Prime Broker Solutions
​Offering a full spectrum of integrated capabilities; trading, clearing, custody, and reporting for cost-sensitive funds, combined with expertise, strength and resources of a leading global institution.


Complete Prime Broker Solutions

Helping hedge funds, asset managers, endowments, non-profits, and institutional investors meet the demands of a rapidly evolving market


Prime Broker Services
Financial Strength and Stability
Lower Your Cost to Maximize Your Return
Innovative Technology
Real-Time Monitoring
New Algos
Comprehensive Reporting
Expanding Research Offerings
Hedge Fund Capital Introduction Program
Account Structures
Optimize Your Trading Speed and Efficiency With Our Trading Station
Stock Yield Enhancement Program
Book an Appointment

​Prime Broker Services

As a sub-advisor we have the ability to select any broker/dear and/or custodian for Prime broker solutions.  After much due diligence and years of industry experience we have decided to work with Interactive Brokers. Here's why.  For 39 years, Interactive Brokers* has focused on applying technology to every part of the trading and settlement process. This unique automated approach to prime brokerage builds on our basic principles:
      • Around-the-clock global service coverage for Prime Brokerage customers.
      • Strong balance sheet.
      • Strength and security.
      • Low-risk business model.
      • Customer fund protection.
      • Consistent performance.
We monitor industry standards and have determined that Interactive Broker's continuing dedication to these principles results in Prime Broker Services that deliver real advantages to institutions:
      • Custody.
      • Execution and clearing.
      • Securities financing.
      • Margin financing.
      • Take up trades from other brokers.
      • Corporate actions.
      • Customer service.

​Financial Strength and Stability
Our custodian's strong capital position, conservative balance sheet and automated risk controls help protect IB and our clients from large trading losses.​

Interactive Brokers Group (IBG LLC) equity capital exceeds $5 billion**. 15.7% of IBG LLC is owned by the publicly traded company, Interactive Brokers Group, Inc. and the remaining 84.3% is owned by our employees and affiliates.  Unlike other firms, where management owns a small share, we participate substantially in the downside just as much as in the upside which makes them run their business conservatively. They hold no material positions in OTC securities or derivatives. We hold no CDOs, MBS or CDS. The gross amount of their portfolio of debt securities, with the exception of US governments is less than 10% of our equity capital.

​Lower Your Costs to Maximize Your Return
Our transparent, low commissions and financing rates, and best price executions minimize your costs to help you maximize your returns.

Generate Higher Returns
Lower commissions, no ticket charges; no minimums; and no technology, software, platform, or reporting fees. Low financing rates, and higher loan values on portfolio margin accounts over $100K.  

Best Price Execution
Most brokers trade against your orders or sell them to others to execute who will trade against them. The resulting execution probably costs you more than the commission you pay.  IB SmartRoutingSM continuously searches and reroutes to the best available prices for stocks, options and combinations.

​Stock Yield Enhancement Program
Earn extra income on the fully-paid shares of stock held in your account by joining
Our custodian’s Stock Yield Enhancement Program.

This plan allows our custodian to borrow shares from you in exchange for cash collateral, and then lend the shares to traders who want to sell them short and are willing to pay interest to borrow them. Each day that your stock is on loan, you will be paid loan interest based on market rates.
You share a percentage of this with our custodian (50%) as a fee for managing the program. The program is available to eligible our custodian clients who have been approved for a margin account, or who have a cash account with equity greater than 50,000 USD.

Benefits

Simple and Automatic
Our custodian manages all aspects of share lending. Once you register, they will examine your fully-paid stock portfolio automatically. If you have stocks that are attractive in the securities lending market, they will borrow the stocks from you, deposit collateral into your account and lend the shares. It’s that simple.  

Complete Transparency
When your stock is loaned out, you will see the fee rate that you are being paid on the loan along with the exact management fee you pay to our custodian. Other brokers with similar programs generally do not disclose the market rates to you, which allows them to pay you a small piece of the pie while holding on to most of the profits.
Earn Supplemental Income

Each day that your stock is on loan, our custodian deposits a percentage of any loan income directly into your account.


Trade Your Loaned Stock with No Restrictions

You will see the loaned shares on your account statement, indicating that they are being loaned out. You are still the owner of the stock, which means you continue to have market risk and will recognize any profit (or any loss) if the stock price moves. You can sell your shares at any time without any restriction. You can terminate your participation at any time for any reason.

