Interactive Brokers
presents
Why Become an Independent
Advisor on IB’s Platform?
Mary MacNamara, Interactive Brokers
[email protected] Webinar begins @ 4:30 EDT
What is an RIA?
• Registered Investment Advisors (RIAs) are people who provide investment advice to others for a fee and are required by the SEC or most states to register or become licensed
• An RIA provides analysis or advice on securities either by making direct or indirect
recommendations to clients or by providing research or opinions on securities or securities markets
• Receives compensation in any form for the advice provided
Advantages of being a
Duties of an RIA
• Fiduciary
• Client Disclosure • Code of Ethics
• Maintain Books & Records
Steps to become a
Registered Investment Advisor
Why become an independent Advisor
on Interactive Brokers Platform?
• Freedom and flexibility to run your own business - No contract • Keep 100% of your fees - Minimal start up and overhead costs • Full White Branding capability with customized statements
• Manage clients’ accounts wherever they come from* and wherever they want to trade on over 100 exchanges around the world
Why become an independent Advisor
on Interactive Brokers Platform?
• Generate Higher Returns:
– Lower commissions, no ticket charges; no minimums; and no technology, software, platform, or reporting fees
– Better executions.
– Low interest rates, and higher loan values on portfolio margin accounts over $100K
Minimize Your Costs - Transparent Pricing
• Transparent commissions discounted by monthly adviser volume from $0.5 to $0.05 per 100 shares and
$0.70 to $0.075 per option contract.2
• Financing rates are pegged to daily benchmarks (US$ Fed funds or EUR Libor) + 150bps discounted to
25bps for larger amounts.3
2. Plus an additional fee based on exchange, regulatory, transaction and carry fees where applicable. In the case that an exchange provides a rebate we pass some or all of the savings directly back to you. For additional information see http://www.interactivebrokers.com/commissions.
Minimize Your Costs
Best Price Execution
Most brokers trade against your orders or sell them to others to execute who will trade against them. IB's Smart Router continuously searches and reroutes to the best available prices for stocks, options and combinations.
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
State-of-the-art Trading Platform
Our market maker-designed Trader Workstation (TWS) lets you trade stocks, options, futures, forex, bonds, and funds on over 100 markets in 24 countries and 20 currencies from a single account
Simple and sophisticated workspace that puts market data, order management, analytics, account monitoring and more at your fingertips Comprehensive news,
IB’s Financial Strength and Stability
• Strong capital position, conservative balance sheet and automated risk controls help protect IB and our customers from large trading losses
• Interactive Brokers Group (IBG LLC) equity capital exceeds $5 billion
• Our positions are marked to market daily and the resulting payables/receivables are reconciled to outside sources and settled automatically
• Our real time margining system marks all customer positions to market continuously • 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
• All orders are credit vetted before being executed and positions in accounts with inadequate margin deposits are liquidated automatically
Unique Technology for Advisors
Pre-Trade Allocations
• Allocate trades to multiple client
accounts with a single mouse click
• Set-up Account Groups to
allocate shares based on a single method for a group of accounts
• Create Allocation profiles that
use percentages or shares of each order to individual accounts based on your own rules
• Easily modify allocations on an
order by order basis
• Create Account Aliases to easily
assign names to accounts
• Most Powerful: Allocate by
Unique Technology for Advisors (Cont.)
Unique Technology for Advisors (Cont.)
• Advisors can automatically rebalance all accounts, a single subaccount, or a user-defined Account Group.
• As a Wealth Manager, you may assign certain client accounts to Registered Money Managers • Automated tax lot assignment to optimize stated objectives
• Add Pension Plan Trust Accounts holding assets for a qualified Pension Plan subaccount • IB provides broker-assisted trading through our Stock, Option or Bond desks
Automated calculation, billing and
withdrawal of management and performance fees
• Advisors can charge their client(s) for services rendered, automatically with our flexible billing and invoicing system.
