How To Trade Stocks on Interactive Brokers – AI vs Human Stock Predictions

This article about stock predictions and trading stocks using Interactive Brokers is written by Hao Liu, financial analyst at I Know First.


  • I Know First provides AI stock predictions for tradable on Interactive Brokers securities 
  • Financial analysts/investment advisors are not always right, and they may not give fully truthful suggestions due to “the lemming factor”
  • AI forecasts alleviates the risk of trusting an investment advisor by offering more objective and systematic second opinion

Company Overview

interactive brokers intro

Interactive Brokers LLC (further – IBKR) is a US-based online trading brokerage firm that has been increasingly popular among investors over the years. Investors can trade globally with a single integrated IBKR account in stocks, options, futures, EFPs, forex, bonds, and funds. In addition to a large selection of tradable securities, Interactive Brokers also attracts active traders with low per-share pricing, an advanced trading platform and ridiculously low margin rates. Its new offering, IBKR Lite, even offers commission-free trades of stocks and ETFs.

Interactive Brokers primarily serves institutional investors and sophisticated, active traders around the globe. Although the company continues to introduce new products, education resources, and services aimed at newer or less active investors, this is still a work in progress for the firm.

Why Investors Should Start Using AI-driven Predictions?

For active investors, I Know First can always serve as a second opinion before they make a final move. For tradable securities on IBKR, I Know First provides forecasts on stocks, optionsfutures and forex. Specifically, for stock traders, I Know First provide stock predictions on different sectors. If investors do not have a preference for sector, they can always refer to our daily updated top stock predictions.

For those investors who trade based on investment advisor’s recommendations, they need to understand there comes a risk with trusting their investment advisors.

(Source: Getty Images)

Not just investment novices puzzled with unexpected news, investment veterans made decisions they regretted afterwards when the market is highly volatile. One conspicuous example is that Stanley Druckenmiller replaced all stocks with US Treasury in May 2019 after Trump tweeted about increasing tariffs on China goods. He has later regretted that he “couldn’t have been more wrong” by admitting that he pulled out simply due to what can be categorized as trepidation surrounding trade policy. 

It is inevitable for human to be influenced by investment sentiment when the market is highly volatile. Especially during this unprecedentedly unpredictable time, it is helpful to have a second opinion based on pure market data before deciding with an impulse. At this end, I Know First even puts forward a Coronavirus package for clients.

AI Stock Predictions Can Beat Human Analytics – Tesla Case

interactive brokers - tesla case

Investment advisors can just be wrong sometimes. One typical example is Tesla (Nasdaq: TSLA). With the launch of Tesla short shorts on July 5th, Elon Musk mocked those Tesla Short Seller Analysts who lost billions as TSLA stock hit another high at $1200. One well-known TSLA seller is Gordon Johnson. This former financial analyst at JPMorgan and Credit Suisse has lost his job at Vertical Group for being completely wrong about Tesla, costing his clients’ money, and him his reputation. However, even after this he is still actively pessimistic about the company. Despite Model 3 ramp up in China, and Model Y being in the pipeline, Johnson still believes that Tesla has a demand problem. In February this year, he forecasted TSLA shares falling to $72. Again, this was proven to be completely wrong now as TSLA has been surging since then.

stock predictions chart

Some analysts had attributed the inaccurate analyst forecasts to media negativity by pointing out that “increasingly immaterial reports had dominated news cycles”. Market noise can indeed greatly affect analyst’s investment decision. AI forecast, on the other hand, collects all market information without bias, which is therefore more objective and accurate when there is much market noise.

stock predictions chart

In contrast to the majority of financial analysts’ community, I Know First forecast on TSLA has been constantly correct, helping our clients seize the opportunity in time. It can be seen from the most recent Tesla Forecast Evaluation Report that over the past year, I Know First has been hitting high prediction ratio on TSLA. The success has last into the pandemic. On April 21st, I Know First has issued a 30-day forecast with 2.07 bullish signal, which is proven right with a 10.88% rise in price one month later. And with the current trend of TSLA stock, the 3-month bullish forecast with a signal of 3.74 is likely to be right again. 

