Individual, Joint, Trust, IRA and UGMA/UTMA Accounts

 IndividualsJointTrustIRAUGMA/UTMA
Client DescriptionA single account holder.Two account holders. Can be one of these types: Tenants with Rights of Survivorship, Tenancy in Common, Community Property, or Tenancy by the Entirety.A legally established entity in which assets are held by one party for the benefit of another party.Individual Retirement Account, available to individual US tax residents only.An individual or entity who manages an account for a minor until that minor reaches a specific age. Available to US residents only.
Account DescriptionAssets held in a single account owned by a single account holder.Assets held in a single account owned by two account holders.A single account controlled by a Trustee with Settlors and Grantors.Same as Individuals.Assets held in a single account managed by a single Custodian user.
Trading Access & Account ManagementAccount holder has access to all functions. Can add additional users with a Power of Attorney.Both account holders have access to all functions. Can add additional users with a Power of Attorney.One or more trustees have access to all functions.Same as Individuals.Individual (Custodian) has access to all functions.
MarginCash, Reg T and Portfolio Margin are available.Same as Individuals.Same as Individuals.Same as Individuals.Cash accounts only. Margin is not available.

Friends and Family Accounts

Client DescriptionAn advisor who is exempt from registration and has 15 or fewer clients.
Account DescriptionA master account linked to individual client accounts. The master account is used for fee collection and trade allocations. The advisor can open a single client account for his or her own trading.
Client Markups% of equity, flat fee, % of P&L, fee per trade, and manual billing.
Trading Access & Account ManagementThe advisor has access to trading and most Account Management functions. Clients do not have access to trading but have access to all Account Management functions.
MarginCash, Reg T and Portfolio Margin are available. Each client account is individually margined.

Family Office Accounts

Client DescriptionAn individual who is a Family Office Manager.
Account DescriptionMaster account linked to multiple client accounts.
Client Markups% of equity, flat fee, % of P&L, fee per trade, and manual billing.
Trading Access & Account ManagementFamily Office Manager can access some or all accounts or functions. Client users can trade and directly fund and view statements.
MarginCash, Reg T and Portfolio Margin are available. Each client account is individually margined.
Pre-Trade AllocationsFamily Office Manager can pre-trade allocate account %, % of equity, or % of positions.

Small Business Accounts

Client DescriptionA small business corporation, partnership, limited liability company or unincorporated legal structure.
Account DescriptionA single account which holds assets owned by the entity account holder.
Trading Access & Account ManagementUsers can be configured to have some or all trading and Account Management functions.
MarginCash, Reg T and Portfolio Margin are available.

Advisor Accounts

Client DescriptionAn Individual or Organization Registered Advisor that manages both client administration (Wealth Management) and the client's money (Money Management).
Account DescriptionA master account linked to individual or organization client accounts.The master account is used for fee collection and trade allocations. The advisor can open a single account for his or her own trading. The account can be white branded with the advisor's corporate identity.
Client Markups% of equity, flat fee, % of P&L, fee per trade, and manual billing.
Trading Access & Account ManagementThe advisor has access to trading and most Account Management functions. Organization Advisors can have multiple users, each with access to different functions and jurisdiction over different client accounts. By default, client do not have access to trading, but client trading can be enabled. Clients have access to all Account Management functions.
MarginCash, Reg T and Portfolio Margin are available. Each client account is individually margined.
Pre-Trade AllocationsAdvisor(s) can pre-trade allocate cleared trades by account %, % of equity, or % of positions.
Multiple TiersAdvisors have the ability to add an Advisor account with clients, a Multiple Hedge Fund account with fund or SMA accounts, or a Separate Trading Limit account (STL) under the master account.

