IBKR Prime Brokerage Services for Institutional Clients

IBKR Prime Brokerage Services for Institutional Clients offers a range of benefits, including access to a vast network of counterparties, enabling clients to execute trades with a variety of market makers and liquidity providers.

This allows for deeper market penetration and more efficient trade execution.

With IBKR Prime, institutional clients can also take advantage of a comprehensive suite of trading tools, including real-time market data, advanced order types, and customizable trading platforms.

These tools help clients make informed trading decisions and stay ahead of the market.

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IBKR Prime Brokerage is a large institution used by hedge funds, family offices, and large traders to help execute and finance their trading or portfolio strategy.

It provides most of the services you need, like a primary care physician, but don't expect zero-commissions as the services they provide are laden with fees.

A prime brokerage is not an executing broker, but rather serves as a partner providing custodial, clearing, and financing services.

They typically partner with executing brokers or have them inhouse within the same umbrella of the institution as the trading division.

This means you'll get access to a wide range of services, but you'll still need to work with an executing broker for specific trades.

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At Interactive Brokers, prime brokerage services are designed to meet the unique needs of hedge funds, family offices, and managed accounts. They offer a comprehensive suite of services to help these clients succeed.

IBKR simplifies trade processing for prime brokerage clients by providing seamless clearing and settlement services, ensuring timely and accurate execution across diverse global markets and instruments.

Large, active hedge funds receive enhanced support, including a dedicated Relationship Manager who acts as their primary point of contact. This dedicated support is a game-changer for busy hedge fund managers who need to focus on their core business.

Here are some of the key benefits of IBKR's high-touch prime brokerage service:

IBKR Prime Brokerage offers a range of trading and execution services that cater to the needs of institutional clients. With IBExecution, you can execute trades with Interactive Brokers' superior price execution technology and then give up trades to a third-party broker.

IB SmartRouting helps support best execution by searching for the best available prices for stocks, options, and combinations across exchanges and dark pools. This feature is particularly useful for clients who need to execute trades quickly and efficiently.

IBClear is a comprehensive solution for institutional clients, providing a single platform for executing and clearing trades. With IBClear, you can directly access stocks, options, futures, currencies, bonds, funds, and more across 150 markets in 34 countries from a single unified platform.

Some of the key features of IB Execution services include real-time credit management, pre-trade and post-trade allocation of trades to third-party carrying brokers, and flexible notification reports through a real-time FIX or end-of-day file format. Additionally, IB Execution services allow you to give up to an unlimited number of stock, bonds (US corporate only), options, and futures clearing locations.

IBKR BestX is a powerful suite of advanced trading technologies designed to help clients achieve best execution and maximize price improvement while minimizing market impact. This suite includes features such as real-time risk management and monitoring, which provide a comprehensive measure of risk exposure.

Here are some of the key order types and algos available through IBKR Prime Brokerage:

IB Execution is a comprehensive solution for institutional clients that allows them to execute trades with Interactive Brokers' superior price execution technology and then give up trades to a third-party broker.

Interactive Brokers offers two main solutions for IB Execution: IBClear and IBPrime. IBClear is an all-in-one service that executes and clears trades on a single platform, eliminating inefficient reconciliations and trade breaks between brokers.

IBClear offers access to over 150 markets in 34 countries, allowing clients to fund their accounts and trade assets in 28 currencies. IB SmartRouting helps support best execution by searching for the best available prices for stocks, options, and combinations across exchanges and dark pools.

Pre-trade compliance, real-time market-risk management, and monitoring provide a comprehensive measure of risk exposure. The Trader Workstation (TWS) offers access to over 100 order types and algos and easily integrates with third-party Order Management Systems (OMS).

Customizable statement layouts and flexible viewing options let you design your statement to show the data you want to see, and then view online or print from a PDF. You can also export your statement data to a customized programming application or download it to Excel, Quicken, or other third-party applications.

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IB Risk Navigator is a real-time market risk management platform that unifies exposure across multiple asset classes around the globe. Single-click access to our real-time electronic short sale inventory is also available.

