Interactive Brokers Prime Services

Discussion in 'Professional Trading' started by tonyf, Feb 8, 2019.

  1. do you guys have advisors accounts where the advisor makes a trade and it's reflected in the clients account? also a question what about a non-member advisor - advising a registered members accounts and or fund?
    #11     Jun 15, 2019
  2. Robert Morse

    Robert Morse Sponsor

    On RealTick we offer an RIA the ability to manage their client accounts and post-trade allocate based on a predetermined split.

    I'm not sure what your question is. I do not know what a "non-member advisor" is.
    #12     Jun 15, 2019
  3. can a non registered person manage a registered fund?
    #13     Jun 15, 2019
  4. Robert Morse

    Robert Morse Sponsor

    Small hedge funds might not need registration. That is not within my expertise. Most hedge funds have an LP and a management company (LLC) to collect fees. The management company is typically registered. This is not a question for the broker.

    I'm not sure what this has to do with Prime Brokerage or the rest of the thread.
    #14     Jun 15, 2019
  5. Turns out this doesn't work. Both IB and Lime charge the same for execution+clearing as they do for execution or clearing. You would basically pay double commission to trade this way.
    #15     Aug 2, 2019
  6. Robert Morse

    Robert Morse Sponsor

    Since I did not speak to anyone looking to execution-only, I know you did not call or email me.

    The reason to Prime at IB or any larger bank is for their banking rates and the size of the institution. If you are a $1b fund, you might not want to custody all your funds at a smaller clearing broker as it will limit your leverage.

    The reason to use another broker for execution is to get a service your prime broker does not offer not to save money. E.g. You can use our Lime Gateway and clear at another broker. You can use our support desk or choice of software and algo routes. There is our execution fee then the receiving broker charges DVP and CMTA fees, so it adds to that cost. Both Lime and Lightspeed offer execution-only business and we have customers that do this.

    Another common reason are those that focus on IPOs. They have to provide a certain amount of commission business to the larger banks to get the allocations. It is more cost-effective to trade away after you provide the commissions but execute other business through us, as those banks charge much higher fees.

    If you are looking for the lowest cost without concern to other "stuff," clear and trade at the same Broker.
    #16     Aug 3, 2019