Money Manager Accounts

Client DescriptionAn Individual or Organization Registered Advisor that is hired on behalf of another advisor (Wealth Manager) to manage some or all of their client's money.
Account DescriptionA new separate client account is opened for any client for whom a Money Manager manages money. Money Managers can manage money across multiple advisors (Wealth Managers) and their clients.
Client Markups% of equity, flat fee, % of P&L, fee per trade, and manual billing, set by the advisor (Wealth Manager).
Trading Access & Account ManagementThe Money Manager has access to trading only. Assets are moved to the Money Manager client account by the Advisor (Wealth Manager). Organization Money Managers can have multiple trading users, each with jurisdiction over different client accounts.
MarginThe Money Manage client account inherits the margin type from the client's Wealth Manager client account. The Wealth Manager and Money Manager client accounts are margined separately.
Pre-Trade AllocationsSame as Advisors
Multiple TiersNot available.

Proprietary Trading Group Accounts

 PoolSeparate Trading Limit
Client DescriptionA corporation, partnership, limited liability company or unincorporated legal structure.Same as Pool.
Account DescriptionSingle account which holds assets owned by the entity account holder.Multiple, linked accounts all in the name of a single entity. Assets in all accounts are owned by the entity account holder. Each account has its own trading limits and can have its own trading strategy.
Trading Access & Account ManagementOne or more users. Users can be configures to have some or all trading and Account Management functions.Master user(s) are designated and can be configured to have some or all trading and Account Management functions. Sub account users only access to their single account functions.
MarginCash, Reg T and Portfolio Margin are available.Cash, Reg T and Portfolio Margin are available. At trade initiation, each sub account is margined separately. For maintenance and liquidation purposes, all accounts are consolidated.

Compliance Officers

 EmployeeTrack
Client DescriptionAny organization that needs to monitor all or some of their employees' trading activity.
Account DescriptionA single account linked to multiple individual, joint, trust and IRA employee accounts for the purpose of monitoring their trading activity.
Trading Access & Account ManagementTrading is completely controlled by the broker employee with Compliance access to trade activity.
MarginNot applicable.

Administrators

Client DescriptionAny 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 DescriptionA 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.
Trading Access & Account ManagementAn 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.
MarginNot Applicable.

Trading Requirements

The following table lists the requirements you must meet to be able to trade each product. Be sure to read the notes at the bottom of the table, as they contain important additional information. Note the information below is not applicable for India accounts.

Important: To qualify as an a client, you must meet these requirements:

  • `To trade any product, you must have a Good or Extensive Knowledge Level for that product. In the case of Complex & Leveraged Products, you must have a Good or Extensive Knowledge Level for stocks and options and stocks, or take a test.
  • To trade options, futures or Cash Forex, you must have a minimum of two years trading experience with that product or take a test.
  • To trade Bonds, if you are Hong Kong applicant, you must have a minimum of five years trading experience with that product or take a test.
  • To trade Complex & Leveraged Products, you must have a minimum of two years trading experience with stocks and options, or with stocks or options and take a test. Note that UGMA and UTMA accounts are not eligible to trade this product type.
  • Your Net Worth cannot be less than your Liquid Net Worth.
  • To qualify for a Portfolio Margin account, your Net Worth and Liquid Net Worth must each be greater than 100,000 USD.

Stocks, Warrants, Mutual Funds, Bonds (excluding HK applicants) 1

Liquid Net Worth/Income Minimums Age
Account TypeInvestment Objectives>50 or ORG41-5031-4021-30
Cash AccountIncome or
Growth or
Trading Profits or
Speculation or
Hedging
>20,000/Any
(Clients aged 18-21 are eligible to trade stocks
if they meet all other requirements)
Reg T Margin AccountGrowth or
Trading Profits or
Speculation or
Hedging
>20,000/>40,000
Portfolio Margin AccountTrading Profits or
Speculation
>100,000/Any

Bonds (HK applicants) 8

      
Account TypeInvestment Objectives>50 or ORG41-5031-4021-30
Cash AccountIncome or
Growth or
Trading Profits or
Speculation
>100,000/Any>75,000/>50,000>75,000/>45,000>75,000/>40,000
Reg T Margin AccountGrowth or
Trading Profits or
Speculation
>100,000/Any>75,000/>50,000>75,000/>45,000>75,000/>40,000
Portfolio Margin AccountTrading Profits or
Speculation
>100,000/Any>100,000/Any>100,000/Any>100,000/Any
Options, Penny Stocks – (Stocks are automatically selected when you select Options)2, 3, 5

