Interactive Brokers vs Alpaca Comparison: Fees, Features, and More (2026)
Interactive Brokers and Alpaca are two leading discount brokerages offering commission-free stock and ETF trading. Use this head-to-head comparison table to evaluate fees, features, trading tools, and account options to help you decide which broker is right for you in 2026.
| Feature | Interactive Brokers | Alpaca |
|---|---|---|
| Website | https://www.interactivebrokers.com/ | https://alpaca.markets/ |
| Broker Type | Self-directed online discount broker | API-first self-clearing broker-dealer (Trading API for retail/algo; web dashboard available) |
| Trading: Stock & ETF? | Yes | Yes |
| ETF & Stock commission | IBKR Lite: $0 US-listed stocks/ETFs (US residents); IBKR Pro: $0.005/share fixed (min $1) or $0.0005–$0.0035/share tiered (min $0.35) | $0 commission (retail US stocks/ETFs); plus SEC/FINRA/CAT fees. Elite Smart Router: $0.0005–$0.004/share |
| Fractional Shares? | Yes (eligible US/CA/EU stocks & ETFs, from $1) | Yes (from $1 notional; 2,000+ US equities) |
| Percent Allocations? | Yes (TWS Rebalance Portfolio sets custom target %) | Yes, via API |
| Crypto Trading? | Yes (spot crypto via Paxos/Zero Hash for eligible US IB LLC clients; permissions required; also futures/ETPs) | Yes (most US states via API/dashboard; 24/7) |
| Crypto Fees | 0.12%–0.18% of trade value (monthly volume tiers), USD 1.75 min/order (capped at 1% of value); no added spreads/markups/custody fees; possible $0.15/mo Paxos fee | Maker/taker 0.15%/0.25% (under $100k 30d vol) to 0%/0.10% ($100M+); on received asset |
| Options Trading? | Yes | Yes (Levels 1-3 equity/ETF; index options live) |
| Options Fee | US: Lite $0.65/contract ($1 min; Pro rates after 1k contracts/mo); Pro $0.15–$0.65/contract (volume/premium tiers), $1 min/order + exchange/reg/clearing fees | $0 commission retail equity/ETF options; index $0.50/contract + ORF/OCC/exchange pass-throughs |
| Bond Trading Available? | Yes (US Treasuries, corporates, munis, CDs, 1M+ global bonds) | No (Broker API partners only; not Trading API/dashboard retail) |
| Receives payment for order flow (PFOF)? | Sometimes (Lite receives PFOF on US stocks/options; Pro generally avoids via SmartRouting) | Yes (receives PFOF rebates) |
| Interface: Web trading? | Yes (Client Portal web; IBKR Mobile and GlobalTrader apps) | Yes web dashboard; no official mobile app (third-party/TradingView yes) |
| Desktop trading? | Yes; Trader Workstation (TWS) and IBKR Desktop. | No |
| API Trading? | Yes; TWS API and Web API for retail algorithmic trading. | Yes (Alpaca Trading API) |
| Mutual Funds: Offered? | Yes | No |
| Total Mutual Funds | 50,000+ | None |
| NTF Mutual Funds | 20,000+ | None |
| Non-NTF Fund Fee | Lesser of 3% of trade value or USD 14.95 per transaction (US). | N/A |
| Early Redemption Fee? | Yes (no IBKR fee); fund companies may charge per prospectus. | N/A |
| Redemption Hold (Days) | None by IBKR (0 days); fund prospectus may impose. | N/A |
| Early Redemption Fee | $0 from IBKR; funds may charge per prospectus. | N/A |
| Accounts: Margin Accounts? | Yes (Cash, Margin, or Portfolio Margin; typically $2,000 equity for margin). | Yes; all accounts opened as margin (limited margin if equity under $2,000). |
| IRAs Offered? | Yes (Traditional, Roth, SEP, SIMPLE, Inherited, Rollover). | Yes; Traditional and Roth IRAs for US tax residents (Trading API). SEP-IRA in agreements. |
| HSAs Offered? | No | No |
| Money Market Sweep? | Yes (Insured Bank Deposit Sweep Program). | Yes; opt-in FDIC Bank Sweep/High-Yield Cash for uninvested cash (variable APY, up to $1M FDIC). |
| CDs Offered? | Yes (brokered CDs). | No |
| Robo-Advisor: Offered | Yes | No |
| Robo-Advisor Service | Interactive Advisors | N/A |
| Robo-Advisor Fees | 0.10%–0.75% AUM/year (varies by portfolio; IA 0.10%–0.20%, managers 0.25%–0.75%); no commissions | N/A |
| Basics: Headquarters | Greenwich, CT | San Mateo, CA |
| Year Founded | 1977 | 2015 |
| Clearing Firm | Self-clearing | Self-clearing (Alpaca Clearing) |
| Local Branches? | No | No |
| New Account Minimum | $0 | $0 |
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