The Recurring Investment feature at Interactive Brokers (IBKR) allows for scheduled, automatic investments in the stock market. Here's a comprehensive overview of how it operates:
- Order Creation and Execution:
- Orders are created if sufficient Free Cash is available during the pre-market credit check.
- Shares are purchased in the open market using combined funds from all program participants.
- Executions use Volume-Weighted Average Price (VWAP) orders submitted at market open on scheduled dates and executions are reported back to accounts after the VWAP order is completed.
- Pricing and Fairness:
- All customers with recurring investments in the same security on the same date receive the same average price.
- This ensures fairness among all participants in the program.
- Scheduling and Market Closures:
- If markets are closed on a scheduled investment date, orders are placed on the next trading day.
- This ensures that investments continue even when there are market holidays or unexpected closures.
- Partial Fills and No Fills:
- In case of partial fills, clients receive shares valued less than the requested amount.
- For partial fills, the next scheduled purchase date is adjusted.
- If no fills occur, the order is placed on the next trading day without changing the next scheduled date.
- Flexibility and Adjustments:
- The system is designed to adapt to various market conditions and partial executions, ensuring that your investment strategy continues with minimal disruption.
Additional Information
- The Recurring Investment feature, including specific examples and additional functionalities, can be reviewed in the IBKR Knowledge Base article.