IBPrime, on the other hand, offers all the clearing benefits of IBClear plus the ability to take in flexible notification formats. This means Interactive Brokers will work with your technology group to accept files of all formats.

IBExecution services offer all the trade execution benefits of IBClear services, making it simple to give up trades to a third-party broker. This includes real-time credit management, pre-trade and post-trade allocation of trades, and flexible notification reports through a real-time FIX or end-of-day file format.

Here are some key features of IBExecution services:

Discount brokers, like Fidelity, charge a flat fee for trading, typically around $4.95 per trade. This is a significant cost savings for frequent traders.

Day trading brokers, on the other hand, often charge per share, with fees ranging from $0.01 to $0.03 per share. This can add up quickly for high-volume traders.

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Some discount brokers offer commission-free trading for certain types of accounts or for a limited number of trades per month. However, these promotions often come with strings attached.

Day trading brokers often have lower minimum account requirements and more flexible trading platforms, making them a better fit for active traders.

Order Types & Algos are a crucial part of trading, offering a wide range of options to suit any strategy.

You can execute 90+ different order types, from simple limit orders to complex algorithmic trading, giving you the flexibility to trade however you want.

This variety of order types allows you to tailor your trades to your specific needs and goals, whether you're a seasoned pro or just starting out.

Having access to so many order types can be overwhelming, but it's also incredibly empowering, giving you the freedom to trade with confidence.

Limit orders, for example, let you set a specific price to buy or sell a security, taking the emotion out of trading and helping you stick to your plan.

Algorithmic trading, on the other hand, uses complex math and computer programs to automatically execute trades based on pre-set rules, allowing you to trade in real-time with minimal manual intervention.

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Leverage is a key benefit of using a prime broker, as they can provide cash, margin, and stock loans for short selling.

Prime brokers can offer significant buying power to their clients, thanks to their custody of the client's assets. They can use these assets to provide leverage, allowing clients to make more trades than they would be able to otherwise.

Short sale locates, access to dark pools, and clearing are all part of the core business of prime brokers. This allows them to provide a range of services that can help clients maximize their trading potential.

The ideal prime brokerage client will make generous use of their available leverage while having plenty of margin available. This helps to avoid margin calls, force liquidation, or defaults.

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Interactive Brokers has added High Touch Prime Brokerage and Global Outsourced Trading to help select US hedge funds manage and grow their businesses.

Eligible hedge fund clients can now take advantage of high touch services that seamlessly deliver Interactive Brokers' automated platform with personal resources and attention.

This allows hedge funds to spend more time on implementing their investment strategy and with their clients.

Interactive Brokers' High Touch Prime Brokerage offers access to a dedicated Relationship Manager who serves as a single point of contact for support and has a deep understanding of their client's trading strategy and requirements.

The Relationship Manager will navigate the firm on behalf of the fund to address questions or concerns, resolve issues quickly, and facilitate special requests.

Access to Subject Matter Experts at Interactive Brokers in various departments is also available through this program to provide operational expertise and help hedge funds manage their businesses efficiently.

High Touch Prime Brokerage clients also gain access to new IBKR Outsourced Trading desks located in Europe and Asia, enabling portfolio managers to craft an execution strategy with an experienced IBKR trader 24 hours a day.

This service is available for domestic and international stocks, options, bonds, and other instruments.

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Interactive Brokers offers a range of benefits, including no custody fees or AUM minimums, margin rates as low as 5.83%, and the ability to earn up to 4.83% on instantly available cash balances over $10,000.

Interactive Brokers has a strong capital position, conservative balance sheet, and automated risk controls designed to protect the company and hedge fund clients.

ATS is a key component of trading and execution, allowing clients to add liquidity to the market.

Clients can direct U.S. stock orders to the IBKR ATS destination to add liquidity.

Orders directed to IBKR ATS are automatically tagged as "not held" orders, ensuring they're eligible to trade against incoming SmartRouted orders that are marketable against them.

These "not held" orders are posted in IBKR's order book, where they can be matched against other trades.

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