Example

XYZ is currently trading at $75.00/share. You’re long 5000 shares of XYZ, with a market value of $375,000.00. XYZ is in demand and commands an interest rate of 9%.

You Could Earn $16,875.00/year on Stock You Already Own
You sign up for IBKR’s Stock Yield Enhancement Program, and IBKR loans out your 5000 shares of XYZ at 9%. The loan income on the transaction is $375,000.00 x 9% = $33,750.00, minus the 50% IBKR Management Fee = $16,875.00 to you.

​Innovative Technology
Work with a Prime Broker who's building trading technology that provides competitive pricing, speed, size, diversity
of global products and advanced trading tools for 39 years.

Trading Platforms
Our¹ trading platforms have been designed with the professional trader in mind:
      • Optimize your trading speed and efficiency with our market maker-designed Trader Workstation (TWS).
      • Access order management, analytics, account monitoring and more in a simple but sophisticated workspace.
      • Built-in task-specific trading tools and advanced risk management and option pricing applications for any trading style. 


Advanced Trading Tools

Our suite of Option Labs and advanced trading tools offer support to help you discover and implement optimal trading strategies. For example, our Probability Lab offers a practical way to think about options without the complicated mathematics, and the Option Strategy Lab lets you create simple and complex multi-leg option orders based on your own price and volatility forecast.


Order Types and Algos

Trader Workstation (TWS) supports over 60 order types, from the most basic limit order to advanced trading to the most complex algorithmic trading, to help you execute a wide variety of trading strategies.

API and FIX/CTCI Solutions

Our¹ proprietary API and FIX CTCI solutions let institutions create their own automated rule-based trading system that takes advantage of our high-speed order routing and broad market depth.


Sophisticated Risk Management

Real-time market-risk management and real-time monitoring provide a comprehensive measure of risk exposure across multiple asset classes around the globe and real-time data that gives you the edge you need to react quickly to the markets.


Integrated Solutions

Our¹ Order Management System makes it easy to submit, stage, manage and track client orders whether they are received electronically via FIX, input directly by traders or placed over the phone.


User Access Rights

Our¹ User Access Rights system allows you to assign different managerial roles and client accounts to individual employees within your organization.

​Optimize your trading speed and efficiency with our Trader Station

Mosaic

Mosaic provides intuitive out-of-the-box usability with quick and easy access to comprehensive trading, order management, chart, watchlist and portfolio tools all in a single, customizable workspace.

Classic

Classic TWS offers quick click order entry from bid and ask prices, with the order row displayed directly beneath the Market Data row. Classic TWS is always available to traders who need more advanced tools and algos.
Get direct access to TWS trading, order, live quoting, technical research and analysis tools all in a single window.
      • Use the Portfolio window for at-a-glance account summary and position detail, the Order Entry window to formulate and transmit orders instantly, and the Order Monitor to track and
      • modify live orders and review filled and cancelled orders.
      • Create attached orders directly within the Orders panel, including bracket, stop limit, profit taker, One Cancels Other, beta, FX order and pair hedging orders.
      • Add multiple Watchlists to view groups of instruments and create customized Market Scanners.
      • Add gradients, lines and bars to Market Scanners for easy-to spot trends and patterns.
      • View interactive, customizable charts that support studies and trendlines.
      • View real-time streaming general news that you can filter by subject, as well as real-time streaming news for a selected underlying.
      • Enhance Mosaic with premium newswire and analyst research subscriptions from such tier-one providers as Reuters, Dow Jones, Morningstar and Zacks.
      • Customize the workspace to suit your own trading needs by snapping your favorite trading tools together.
      • Link windows and symbol action by color using the grouping blocks, and watch the symbol automatically change in every linked window when you change the symbol in one window.

​Real-Time Monitoring
Our real-time monitoring system lets you see the current state of your account at any time to give you the edge you need in changing market conditions.

Account Window

View account balances, margin, funds available for trading, market value and portfolio data for all of your products in the customizable, easy-to-read Account window.


Margin Requirements

Stay on top of your margin requirements with quick-glance summaries of potential deficiencies that help you avoid liquidation, and try “what if” Portfolio Margining to see your margin requirements using the Portfolio Margining system.


Trades

See daily executions as well as net trading activity by symbol in our expandable trade reports.

Watchlists

Create Watchlists to monitor real-time market quotes based on your market data subscriptions. Create, resize and move multiple named Watchlist windows to fit your own trading style.


Alerts

Create real-time alerts based on price, time, margin and volume that notify you of important changes in the market.


