Is Interactive Brokers Safe for UK Investors in 2025?
Quick Answer – How Safe Is Interactive Brokers?
Interactive Brokers is considered very safe platform for UK investors, regulated by the FCA and covered by FSCS protection up to £85,000. Additional Lloyd’s insurance covers higher balances, though normal market risks still apply and cannot be eliminated by regulation.
Quick Answer – Is Interactive Brokers Trustworthy?
Interactive Brokers has operated since 1978 and now serves more than 2.4 million clients globally. It holds over $14 billion in equity capital and consistently exceeds regulatory capital requirements, reinforcing its long-term stability and trustworthiness for UK and global traders.
Interactive Brokers Overview
- Start trading with no minimum deposit: Interactive Brokers allows UK investors to open an account without a minimum funding requirement.
- Access 150+ global markets: Trade stocks, ETFs, options, futures, forex, bonds, and crypto across more than 33 countries and 25 currencies.
- Professional-grade security: FCA regulated, FSCS protected up to £85,000, with two-factor authentication and advanced encryption.
- Advanced yet flexible platforms: Choose from Trader Workstation, IBKR GlobalTrader app, or Client Portal—suitable for both professionals and active retail traders.
62.5% of retail investor accounts lose money when trading CFDs with this provider.
Is Interactive Brokers Regulated in the UK?
Who Regulates Interactive Brokers in the UK?
In the UK, Interactive Brokers operates under the Financial Conduct Authority (FCA), ensuring compliance with strict financial and operational standards. This includes safeguarding client assets, transparency in reporting, and adherence to best execution practices for trades.
Quick Fact – Safety Snapshot
| Metric | Detail |
|---|---|
| Regulator | FCA (UK) / SEC CFTC FINRA (US) |
| Client Funds | Segregated under FCA rules |
| FSCS Protection | Up to £85000 |
| Founded | 1978 |
| Client Accounts | 2.4 million+ |
| Capital Strength | $14 billion+ equity capital |
Does FCA Oversight Protect Your Funds?
Yes. FCA regulation means client funds are held in segregated accounts separate from the company’s operational funds. In case of broker insolvency, UK clients are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per eligible account.
Table – Regulation Overview
| Region | Regulator | Licence Type |
|---|---|---|
| UK | FCA | Investment Firm |
| USA | SEC & CFTC | Broker-Dealer & Futures |
| EU | Central Bank of Ireland | MiFID II |
How Is Client Money Protected?
Interactive Brokers holds client funds in segregated accounts, keeping them separate from company assets. UK clients benefit from FSCS protection up to £85,000, plus additional Lloyd’s insurance for balances exceeding standard limits.
Does IBKR Use Segregated Accounts?
Yes. Client funds are kept in dedicated accounts with top-tier banks, ensuring they cannot be used for company expenses or trading activities. This structure protects client assets in the event of broker insolvency.
What FSCS Protection Do UK Clients Get?
Eligible UK clients are covered by the Financial Services Compensation Scheme (FSCS) up to £85,000. For higher balances, additional insurance through Lloyd’s of London extends protection significantly beyond the FSCS limit.
Table – Client Fund Protections
| Protection Type | Coverage | Notes |
|---|---|---|
| FSCS | Up to £85000 | UK clients |
| Lloyd’s Insurance | Up to $30M | Above standard limits |
What Security Measures Does Interactive Brokers Use?
Interactive Brokers uses multi-layered security including two-factor authentication, biometric logins, encryption, and device verification. Real-time alerts notify you of suspicious activity, adding another layer of account protection.
Is Two-Factor Authentication (2FA) Required?
Yes. IBKR requires two-factor authentication or biometric verification for account access, significantly reducing the risk of unauthorised logins.
How Is Data Encrypted?
All data is encrypted end-to-end during transmission and storage, protecting your information from interception or unauthorised access.
Table – Security Features
| Security Feature | Available? |
|---|---|
| 2FA & Biometric Login | Yes |
| End-to-End Encryption | Yes |
| Device Authorisation | Yes |
| Account Alerts | Yes |
How Transparent Is IBKR’s Security and Data Policy?
Interactive Brokers maintains ISO/IEC 27001 certification for data security and complies with GDPR for UK and EU clients. It undergoes regular third-party audits and uses AES-256 encryption to safeguard personal and financial data across all trading platforms.
What Does IBKR’s Trustpilot Feedback Look Like?
Interactive Brokers has an average rating of 3.8 to 4.0 stars on Trustpilot from thousands of users. Many praise low fees, fast execution, and robust security, while critics cite account opening delays or interface complexity. Overall, feedback leans positive with room for UX tweaks.
Are There Any Risks with Using Interactive Brokers?
While IBKR offers strong security and regulatory protection, it cannot eliminate risks from market volatility or technical outages. Traders should also be aware that complex platforms can pose a learning curve, increasing the chance of user error.
Can IBKR Protect Against Market Volatility?
No broker can prevent market losses. IBKR provides risk management tools, but the responsibility to manage exposure lies with the trader.
Can You Lose Money with Interactive Brokers?
As with all brokers, market risk remains — you can lose money on trades, but not through broker insolvency. Client assets are segregated and insured where applicable. IBKR’s risk is operationally low thanks to capital strength and robust oversight.
What About Platform Outages or Technical Issues?
Platform outages are rare but possible during peak demand or maintenance. IBKR maintains backup systems to minimise downtime, yet traders should have contingency plans in place.
How Does IBKR’s Safety Compare to Other Brokers?
| Broker | FCA Regulated | FSCS Coverage | Additional Insurance | 2FA |
|---|---|---|---|---|
| Interactive Brokers | Yes | £85000 | $30M | Yes |
| eToro | Yes | £85000 | No | Yes |
| Trading 212 | Yes | £85000 | No | Yes |
What Can You Do to Keep Your IBKR Account Safer?
Even with IBKR’s robust security, personal account safety depends on the user. Following best practices reduces the risk of hacking or unauthorised access.
Top 5 Security Practices for Traders
- Enable 2FA for every login
- Use strong, unique passwords
- Avoid trading on public Wi-Fi
- Monitor account alerts for unusual activity
- Keep devices and software updated
Author First-Hand Quick Summary
“I’ve used Interactive Brokers for several years now and found its safety standards to be top tier. Two-factor authentication, clear segregation of funds, and FCA regulation provide constant reassurance. It feels like a professional-grade platform that prioritises client security over marketing flash.”
Final Verdict – Is Interactive Brokers Safe in 2025?
Interactive Brokers is one of the safest brokers for UK investors, backed by FCA regulation, FSCS protection, and $30M extra insurance. However, no platform is risk-free — maintaining strong personal security practices is essential to protect your investments.
62.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Low Fees & Global Access
- Access to 150+ markets
- Professional-grade security
- Advanced flexible platforms
62.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
FAQs
Is Interactive Brokers FCA regulated?
Yes, Interactive Brokers (UK) Ltd is authorised and regulated by the Financial Conduct Authority under firm reference number 208159.
How safe is my money with Interactive Brokers?
Client funds are segregated and protected up to £85,000 under the FSCS.
Can I lose my funds if IBKR goes bankrupt?
No — segregated accounts and FSCS coverage protect client money in that scenario.
Does IBKR Have an ISA Account?
Yes. In the UK, Interactive Brokers offers a Stocks & Shares ISA via its UK arm (IBUK). It does not offer cash ISAs. Under this ISA, clients can trade qualifying investments like shares and funds.
