Does Interactive Brokers support Notionally Funded account?

et2011et · Aug 2, 2013

Quote from Stok:

Yes they can. While I am not a CTA, I trade a LP with IB and have talked with them about this exact topic. They have a feature that will denote which account is notionally funded and which aren't. Since the CTA will basically see one omnibus account, the account value would reflect that. For example.

You have:

1. $100k notional funded account (trade it as $200k)
2. $200k regular account.

Your omnibus account will be $400k and all trades will be allocated 50/50 between the two accounts. Also, if IB does your fees it will charge based on nominal funding. For example:

You have a 2% management fee. The $100k account that is nominally funded at $200k will be charged $4000. All that is spelled out in the DD.
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Can any one confirm that IB does indeed support the above feature?

Thanks.

Chicago_CTA · Aug 2, 2013

Quote from nihao1234567890:

For example, if you are a CTA and I like you to trade my account-A.

I will deposit $100K cash into my account-A. But you, as a CTA, will trade it as if it was $200K account.

Assuming some one else also has an account-B. He deposits $200K cash into such account-B. You as a CTA also trade such account-B

You will trade both accounts identical (both have the account size of $200k).

Since my account-A only have $100K cash, but you will treat it as if it was notionally funded account with total nominal account size of $200K.

Does this make sense to you?

I just do not know if Interactive Brokers support this type of account either with Interactive Brokers or through give-up.
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nihao, you're still asking CTA questions?

IB has $1,000,000 for give-up agreements with other FCMs. Very few CTAs will use IB for ANYTHING. IB is for equities/bond traders/PMs.

The notional funding level is between THE INVESTOR AND THE CTA. The broker has little to do with it. And if a broker has little to do with it, IB has VERY little to do with it.

-Chi

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Does Interactive Brokers support Notionally Funded account?

et2011et

Chicago_CTA