Profit and Loss

View P&L on your trading screen and in the Account window.

​New Algos
Advanced order types help enter and exit positions with minimal price impact.

      • Algos allow clients to fine tune the execution and timing of their larger orders to minimize the price impact.
      • We now offer 12 IB Algos after adding 4 new ones this year
      • We now offer a total of 18 Jeffries algos and 18 CSFB algos to our clients
Execute Your Strategy with the Help of our Algorithms
Our algorithms help the active trader execute and manage the opportunity cost of a trading strategy.  Allowing us to offer a broad selection of order types to help you execute your strategy, work in or out of block positions across multiple asset classes, manage trading in less liquid products, limit slippage and protect your strategy’s anonymity. Our strategies probe liquidity across 30 Exchanges/ECNs/Liquidity Pools to help achieve best price execution. We regularly interview and perform due diligence on new liquidity pools, exchanges and ECNs to support access to liquidity.

Support for Price Improvement and Incremental Alpha Generation

Non-directed orders for symbols in fragmented markets routed through our custodian benefit from proprietary SmartRoutingTM for best price execution. SmartRoutingTM is designed to continually scan competing markets and automatically route orders directly to the market center with the best available price for stocks, options and combinations, taking into account factors such as the availability of automatic order execution.
      • Marketable orders ping all available liquidity pools to support best price execution. Non-marketable orders dynamically search liquidity pools to balance economics
           with likelihood of fill.
      • Our custodian hosts resting orders on its ATS to protect your anonymity and support best price execution. This allows the order to mix with incoming marketable orders or a well-vetted group of liquidity providers.
      • Use our sophisticated routing to calibrate and set customized preferences for balancing probability of execution against minimizing venue fees (e.g. maximize fill, prefer fill, maximize rebate, prefer rebate).
      • Our custodian does not trade against your order and can randomize price and/or size increments to help protect your trading strategies.

Active Traders Executing Large Orders Use our custodian's Advanced Trading Technology, Firm-developed Algorithms and to Secure Liquidity on Better Terms.

Trader Workstation (TWS), our premier trading platform, supports more than 60 algorithms and order types, from the most basic limit order to advanced trading to the most complex algorithmic trading.

All of our custodian's algorithms are available via API and a majority via FIX. Each allows for user-defined order urgency and volume percentage participation levels that can be saved for future use.


Traders executing large orders can also take advantage of a suite of third-party algorithms.


Use our outsourced trading solutions to trade large or complex orders, build or unwind a position.
      • Broker assisted trading is ideal when you are away from your computer or want the support of an experienced broker. Each broker on our trade desk has over 20 years trading experience and attempts to achieve the best possible execution for your trades.
      • Traders requiring liquidity in excess of 10K shares or 100 contracts per option leg for stock and options trading can benefit from our network of upstairs liquidity providers. Our trade desk may be able to find price improvement or additional liquidity compared to the electronic NBBO for orders in even the most liquid option classes and ETFs.

POPULAR ALGOS INCLUDE:

Adaptive Algo: This order type is helpful in trading instruments with wider spreads. The strategy attempts to achieve a fast fill or user-defined urgency to fill orders at the best all-in price, can be used as either a market or limit order and responds to changes in volatility by throttling the pace at which it seeks to achieve the best price available.

Accumulate/Distribute: Allows a trader to create bespoke trade parameters for size or price increments, which may be helpful when trading large block orders.

Percentage of Volume: A suite of highly customizable volume participation strategies for use under a variety of market conditions:

      • Percent Volume Strategy allows a trader to participate in volume at a user-defined rate. Volume percentages are set for the day with continuously updated intraday forecasts.
      • Price Volume Strategy defines participation by the price of a security. This algo will adjust aggressiveness based upon the price of a security relative to a user-defined target.
      • Size Volume Strategy allows a trader to set passive or aggressive approaches to trading a block order through the day using a user-defined rate.
Dark Only: This order type seeks to limit market impact by seeking liquidity only at dark pools and at our custodian's ATS (IBATS).

      • Traders have the option of placing Immediate or Cancel (IOC) or limit orders that will ping all available liquidity in an effort to fill the order.

      • Remaining balances rest on the our custodian's ATS, maintaining anonymity, while retaining the option of filling the order with another one of our custodians customer’s order.
      • The algo pings external liquidity providers every minute until filling the order.

