Interactive Brokers (IBKR) Setup Guide

Setting up Interactive Brokers with TraderFlow requires several steps. IBKR setup is more complex than TradeStation, but this guide will walk you through the entire process.

Prerequisites

  • Minimum Account Balance: $500 (as of 2024)
    • Note: IBKR recently raised this requirement from previous lower amounts
    • Market data subscriptions may require additional balance
  • Active IBKR account with trading permissions

Step 1: Account Setup

  1. Log in to IBKR Client Portal

  2. Verify Account Balance

    • Ensure you have at least $500 in your account
    • If not, deposit funds before proceeding

Step 2: Enable API Access

  1. Navigate to Settings

    • Click on your username in the top-right corner
    • Select "Settings" from the dropdown menu

  2. Configure API Settings

    • Go to "Account Settings" → "API" → "Settings"
    • Enable "Enable ActiveX and Socket Clients"
    • Set "Read-Only API" to "No" (TraderFlow needs trading permissions)
    • Click "Save"

Step 3: Market Data Subscriptions

Important: Market data requires additional subscriptions and may increase the minimum balance requirement.

  1. Subscribe to Market Data

    • Go to "Market Data Subscriptions" in Client Portal
    • Select the data feeds you need:
      • US Securities Snapshot and Futures Value Bundle (common choice)
      • Real-time data for stocks, options, futures as needed

  2. Wait for Activation

    • Subscriptions may take 24-48 hours to activate
    • You'll receive email confirmation when active

Step 4: Install TWS or IB Gateway

TraderFlow connects to IBKR through either:

  • Trader Workstation (TWS) - Full trading platform
  • IB Gateway - Lightweight API connection (recommended)
  1. Download from IBKR Download Center
  2. Install the latest stable version
  3. Launch IB Gateway
  4. Log in with your credentials
  5. Keep it running while using TraderFlow

Step 5: Configure TWS/Gateway for API

  1. Set API Port

    • In TWS/Gateway, go to "Configure" → "Settings" → "API"
    • Default port: 7496 (TWS) or 4001 (Gateway)
    • Note this port number for TraderFlow configuration

  2. Enable API Connections

    • Check "Enable ActiveX and Socket Clients"
    • Uncheck "Read-Only API"
    • Check "Download open orders on connection"
    • Click "OK"

  3. Configure Trusted IPs (Optional)

    • Add "127.0.0.1" to trusted IP addresses for local connections

Step 6: Configure TraderFlow

  1. Open TraderFlow Settings

    • Launch TraderFlow application
    • Go to Settings → Broker Configuration

  2. Enter IBKR Credentials

    • Broker Type: Select "Interactive Brokers"
    • Host: 127.0.0.1 (localhost)
    • Port: 7496 (TWS) or 4001 (Gateway)
    • Client ID: Use a unique number (e.g., 1)

  3. Test Connection

    • Click "Test Connection"
    • You should see a connection prompt in TWS/Gateway
    • Accept the connection in TWS/Gateway
    • TraderFlow should confirm successful connection

Common Issues

"Market data not available"

  • Verify your market data subscriptions are active
  • Check that your account balance meets requirements
  • Wait 24-48 hours after subscribing

"Connection refused"

  • Ensure TWS or IB Gateway is running
  • Verify the port number matches between IBKR and TraderFlow
  • Check that API access is enabled in IBKR settings

"Permission denied for trading"

  • Disable "Read-Only API" mode in TWS/Gateway settings
  • Verify your account has trading permissions
  • Check that your account type supports API trading

Security Best Practices

  • Never share your IBKR credentials
  • Use IB Gateway instead of full TWS if you only need API access
  • Keep TWS/Gateway updated to the latest version
  • Monitor your API activity regularly in Client Portal

Next Steps

Once connected:

  • Start with paper trading to test your strategies
  • Monitor positions and orders through TraderFlow
  • Set up risk management rules
  • Review the Known Issues page for common problems

Additional Resources

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Getting Started
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TradeStation Setup