Account Structure Comparison Grid

Account Structures for Traders and Investors


Individuals, Joint, IRA, Trust and UGMA/UTMA

Individuals

Customer Description: An individual.

Account Description: A single account for an individual trader or investor. Up to 15 users can be added to the account.

Client Markups: None

Trading Access & Account Management: Access to all functions.

Margin: Account is margined.

Pre-Trade Allocations: None



Joint

Customer Description: Two individuals.

Account Description: An account owned by two individuals. Can be one of three types: Tenants with Rights of Survivorship, Tenancy in Common, or Community Property. Up to 15 users can be added to the account.

Client Markups: None

Trading Access & Account Management: Both individuals have access to all functions.

Margin: Account is margined.

Pre-Trade Allocations: None



Trust

Customer Description: An individual.

Account Description: An account in which the securities are registered in the name of the trust, while a trustee controls the management of the investments. Up to 15 users can be added to the account.

Client Markups: None

Trading Access & Account Management: Individual (trustee) has access to all functions.

Margin: Account is margined.

Pre-Trade Allocations: None



IRA

Customer Description: An individual.

Account Description: Individual Retirement Account, available for individual US citizens living anywhere in the world and US resident aliens only. Up to 15 users can be added to the account.

Client Markups: None

Trading Access & Account Management: Individual (trustee) has access to all functions.

Margin: Account is margined.

Pre-Trade Allocations: None



UGMA/UTMA

Customer Description: An individual or entity who manages an account for a minor until that minor reaches a specific age.

Account Description: A UGMA/UTMA account is established as an irrevocable gift or transfer of assets to a minor who is a U.S. resident. Assets in the account may only be used for the benefit of the minor. An adult custodian opens and manages the account until the minor reaches a specific age known as the age of termination, which varies from state to state. Up to 15 users can be added to the account.

Client Markups: None

Trading Access & Account Management: Individual has access to all functions.

Margin: UGMA/UTMA accounts must be Cash accounts.

Pre-Trade Allocations: None




Friends and Family Groups

Customer Description: An advisor who is exempt from registration (has 15 or fewer clients).

Account Description: An account used to manage 15 or fewer multiple accounts of varying types under a single login.

Client Markups: % of equity, flat fee, % of P&L, fee per trade, and manual billing.

Trading Access & Account Management: Friends and Family Advisor can access some or all accounts or functions. Client users can directly fund, view statements and trade.

Margin: Each client account is individually margined.

Pre-Trade Allocations: Friends and Family Advisor can pre-trade allocate cleared trades by account percentages, or as a standard group allocation (e.g. % of equity, % of positions, etc.).




Small Businesses

Customer Description: One or more individuals.

Account Description: A small business account for a corporation, partnership, Limited Liability Corporation or unincorporated legal structure.

Client Markups: None

Trading Access & Account Management: Account users have access to all functions.

Margin: Account is margined.

Pre-Trade Allocations: None




Family Offices

Customer Description: An individual.

Account Description: An account used to manage varying types under a single login.

Client Markups: Client markups are available if required: % of equity, flat fee, % of P&L, fee per trade, and manual billing.

Trading Access & Account Management: Family Office Manager can access some or all accounts or functions. Client users can directly fund, view statements and trade.

Margin: Each client account is individually margined.

Pre-Trade Allocations: Family Office Manager can pre-trade allocate cleared trades by account percentages, or as a standard group allocation (e.g. % of equity, % of positions, etc.).





Account Structures for Institutions

All of our institution account structures offer the following benefits:
  • The ability to clear trades at Interactive Brokers and take-up and give-up trades from/to third-party brokers all from the same Interactive Brokers Account.
  • Create multiple users each with different access rights to accounts and functions. Secure functions such as settlement instruction creation are safeguarded with A/B signatory approvals.
  • Multiple traders utilizing a single account can view all orders and executions entered into account.
  • Staged order functionality available for clients that wish to utilize third-party order management systems.
  • Post Trade Allocation give-up functionality to third-party brokers at no charge.

Advisors

Customer Description: RIA or CTA.

Account Description: Master Account for revenue collection and client trade allocations. 1 to N separately managed client accounts can be linked. Advisors can add Pension Plan Trust Accounts as client accounts. A Pension Plan Trust Account is a client account that holds assets for a qualified Pension Plan (as specified in Section 401(a) of the Internal Revenue Code).