• With automatic billing, a calculated fee is automatically billed to the client's account with blanket client authorization using any of the following in any combination:
– Annualized Percent of Net Liquidation Value – Annualized Flat Fee
– Percentage of P&L
– Fee per trade unit (shares, contracts, %) - Specified by currency/asset class • Client Fee Templates
Advanced Trading Tools
Task-specific trading tools to enhance efficiency for all trading styles, including :
Over 60 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.
– Limit Risk
– Speed Execution
– Provide Price Improvement – Allow Privacy
Integrated Solutions
• Order Management System (OMS)
Sophisticated Risk Management Tools
Real-time Monitoring
Unlike other brokers who calculate margin only at the end of the trading day, IB provides real-time data that gives you the edge you need to react quickly to the markets.
• View your margin requirements in real time at any moment of
the day
• Create real-time alerts based on margin to stay on top of a
potential margin deficit
• Use our What If function to see the impact of potential trades
Comprehensive Reporting
Easy to view &customize
Including
• Advisor Fee Cap Report
• Advisor and Broker Summary Report
Assign User Access Rights
Client Relationship Management (CRM)
Allows Advisors to easily store and view information about their clients,
IB’s Investors’ Marketplace
Unrivaled Global Access
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™.
IB Group Offices
Rated #1 by Barron’s 2015
Best Online Broker Again, Four Years in a Row!
• Best for Options Traders
• Best Trading Experience & Tech
• Best for International Traders
• Best for Frequent Traders
• Best Portfolio Analysis & Reports
• Lowest Margin Fees 1
• Low Cost for the 11th year in a row 2
• Best Overall
2015 WSL Institutional Trading Awards
[1] According to Barron's online broker review on March 9, 2015, "How Secure Is Your Securities Portfolio?". Lowest cost and margin fees of any broker in Barron's survey.
[2] Low Cost Rated by Barron's 11 Years Straight - Low cost broker 2005 through 2015 according to Barron's online broker review. 2005 - 5 Stars, 2006 - 5 Stars, 2007 - 4.8 Stars, 2008 - 4.5 Stars,
2009 - 4.5 Stars, 2010 - 4.2 stars, 2011 - 4.5 stars, 2012 - 4.3 stars, 2013 - 4.5 stars, 2014 - 4.5 stars, 2015 - 4.5 stars. Interactive Brokers earned a 4.5 star ranking in the March 9, 2015 Barron's Annual Best Online
Winner 2015 "Best cross-asset trading solution"
2015 Winner
Our Mission
“Create technology to provide liquidity on better terms.
Disclosures
Options involve risk and are not suitable for all investors. For more information read the “Characteristics and Risks of Standardized Options”. For a copy visit interactivebrokers.com/disclosures or call 312-542-6901.
Futures are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading futures, please read the CFTC Risk Disclosure. For a copy visit interactivebrokers.com.
Security futures involve a high degree of risk and are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading security futures, please read the Security Futures Risk Disclosure Statement. For a copy visit Interactivebrokers.com. There is a substantial risk of loss in foreign exchange trading. The settlement date of foreign exchange trades can vary due to time zone
differences and bank holidays. When trading across foreign exchange markets, this may necessitate borrowing funds to settle foreign exchange trades. The interest rate on borrowed funds must be considered when computing the cost of trades across multiple markets.
The Order types available through Interactive Brokers LLC’s Trader Workstation are designed to help you limit your loss and/or lock in a profit. Market conditions and other factors may affect execution. In general, orders guarantee a fill or guarantee a price, but not both. In extreme market conditions, an order may either be executed at a different price than anticipated or may not be filled in the marketplace.
There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results.
Any stock, options or futures symbols displayed are for illustrative purposes only and are not intended to portray recommendations.
1Source: The Transaction Auditing Group (TAG). Industry as a whole for the referenced periods according to TAG. For additional information, see
http://www.interactivebrokers.com/bestexecution.
2Plus an additional fee based on exchange, regulatory, transaction and carry fees where applicable. In the case that an exchange provides a rebate we pass some or all of the
savings directly back to you. For additional information see http://www.interactivebrokers.com/commissions.
3For additional information, see http://www.interactivebrokers.com/interest.
Interactive Brokers LLC is a member of NYSE FINRA SIPC
