IBKR Lite vs Pro Fixed vs Pro Tiered: Which Is Cheapest for Singapore Investors?
Interactive Brokers (IBKR) has long had two commission structures for its Pro customers: Fixed and Tiered. Things became slightly more complicated when IBKR Lite launched in Singapore, offering eligible retail investors commission-free trading on qualifying US-listed stocks and ETFs.
Those who are starting a new IBKR account or are already existing IBKR users effectively have three choices:
- IBKR Lite
- IBKR Pro Fixed
- IBKR Pro Tiered
Here’s an overview of the differences and what you should choose.
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Why use IBKR?
IBKR is well known in local investment circles as a good choice if you are looking for a low-cost broker. Some of its advantages include extremely competitive foreign currency exchange rates, low commissions, and access to Ireland-domiciled ETFs which generally benefit from lower dividend withholding taxes compared to US-listed ones. You can find out more info and sign up here.
While it may not matter that much when one’s investments are smaller, the savings can add up for larger portfolios. The downside, however, is that the user interface can be a bit more challenging to use than other platforms.
This article will hence be a part of a series of guides on how to use IBKR to invest, particularly for those who are unsure on how to get started so stay subscribed for updates.
Summary of Differences
| IBKR Lite | IBKR Pro Fixed | IBKR Pro Tiered | |
|---|---|---|---|
| Qualifying US-listed stocks & ETFs | US$0 | US$0.005/share | US$0.0005–US$0.0035/share |
| Minimum US commission | US$0 | US$1 | US$0.35 |
| Non-US stocks & ETFs | 0.05% of trade value (min US$4) | 0.05% of trade value (min US$4) | 0.05% of trade value (min US$1.70 + exchange fees) |
| Third Party Fees | Regulatory Fees | Regulatory Fees | Regulatory Fees Exchange Fees Clearing Fees Pass-Through Fees |
| SmartRouting | No | Yes | Yes |
| AutoFX | 0.09% | 0.03% | 0.03% |
| Interest on qualifying cash | Benchmark minus 1% | Benchmark minus 0.5% | Benchmark minus 0.5% |
| Margin interest | Higher Lite rate | Lower Pro rate | Lower Pro rate |
IBKR officially describes Lite as offering commission-free qualifying US exchange-listed stocks and ETFs, while other stocks and ETFs use Fixed Pricing. Pro customers can instead choose between Fixed and Tiered pricing.
| IBKR Lite | IBKR Pro Fixed | IBKR Pro Tiered | |
|---|---|---|---|
| US- | |||
IBKR Lite: best for commission-free US trading
IBKR Lite’s main selling point is straightforward: qualifying US exchange-listed stocks and ETFs cost US$0 in commission. There is also no minimum balance or maintenance fee. So if you manually buy stocks such as Apple, Nvidia, Microsoft, QQQ or other US exchange-listed stocks, IBKR Lite would be the most attractive.
Suppose you buy 10 shares of a US-listed ETF:
| Plan | Pricing | Minimum per order | Cost for 10 shares |
|---|---|---|---|
| IBKR Lite | US$0 | US$0 | US$0 ⭐️ |
| IBKR Pro Fixed | US$0.005/share | US$1 | US$1 |
| IBKR Pro Tiered | US$0.0035/share* | US$0.35 | US$0.35 + applicable fees |
For instance, if you invest S$1,000 per month into a US-listed ETF for 12 months, you can expect to pay this much over the year:
| Plan | Cost |
|---|---|
| IBKR Lite | S$0 |
| IBKR Pro (Fixed) | S$12 |
| IBKR Pro (Tiered) | S$4.20 |
The difference isn’t life-changing because of how low IBKR commissions are already, but it’s a no-brainer to avoid paying something when you are able to do so.
Note: recurring Investments aren’t free on Lite
There is a catch, however: if you want to do automatic investments through IBKR’s Recurring Investments feature, IBKR specifically states that Recurring Investment instructions on IBKR Lite are subject to Fixed Pricing.
For someone who is disciplined, manually making the investment each month would be the cheaper option since it would be commission-free.
However, this can be easier said than done for many people because life and emotions can get in the way. While it takes just minutes to fund one’s account and perform the trade, we sometimes don’t have the mental bandwidth to do yet another task. When markets are volatile, we may feel reluctant to invest. Personally, I believe that many people would benefit from making investments as automatic as possible, and paying a small fee – especially when it is just a few dollars – for it makes sense.
IBKR Pro: best for London-listed ETFs (like VWRA)
Many Singapore investors – including myself – use IBKR specifically to buy Ireland-domiciled ETFs on the London Stock Exchange, such as VWRA, CSPX, IWDA etc.
Since these aren’t US exchange-listed ETFs, Lite’s US$0 commission benefit doesn’t apply. Instead, IBKR Lite will charge the same fee structure as IBKR Pro Fixed.
The difference here would thus be between IBKR Pro Fixed and IBKR Pro Tiered.