Liquid Net Worth/Income Minimums Age
Account TypeInvestment Objectives>50 or ORG41-5031-4021-30
Cash AccountTrading Profits or
Speculation
>100,000/Any>75,000/>50,000>50,000/>45,000>20,000/>40,000
Reg T Margin AccountTrading Profits or
Speculation
>100,000/Any>75,000/>50,000>50,000/>45,000>20,000/>40,000
Portfolio Margin AccountTrading Profits or
Speculation
>100,000/Any>100,000/Any>100,000/Any>100,000/Any

Limited option trading is also available with ANY Investment Objective. Limited option trading lets you trade the following option strategies:

  • Long Call or Put
  • Covered Calls
  • Short Naked Put: Only if covered by cash
  • Call Spread: Only European-style cash-settled
  • Put Spread: Only European-style cash-settled
  • Long Butterfly: Only European-style cash settled
  • Iron Condor: Only European-style cash settled
  • Long Call and Put

Cash Forex 4, 5

Liquid Net Worth/Income Minimums Age
Account TypeInvestment Objectives>50 or ORG41-5031-4021-30
Reg T Margin AccountTrading Profits or
Speculation or
Hedging
>100,000/Any>75,000/>50,000>50,000/>45,000>20,000/>40,000
Portfolio Margin AccountTrading Profits or
Speculation
>100,000/Any>100,000/Any>100,000/Any>100,000/Any

Futures, Futures Options 6, 7

Investment ObjectivesLiquid Net Worth/Income Minimums Age
Account TypeInvestment Objectives>50 or ORG41-5031-4021-30
Cash AccountGrowth or
Trading Profits or
Speculation 7 or
Hedging
>100,000/Any>75,000/>50,000>50,000/>45,000>20,000/>40,000
Reg T Margin AccountGrowth or
Trading Profits or
Speculation 7 or
Hedging
>100,000/Any>75,000/>50,000>50,000/>45,000>20,000/>40,000
Portfolio Margin AccountTrading Profits or
Speculation 7
>100,000/Any>100,000/Any>100,000/Any>100,000/Any

Single-Stock Futures 2

Liquid Net Worth/Income Minimums Age
Account TypeInvestment Objectives>50 or ORG41-5031-4021-30
Reg T Margin AccountGrowth or
Trading Profits or
Hedging
>100,000/Any>75,000/>50,000>50,000/>45,000>20,000/>40,000
Portfolio Margin AccountTrading Profits or
Speculation
>100,000/Any>100,000/Any>100,000/Any>100,000/Any

Complex or Leveraged Product (CLP)

Liquid Net Worth/Income Minimums Age
Account TypeInvestment Objectives>50 or ORG41-5031-4021-30
Cash AccountTrading Profits or
Speculation or
Hedging
>100,000/Any>75,000/>50,000>50,000/>45,000>20,000/>40,000
Reg T MarginTrading Profits or
Speculation or
Hedging
>100,000/Any>75,000/>50,000>50,000/>45,000>20,000/>40,000
Portfolio MarginTrading Profits or
Speculation or
Hedging
>100,000/Any>100,000/Any>100,000/Any>100,000/Any

Notes:

  1. Only applicants with US accounts and US residence can trade Mutual Funds.
  2. If you select only Options or only Single-stock Futures, Stocks will automatically be selected as well.
  3. For Options, in addition to the Years Trading and Trades per Year requirements, your Total lifetime Options trades must equal at least 100. For options, this is defined as stock trades + options trades + futures trades = at least 100 total trades lifetime.
  4. For Cash Forex, in addition to the Years Trading and Trades per Year requirements, your Total lifetime Forex trades must equal at least 100. For Forex, this is defined as stock trades + options trades + futures trades + forex trades = at least 100 total lifetime trades.
  5. Applicants who have completed the teaching exam for Options or Forex are exempt from the two years experience requirement to trade Options or Cash Forex.
  6. If you select Futures Options only, Futures will automatically be selected as well.
  7. The Speculation investment objective requirement does not apply to Futures and Futures Options trading in a Trust account.
  8. HK Applicants who have completed the teaching exam for Bonds are exempt from the five years experience requirement to trade Bonds.

