Pros, cons and who should create an account

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Fees

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

Investment types

Equities, ETFs, cryptocurrencies and mutual funds

Fees

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

Investment types

Equities, ETFs, cryptocurrencies and mutual funds

Advantage

  • No minimum requirements; commission-free stocks and ETFs
  • Partial stock investment available
  • Investors can choose from 13 different ESG categories when analyzing their portfolios
  • IMPACT allows you to exchange certain assets for others that are more in line with your values

Disadvantages

  • Not all mutual funds are commission free
  • No automated investment (however, this is available through interactive advisors)

Overall rating

Is IMPACT by Interactive Brokers right for you?

IMPACT by Interactive Brokers is an investment app strictly designed for socially responsible investment, also known as Environmental, Social, and Corporate Governance (ESG) investment.

IMPACT gives you access to 13 different investment categories (including ethical and transparent business practices, race and gender equality, and more), and it even offers newcomers a simulated trading account that they can experiment with 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 investment opportunities. However, IMPACT is the better choice for ESG-focused, active traders, as it offers several investment categories and features to choose from. Although Betterment offers ESG portfolios, it does not focus solely on power investment.

While Interactive Brokers also gives clients access to automated investing through interactive advisors, Betterment is best IMPACT when it comes to hands-off investing. That


robo-advisor

handles the entire investment process for you, and it lets you choose between the following socially responsible portfolios: Climate Impact, Social Impact and Broad Impact.

IMPACT vs. Ellevest

IMPACT also surpasses Ellevest in the socially responsible investment area. The investment app allows you to trade stocks, ETFs, cryptocurrencies, mutual funds and carbon offsets 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 is mainly aimed at companies that: (1) promote female leaders, (2) support loans for community development and (3) prioritize sustainability and ethical practices.

Ways to invest with IMPACT by Interactive Brokers

You have several opportunities to invest with IMPACT. The investment 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 the Paxos Trust Company, and you can add carbon offsets to your portfolio if you choose.

The platform offers a simulated trading account for those who just want to test the account without taking any real risk. Creating an account with IMPACT automatically enrolls U.S. residents in Interactive Brokers’ IBKR Lite account. This means that in addition to IMPACT’s offers, you can also benefit from other investments that Interactive Brokers offers outside IMPACT.

Once you have created your account, you will have access to 13 different ESG categories. You can then have IMPACT analyze your current portfolio’s inventories (according to the categories you have selected) and produce an IMPACT score based on how well your portfolio matches those categories. It uses a rating range to evaluate how well your portfolio matches the values ​​you have selected. Additionally, you can use the app to find other investments that you feel better align with your values.

You can also have the IMPACT app filter your portfolio or companies you are interested in to exclude business practices you are opposed to (such as animal testing, policy spending, high water consumption, hazardous waste, and more). Plus, if you do not feel that certain stocks in your portfolio meet your values, you can simply swap that stock for another.

IMPACT by Interactive Brokers: Is It Credible?

Although IMPACT does not currently have a Better Business Bureau profile, the agency Interactive Brokers gives an A + rating. BBB’s ratings range from A + to F and reflect its views on how well companies interact with customers.

Its assessments also take into account other factors such as company type, time in business, customer complaint history and 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 performed.

Mæglerhuset has closed 29 complaints within the last 12 months.

IMPACT by Interactive Brokers – Frequently Asked Questions (FAQ)

What is IMPACT by Interactive Brokers?

IMPACT is an Interactive Brokers-owned investment platform that focuses specifically on investments in environment, social and corporate governance (ESG). It offers a space where you can invest in the 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 range of investment products aimed at all types of investors. These include autonomous brokerage accounts, automated investment accounts, IRAs, margin accounts, crypto trading (available through Paxos) and more.

However, it is best to find out what your investment preferences are before opening an account. This determines which accounts – and investment types – you will use as you work towards your goals.

Is your money safe with Interactive Brokers?

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

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