stock predictions chart

Even earlier than that since the pandemic, TSLA appeared as one of the recommended buy stocks on Mar 17th aggressive stock predictions. TSLA price was predicted to go up with a 2.45 bullish signal and achieved 122.84% increase after 3 months.

stock predictions

Even the most experienced analyst or investment advisor could be wrong. TSLA is not simply a car manufacturer, but also a technology developer. As we all know, companies in the tech sector can be hard to forecast for financial analysts, especially those who value fundamentals a lot, they are likely to hold a bearish view at the sight of negative cash flows. As such, Warren Buffett has proven how misjudging tech stocks can lead to loss of great opportunities. I Know First offers Tech Stock predictions that would definitely help investors in respect of these stocks and exercise the best market opportunities by making more informed decisions.

How I Know First AI Stock Predictions Outperform Human Decisions?

I Know First stock predictions algorithm

Based on the daily stocks data including relationships between different financial assets and the latest market information, I Know First algorithm uses AI and Machine Learning to generate stock predictions for different time horizons. The database used is 100% historical data free from human derived assumptions, and the prediction generation process is constantly evolving with newly added data. The I Know First System models the future money flow between markets by learning from its previous forecasts and is continuously adapting to changing market situations.

Investment advisor may give more subjective advice due to “the lemming factor“. This is basically because there is little or no penalty for making a mistake if peer investment advisors do too. “There’s a tendency to be a little more timid about bad news”, – the Citigroup chief U.S. equity strategist Tobias Levkovich said during an CBS News interview. “If you stick your neck out and break bad news, you get a backlash from owners of the stock.” This indicates analysts nowadays are inclined to offer opinions in line with analyst consensus to alleviate their career risks. Therefore, to satisfy their clients, investment analysts and managers may not tell what they really think based on analysis. In this case, it is even more crucial to have a second opinion being free from any human assumptions or manipulation.

interactive brokers plans
(Source: Investopedia)

Besides IBKR Pro discussed previously, IBKR also introduced IBKR Lite to meet the demand of less active investors who are seeking a simple, cost-free way to trade. I Know First also helps these IBKR Lite users by offering stock trade ideas. For example, we have daily updated top stocks forecast package, and for the times of COVID-19 crisis, we have Coronavirus package.


IBKR received an overall score of 4.5 out of 5.0 in a most recent online brokerage rating comparison, ranking the second place following TD Ameritrade (5.0 out 0f 5.0). The benchmarks for rating includes various perspectives such as trading/account fees, margin rates, investment options and so on. IBKR outperforms TD Ameritrade in terms of fees and margin rates, where it lags behind is mainly research features including stock, ETF as well as mutual funds. Therefore, even though IBKR offers relatively comprehensive educational resources, for beginners it still requires certain efforts to make a satisfactory investment decision. In light of this, I Know First AI forecasts, especially packages on stocks and ETFs, provide second opinion and support decisions of those beginners from statistics perspective.


interactive brokers
(Source: Yahoo Finance)

For tradable securities on Interactive Brokers I Know First provides AI forecasts for stocks from different sectorstop stocksoptionsfutures and Forex. For active investors, I Know First can always serve as a second opinion in their investment decision making. For those investors who trade based on investment advisor’s recommendations, I Know First AI forecasts can alleviate the risk of trusting an investment advisor by offering more objective and systematic alternative opinion. This is because financial analysts and investment advisors are not always right, and they also suffer from investment sentiments especially in today’s highly volatile market. And some investment advisors may not give fully truthful suggestions due to “the lemming factor”. And apart from active traders, I Know First also offers stock trade ideas for those who are less active and prefer passive investment strategies.

stock predictions premium

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Please note-for trading decisions use the most recent forecast.