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You can elect to charge your clients for services rendered through one of our available billing methods. You specify advisor fees at the time of your client’s registration, but you can modify or add them at any time on the Configure Fees page in the Advisor Portal. All fee modifications must first be submitted electronically and will become effective only after the agreement has been received and processed by us. Please note that fee changes are not retroactive.
Client fee schedules can be applied to accounts individually or can be stored in templates. As an advisor, you can configure fees for one or more client accounts, or set up client fee schedules in templates, then assign the templates to client accounts. The use of templates allows you to easily maintain different fee schedules for multiple client accounts. If you are a new advisor (i.e., you just opened your IB account), then there will be a blank default client fee template, which you can then configure with your own fee schedule.
You set client fees in home CRM dashboard Fee Administration > Configure Client Fees page. On this page, you can:
Charge all commissions for a client account to the Advisor account by clicking the Charge Commissions to Advisor Account check box. Note that if the Advisor Master account balance is below $1000 when the commissions need to be posted, then the commission will be charged to the client account.
Automatic billing is calculated and automatically billed to the client’s account by IBKR. We offer a variety of methods that can be used, including Percentage of an account's value, Percentage of P&L, or a Flat Fee.
You can also:
If you choose to use No Fee, IBKR is not involved and you are responsible for billing your client(s) directly.
You can also charge minimum monthly fees and IRA account fees for their clients to your Advisor Master account. Click Manage Clients > Fees > Charge Fees to Master to select this option.
Setting Maximum Invoicing Amounts or Percentage Caps
When you configure client fees or create a client fee template, you can include a maximum invoicing amount or percentage cap on a monthly or quarterly basis. The percentage cap is the maximum percentage of the amount of a client account's Net Asset Value (NAV) to be invoiced. You can set an amount or a percentage cap or both. If you set both the amount and the percentage cap, we will use the lower of the two amounts as the amount to be charged.
For percentage cap, we look back on the prior period to calculate the fee limit, while amount looks at the current period.
Electronic Invoices and Fee Reimbursements
For electronic invoices, you calculate the markup and submit an invoice electronically to IB on the Advisor Invoicing page in Account Management, and that amount will automatically be transferred from the client account to your account. Invoices submitted prior to 5:30 (17:30) PM EST will be processed the same day (U.S. night) and appear on that day's statements. Invoices submitted after 5:30 (17:30) PM EST will be processed on the next business day. Submit invoices for up to ten clients per day, but only one invoice per client account per day.
For client accounts that have been configured for electronic invoices, you can reimburse fees to client accounts up to a maximum of 50% of invoices (net of any prior rebate) for the trailing 12-month period. Advisors can also modify or cancel pending fee reimbursements and view the details of fee reimbursements that have already been processed.
Click Manage Clients > Fees > Invoicing to configure client invoices and fee reimbursements.
For additional information about all our available billing methods, seetopic in the Account Management Users' Guide.
Charge Commissions and Client Fees to the Advisor
As an Advisor, you can elect to charge client commissions to your own Advisor master account when configuring fees for a client account. Commission charges will revert to the client account if the Advisor master account has a balance of less than 1000 USD or equivalent when the commission charges are posted.
By default, minimum monthly fees, IRA account fees and market data and research fees are charged to Advisor client accounts. However, Advisors can elect to charge these fees to their own Master account. Client fees will be charged to the client account if the Advisor master account has a balance of less than 1000 USD or equivalent when fees are posted.
Charge Fees on Client Investments in Hedge Funds
You can also charge fees on the current value of the amount that your clients have invested in hedge funds who participate in our Hedge Fund Capital Introduction Program (HFCIP), which is part of our Investors’ Marketplace. If you have already invested funds for your client at the Hedge Fund Investor Site (available at the Marketplace), the invested hedge fund will automatically be enabled for the fee program.
For each client who invests in a participating hedge fund, you can charge fees based on the Annualized Percentage of Net Liquidation Value of the current value of the client's investment in the Fund and/or the percentage of profit and loss of the client's investment in the Fund, as well as configure the fee posting frequency (monthly or quarterly). Your clients must approve the fee schedule by signing a form.
To set fees based on the value of your clients' Hedge Fund investments, click Manage Clients > Fees > HFCIP Fees.