Interactive Brokers for CTAs?

Discussion in 'Professional Trading' started by heech, Jun 18, 2012.

  1. heech


    Has anyone figured out how to use IB as an execution broker, for those of you as a CTA? I'm being told IB won't give up trades to any other account, unless the other account is also in your name... that means, to the best of my understanding, you really can't use IB to execute away for managed account clients.

    Am I right about that?
  2. Stok


    Hrmm...I thought they did.

    Call the Prime broker/Institution number - 888.694.2757 and ask. This is not the yahoo retail number.
  3. heech


    I've been talking to their professional guy in Chicago, and I'd think he would know... And that's what he seems to be telling me. Just wondering if anyone knows otherwise.
  4. Stok


    I don't.
  5. When I was looked in to this (a few years ago) they told me they would do it. However, I had to press them to get that information, and they imposed a minimum commission hurdle per month (I think it was $900).

    In today's regulatory environment it would not surprise me that they would now require give-ups to be in the same name.
  6. Epic


    I reading this to mean that you either have a relationship with other intro brokers or want to allow clients to select their own FCM, simply using IB TWS as the executing platform.

    Is this correct?

    From what I understand, IB will do this but they will be a big pain in the @$$ about it. Actually, there are multiple things about IB that are hard for CTAs.

    1- The way they assign partial fills to multiple accounts is awful, and will likely end up in them losing my business.

    2- Account setup is a bit more burdensome than it should be. Heaven forbid a client already be approved to trade equities or options. That messes up the entire application process for the CTA and they have to start over completely. :mad:

    3- The single FCM requirement (no give-ups) is not enough to push me away, but at this point is pretty much the last straw.
  7. So is it the case that they absolutely won't do give-ups anymore?
  8. heech


    Yes, I'm referring to clients choosing to place accounts at other FCMs, executing at
    IB. They seem to make it impossible, and I guess that's now confirmed. It's weird since the other 95% of the futures industry is happy with this model.
  9. Thanks. Good to know.
  10. My IB contact in Chicago told me IB would do Give-Up agreements for accounts over $1mm.

    For accounts over $1mm, we can find better servicing / execution than IB!!!

    Thing is, I have prospective clients who have accounts (under $1mm) @ IB.

    But IB's execution for futures is dogshit. I only trust T4 and X-Trader.....

    Oh well...
    #10     Jun 20, 2012