Dark Ice: This order type is particularly useful when markets are range bound. It seeks price improvement by randomizing size increments and by pricing the order one tick lower than the current offer for buy orders and one tick higher than the current bid for sell orders. The algo probes liquidity on IBATS, a dozen dark pools and then exchanges.

Trader Workstation Supported Algorithms and Order Types

Important Information

SIMULATED ORDER TYPES
Our custodian simulates certain order types (for example, stop or conditional orders). Simulated order types may be used in cases where an exchange does not offer an order type, to provide clients with a uniform trading experience or in cases where IBKR does not offer a certain order type offered natively by an exchange. While simulated orders offer substantial control opportunities, they may be subject to performance issue of third parties outside of our control, such as market data providers and exchanges.


Although IBKR attempts to filter external data to ensure the best possible execution quality, they cannot anticipate all of the reasons that a simulated order may not receive an execution, or may receive an erroneous execution. Unsatisfactory (non)executions may result from events, including [i] erroneous, missing or inconsistent market data; [ii] data filters (example: IBKR may ignore last sale data that is reported outside the prevailing bid-ask as it often represents untimely or erroneous transactions; this may impact triggering of simulated orders); [iii] transactions subsequently deemed erroneous by an exchange; [iv] market halts and interruptions.
Clients should understand the sensitivity of simulated orders and consider this in their trading decisions.
MARKET ACCESS RULES AND ORDER FILTERS

Please note that exchanges and regulators require brokers to impose various pre-trade filters and other checks to make sure that orders are not disruptive to the market and do not violate exchange rules. Exchanges also apply their own filters and limits to orders they receive.


These filters or order limiters may cause client orders to be delayed in submission or execution, either by the broker or by the exchange.


Filters may also result in any order being canceled or rejected. The broker may also cap the price or size of a customer’s order before the order is submitted to an exchange.


Our custodian's reserves the sole right to impose filters and order limiters on any client order and will not be liable for any effect of filters or order limiters implemented by us or an exchange.

​Comprehensive Reporting
Easy to view and customize, our statements and reports cover all aspects of your Interactive Brokers account.

PortfolioAnalyst

PortfolioAnalyst, our online reporting and analysis interface, lets you analyze the performance of your account portfolio online by creating and saving customizable PDF reports based on a set of measurement criteria and optionally comparing the data to selected industry benchmarks.


Statements

Run and customize activity statements to view detailed information about your account activity, including positions, cash balances, transactions, and more.


Flex Queries

Create statement templates called Flex Queries, which let you customize your activity data at the most granular level and download in XML or text format.

Downloadable Statements

Save your statements in PDF or Excel format, or download them to a variety of third-party formats such as Quicken, Tradelog or CapTools.


Daily Margin Reports

Daily margin reports detail requirements by underlying. 


Transaction Cost Analysis (TCA)

TCA tracks the quality of your orders’ transaction prices versus market conditions either at the time the orders were submitted or after the trade executes.


Tax Optimizer

Tax Optimizer lets you change your tax lot-matching method to optimize your gains and losses.

​Expanded Research Offerings
86 research providers available via the Investors’ Marketplace
Over 30 research subscriptions available to clients in TWS

​Hedge Fund Capital Introduction Program
Our online program lets you market your funds to our custodian clients.

Part of our Investors’ Marketplace, the Hedge Fund Marketplace is provided free of charge to all Hedge Funds who use IB as their principal Prime Broker, have at least $3 million in assets under management and an audited track record of at least one year or have conducted its trading at IB for the past year.


Our custodian Brokers’ Hedge Fund Marketplace is an online version of a traditional Capital Introduction program and is designed to allow Hedge Funds who use IB as their principal Prime Broker to market their Funds to IB clients who are Accredited Investors and Qualified Purchasers, as well as to other Hedge Funds who already market their funds to IB clients at the Hedge Fund Marketplace.

The program offers these benefits to participating Hedge Funds:

      • Our custodian has a sophisticated, high-net worth client base who may be eligible and interested in placing a portion of their portfolio with your fund.
      • Access to our custodian’s Hedge Fund Marketplace (for participating Hedge Funds and participating investors) is through a separate and secure, password-protected area of the custodian's website. The Hedge Fund Marketplace is designed to comply with SEC rules limiting solicitation for private placements.
      • Participating Funds can post basic information about the Fund, the Fund manager and the Fund strategy. Potential investors can view and download related documentation, including private placement memoranda and subscription information.
      • Eligible Accredited Investors and Qualified Purchasers may contact the Fund management company directly through the Hedge Fund Marketplace, or request that the Fund contact them.
      • Once an investor has completed the Fund’s documentation, our custodian will process transfers of funds from the investor’s housed brokerage account directly to the Fund’s account, and our custodian will also process withdrawals/redemptions with the approval of the Fund and its Third-Party Administrator.
      • There is no need to open a new IB account to participate in the program. Simply access the Hedge Fund Marketplace to provide additional information required to join the program.
      • Hedge Funds and their Third Party Administrators use secure passwords to complete many automated administrative functions, including the ability to upload new Fund documentation, track downloads, require minimum investment sizes, identify a Fund as open or closed to new investments, and approve new investments or withdrawals/redemptions.

