Advantages, disadvantages and who should create an account

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Costs

0% stocks, ETFs and mutual funds; 3% or $14.95/transaction for other mutual funds (whichever is lower); 2%, $1 or 1% for carbon offsets; 12-18% cryptocurrencies

Types of investment

Stocks, ETFs, Cryptocurrencies and Mutual Funds

Costs

0% stocks, ETFs and mutual funds; 3% or $14.95/transaction for other mutual funds (whichever is lower); 2%, $1 or 1% for carbon offsets; 12-18% cryptocurrencies

Types of investment

Stocks, ETFs, Cryptocurrencies and Mutual Funds

Advantages
  • No minimum; Commission-free stocks and ETFs
  • Fractional share investment available
  • Investors can choose from 13 different ESG categories when analyzing their portfolios
  • IMPACT allows you to exchange certain assets for others more in line with your values
The inconvenients
  • Not all mutual funds are commission-free
  • No automated investing (however, this is available through interactive advisors)

Global mark

Is IMPACT by Interactive Brokers right for you?

IMPACT by Interactive Brokers is an investment application strictly designed for socially responsible investing, also known as environmental, social and corporate governance (ESG) investing.

IMPACT gives you access to 13 different investment categories (including ethical and transparent business practices, racial and gender equality, and much more), and it even offers newcomers a simulated trading account that they can experiment before opening a real trading account.

The IMPACT app is available on iOS and Android devices.

IMPACT vs improvement

IMPACT and Betterment both offer socially responsible investing options. IMPACT, however, is the best choice for active ESG-focused traders, as it offers more investment categories and features to choose from. Although Betterment offers ESG portfolios, it doesn’t just focus on impact investing.

While Interactive Brokers also gives clients access to automated investing through Interactive Advisors, Betterment outperforms IMPACT when it comes to zero-touch investing. the


robo-advisor

manages the entire investment process for you and allows you to choose from the following socially responsible portfolios: climate impact, social impact and global impact.

IMPACT against Ellevest

IMPACT also outperforms Ellevest in the area of ​​socially responsible investing. The investment app lets you trade stocks, ETFs, cryptos, mutual funds, and carbon offset projects. Ellevest only offers ETFs.

While you can use IMPACT to focus your portfolio on up to 13 different ESG categories, Ellevest’s Impact Portfolio invests up to 53% of your funds in impact and socially responsible funds. It primarily targets companies that: (1) advance women leaders, (2) support community development lending, and (3) prioritize sustainability and ethical practices.

Ways to invest with IMPACT by Interactive Brokers

You will have several options for investing with IMPACT. The investing app offers commission-free stocks and ETFs, and most of its mutual funds are also commission-free (though some cost 3% or $14.95 per trade). You will also be able to invest in cryptocurrencies through Paxos Trust Company, and you can add carbon offsets to your portfolio if you wish.

The platform offers a simulating trading account for those who just want to test the account without taking any real risk. Creating an account with IMPACT automatically enrolls US residents into the Interactive Brokers IBKR Lite account. This means that in addition to the offers from IMPACT, you can also take advantage of other investment offers from Interactive Brokers outside of IMPACT.

Once your account is created, you will have access to 13 different ESG categories. You can then have IMPACT analyze your current portfolio holdings (according to the categories you have selected) and produce an IMPACT score based on how well your portfolio aligns with those categories. It uses a range of ratings to assess how well your portfolio aligns with the values ​​you have selected. Plus, you can use the app to find other investments that you think are a better fit with your values.

You can also have the IMPACT app filter your portfolio or the companies you care about to exclude business practices you object to (e.g. animal testing, political spending, high water consumption, hazardous waste, etc.). Also, if you think that some stock in your portfolio doesn’t match your values, you can simply swap that stock for another one.

IMPACT by Interactive Brokers: Is it trustworthy?

Although IMPACT does not have a Better Business Bureau profile at this time, the bureau gives Interactive Brokers an A+ rating. BBB ratings range from A+ to F and reflect its opinion on how companies interact with customers.

Its ratings also consider other factors such as type of business, time in business, history of customer complaints, licensing and government actions. In fact, in August 2020, Interactive Brokers was fined $11.5 million by the SEC for failing to file suspicious activity reports for certain trades it executed.

The brokerage has closed 29 complaints over the past 12 months.

IMPACT by Interactive Brokers — Frequently Asked Questions (FAQ)

What is IMPACT by Interactive Brokers?

IMPACT is an investment platform owned by Interactive Brokers that focuses specifically on environmental, social and corporate governance (ESG) investments. It provides a space where you can invest in companies that embody the values ​​you believe in.

And when it comes to investment types, IMPACT gives you access to stocks, ETFs, mutual funds, and cryptocurrencies.

What are the benefits of Interactive Brokers?

Interactive Brokers offers a variety of investment products that appeal to all types of investors. These include self-directed brokerage accounts, automated investment accounts, IRAs, margin accounts, crypto trading (available through Paxos) and more.

However, it is best to determine what your investment preferences are before opening an account. This determines which accounts – and types of investments – you will use to achieve your goals.

Is your money safe with Interactive Brokers?

Yes. Interactive Brokers offers Securities Investor Protection Corporation (SIPC) insurance up to $500,000 (with a cash sub-limit of $250,000) on all of its securities accounts.

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