Client Markups: % of equity, flat fee, % of P&L, fee per trade, and manual billing.

Trading Access & Account Management: Advisor(s) has access to some or all accounts or functions. Clients may be given access to their individual account.

Funding: Advisor clients may complete a deposit notification in Account Management if they have a username and password. If they don't, the advisor can also complete a deposit notification for the client.

Margin: Each client account is individually margined.

Pre-Trade Allocations: Advisor(s) can pre-trade allocate cleared trades by account percentages, or as a standard group allocation (e.g. % of equity, % of positions, etc.).




Money Managers

Customer Description: RIA or CTA.

Account Description: Account for client trade allocations. 1 to N Client Accounts can be linked. Money Managers are assigned by Advisors acting as Wealth Managers, and can trade for clients across multiple Advisors (Wealth Managers).

Client Markups: % of equity, flat fee, % of P&L, fee per trade, and manual billing, set by Advisor acting as Wealth Manager.

Trading Access & Account Management: Money Manager(s) have no access to client account functions other than trading. Advisor acting as Wealth Manager has same access to client account functions as described for Advisors.

Funding: Money Managers do not have access to funding.

Margin: Each client account is individually margined.

Pre-Trade Allocations: Money Manager(s) can pre-trade allocate cleared trades by account percentages, or as a standard group allocation (e.g. % of equity, % of positions, etc.).




Brokers & FCMs

Fully Disclosed

Customer Description: Registered Broker or FCM that provides marketing and advice to clients. IB provides all other functions.

Account Description: Master account, and Proprietary Account for Broker-Dealers for revenue collection (revenue owed to the broker is swept from Master to Proprietary account nightly). 1 to N client accounts can be linked. Fully disclosed brokers can add Advisor, Proprietary Trading Group STL and Multiple Hedge Fund master accounts to make the account structure a three-level account. Each second-level Advisor, Proprietary Trading Group STL and Multiple Hedge Fund master account holder can add client, sub and hedge fund accounts as required.

Client Markups: Fee per trade.

Trading Access & Account Management: Brokers can trade for their clients, and clients can trade for themselves. Brokers have access to some or all Account Management functions for the Master account and for client accounts. Clients have access to their individual account functions. Brokers can trade for themselves in their Proprietary Account for Broker-Dealers.

Funding: Clients deposit funds directly into their accounts. Brokers may also use Account Management to deposit funds to the Proprietary Account for Broker-Dealers. Fully Disclosed Brokers can also enter wire and check deposit notifications for their client accounts.

Margin: Each client account is individually margined.

Pre-Trade Allocations: Not Available.

Tax Reporting: Non-US brokers can be registered with the US Internal Revenue Service as a QI and report themselves, or we will handle all tax reporting requirements.

Market Data Reporting: We handle all market data reporting.

Three-Level Accounts: Fully disclosed brokers can add Advisor, Proprietary Trading Group STL and Multiple Hedge Fund master accounts to their broker account structure. These institution account holders can then add their own client, sub or fund accounts as required.



Non-Disclosed

Customer Description: Same as Fully Disclosed Broker with the exception that the client broker provides client record keeping and compliance functions.

Account Description: Same as Fully Disclosed with the exception that we don't maintain any private customer identification or information.

Client Markups: Same as Fully Disclosed Broker.

Trading Access & Account Management: Brokers can trade for their clients, and clients can trade for themselves. Brokers have access to some or all Account Management functions for the Master account and for client accounts. Client have limited access to Account Management functions, including some reporting and configuration functions. Brokers can trade for themselves in their Proprietary Account for Broker-Dealers.

Funding: All deposits are made to the Master account, and then transferred to the client accounts. Brokers may also use Account Management to deposit funds to the Proprietary Account for Broker-Dealers.

Margin: Each client account is individually margined.

Pre-Trade Allocations: Not Available.

Tax Reporting: Same as Fully Disclosed Brokers. If we do the reporting you must collect limited customer information on our behalf. Your client will not know our identity.

Market Data Reporting: You must collect limited client data on our behalf for market data reporting.

Three-Level Accounts: Not Available.



Omnibus

Customer Description: Same as Non-Disclosed Broker with the exception that the client broker maintains the individual client activity reporting function separately, or gives up to a third-party correspondent.

Account Description: A single account. Broker maintains client record keeping information, compliance, and activity reporting functions.

Client Markups: Not Available.

