How to Buy the S&P 500 with Interactive Brokers

Can I Buy the S&P 500 with Interactive Brokers?

Yes, Interactive Brokers allows you to invest in the S&P 500 through popular ETFs like SPDR (SPY), Vanguard’s S&P 500 ETF (VOO), and iShares Core S&P 500 ETF (IVV). These ETFs provide broad exposure to all 500 companies in the index.

Be mindful of their tiered pricing, which ranges from 0.1% to 1% per share, including spreads. This can impact your costs, particularly if you're a low-frequency trader. While IBKR offers advanced tools, its platform may feel overwhelming for beginners.

Make sure the platform features match your trading style and experience level before investing.

‍

How to Buy the S&P 500 with Interactive Brokers

You can invest in the S&P 500 via Interactive Brokers, but its tiered pricing and complex platform may deter beginners. For a simpler option, eToro offers over 4,500 assets, including S&P 500 ETFs, NASDAQ, and Bitcoin ETFs. Trusted by 30 million users across 100 countries, it’s known for its easy interface and strong regulation.

Here’s how to get started on eToro:

1. Create an Account: Visit eToro, sign up, and complete identity verification.
2. Deposit Funds: Select your currency (USD, GBP, EUR), and fund your account via bank transfer.
3. Invest: Once funded, you can invest in S&P 500 ETFs through eToro’s easy-to-use platform.

‍

What are the Fees?

IBKR uses a tiered pricing model that ranges from $0.0035 to $0.0070 per share, depending on trading volume. On top of that, spreads can exceed 1%, and additional fees like minimum order charges can increase overall costs.

eToro, in contrast, offers a much simpler and more cost-effective fee structure. It charges a flat $2 trading fee and a spread typically under 0.15%. This transparent approach makes eToro a better option for investors looking to keep costs down when buying S&P 500 ETFs.

‍

About Interactive Brokers

Interactive Brokers is a top-tier brokerage offering low-cost access to global markets, including stocks, options, and bonds. Known for its advanced trading tools and competitive pricing, IBKR caters to both retail and institutional investors. With $16 billion in equity capital and robust security, it's a trusted platform for experienced traders looking to execute sophisticated strategies across 150 markets worldwide.

‍

Bottom Line

Interactive Brokers lets you buy the S&P 500 through ETFs like SPY, VOO, and IVV, but its tiered pricing and complex tools can be tricky for beginners. If you want something simpler, eToro's flat $2 fee and easier platform might be a better fit.

It comes down to your experience and how much you're willing to spend on fees. Interactive Brokers has advanced tools for pros, while eToro keeps it straightforward and cheaper for casual investors.