Hedge Fund Onboarding
Hedge Fund Welcome Center
IBKR offers trading, clearing, custody and reporting for cost-sensitive funds – with no long-term contract required.
This page provides information and resources to help you configure and customize your account, onboard and manage clients, configure CRM, fund accounts, subscribe to market data, run reports, trade and more.
Getting Started
Hedge Fund Portal is our free and powerful client relationship management (CRM) platform. Our web application serves as your one-stop destination to manage clients, check quotes and place trades, see account balances, P&L and key performance metrics, funding, reporting, and more. Portal is always available from the Login button on our website.
Account Structure
Hedge Fund Account Structure
When a client begins the Hedge Fund process, they are first directed to the Hedge Fund Advisor (HFA) or Fund Manager (FM) account. Once the HFA/FM is created, only then can they create the actual Hedge Fund (underneath the HFA/FM account). This process ensures that all parties involved are verified. It is important to understand the difference between the HFA/FM and the Hedge Fund itself. For example, if a large cash deposit was sent to the HFA/HM account, which is a separate entity from the Hedge Fund itself, it cannot be used for trading.
The investment manager can add separately managed client accounts. Each fund account can be owned by a separate legal entity and is credit-managed separately. Trades can be executed for multiple funds in an Allocation Account and trades can be assigned before the end of the day to specific cleared fund accounts.
The investment manager can create multiple tier accounts by adding Advisor, Proprietary Trading Group STL and Multiple Hedge Fund master accounts to their account structure. Each Advisor, Proprietary Trading Group STL and Multiple Hedge Fund master account holder can add client, sub and hedge fund accounts as required.
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Investment
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Master Account
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Client Account
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Client User
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- Hedge Fund Account
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Advisor
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Advisor User
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Proprietary Trading Group Separate Trading Limit (STL)
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Supervisory User
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Multiple Hedge Fund
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Investment Manager
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Configuring Your Account
User Access Rights
Once your account is approved and opened, your organization's security officer(s) can create and add users to an account and manage user access to account trading, reporting, funding, and settings, and configure client-specific access.
Client Relationship Management (CRM)
Client Relationship Management
Hedge Fund Portal includes several client relationship management features:
- Use the Account Queries tool to search for accounts or information on accounts, using a variety of criteria such as account type, status, margin type, beneficiary information, etc.
- View all client activities, including the complete order history from initiation to execution and its routing sequence, with Enhanced Client Activity Monitor (eCAM).
- The Shortable Instruments (SLB) Search tool is a fully electronic, self-service utility that lets clients search for availability of shortable securities from within Portal.
Client Applications
Client Account Applications
Once the master Hedge Fund Advisor (HFA) or Fund Manager (FM) account has been approved by compliance and opened, the Fund Manager can initiate applications for the sub-trading accounts, including Hedge Funds and Separately Managed client accounts (SMA). IBKR offers multiple options for adding or migrating Hedge Funds and SMA accounts to our platform, including a mass upload feature and support for customized client account applications using our application XML system.
- Mass Upload lets you upload multiple client accounts to our system using a single excel workbook.
- Hedge Fund Advisors (HFA) or Fund Managers (FM) can use our application XML system to integrate with their own versions of the IBKR account application.
- Send email invitations to prospects to open an account.
- Client Account Templates let you use information you have collected about your prospects in the invitation you send them to complete an application. If you want to assist your client with the account application, our Semi-Electronic application allows Hedge Fund Advisors (HFA) or Fund Managers (FM) to complete applications electronically on behalf of clients.
Account Funding
Client Account Funding
The Transfer & Pay menu in Hedge Fund Portal provides resources to let you transfer funds, transfer positions, check transaction status and history, submit withdrawals for both your Hedge Fund Advisor (HFA) or Fund Manager (FM) account and for your Hedge Fund or SMA accounts. The master Fund Manager account cannot hold any positions itself, and instead it is used to trade on behalf of the sub-accounts underneath it. In order to trade the deposited funds, the sub-Hedge fund itself should be funded directly.
Our website provides an overview of funding methods available to clients.
Soft Dollar Commission Program
IBKR’s Soft Dollar Commission Program gives Hedge Funds and Professional Advisors the flexibility to offset the costs of purchasing approved research products and services using soft dollars.
As defined under the Securities Exchange Act of 1934 section 28(e), a portion of commission dollars can be set aside to pay research-related costs incurred by advisors and fund managers. Eligible IBKR Clients can specify amounts that can be added to IBKR commissions and set aside as a pool of available money (Soft Dollars), which can be used to pay for market data and research.
IBKR Clients can then pay allowed expenses for market data and research subscriptions to external vendors. Allowed categories of expenses include fundamental, technical and/or quantitative analysis; portfolio management, valuation and asset allocation services; and economic forecasting.
