Advisor Client Markups

Professional and Friends & Family Advisors may charge their clients for services rendered either through automatic billing, electronic invoice or direct billing. You determine the advisor markup at the time of the clients registration, and may modify these markups at any time within Account Management from the Funds Management/Client Fees section. In the case of fee increases, the client will be required to acknowledge the fee increase with a signature. In addition to the advisor client fees specified, IB will charge its normal commissions to the client.

An IB-calculated advisor fee is automatically billed to the client's account with blanket client authorization using any of the following in any combination:

A monthly or quarterly markup limit must be specified. Advisor calculates the markup and submits an electronic invoice on a monthly or quarterly basis, up to the specified limit. The invoice amount will be automatically transferred from the client account to the advisor account. Markups will be posted on or around the 10^th business day after the close of the month or quarter.

IB will not remove funds from the client's account. It is the advisor's responsibility to bill the client directly.

Automatic Billing and Electronic Invoices are subject to the following caps and limitations:

• If the client account Net Liquidation Value drops below USD 2,000 or USD equivalent, no client fees will be automatically billed.
• If an auto-liquidation occurs, no client fees will be automatically billed.
• IB caps the amount of advisor fees earned in any 360 day period to 25% of the client's average equity over this period, with additional cap limits at 30 day increments in between (i.e. 7.2% over the last 30 days, 17.7% over the last 180 days). When any fee cap is exceeded for a client, the advisor will not receive any client fees until the fee cap is no longer exceeded. IB will continue to charge its standard commissions when the fee cap limit is exceeded. Please be aware that advisors are solely responsible for ensuring that the fees they charge are reasonable and in accordance with regulatory requirements. The complete cap schedule is as follows:
  
  

  Period	Fee Cap %
  30 days	7.2%
  60 days	10.2%
  90 days	12.5%
  120 days	14.4%
  150 days	16.1%
  180 days	17.7%
  210 days	19.1%
  240 days	20.4%
  270 days	21.7%
  300 days	22.8%
  330 days	23.9%
  360 days	25.0%

  
  Client fee cap availability for the day will be reported under Account Management/Report Management. For complete details on how the fee cap is calculated, click here.
• A fee per trade may be charged for clients outside of the US (or US protectorates). In addition a fee per trade may be charged for futures trades of US clients if the advisor is registered with the NFA. This fee may not exceed 15 times IB's commissions, and no fee per trade will be applied if the client calls IB to close a trade.