Institutions who want to trade through IB but are prohibited from depositing margin collateral directly with a broker/dealer can open an IB Custody Account to trade stocks and options (futures are prohibited per regulations and would require a separately funded account).
The Custody Account constitutes a tri-party agreement between IB, the custodial bank holding the customer's assets, and the IB customer. Assets (long stock, retail and government money-market funds, and Treasuries only) that are held at a pledged account at the Custodial bank are reflected in the customers IB trading account and used to margin trades.
IB Custody Accounts provide the following benefits:
- Trade multiple products on over 100 market centers in 25 countries from a single account.
- Superior trading technology that offers multiple trading platforms, including a FIX interface and customizable API;
- Low cost in the form of margin rates and commissions, especially compared with big bank fees.
- Access to a variety of TWS advanced trading tools and more than 60 order types and algos to accommodate the needs of all traders and all strategies. Click here to learn more about our advanced trading tools.
- IB SmartRouting searches for the best firm stock, option, and combination prices available at the time of your order, and seeks to immediately execute your order electronically.