Complete Prime Broker Solutions for Hedge and Mutual Funds

Trading, clearing, custody, and reporting for cost-sensitive funds

Securities Financing

Our depth of availability, transparent and competitive loan and borrow rates, automated tools and dedicated service representatives give you the advantages you expect from Interactive Brokers.

Depth of Availability

The combination of both internal supply and external relationships allows us to offer our clients a vast array of securities to trade:

  • Our large and diverse customer base lets us source internally approximately 60 to 70% of our short borrow needs.
  • IB has securities lending/borrowing relationships with more than 60 counterparties, comprised of Agent Lenders, banks and broker dealers in the U.S.
  • Our team provides consistent high levels of protection against recalls and buy-ins on hard to borrow securities, creating extended time horizons for even the most difficult short selling strategies.
  • IB's excellent credit rating makes us a preferred borrower with large agent lenders, prime brokers and other broker-dealers.

Learn More


Transparent, Competitive Loan and Borrow Rates
  • We disclose our short stock availability (aka "locates") to ALL customers on a first come, first serve basis for every supported security on our trading platform, Trader Workstation (TWS).
  • We disclose indicative rebate rate and fee rate information, which you can use as an indication of borrow costs.
  • Each day, we provide our clients with detailed reports, outlining exactly what the financing costs are for each SLB-related transaction.

Learn More


Stock Yield Enhancement Program
  • Increase investment returns by lending fully paid and/or excess margin stock.
  • Optimize lending of your hard to borrow assets by earning a market-based loan rate.
  • Trade your loaned stock with no restrictions. You can sell your shares at any time.

Learn More


Automated Tools

In addition to the Stock Yield Enhancement Program, we offer a variety of securities financing tools:

  • TWS includes stock loan and borrow tools out of the box, including the Yield Optimizer, which lets you compare securities financing rates across the current SLB market, and OneChicago's single stock futures market.
  • Customers with Portfolio Margin accounts can join our Pre-Borrow Program, which allows pre-borrowing of shares to ensure settlement of very hard to borrow stocks.

Learn More


Institutional Clients
  • Direct access to the Securities Financing coverage desk.
  • Stock loan market color commentaries via Traders' Insight and ENSO Financial Analytics.
  • Private locates available upon request allow for better timing of entry points on high traffic short positions.

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.

Learn More


Best Price Execution

Most brokers trade against your orders or sell them to others to execute who will trade against them. The resulting poor 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.

Learn More

Execution Price Improvement Comparison*
US Stocks
(per 100 shares)
US Options
(per contract)
European Stocks
(per 100 shares)
Interactive Brokers $0.43 $0.86 €0.36
Industry $0.34 $0.61 - €0.01
IB Advantage $0.09 $0.25 €0.37

Net Dollar Price Improvement vs. National Best Bid/Offer 1

*Based on independent measurements, the Transaction Auditing Group, Inc., (TAG), a third-party provider of transaction analysis, has determined that Interactive Brokers' US stock and options price executions were significantly better than the industry's during the first half of 2016. 2

  1. Net $ Improvement per Share Definition:
    ((# of Price Improved Shares * Price Improvement Amount) - (# of Price Disimproved Shares * Price Disimprovement Amount)) / Total Number of Executed Shares
  2. 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.

Your Gateway to the World's Markets

Trade on over 100 market centers in 24 countries.

Direct market access to stocks, options, futures, forex, bonds, ETFs and CFDs
from a single IB Universal Account™.

Learn More

Access market data 24 hours a day and six days a week to stay connected to all global markets.

Convert currencies at market determined rates as low as 1/10 of a basis point, or create a position collateralized by a non-native currency.

Fund your account in multiple currencies. Trade assets denominated in multiple currencies from a single account.

Innovative Technology

We've been building trading technology that provides competitive pricing, speed, size, diversity of global products and advanced trading tools to our clients for 40 years.

Trading Platforms

Our 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.

Learn More


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.

Learn More


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.

Learn More


API and FIX/CTCI Solutions

Our 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.

Learn More


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.

Learn More


Integrated Solutions

IB's Order Management System (OMS) 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.

Learn More


User Access Rights

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


Prime Broker Services


For 40 years, Interactive Brokers has brought advanced technology solutions to our customers. 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.

Learn More

Our 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.


Click here to view our Due Diligence Information for Advisors, Brokers, Hedge Funds and Other Financial Institutions and Intermediaries using or considering Interactive Brokers LLC as Prime Broker/Custodian.

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.


Hedge Fund Marketplace


  • An online version of a traditional Capital Introduction program designed to allow Hedge Funds who use IB as their principal Prime Broker to market their Funds to IB customers who are Accredited Investors and Qualified Purchasers.
  • This program 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 done its trading at IB for the last year.
  • Access the Hedge Fund Marketplace at the Investors' Marketplace, our online forum where you can meet and do business with traders and investors, institutions and other third-party service providers.
Strength and Security

Financial Strength and Stability

Our strong capital position, conservative balance sheet and automated risk controls protect IB and our clients from large trading losses.

Interactive Brokers Group (IBG LLC) equity capital exceeds $5 billion1. 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 us run our business conservatively. We hold no material positions in OTC securities or derivatives. We hold no CDOs, MBS or CDS. The gross amount of our portfolio of debt securities, with the exception of US governments is less than 10% of our equity capital.

Learn More

  1. Includes Interactive Brokers Group and its affiliates.

Open an Account

Our Hedge and Mutual Fund accounts let Investment Managers set up different structures to meet their needs.

New Account Opening Information

If you are a resident of Asia, except India, Hong Kong and Japan, and continue with the account opening process, your account will be opened with Interactive Brokers LLC in the US.

Interactive Brokers LLC is a member of NYSE, FINRA, and SIPC and regulated by the US Securities and Exchange Commission and the US Commodity Futures Trading Commission.

By continuing to open an account, you agree to the above terms.



Interactive Brokers offers three different Fund account structures: Single Fund, Multiple Fund and Allocation Fund accounts.

Accounts are accepted from citizens or residents of all countries except citizens or residents of those countries that are prohibited by the US Office of Foreign Assets Control. Click here for a list of available countries.



Single Fund Account Structure

A single fund managed by an investment manager.




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.

Single Fund Account PDF Guide

Single Fund Account with Trading Strategy Sub Accounts Structure

A single account with one or more users. Configuring authorized trader sub accounts adds the ability to maintain multiple sub accounts for different strategies.


Single Fund Account with Trading Strategy Sub Accounts Structure


Additional Information

When add 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.

Single Fund Account PDF Guide

Multiple Fund Account Structure

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


Multiple Fund Account Structure Chart


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.

Multiple Fund Account PDF Guide

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.

Allocation (Give-Up) Fund Account Structure Chart


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.

Allocation Fund Account PDF Guide



For information on SIPC coverage on your account, visit www.sipc.org or call SIPC at 1 (202) 371-8300.