IBKR Pro Fixed vs IBKR Pro Tiered (for London-listed ETFs)
IBKR currently charges the following for USD-denominated UK-listed stocks and ETFs:
| Lite / Pro Fixed | Pro Tiered | |
|---|---|---|
| Standard retail rate | 0.05% of trade value | 0.05% of trade value |
| Minimum/order | US$4 | US$1.70 |
| Maximum/order | None | US$39 |
| Third-party fees | Included | Added separately |
Both charge 0.05%, but they differ in the minimum and maximum commission per order
That can make Tiered substantially cheaper for smaller purchases as well as larger purchases.
| Investment Amount | Lite / Pro Fixed | Pro Tiered |
|---|---|---|
| US$5,000 | US$4.00 | ~US$2.81 |
| US$10,000 | US$5.00 | ~US$5.53 |
| US$100,000 | US$50.00 | ~US$43.58 |
The sweet spot for Fixed would be between roughly US$7,190 to US$85,893. Tiered should have better pricing for amounts below US$7,190, or amounts above US$85,893.
Other differences between Lite and Pro
There are also other differences between IBKR Lite and IBKR Pro.
AutoFX is cheaper on Pro
If you allow IBKR to automatically convert currency when making a purchase:
| Plan | AutoFX Rate | Cost on S$10,000 |
|---|---|---|
| IBKR Lite | 0.09% | ~S$9 |
| IBKR Pro | 0.03% | ~S$3 |
Pro pays more interest on eligible idle cash
IBKR’s current rates for idle cash:
| Plan | Current Rate |
|---|---|
| IBKR Lite | Up to 2.13% p.a. |
| IBKR Pro | Up to 3.31% p.a. |
IBKR Pro currently pays up to 3.13% p.a. on eligible USD idle cash, versus up to 2.13% p.a. for IBKR Lite. However, the first US$10,000 of USD cash earns no interest, and you need at least US$100,000 in account NAV to qualify for the full rate.
IBKR Pro has cheaper margin borrowing
IBKR Pro has a lower margin rate than IBKR Lite:
| USD Margin Balance | IBKR Pro Rate | IBKR Lite Rate |
|---|---|---|
| Up to US$100,000 | 5.13% p.a. | 6.13% p.a. |
| US$100,000–US$1 million | 4.63% p.a. | 6.13% p.a. |
| US$1 million–US$50 million | 4.38% p.a. | 6.13% p.a. |
| Above US$50 million | 4.13% p.a. | 6.13% p.a. |
If you don’t use margin or are on cash account, you can safely ignore this.
Those who regularly borrow against a substantial portfolio, however, a 1 to 2 percentage-point difference can make a significant difference.
IBKR Pro gets SmartRouting
Both Pro Fixed and Pro Tiered have access to IBKR’s SmartRouting system. IBKR describes SmartRouting as searching across available venues for the best available price and potential execution opportunities.
This is not offered with IBKR Lite, though for someone investing smaller amounts, this wouldn’t be much of a concern. For larger or more sophisticated trades, execution quality starts becoming more relevant.
So which IBKR pricing plan should you choose?
Here’s a quick summary on which you should choose:
| Investor Type | Key Consideration | Recommended Plan |
|---|---|---|
| Mainly buys US-listed stocks or ETFs manually | Lite offers US$0 commissions on qualifying US-listed stocks and ETFs such as VOO and QQQ | IBKR Lite |
| Makes small regular purchases of USD-denominated LSE stocks or ETFs | Lite/Fixed starts at 0.05% with a US$4 minimum, while Pro Tiered starts at 0.05% with a US$1.70 minimum plus third-party fees. For smaller trades, Tiered is usually cheaper | IBKR Pro Tiered |
| Makes mid-sized USD-denominated LSE purchases | Once the minimum commissions stop mattering, Fixed can become cheaper because Tiered adds exchange and clearing fees | IBKR Pro Fixed |
| Makes very large USD-denominated LSE purchases | Tiered has a US$39 maximum base commission, while Fixed has no maximum. This means Tiered can become cheaper again at roughly US$86,000+ per trade | IBKR Pro Tiered |
| Trades frequently or at high monthly volumes | Tiered commission rates fall as monthly trading volume increases | IBKR Pro Tiered |
The good news is that you don’t have to worry about picking the wrong plan because IBKR allows switching.
| Number of Switches | Processing |
|---|---|
| First 3 switches between Lite and Pro | Processed daily |
| 4th and subsequent switches | Processed quarterly |
See more details here
IBKR isn’t the easiest platform to use, but if you’re getting serious about your investing and your portfolio has grown, you should definitely start checking it out. See more details here.
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Seth Wee was a licensed financial adviser representative from 2009 to 2025, with over 16 years of experience in Singapore’s financial advisory industry.
He started Sethisfy.com in 2019 to share practical insights on credit cards, banking products, and miles strategies, helping readers identify financial products that deliver the best value. Seth has been featured in CNA, Channel 8, Today, and a host of other publications. In 2025, he was also part of a panel at CPF’s Ready For Life festival.
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