Customer Types

Individual

Available Account Structures:

  • Individual, Joint, Trust, IRA
  • Friends and Family
  • Family Office
  • Advisor
  • Advisor Client (including Friends and Family, Family Office)
  • Broker Client
  • EmployeeTrack 1

Explanation: An account owned and utilized by a single trader or investor. A Single account can be linked to multiple Single or IRA accounts.

Joint

Available Account Structures:

  • Individual, Joint, Trust, IRA
  • Advisor Client (including Friends and Family, Family Office)
  • Broker Client
  • EmployeeTrack 1

Explanation: An account owned and utilized by two individuals. Depending on the laws of your state of residence, there are three types of joint accounts: Tenants with Rights of Survivorship, Tenancy in Common, and Community Property.

Trust

Available Account Structures:

  • Individual, Joint, Trust, IRA
  • Advisor Client (including Friends and Family, Family Office)
  • Broker Client
  • EmployeeTrack 1

Explanation: An account in which the securities are registered in the name of the trust, while a trustee controls the management of the investments. Trusts with more than one trustee will be deemed Professional for market data purposes.

IRA

Available Account Structures:

  • Individual, Joint, Trust, IRA
  • Advisor Client (including Friends and Family, Family Office)
  • Broker Client
  • EmployeeTrack 1

Explanation: Individual Retirement Account. We offer the following types of IRA accounts.

  • Traditional
  • Traditional Rollover
  • Traditional Inherited
  • Roth
  • Roth Inherited
  • Simplified Employee Pension (SEP)
  • Simplified Employee Pension (SEP) Inherited

This account is only available for individual US citizens living anywhere and US resident aliens. An IRA account can be linked to multiple Individual or IRA accounts.

IRA Trust

Available Account Structures:

  • Advisor Client (including Friends and Family, Family Office)

Explanation: An IRA account held at a designated Third Party Trustee. This account is only available as a client account for a U.S Advisor.

UGMA/UTMA

Available Account Structures:

  • Individual
  • Advisor
  • Fully Disclosed Broker

Explanation: An account intended for a custodian of a minor who is a US resident.

Corporation

Available Account Structures:

  • Friends and Family
  • Small Business
  • Family Office
  • Advisor
  • Advisor Client (including Friends and Family, Family Office)
  • Broker
  • Broker Client
  • Proprietary Trading Group
  • Fund
  • EmployeeTrack 1

Explanation: An account in the name of a corporation, managed on the corporation’s behalf by the corporation’s officers or authorized traders.

Partnership

Available Account Structures:

  • Friends and Family
  • Small Business
  • Family Office
  • Advisor
  • Advisor Client (including Friends and Family, Family Office)
  • Broker
  • Broker Client
  • Proprietary Trading Group
  • Fund
  • EmployeeTrack 1

Explanation: An account in the name of a partnership, managed on the partnership’s behalf by the partnership’s officers or authorized traders.

Limited Liability Company

Available Account Structures:

  • Friends and Family
  • Small Business
  • Family Office
  • Advisor
  • Advisor Client (including Friends and Family, Family Office)
  • Broker
  • Broker Client
  • Proprietary Trading Group
  • Fund
  • EmployeeTrack 1

Explanation: An account in the name of a limited liability company (“LLC”), managed on the LLC’s behalf by its officers or authorized traders.

Unincorporated Business

Available Account Structures:

  • Friends and Family
  • Small Business
  • Family Office
  • Advisor
  • Advisor Client (including Friends and Family, Family Office)
  • Broker
  • Broker Client
  • Proprietary Trading Group
  • Fund
  • EmployeeTrack 1

Explanation: An account in the name of an unincorporated business, managed on the business’ behalf by the business officers or authorized traders.

