTIVE INVESTOR Deposit and withdrawal

Accounts usually requires a certain minimum initial deposit, which can be paid in several ways. Withdrawals can usually be done with the same ways, but sometimes differ. In the case of INTERACTIVE INVESTOR no minimum deposit to open an account is required.

Deposits and withdrawals are easy, quick and mostly free, but electronic wallets and credit/debit cards are not accepted for withdrawals. Traders can choose from 9 base currencies, being GBP, EUR, USD, CAD, HKD, SGD, AUD, SEK and CHF but in Ireland, CHF and SEK are not supported.

Depositing money is free and using a debit card, you can deposit money instantly up to £99,999. You can also send money via bank transfer. A bank transfer can take several business days, while payment with a credit/debit card is processed instantly.

Standard withdrawals in British pounds or euros are free but can only be made via bank transfer. A withdrawal requested before 14:00 will be processed within the next day, otherwise, it will take 2 business days.

INTERACTIVE INVESTOR Trading platforms

The forex trading platform provided by INTERACTIVE INVESTOR to its clients is in essence the software to carry out their trades. Some brokers provide only one, others quite a few platforms. INTERACTIVE INVESTOR uses its website as platform. The web trading platform is easy to use, but there is no two-step login option, and the platform cannot be customised.

Interactive Investor offers the basics in charting. Charts come from Morningstar, known for its vast array of fundamental research, not its technical analysis. No drawing tools are available and only ten technical indicators can be accessed.

The company’s mobile app is efficient and allows a trader to place trades, access watchlists, view charts on various time frames, and read current news.

Conclusion

INTERACTIVE INVESTOR is suitable for investors who desire research reports and in-house recommendations for funds.  It is one of the biggest UK brokers, and is regulated by the top-tier FCA. The web trading platform is user-friendly, deposits and withdrawals are fast and easy and customer service, although not available 24/7, is good.

Drawbacks include a limited product offer that only covers traditional products, like UK funds and an average selection of stocks. As there is no minimum deposit, traders can feel free to try Interactive Investor.

Disclaimer

INTERACTIVE INVESTOR warns potential customers that Forex and CFDs trading always carries a high risk and may not be suitable for all investors.

Before deciding to trade with INTERACTIVE INVESTOR, potential traders are advised to carefully consider their investment objectives, financial situation, needs and level of experience before investing money they cannot afford to lose.

INTERACTIVE INVESTOR warns that margin trading involves the potential for profit as well as the risk of loss and that movements in the price of foreign exchange and commodities are very unpredictable, hence INTERACTIVE INVESTOR cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.

Frequently asked questions

TRADING ENVIRONMENT

How many instruments can I trade with INTERACTIVE INVESTOR?

You can trade several different instruments with INTERACTIVE INVESTOR, which include the following:

Which platforms are supported by INTERACTIVE INVESTOR?

INTERACTIVE INVESTOR provides a web-based trading platform.

Does INTERACTIVE INVESTOR offer leverage?

Not indicated

What spreads can I expect with INTERACTIVE INVESTOR?

INTERACTIVE INVESTOR offers a set account fee.

Does INTERACTIVE INVESTOR charge commission?

No.

Is INTERACTIVE INVESTOR regulated and by whom?

INTERACTIVE INVESTOR is regulated by the FCA.

Is INTERACTIVE INVESTOR a recommended forex trading broker for experts and beginners?

INTERACTIVE INVESTOR offers a trading environment for experienced traders.

What is the overall rating out of 10 for INTERACTIVE INVESTOR?

8/10

ACCOUNTS

What is the difference between a demo and live trading account?

A demo account as is offered by broker companies like INTERACTIVE INVESTOR is usually funded with virtual money and gives a prospective customer the opportunity to experiment with the company’s trading platforms.

Does INTERACTIVE INVESTOR offer a demo account?

Yes

How long is the demo account valid?

Not indicated

Which live trading accounts does INTERACTIVE INVESTOR offer?

• Basic investment Account
• Joint Trading Account

What are the available deposit currencies for a live trading account?

GBP, EUR, USD, CAD, HKD, SGD, AUD, SEK and CHF

DEPOSITS AND WITHDRAWALS

What is the minimum deposit required to open an account with INTERACTIVE INVESTOR?

$ 0

How do you make a deposit and withdraw money with INTERACTIVE INVESTOR?

INTERACTIVE INVESTOR offers the following deposit methods:

• Bank transfer,
• Credit, debit cards

Withdrawal methods:

Does INTERACTIVE INVESTOR charge withdrawal fees?

Standard withdrawals in British pounds or euros are free.

How long does it take to make a withdrawal?

Withdrawal requests submitted before 14:00 can be processed within the next day, otherwise, 2 business days.

Featured SA Shares Writer and Forex Analyst.