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Hedge Fund

Interactive Brokers provides cost-sensitive hedge funds with trading, clearing, custody, reporting and other services.

Hedge Funds

Interactive Brokers provides cost-sensitive hedge funds with trading, clearing, custody, reporting and other services.

preqin 2024 award

Preqin Ranked IBKR a Top Prime Broker

  • #1 Prime Broker for Hedge Funds with AUM < $50 million
  • #5 Prime Broker Overall
Securities Financing Securities Financing Lower Costs Lower Costs Global Markets Global Markets High-Touch Prime Brokerage Service High-Touch Prime Brokerage Service Prime Brokerage Services Prime Brokerage Services IBKR OMS IBKR OMS Innovative Technology Innovative Technology Advisor Services: Reporting and Analytics Reporting & Analytics Capital Introduction Capital Introduction Integration with Fund Administrators Integration with Fund Administrators Soft Dollar Commission Program Soft Dollar Commission Program Advisor Services: A Broker You Can Trust Strength & Security Account Structure Account Structure Advisor Services: Open Account Open Account

Contact our institutional sales team to learn more.

Sales Contacts

The IBKR Advantage

  • Preqin's #1 prime broker for Hedge Funds with AUM up to $50 million and one of the fastest growing prime brokers for the fourth consecutive year among all Hedge Funds.1
  • Interactive Brokers Group (IBG LLC) equity capital is $16.1 billion, over $11.7 billion in excess of regulatory capital.2
  • Low margin rates, with rates as low as 5.08%*
  • Depth and breadth of short securities availability, transparent loan rates, global reach, dedicated support and automated tools to simplify the financing process.
  • No custody fees or AUM minimums and transparent, low commissions and financing rates, support for best price execution, and a stock yield enhancement program to help minimize costs to maximize returns.4
  • Invest globally in stocks, options, futures, currencies, bonds and funds from a single unified platform.
  • IBKR BestXTM is a powerful suite of advanced trading technologies designed to help clients achieve best execution and maximize price improvement while minimizing market impact.
  • 90+ order types – from limit orders to complex algorithmic trading – help you execute any trading strategy.
  • Build customized trading tools, access news, charting and market data, and manage client accounts with our API solutions.
  • Our Hedge Fund Marketplace allows Hedge Funds who use IBKR as their principal Prime Broker to market their Funds to IBKR clients who are Accredited Investors and Qualified Purchasers.
  • Integrated OMS / EMS setup offers a one-stop solution for funds looking to reduce costs and improve productivity.

Securities Financing

IBKR combines deep stock availability, transparent stock loan rates, global reach, dedicated support and automated tools to simplify the financing process and allow you to focus on executing your strategies.

Securities Financing

Professional Pricing – Maximize Your Returns

IBKR offers the lowest1 cost and access to stocks, options, futures, currencies , bonds and funds from a single unified platform. If an exchange provides a rebate, we pass some or all of the savings directly back to you.

Learn About Commissions

Margin rates up to 51% lower than the industry.2

Compare Margin Rates

Earn interest rates of up to USD 4.08% on instantly available cash.3

Compare Interest Rates

Earn extra income on your lendable shares.

See Stock Yield Enhancement
  1. Lowest Cost Broker according to StockBrokers.com Online Broker Survey 2023: Read the full article Online Broker Reviews, May 18, 2023. "Because Interactive Brokers' core clientele are professional traders and institutional investors (e.g., hedge funds), it is crucial to provide the lowest commissions schedule available. In our rigorous assessment, there is no question Interactive Brokers delivers."
  2. For complete information, see our margin rate comparison
  3. Restrictions apply. See additional information on interest rates. Credit interest rate as of November 11, 2024.

Discover a World of Opportunities


Invest globally in stocks, options, futures, currencies, bonds and funds from a single unified platform. Fund your account in multiple currencies and trade assets denominated in multiple currencies. Access market data 24 hours a day and six days a week.

150

Markets

34

Countries

28

Currencies*


Global Markets

*Available currencies vary by Interactive Brokers affiliate.

Graphic is for illustrative purposes only and should not be relied upon for investment decisions.

Map Locations
Local Time: Open Closed

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High-Touch Prime Brokerage Service

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, which includes:

  • A dedicated Relationship Manager who acts as your primary point of contact.
  • Access to Subject Matter Experts in Risk/Margin, Compliance, Securities Finance, Corporate Actions, Proxy, Clearing, Transfers and Tax.
  • Prioritization of requests and expedited review/processing of exceptions.
  • 24/5 access to our Global Outsourced Trading Desk for execution of orders in North America, Europe and Asia by experienced traders.

Prime Brokerage Services

For 47 years, Interactive Brokers has served our clients by creating and delivering advanced trading technology. Our uniquely automated approach to managing brokerage services builds on our firm's principles:

  • Provide around-the-clock global service coverage for Prime Brokerage clients.
  • Maintain a strong capital position and conservative balance sheet.
  • Operate a low-risk business model.
  • Customer fund protection
  • Use automated risk controls to help protect the firm and our clients from large trading losses.

Our continuing dedication to these principles results in Prime Brokerage Services that deliver real advantages to institutions:

  • Custody
  • Execution and Clearing
  • Securities financing
  • Margin financing
  • Take up trades from other brokers
  • Corporate Actions
  • Client service
  • Outsourced Trading
Learn About Prime Brokerage Services

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.

IBKR OMS: Your Complete One-Stop Solution

OMS computer screen OMS computer screen

Our IBKR OMS software integrates with our award-winning EMS, the IBKR Trader Workstation (TWS).


