Broker API

Interactive Brokers API Review for Algo Trading

Item: Interactive Brokers API
Author: CodeForFinance

Interactive Brokers (IBKR) is the most popular broker for algorithmic traders. Their Trader Workstation (TWS) API allows you to execute trades, receive real-time market data, and manage your portfolio programmatically. The ib_insync Python library by Ewald de Wit makes the API significantly easier to use. IBKR offers access to 150+ markets across 33 countries.

Pricing

IBKR LiteFree commissions on US stocks

✓ No account minimum
✓ Free US stock trades
✓ Limited API access
✓ Basic market data

IBKR Pro$0.005/share (min $1)

✓ Full API access
✓ Professional market data
✓ Direct market routing
✓ All order types

Market Data$1-$35/month per exchange

✓ Real-time Level 1
✓ Level 2 depth
✓ Streaming quotes
✓ Historical data

Pros

+ Access to 150+ global markets
+ Very low commissions
+ ib_insync makes Python integration easy
+ Paper trading account for testing
+ Supports complex order types (brackets, algos, etc.)

Cons

- TWS must be running for API access (or use IB Gateway)
- Connection can be flaky and needs reconnection logic
- Market data subscriptions add up quickly
- API documentation is complex and sometimes outdated
- Learning curve is steep for beginners

Who Is It For?

IBKR is for serious algorithmic traders who want to automate their trading with real money. If you are building a trading bot that needs to execute orders across multiple markets, IBKR is the industry standard. Not for beginners who are still learning to code.

Code Example

# Using ib_insync (recommended Python library)
# pip install ib_insync

from ib_insync import *

# Connect to TWS or IB Gateway
ib = IB()
ib.connect("127.0.0.1", 7497, clientId=1)  # 7497 for paper trading

# Get account summary
account = ib.accountSummary()
for item in account:
    if item.tag in ["TotalCashValue", "NetLiquidation", "UnrealizedPnL"]:
        print(f"{item.tag}: {item.value} {item.currency}")

# Get real-time market data
contract = Stock("AAPL", "SMART", "USD")
ib.qualifyContracts(contract)

# Request market data
ticker = ib.reqMktData(contract)
ib.sleep(2)  # Wait for data
print(f"AAPL: {ticker.marketPrice()}")

# Historical data
bars = ib.reqHistoricalData(
    contract,
    endDateTime="",
    durationStr="30 D",
    barSizeSetting="1 day",
    whatToShow="MIDPOINT",
    useRTH=True
)
df = util.df(bars)
print(df.tail())

# Place an order
order = LimitOrder("BUY", 10, 190.00)
trade = ib.placeOrder(contract, order)
print(f"Order status: {trade.orderStatus.status}")

# Cancel order
ib.cancelOrder(order)

ib.disconnect()

Alternatives

AlpacaTD Ameritrade APITradier