Hedge Fund

Hedge Funds

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 Prime Brokerage Services Prime Brokerage Services IBKR OMS IBKR OMS Innovative Technology Innovative Technology Advisor Services: Reporting and Analytics Reporting & Analytics Integration with Fund Administrators Integration with Fund Administrators 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 $10.9 billion in excess of regulatory capital.2
  • The lowest margin rates, with rates as low as USD 5.33%.3
  • 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.
  • 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 low trading fees1 and with IBKR’s Universal Account, clients can trade stocks, options, futures, currencies, bonds, and funds around the world from a single screen.** If an exchange provides a rebate, we pass some or all of the savings directly back to you.3

Learn About Commissions

The lowest margin rates, with rates as low as USD 5.33%.2

Compare Margin Rates

Earn interest rates of up to USD 4.33% on instantly available cash.3

Compare Interest Rates

Earn extra income on your lendable shares.

See Stock Yield Enhancement

** Regulations require securities and commodities activities to be conducted in separate accounts. Universal Account refers to the consolidation of these accounts for display purposes only, enabling clients the ability to use a single platform to conduct trading activity and view consolidated activity and position information for all products and services offered.

  1. Low trading fees according to BrokerChooser Online Broker Survey 2023: Read the full article Online Broker Reviews, May 2023. "Interactive Brokers has low trading fees and the best margin rates in the industry. IB currently pays interest (up to 4.33% for USD) on cash balances if you have a $100k account (net asset value)."
  2. Subject to any applicable legal or regulatory requirements.
  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. Restrictions apply. See additional information on interest rates. Credit interest rate as of September 20, 2024.

Discover a World of Opportunities


With IBKR’s Universal Account, clients can trade stocks, options, futures, currencies, bonds, and funds around the world from a single screen.** 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

mssage123

** Regulations require securities and commodities activities to be conducted in separate accounts. Universal Account refers to the consolidation of these accounts for display purposes only, enabling clients the ability to use a single platform to conduct trading activity and view consolidated activity and position information for all products and services offered.

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
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 dollar amount 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.

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.

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*

$10.9B

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 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.

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

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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Disclosures

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. Low trading fees according to BrokerChooser Online Broker Survey 2023: Read the full article Online Broker Reviews, May 2023. "Interactive Brokers has low trading fees and the best margin rates in the industry. IB currently pays interest (up to 4.33% for USD) on cash balances if you have a $100k account (net asset value)."
  6. ** Regulations require securities and commodities activities to be conducted in separate accounts. Universal Account refers to the consolidation of these accounts for display purposes only, enabling clients the ability to use a single platform to conduct trading activity and view consolidated activity and position information for all products and services offered.
  7. Subject to any applicable legal or regulatory requirements.
  8. Restrictions apply. See additional information on interest rates. Credit interest rate as of September 20, 2024.
  9. Available currencies vary by Interactive Brokers affiliate.
  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.

The risk of loss in online trading of stocks, options, futures, currencies, foreign equities, and fixed income can be substantial. Options are not suitable for all investors. For more information, read the "Characteristics and Risks of Standardized Options".

Your capital is at risk and your losses may exceed the value of your original investment.

Interactive Brokers (U.K.) Limited is authorised and regulated by the Financial Conduct Authority. FCA Reference Number 208159.

Cryptoassets are unregulated in the UK. Interactive Brokers (U.K) Limited ("IBUK") is registered with the Financial Conduct Authority as a cryptoassets firm under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

Interactive Brokers LLC is regulated by the US SEC and CFTC and is a member of the SIPC (www.sipc.org) compensation scheme;
products are only covered by the UK FSCS in limited circumstances.

Before trading, customers must read the relevant risk disclosure statements on our Warnings and Disclaimers page.

For a list of IBG memberships worldwide, see our exchange listings.