Trading Access & Account Management: Brokers can trade for their clients, but clients cannot trade for themselves. Brokers have access to some or all Account Management functions.

Funding: All deposits are made to the Master account.

Margin: All client trades are consolidated and margined together.

Pre-Trade Allocations: Not Available.

Tax Reporting: Non-US brokers must be registered with the US Internal Revenue Service as a QI.

Market Data Reporting: We handle all market data reporting.

Three-Level Accounts: Not Available.




Proprietary Trading Groups

Pool

Customer Description: Proprietary trading accounts for corporations and trading organizations.

Account Description: A single account for multiple traders.

Client Markups: Not Available.

Trading Access & Account Management: Master Trader has access to some or all functions.

Funding: All deposits are made to the trading account.

Margin: Single account is margined.

Pre-Trade Allocations: Not Available.



Separate Trading Limit

Customer Description: Same as Pool. In addition, the group tracks the performance of traders or strategies individually.

Account Description: Master account and 1 to 80 linked sub accounts. Each account has its own trading limits. Up to 500 users can be added to a Separate Trading Limit account structure.

Client Markups: Not Available.

Trading Access & Account Management: Master Trader(s) has access to some or all accounts or functions. Sub account traders have access to their individual account.

Funding: All deposits are made to the Master trading account, and then transferred to the sub account(s).

Margin: At trade initiation, each sub account is margined separately. For maintenance and liquidation purposes all accounts are consolidated.

Pre-Trade Allocations: Not Available.




Hedge & Mutual Funds

Single

Customer Description: A single fund managed by an investment manager.

Account Description: A single account. May not upgrade to a Multiple Funds Account.

Client Markups: Soft Dollars for 5 tiers available.

Trading Access & Account Management: Fund investment manager(s) has access to some or all functions.

Funding: Funds are deposited in the Master account and transferred between the Master and sub accounts to control individual trader limits.

Margin: Single account is margined.

Pre-Trade Allocations: Not Available.



Multiple

Customer Description: Multiple funds managed by an investment manager.

Account Description: Master Account for fund allocations. 1 to N Fund Accounts can be linked. The fund investment manager can add separately managed client accounts. An Omnibus Account can also be linked for executing trades during the day that will be assigned to specific fund accounts by the end of the day.

Client Markups: Soft Dollars for 5 tiers available.

Trading Access & Account Management: Fund investment manager(s) has access to some or all funds or functions.

Funding: The fund investment manager can deposit funds for individual fund accounts, and individual funds can deposit funds into their own accounts.

Margin: Each fund account is individually margined.

Pre-Trade Allocations: Investment manager(s) can pre-trade allocate cleared trades by account percentages, or as a standard group allocation (e.g. % of equity, % of positions, etc.). Give-up trades can be pre-trade allocated by fund percentages to one location per fund.



Allocation

Customer Description: Multiple co-mingled funds managed by an investment manager. Investment manager maintains individual fund activity function separately or gives up to a third-party prime broker.

Account Description: A single allocation account for trade executions that allows for end of day give-up of trades to accounts at third-party prime brokers.

Client Markups: Soft Dollars for 5 tiers available.

Trading Access & Account Management: Fund investment manager(s) has access to some or all functions.

Funding: There is no funding in an Allocation account.

Margin: All fund trades are consolidated and margined together.

Pre-Trade Allocations: Not Available.




Compliance Officers

EmployeeTrack

Customer Description: Broker monitored employee account.

Account Description: Multiple Linked employee accounts. Employees can link to more than one employer.

Client Markups: Not Applicable.

Trading Access & Account Management: Trading is completely controlled by the broker employee with Compliance access to trade activity.

Margin: Not Applicable.

Pre-Trade Allocations: Not Applicable.




Administrators

Customer Description: An organization that provides third-party administrative services to other institution accounts. The services offered by such an organization might include auditing, accounting and legal counsel.

Account Description: A single account linked to multiple Advisor, Single or Multiple Hedge Fund, and Proprietary Trading Group accounts for the purpose of providing reporting and other administrative functions to one or more client, fund or sub accounts.

Client Markups: Not Applicable.

Trading Access & Account Management: An Administrator cannot trade and has no access to IB trading platforms. An Administrator logs into Account Management once to perform reporting functions for the multiple client, fund and sub accounts to which he or she is assigned.

Margin: Not Applicable.

Pre-Trade Allocations: Not Applicable.