I stumbled onto this page about IB services for hedge funds. https://www.interactivebrokers.com/hmf/en/main.php What is the difference between the commission fees and services offered between retail investors and hedge funds? Do hedge funds enjoy much cheaper commission fees than retail investors?
Thanks. Sounds good for me as a retail investor. I wonder why would hedge funds want to use Interactive Brokers as their broker instead of big names like Goldman Sachs, Morgan Stanley, given that these hedge funds are treated like cheap small fry retail investors like me. Why not get royal treatment from the big names instead? LOL. Anyway, I'm not complaining as a retail investor. My loyalty for IB has deepened since it does not discriminate against me despite my small size.
Goldman Sachs, UBS etc provide a different level of support and product mix. There are also a better custodian for $500mm+. Your needs are met with a platfrom and rates, a hedge fund cares about more.
Hey Robert, Why doesn't Lime make their schedule of fees public like IB? Do they have to be negotiated behind closed doors?
Based on my personal experience as a consumer, when prices are not made public and kept like secrets, they are usually expensive. If price is a selling point, they will be publicised and displayed loudly. Based on this observation, I'm sure the big names charge much more than IB.
At Lightspeed we do, but for institutional accounts I have room to negotiate. https://www.lightspeed.com/pricing/commission/ Lime only offer services to broker dealer and institutional type clients. That business is not the same for each client as they offer ultra-low latency DMA in a hosted environment and no set up is the same. It can't be placed on a schedule for all as it is not the same for all. I can offer both Lightspeed and Lime products.