Account Structure Comparison Grid

Account Structures for Traders and Investors


Individuals (Joint, IRA, Trust and UGMA/UTMA)

IndividualsOpen an Account JointOpen an Account TrustOpen an Account
Customer Description An individual. Two individuals. An individual.
Account Description A single account for an individual trader or investor. Up to 15 users can be added to the account. 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. 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 None None
Trading Access & Account Management Access to all functions. Both individuals have access to all functions. Individual (trustee) has access to all functions.
Margin Account is margined. Account is margined. Account is margined.
Pre-Trade Allocations None None None
IRAOpen an Account UGMA/UTMAOpen an Account
Customer Description An individual. An individual or entity who manages an account for a minor until that minor reaches a specific age.
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. 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 None
Trading Access & Account Management Individual has access to all functions. Individual has access to all functions.
Margin Account is margined. UGMA/UTMA accounts must be Cash accounts.
Pre-Trade Allocations None None


Friends and Family Groups

Friends and Family GroupsOpen an Account
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

Small BusinessesOpen an Account
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

Family OfficesOpen an Account
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

AdvisorsOpen an Account Money ManagersOpen an Account
Customer Description RIA or CTA. 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). Advisors can also add Hedge Funds as client accounts. Advisors 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. 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. % of equity, flat fee, % of P&L, fee per trade, and manual billing, set by Advisor acting as Wealth Manager.
Trading Access & Account Management Advisor(s) has access to some or all accounts or functions. Clients may be given access to their individual account. 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 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. Money Managers do not have access to funding.
Margin Each client account is individually margined. 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 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 DisclosedOpen an Account Non-DisclosedOpen an Account OmnibusOpen an Account
Customer Description Registered Broker or FCM that provides marketing and advice to clients. IB provides all other functions. Same as Fully Disclosed Broker with the exception that the client broker provides client record keeping and compliance functions. 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 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. Same as Fully Disclosed with the exception that we don't maintain any private customer identification or information. A single account. Broker maintains client record keeping information, compliance, and activity reporting functions.
Client Markups Fee per trade. Same as Fully Disclosed Broker. Not Available.
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. 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. Brokers can trade for their clients, but clients cannot trade for themselves. Brokers have access to some or all Account Management functions.
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. 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. All deposits are made to the Master account.
Margin Each client account is individually margined. Each client account is individually margined. All client trades are consolidated and margined together.
Pre-Trade Allocations Not Available. Not Available. 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. 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. Non-US brokers must be registered with the US Internal Revenue Service as a QI.
Market Data Reporting We handle all market data reporting. You must collect limited client data on our behalf for 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. Not Available. Not Available.


Proprietary Trading Groups

PoolOpen an Account Separate Trading LimitOpen an Account
Customer Description Proprietary trading accounts for corporations and trading organizations. Same as Pool. In addition, the group tracks the performance of traders or strategies individually.
Account Description A single account for multiple traders. 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 Applicable. Not Applicable.
Trading Access & Account Management Master Trader has access to some or all functions. 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 trading account. All deposits are made to the Master trading account, and then transferred to the sub account(s).
Margin Single account is margined. At trade initiation, each sub account is margined separately. For maintenance and liquidation purposes all accounts are consolidated.
Pre-Trade Allocations Not Available. Not Available.


Hedge & Mutual Funds

SingleOpen an Account MultipleOpen an Account AllocationOpen an Account
Customer Description A single fund managed by an investment manager. Multiple funds managed by an investment manager. 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 account. May not upgrade to a Multiple Funds Account. 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. 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. Soft Dollars for 5 tiers available. Soft Dollars for 5 tiers available.
Trading Access & Account Management Fund investment manager(s) has access to some or all functions. Fund investment manager(s) has access to some or all funds or functions. 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. The fund investment manager can deposit funds for individual fund accounts, and individual funds can deposit funds into their own accounts. There is no funding in an Allocation account.
Margin Single account is margined. Each fund account is individually margined. All fund trades are consolidated and margined together.
Pre-Trade Allocations Not Available. 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.
Not Available.


Compliance Officers

EmployeeTrackOpen an Account
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

AdministratorsOpen an Account
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.