The material posted does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before making any investment or trade, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice. Interactive Brokers offers a solution for Introducing Brokers (IBs) to use their own banners for white branding purposes. White branding allows IBs to display their own logos and company information on our Registration system, Client Portal, Reports, Trader Workstation and other materials. White branding is a great marketing tool that can give your customers the impression that you are offering a complete package of in-house trading tools and supporting products.

Plus, it continues to expand its business with the introduction of retirement accounts last year, and innovations like 24-hour trading for certain stocks. After going public in mid-2021 at $38 a share, Robinhood stock quickly rocketed to an all-time high of $85. Investors were impressed by the company’s ability to attract new users, even though some of those users were simply signing up to participate in the meme stock craze going on at the time.

Open an Introducing Broker Account

Link investment, banking, checking, incentive plan and credit card accounts into a complete portfolio view to calculate returns, understand risks and measure performance against benchmarks. Fully Disclosed Brokers provide their clients with customer service and marketing. Broker clients can electronically trade or the broker may input trades for the client. Set up enhanced user access and account security by creating one or more Security Officers for the master account and designate up to 250 users by function or account. Interactive’s clients primarily invest in stocks, futures contracts, and options. Stock volume fell 16% year over year during Q1, mainly because the S&P 500 climbed steadily with minimal volatility, so investors weren’t frequently buying and selling.

Options volume, however, jumped 24% year over year, which is a sign investors were actively seeking out riskier bets. That was good news for Interactive, because it makes more money per transaction from options compared to stocks. The S&P 500 index plunged into a bear market near the start of 2022 that bottomed out in late October. The current bull market started then, but final confirmation that bull market was actually underway didn’t come until new all-time highs were hit in late 2023. The bull continues to march higher in 2024, setting multiple record highs along the way. That volatility can be unsettling for some investors, but it’s what the brokerage firms that serve those investors thrive on.

Free Tools

At the end of the first quarter of 2024, Interactive had 2.75 million customers on board, which was a record high and a 25% increase from the year-ago period. On the plus side, Robinhood’s active user base is growing again after bottoming out at 10.3 million in Q3 of 2023. The company also said its assets under custody soared 65% year over year in Q to $130 billion.

Today’s FCMs provide trading platforms on which clients can place trades online and take responsibility for account management. However, it would not be financially feasible for an FCM to open storefronts across the country to serve their customers. The risk of loss in online trading of stocks, options, futures, currencies, foreign equities, and fixed income can be substantial. For more information, read the “Characteristics and Risks of Standardized Options”.

Sophisticated Risk Management

To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice. This course will review the Broker Portal, which is our free and powerful client relationship management (CRM) platform for Introducing Brokers (IBs).

We offer many client account structures that are designed to meet the specific needs of individual traders and investors, including Individual, Joint, IRA and UGMA/UTMA accounts. The Shortable Instruments (SLB) Search tool is a fully electronic, self-service utility that lets clients search for availability of shortable securities. Shortable availability and borrow fees are broadcast in real-time on Trader Workstation (TWS), IBKR Desktop, the Client Portal, FTP files and API data feeds. IBKR has no mark-ups or built-in spreads and offers low and fully transparent commissions on bonds. Access a vast universe of more than 1 million bonds and trade US Treasuries around the clock five days per week. Securities or other financial instruments mentioned in the material posted are not suitable for all investors.

Broker Commission Markups

SIMPLE IRA accounts are available for individual US citizens living anywhere and US resident aliens. The Employee Plan Administrator account lets self-employed individual and companies of less than 100 employees offer employees a Savings Investment Match Plan for Employees Individual Retirement Account (SIMPLE IRA). Your first three reclassifications are processed on a daily basis while subsequent reclassifications happen on a quarterly basis.

Outsourcing the prospecting and servicing of clients to the IBs creates economies of scale for FCMs and the futures industry. Introducing brokers play the same role in the futures markets as stock brokers do in the equities markets. Stock brokers are registered with the Securities and Exchange Commission (SEC) and are regulated by the Financial Industry Regulatory Authority (FINRA). Futures introducing brokers are registered with the Commodity Futures Trading Commission (CFTC) and regulated by the National Futures Association (NFA). First, Interactive earns interest on its cash and the cash it holds on behalf of clients, and second, it earns interest on the $51.2 billion in outstanding margin loans to clients, which they use to buy stocks and other securities.

Before trading security futures, read the Security Futures Risk Disclosure Statement. Structured products and fixed income products such as bonds are complex products that are more risky and are not suitable for all investors. Invest globally in stocks, options, futures, currencies, bonds and funds from a single unified platform. Fund your account in multiple currencies and trade assets denominated in multiple currencies. Invest globally in stocks, options, futures, currencies, bonds and funds from a
single unified platform.

• Identify and invest in lower cost ETFs with similar strategies to higher-fee mutual funds.
• Stock volume fell 16% year over year during Q1, mainly because the S&P 500 climbed steadily with minimal volatility, so investors weren’t frequently buying and selling.
• The company generated $1.2 billion in total revenue during Q1, which was an increase of 13.9% from the year-ago period.
• Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Prime Broker services to help you efficiently manage your business and serve clients. ESG scores from Refinitiv give you and your clients a new set of tools for making investment decisions based on more than just financial factors. When placing your money with What is Buying And Selling Software Program a broker, you need to make sure your broker is secure and can endure through good and bad times. Our strong capital position, conservative balance sheet and automated risk controls are designed to protect IBKR and our clients from large trading losses.

Anyone determined to participate directly should have a good understanding of the ins and outs of futures trading before jumping into it. There are also futures markets for stocks, indexes, and currencies, among others. The futures market is the exchange in which traders buy and sell derivative financial contracts. These are agreements to buy or sell a specific commodity or financial instrument at a specific price and date. The price is locked in, and the buyer will gain or lose depending on the market price when the contract reaches maturity.

Introducing Brokers (IBs) on the Interactive Brokers platform can markdown or markup interest rates and borrow fee rates. This lesson reviews the ability for IBs to configure these markups/markdowns at Interactive Brokers. Futures have long had a role in the markets for major physical commodities such as crude oil, gold, and wheat. Producers and buyers in volatile industries obtain reasonable prices in advance. Traders may be seeking a hedge against possible losses or making a speculative bet on the direction of commodity prices. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.