Performance & Statements
Performance & Statements
The Performance & Statements menu in Hedge Fund Portal provides access to PortfolioAnalyst®, standard Statements, Flex Queries, Tax Documents, a suite of Prime Broker specific reports and more.
- Transaction Cost Analysis (TCA): TCA tracks the quality of your orders' transaction prices versus market conditions either at the time the orders were submitted or after the trade executes.
- Tax Optimizer: Tax Optimizer lets you change your tax lot-matching method to optimize your gains and losses.
Account Security
Account Security
We are committed to protecting accounts from fraudulent practices. Hedge Funds need to be authenticated with our Digital Security Card+.
iOS Tutorial:
Please note that Clients of Hedge Funds can download the iOS Mobile App, however, Hedge Funds do not have direct access to this tool.
Android Tutorial:
Please note that Clients of Hedge Funds can download the Android Mobile App, however, Hedge Funds do not have direct access to this tool.
Configuring Market Data
Market Data
Use the Settings menu in Hedge Fund Portal to manage your market data, research and news subscriptions. We provide real-time streaming market data for free or at the price we are charged by the exchange and offer access to dozens of free and premium market research and news providers.
Trade Your Account
Trader Workstation (TWS)
Our flagship desktop platform designed for active traders and investors who trade multiple products and require power and flexibility and incorporates a number of hedge fund specific features designed to streamline trading and position management, including Block Allocation, Model Portfolios and Rebalancing.
Trader Workstation (TWS)
Our flagship desktop platform designed for active traders and investors who trade multiple products and require power and flexibility and incorporates a number of hedge fund specific features designed to streamline trading and position management, including Block Allocation, Model Portfolios and Rebalancing.
TWS Layout/Customization Tutorial:
TWS Hedge Fund Setup Window Tutorial:
IBKR ATS
Customers can direct US stock orders to the IBKR ATS destination to add liquidity. Orders directed to IBKR ATS are automatically tagged as "not held" orders, and are posted in IBKR's order book where they are eligible to trade against incoming SmartRouted orders that are marketable against them.
A variety of order types are available for posting liquidity in IBKR ATS, including Pegged-to-Midpoint, Pegged-to-Best, Relative/Pegged-to-Primary, and Pegged-to-Market, as well as priced limit orders.
IBKR ATS for Hedge Funds:
IBKR Mobile
Easily trade and monitor your IBKR account on-the-go from your iOS or Android device (tablet or smartphone).
IBKR Mobile
Easily trade and monitor your IBKR account on-the-go from your iOS or Android device (tablet or smartphone).
IBKR Mobile for Hedge Funds:
IBKR APIs
From easy-to-use Excel API to IBKR’s industrial strength FIX API, IBKR offers APIs for every experience level.
IBKR APIs
From easy-to-use Excel API to IBKR’s industrial strength FIX API, IBKR offers APIs for every experience level.
Other Features
Account Window
A configurable window in TWS for monitoring every aspect of your account activity.
Monitor Positions
The Monitor panel on the TWS houses your watch lists and your Portfolio page so you can quickly access a real-time view of your positions, P&L, liquidity, margin requirements, etc.
Rebalance Portfolio
Use the TWS Rebalance window to rebalance your portfolio based on the target percentages you enter.
Paper Trading Account
Use the full range of trading facilities in a simulated environment using real market conditions.
PortfolioAnalyst
Use Portal to access PortfolioAnalyst, a comprehensive portfolio management tool that helps you quickly and easily consolidate clients’ financial information from any financial institution to gain a complete portfolio view, including assets held-away.
Pre-Trade Compliance
Use the Pre-Trade Compliance (PTC) tool to set trading restrictions and controls on the account or individual users with account access.
For information on other features, including Trade in Fractions, IBKR GlobalAnalyst, the Bonds Marketplace and Mutual Fund Marketplace, visit our Features in Focus webpage.
View All Features in FocusSupport Resources
Frequently Asked Questions
Looking for an answer? Browse our extensive inventory of frequently asked questions.
IBKR Campus
Learn about the tools, markets and technology available to you as a broker on the IBKR Platform. Stay on top of market events at Traders Insight, learn about programming at the Quant Blog, subscribe to our Podcast channel for interviews and audio articles covering the world of finance, or sign up for a complimentary webinar.
Global Product Offering
Invest globally in stocks, options, futures, currencies, bonds and funds from asingle unified platform.
Margin Trading
IBKR offers margin rates from USD 5.08%-6.08%, the lowest margin loan interest rates of any broker,according to the StockBrokers.com Online Broker Survey 2023 Read the full article.
Support for Institutions
Browse our support page for instructional videos, user guides, release notes and information on connecting with us.