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Investment firms: Interactive Brokers vs. ARK Investment Management

Quick Verdict

Interactive Brokers is a brokerage platform suitable for active traders and investors seeking a wide range of investment options and trading tools, while ARK Investment Management is an investment firm specializing in thematic investing in disruptive innovation through ETFs and a venture fund, appealing to investors interested in future-oriented and ESG-aligned investments.

Key features – Side-by-Side

AttributeInteractive BrokersARK Investment Management
Commission fees for stocksIBKR Lite: $0 per share for U.S. residents on U.S. exchange-listed stocks and ETFs. IBKR Pro: Tiered pricing from $0.0005 to $0.0035 per share based on volume, or fixed pricing at $0.005 per share. Some ETFs are commission-free.Not available
Commission fees for optionsIBKR Lite: $0.65 per contract. IBKR Pro: Tiered pricing from $0.15 to $0.65 per contract based on volume, or fixed pricing at $0.65 per contract.Not available
Account minimum$0 for most users. Broker accounts in the first 8 months require a $10,000 minimum deposit. Margin accounts require a $2,000 minimum to trade. Proprietary Trading Group Accounts require a $10,000 minimum.Not available
Investment products offeredStocks, ETFs, options, futures, currencies, bonds, and mutual funds. Also offers access to foreign stocks.ARK Invest specializes in thematic investing in disruptive innovation, offering actively managed ETFs, index ETFs, and a venture fund. Their investment strategies include: Disruptive Innovation, Autonomous Tech & Robotics, Genomic Revolution, Next Generation Internet, Fintech Innovation, Space Exploration, 3D Printing, Israel Innovation, Cryptoasset and Cryptocurrency, Venture Capital.
Trading platform features and toolsIBKR Desktop: Customizable layouts, technical and fundamental analysis tools, charting, Level 2 market depth. IBKR Mobile: Intuitive trading workflow. IBKR GlobalTrader: Streamlined app for stocks, ETFs, options.Not available
Research and educational resourcesComprehensive selection of trading tools and data for analysis. Robust charting capabilities.ARK publishes original research to inform investors about the impact of technologies and seeks feedback on their work. They offer articles, white papers, newsletters, podcasts, and videos. ARK also uses an open research ecosystem for insights between portfolio managers, analysts, and external sources.
Margin ratesIBKR Pro: Rates range from 5.830% to 6.830% for USD margin loans. IBKR Lite: Higher rates than IBKR Pro. Rates are tiered based on the amount borrowed.Not available
Account types availableIndividual, Joint, Trust, IRA, UGMA/UTMA, Islamic, and Demo accounts. Also offers accounts for advisors, money managers, and institutions.Not available
Customer service availability and responsivenessCustomer service can be busy.Not available
Mobile app functionalityIBKR Mobile: Offers a quick and intuitive slide-to-execute trading workflow. Can be laggy at times. IBKR GlobalTrader: Simple interface for trading equities, ETFs, and options.Not available
Security and regulatory complianceInformation not found in the provided search results.ARK Investment Management LLC is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). The ARK ETF Trust is registered with the SEC as a series open-end management investment company. ARK has a Code of Ethics in compliance with SEC rules.
ESG investing optionsOffers an Impact Dashboard where investors can select investment criteria based on 13 principles, and exclude investments based on 10 categories.ARK considers ESG principles that align with the United Nations Sustainable Development Goals (SDGs). They integrate ESG issues into their investment process, focusing on companies that contribute positively to the future.

Overall Comparison

Interactive Brokers: Commission-free trading for U.S. exchange-listed stocks and ETFs (IBKR Lite). ARK Investment Management: Specializes in thematic investing in disruptive innovation.

Pros and Cons

Interactive Brokers

Pros:
  • Commission-free trading for U.S. exchange-listed stocks and ETFs (IBKR Lite)
  • Tiered and fixed commission plans available (IBKR Pro)
  • Wide range of investment products offered
  • Multiple trading platforms with varying levels of complexity
  • Comprehensive trading tools and data
  • Robust charting capabilities
  • Low margin rates
  • Variety of account types available
  • ESG investing options through Impact Dashboard
  • Built-in risk management tools
  • Access to over 160 markets for diversification
Cons:
  • Commission fees for options (IBKR Lite)
  • Minimum deposit required for broker, margin, and proprietary trading group accounts
  • Customer service can be busy
  • IBKR Mobile can be laggy at times
  • Charting on small-screen mobile devices can be challenging

ARK Investment Management

Pros:
  • Thematic investing in disruptive innovation
  • Offers actively managed ETFs, index ETFs, and a venture fund
  • Publishes original research
  • Considers ESG principles aligned with the UN SDGs
  • Registered with the SEC and has a Code of Ethics
Cons:
  • Commission fees for stocks not available
  • Commission fees for options not available
  • Account minimum not available
  • Trading platform features and tools not available
  • Margin rates not available
  • Account types available not available
  • Customer service availability and responsiveness not available
  • Mobile app functionality not available

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