This one-stop solution is perfect for institutions looking to reduce costs and improve productivity with a fully integrated OMS/EMS setup. Order management, trading, research and risk management, operations, reporting, compliance tools, clearing and execution – all are available as part of our complete platform. The IBKR OMS offers a robust and customizable order management platform that you can use within your current multi-broker setup. Route orders to your existing execution providers, and allocate pre- or post-trade to multiple custodians using the IBKR OMS platform. With over 40 years of industry experience, we can easily configure our robust technology to fit the complex needs of your business.


Learn About IBKR OMS



Trading Technology to Help Hedge Funds Succeed

Trading Platforms

Powerful, award-winning trading platforms and tools for managing client assets. Available on desktop, mobile, web and API.

Order Types and Algos

90+ order types – from limit orders to complex algorithmic trading – help you execute any trading strategy.

API Solutions

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

Sophisticated Risk Management

Understand risk vs. returns with real-time market risk management and monitoring that provides a comprehensive measure of risk exposure across multiple asset classes around the world.

Fractional Trading

Buy or sell any eligible US or European stocks/ETFs using fractional shares, which are stock units that amount to less than one full share, or by placing an order for a specific purchase price rather than quantity of shares.

Advanced Trading Tools

Spot market opportunities, analyze results, manage your account and make informed decisions with our free advanced trading tools.

Free Account Tools

Manage taxes and corporate actions, learn about T+0 settlement and trade allocations, and read about additional tools and services available to clients.

Reporting & Analytics

Powerful Reporting Solutions

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

Section 13 Reporting

Receive alerts and/or reports when your positions meet thresholds for Form 13F and Schedules 13D/13G.

Capital Introduction

Tailored Capital Introduction

Interactive Brokers provides a traditional capital introduction program through an arrangement with Layton Road Group. The service includes a review of the fund’s marketing material, introductions to institutional investors through reverse solicitation and feedback from prospective investors.

Please contact your Sales Representative or Client Services for more information.
Online Capital Introduction in the Hedge Fund Marketplace

An online version of a traditional Capital Introduction program designed to allow hedge funds which use IBKR as their principal prime broker to market their funds to IBKR clients who are Accredited Investors and Qualified Purchasers.

This program is provided free of charge to all hedge funds who use IBKR 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 IBKR 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.

Learn About the Hedge Fund Marketplace

Integration with Fund Administrators

IBKR seamlessly integrates with many fund administrators by utilizing automated feeds.

Providers include SS&C, NAV Consulting, Opus, MUFG, HedgeServ and others.

Soft Dollar Commission Program

Interactive Brokers' Soft Dollar Commission Program gives hedge funds and Professional Advisors the flexibility to offset the costs of purchasing approved research products and services using soft dollars.

As defined under the Securities Exchange Act of 1934 section 28(e), a portion of commission dollars can be set aside to pay research-related costs incurred by advisors and fund managers. Eligible IBKR clients can specify amounts that can be added to IBKR’s commissions and set aside as a pool of available money (“Soft Dollars”), which can be used to pay for market data and research.

IBKR clients can then pay allowed expenses for market data and research subscriptions to external vendors. Allowed categories of expenses include fundamental, technical and/or quantitative analysis; portfolio management, valuation and asset allocation services; and economic forecasting.

Learn About Soft Dollars

A Broker You Can Trust

When placing your money with a broker, you need to make sure your broker is secure and can endure through good and bad times. Our strong capital position, conservative balance sheet and automated risk controls are designed to protect IBKR and our clients from large trading losses.

IBKR

Nasdaq Listed

$16.1B

Equity Capital*

74.2%

Privately Held*

$11.7B

Excess Regulatory Capital*

3.12M

Client Accounts*

2.70M

Daily Avg Revenue Trades*


IBKR Protection
Secure metal vault door

*Interactive Brokers Group and its affiliates. For additional information view our Investors Relations - Earnings Release section.

Hedge 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.

Multiple Fund Account PDF Guide

Open a Hedge Fund Account

Our Hedge Fund account types enable investment managers to set up different structures to meet their needs.

Interactive Brokers offers two different Fund account structures: Multiple Fund and Allocation Fund accounts.

Accounts are accepted from citizens or residents of all countries except citizens or residents of those countries or regions that are on the sanction list of the US Office of Foreign Asset Controls or similar lists, or other countries determined to be higher risk. See all available countries.

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.

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Hedge funds are highly speculative and investors may lose their entire investment.

  1. Supporting documentation for any claims and statistical information will be provided upon request.
  2. Interactive Brokers Group and its affiliates. For additional information view our Investors Relations - Earnings Release section.
  3. According to StockBrokers.com Interactive Brokers Review: Read the full article Online Broker Reviews, May 6, 2024. "Professionals can take advantage of industry-leading commissions, including the lowest margin rates across all balance tiers." View our margin rates for more information.
  4. Lower investment costs will increase your overall return on investment, but lower costs do not guarantee that your investment will be profitable.
  5. Lowest Cost Broker according to StockBrokers.com Online Broker Survey 2023: Read the full article Online Broker Reviews, May 18, 2023. "Because Interactive Brokers' core clientele are professional traders and institutional investors (e.g., hedge funds), it is crucial to provide the lowest commissions schedule available. In our rigorous assessment, there is no question Interactive Brokers delivers."
  6. Restrictions apply. See additional information on interest rates. Credit interest rate as of November 11, 2024.
  7. For complete information, see our margin rate comparison
  8. Available currencies vary by Interactive Brokers affiliate.
  9. Clients must meet minimum revenue targets; contact institutional sales for more information.
  10. Any discussion or mention of an ETF is not to be construed as a recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
  11. Interactive Brokers is not a party to agreements between the fund and Layton Road Group.