​Account Structures - Single Fund

Single Fund Account Structure
A single fund managed by an investment manager.

Single Fund Account with Trading Strategy Sub Accounts Structure

Additional Information


Link to Administrators for the purpose of providing administrative services such as reporting to your clients. Shop for registered Administrators at the Administrator Marketplace.
Additional Information

When adding trading strategy sub accounts, the account structure will have the following characteristics:

      • Master, sub accounts and users are part of the same legal entity.
      • Funds are deposited in the master account and transferred between the master and sub accounts to control individual trader limits.
      • Initial margining is determined for each individual account, while maintenance margining is determined at a consolidated account level.
      • Master users can set trading limits on individual sub accounts based on order size and value.

Account Structures - Multiple Fund Account

Multiple Fund Account Structure
Multiple funds managed by an investment manager with a master fund admin account.

Additional Information

The investment manager can add separately managed client accounts.


Each fund account can be owned by a separate legal entity and is credit-managed separately.


Execute trades for multiple funds in an Allocation Account and assign trades before the end of the day to specific cleared fund accounts. 

Pre-trade allocation tools.


The investment manager can create multiple tier accounts by adding Advisor, Proprietary Trading Group STL and Multiple Hedge Fund master accounts to their account structure. Each Advisor, Proprietary Trading Group STL and Multiple Hedge Fund master account holder can add client, sub and hedge fund accounts as required.


Link to Administrators for the purpose of providing administrative services such as reporting to your clients. Shop for registered Administrators at the Administrator Marketplace.

Account Structures - Allocation (Give-up) Fund Account

Allocation (Give-Up) Fund Account Structure

A single allocation account for trade executions that allows for end of day give-up of trades to accounts at third-party prime brokers.

Additional Information

An Allocation (Give-Up) account contains multiple co-mingled funds managed by an investment manager, who maintains individual fund activity function separately or gives up to a third-party prime broker.

Book an Appointment To Get Started Now

Disclosures: Where ever you see "Our" we are referring to our custodian in that of Interactive Brokers. Interactive Brokers LLC is a member of NYSE, FINRA, SIPC.  Hedge Funds are highly speculative and investors may lose their entire investment. Lower investment costs will increase your overall return on investment, but lower costs do not guarantee that your investment will be profitable. Any trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations. Supporting documentation for any claims and statistical information will be provided upon request.

1. Our custodian - Interactive Brokers Group and predecessor companies.
2. Includes Interactive Brokers Group and its affiliates.
3. Net $ Improvement per Share Definition: ((# of Price Improved Shares * Price Improvement Amount) - (# of Price Disimproved Shares * Price Disimprovement Amount)) / Total Number of Executed Shares
4. The Transaction Auditing Group (TAG). Industry as a whole for the referenced periods according to TAG. The TAG analysis for US stocks included all market orders of 100 shares or more up to 10,000 shares. The analysis for US options included all market order sizes in US options and includes exchange rebates received by clients under IB’s cost-plus pricing structure. The TAG analysis of orders routed to exchanges in Europe included all orders routed for execution during regular trading hours including all market and
marketable limit orders and orders near the market (orders having a limit price within one-tenth of a Euro from the quote price at time of order receipt) on stocks listed on the included exchanges, weighted by the volume executed on each exchange. The exchanges for European stocks are XETRA, EURONEXT, CHI-X, WIENER BORSE, TURQUOISE, LONDON and NASDAQ OMX.
Disclosure for the Stock Yield Enhancement Program: Interactive Brokers LLC is a member of NYSE, FINRA, SIPC. [1] Rate is subject to change. [2] Not all clients are eligible to participate. Currently clients of IB India and IB Japan are NOT eligible. Clients of IBLLC, IB Canada and IB UK are eligible, as are Japanese and Indian clients who trade with IBLLC.