Financing of Securities
Prime Broker Services
Soft Dollar Commission Program
Open An Account
In addition to the Stock Yield Enhancement Program, we offer a variety of securities financing tools:
- TWS includes stock loan and borrow tools out of the box, including the Yield Optimizer, which lets you compare securities
financing rates across the current SLB market, and OneChicago’s single stock futures market.
- Customers with Portfolio Margin accounts can join our Pre-Borrow Program, which allows pre-borrowing of shares to ensure settlement of very hard to borrow stocks.
Stock Yield Enhancement Program
- Increase investment returns by lending fully paid and/or excess margin stock.
- Optimize lending of your hard to borrow assets by earning a market-based loan rate.
- Trade your loaned stock with no restrictions. You can sell your shares at any time.
Transparent, Competitive Loan and Borrow Rates
- We disclose our short stock availability (aka “locates”) to ALL customers on a first come, first serve basis for every supported security on our trading platform, Trader Workstation (TWS).
- We disclose indicative rebate rate and fee rate information, which you can use as an indication of borrow costs.
- Each day, we provide our clients with detailed reports, outlining exactly what the financing costs are for each SLB-related
Depth of Availability
The combination of both internal supply and external relationships
allows us to offer our clients a vast array of securities to trade:
- Our large and diverse customer base lets us source internally approximately 60 to 70% of our short borrow needs.
- IB has securities lending/borrowing relationships with more than 60 counterparties, comprised of Agent Lenders, banks and
broker dealers in the U.S.
- Our team provides consistent high levels of protection against recalls and buy-ins on hard to borrow securities, creating
extended time horizons for even the most difficult short selling strategies.
- IB’s excellent credit rating makes us a preferred borrower with large agent lenders, prime brokers and other broker-dealers.
Generate Increased Profit
Minimize commissions, no minimums; no ticket charges; and no software, technology, platform, or reporting fees. Minimal financing rates, and increased loan values on portfolio margin accounts over $100K
Leading Price Execution
Most brokers trade against your orders or sell them to others to execute who will trade against them. The result in poor execution will probably cost you more than the commission you pay. IB SmartRoutingSM constantly searches and reroutes for the leading available prices for stocks, options and combinations.
Access market data 24 hours a day and six days a week to keep track of all global markets and remain connected.
Convert currencies at market controlled rates as low as 1/10 of a basis point, or create a position provided as collateral by a non-native currency.
Fund your account in numerous currencies. Trade assets designated in numerous currencies from a single account.
For 42 years, IBKR has brought state-of-the-art technology solutions to our clients. This special automated approach to prime brokerage builds on our basic principles:
- Around-the-clock global service coverage for Prime Brokerage customers.
- Strong balance sheet.
- Strength and security.
- Low-risk business model.
- Customer fund protection.
- Consistent performance.
Our lasting dedication to these principles results in Prime Brokerage Services that bring real advantages to establishments:
- Execution and clearing.
- Securities financing.
- Margin financing.
- Take up trades from other brokers.
- Corporate actions.
- Customer service.
IBKR OMS: Your finalyzed one-stop solution
Our recently redesigned IBKR OMS software unites with our award winning EMS, the IBKR Workstation (TWS).
This one-stop solution is perfect for establishments seeking to decrease costs and improve productivity with a fully integrated OMS/ EMS setup. Order management, research, trading and risk management, reporting, operations, clearing, compliance tools and execution – are all available as part of our finalyzed platform. The IBKR OMS provides a strong and customizable order management system that you can use within your current muti-broker setup. Route orders your existing execution suppliers, and grants pre- or post-trade to numerous custodians using the IBKR OMS platform. With over 40 years of industry experience, we can easily configure our strong technology to fit the complex requirements of your business.
We’ve been designing trading technology
that offers competitive pricing, size, speed, diversity of global products and advanced trading tools to our clients for 42 years.
Our trading platforms have been designed with the professional trader in mind:
- Optimize your trading speed and efficiency with our market maker-designed Trader Workstation (TWS).
- Trade your IBKR account on-the-go from just about any mobile device with mobileTWS.
- Use our HTML-based WebTrader, a clean and simple interface that works from behind a firewall.
Advanced Trading Tools
Our suite of Option Labs and advanced trading tools offer support to help you discover and implement optimal trading strategies. For example, our Probability Lab offers a practical way to think about options without the complicated mathematics, and the Option Strategy Lab lets you create simple and complex multi-leg option orders based on your own price and volatility forecast.
Order Types and Algos
Trader Workstation (TWS) supports over 60 order types, from the most basic limit order to advanced trading to the most complex algorithmic trading, to help you execute a wide variety of trading strategies.
API and FIX/CTCI Solutions
Our proprietary API and FIX CTCI solutions let institutions create their own automated rule-based trading system that takes advantage of our high-speed order routing and broad market depth.
Sophisticated Risk Management
Real-time market-risk management and real-time monitoring provide a comprehensive measure of risk exposure across multiple asset classes around the globe and real-time data that gives you the edge you need to react quickly to the markets.
From trade date to settlement date, our Securities Financing solutions provide depth of availability, transparent rates, global reach and automated lending and borrowing tools to professional traders.
Our statements and reports cover real-time confirmations, margin details, transaction cost analysis, sophisticated portfolio analysis, tax optimization and a variety of other supplemental reports.
Soft Dollar Commission Program
IBKRs Soft Dollar Commission Program provides Professional Advisors and hedge funds the flexibility to offset the costs and purchasing authorized research products and services using soft dollars.
As defined under the Securities Exchange Act of 1934 section 28(e), a chunk of commission dollars can be revoked to pay research-related fees incurred by advisors and fund managers. Entitled IBKR Customers can indicate amounts that can be added to IBKR commissions and revoked as a pool of available funds (Soft Dollars), which can be used to pay for research and market data.
IBKR Customers can then pay granted expenses for
research subscriptions and market data
to external vendors. Authorized categories of
expenses include fundamental, technical and/or
quantitative analysis; portfolio maintenance,
valuation and asset allocation services; and
Financial Strength and Stability
Our strong capital position automated risk controls and conservative balance sheet are designed to protect MEXEM and our clients from substantial trading losses.
MEXEM Group (IBG LLC) equity capital surpasses $8.1 billion, over $6.0 billion in excess of regulatory requirements 18.5% of IBG LLC is owned by our associates and employees.
Unlike other firms, where management owns a small share, we engage considerably in the downside just as much as in the upside which makes us run our business conservatively.