Interactive Brokers launches High Touch Prime Brokerage

Rick Steves

“High Touch Prime Brokerage enables Interactive Brokers to compete with large prime brokers and removes a potential barrier for hedge funds who want to move to a low-cost platform but are accustomed to personalized service.”

Interactive Brokers has launched High Touch Prime Brokerage and Global Outsourced Trading to help eligible US hedge funds manage and grow their businesses.

These exclusive new services by the automated global electronic broker delivers IBKR’s automated and cost-effective platform but with personal resources and attention, allowing hedge funds to spend more time on implementing their investment strategy and with their clients.

IBKR’s prime brokerage solution for hedge funds includes trading, clearing, custody, reporting, and other features.

IBKR’s High Touch Prime Brokerage competes with large prime brokers

Milan Galik, Chief Executive Officer of Interactive Brokers, said: “Hedge funds select Interactive Brokers for our automated systems and advanced trading technology, which can help keep costs low. However, we recognize that many hedge funds appreciate having a single contact familiar with their trading objectives and business strategies. High Touch Prime Brokerage enables Interactive Brokers to compete with large prime brokers and removes a potential barrier for hedge funds who want to move to a low-cost platform but are accustomed to personalized service.”

Hedge fund clients of Interactive Brokers benefit from the following:

  • The opportunity to invest globally in stocks, options, futures, currencies, bonds and funds from a single unified platform
  • No custody fees or AUM minimums
  • Depth and breadth of short securities availability
  • Margin rates as low as 5.83%
  • The ability to earn up to USD 4.83% on instantly available cash balances over USD 10,000
  • Access to over 100 order types and algos plus advanced trading platforms like Trader Workstation and API solutions
  • The Hedge Fund Marketplace, which is an online version of a traditional Capital Introduction program

High Touch Prime Brokerage through Interactive Brokers offers access to a dedicated Relationship Manager who serves as a single point of contact for support and has a deep understanding of their client’s trading strategy and requirements.

The Relationship Manager will navigate the firm on behalf of the fund to address questions or concerns, resolve issues quickly, and facilitate special requests. Access to Subject Matter Experts at Interactive Brokers in the Risk, Compliance, Securities Lending, Corporate Actions, Tax, Clearing, Transfers and Proxy departments is also available through this program to provide operational expertise and help hedge funds manage their businesses efficiently.

Clients of the High Touch Prime Brokerage service also gain access to new IBKR Outsourced Trading desks located in Europe and Asia. Expanding high touch trading capabilities beyond North America enables portfolio managers to craft an execution strategy with, and give orders to, an experienced IBKR trader 24 hours per day. This service is available for domestic and international stocks, options, bonds and other instruments.

Interactive Brokers has a strong capital position, conservative balance sheet, and automated risk controls designed to protect the company and hedge fund clients. Preqin’s 2023 Service Providers Report ranks Interactive Brokers as the top prime broker for hedge funds with AUM up to USD 50 million and the fifth largest prime broker overall by number of hedge funds clients. According to Preqin, Interactive Brokers has been one of the fastest-growing prime brokers for the fourth consecutive year.

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