Notes:

  1. You are an employee of a company that participates in IUR’s EmployeeTrack program.

Available Base Currencies

Your base currency determines the currency of translation for your statements and the currency used for determining margin requirements. Base currency is determined when you open an account. Customers who hold a margin account may change their base currency at any time through Account Management.

Cash accounts can have multi-currency (MULT) capability and can trade non-base currency products. 1

 

AbbreviationDescription
AUDAustralian Dollar
CADCanadian Dollar
CZKCzech Koruna
CHFSwiss Franc
DKKDanish Krone
EUREuro
GBPBritish Pound
HKDHong Kong Dollar
HUFHungarian Forint
INR1Indian Rupee
ILSIsraeli Shekel
JPY1Japanese Yen
MXNMexican Peso
NOKNorwegian Krone
NZDNew Zealand Dollar
RUBRussian Ruble
SEKSwedish Krona
SGDSingapore Dollar
USDUnited States Dollar

 

You are not restricted from making deposits and withdrawals in any one of the aforementioned non-base currencies. 2

Account Types

When opening your account you have a choice of Cash, Margin, IRA Margin or Portfolio Margin account types. For more specific information on margin calculations, see our Margin Requirements page. The following table provides a quick-glance comparison of these accounts. View the account type page from the links above for more details.

Stocks and Warrants

Margin: Margin is calculated on a real-time basis. Immediate position liquidation if minimum maintenance margin requirement is not met. Purchase and sale proceeds available immediately. US securities regulations require a minimum USD 25,000 in equity or equivalent to day trade.

IRA Margin: Cannot borrow cash i.e. have a debit balance or short stocks.

Cash (including IRA accounts): Account must have enough cash to cover the cost of stock plus commissions. Shorting not allowed. Cash from the sale of stocks is available three business days after the trade date. Account may trade in different currencies but must have the settled cash balance to enter trades. When authorizing market, relative and VWAP orders, a 5% cash cushion is required to compensate for market movements.

Portfolio Margin1: Margin is calculated on a real-time risk basis. Immediate position liquidation will occur if the minimum maintenance margin requirement is not met. Purchase and sale proceeds available immediately. US securities regulations require a minimum USD 110,0003 or equivalent for this account. If your account drops below USD 100,000, Reg T margin requirements will apply.

Bonds

Margin: Margin is calculated on a real-time basis. Immediate position liquidation if minimum maintenance margin is not met. Shorting Treasuries not allowed. Purchase and sale proceeds available immediately.

IRA Margin: Cannot borrow cash i.e. have a debit balance or short stocks.

Cash (including IRA accounts): Account must have enough cash to cover the cost of bonds plus commissions. Shorting not allowed. Cash from the sale of bonds is available three business days after the trade date.

Portfolio Margin1: Same as Margin account type.

Mutual Funds

Margin: Margin is calculated on a real-time basis. Immediate position liquidation if minimum margin requirement is not met. Cash required to meet variation margin requirements. Non-US futures options are available to US legal residents.

IRA Margin: Cannot borrow cash i.e. have a debit balance or short stocks.

Cash (including IRA accounts): Account must have enough cash to cover the cost of funds plus commissions. Cash from the sale of funds is available one business day after the trade date. Only available to US legal residents.

Portfolio Margin1: Same as Portfolio Margin requirements for stocks.

Stock and Cash Index Options

Margin: Margin is calculated on a real-time basis. Immediate position liquidation if minimum maintenance margin requirement is not met. Purchase and sale proceeds available immediately. To purchase options the entire premium plus commissions must be deposited. To sell options and other strategy-based combos, the margin requirements and commissions must be covered. US Securities regulations require at least 25,000 USD in equity or equivalent to day trade. Option market value may never be used for the purpose of borrowing funds.

IRA Margin: Cannot borrow cash i.e. have a debit balance or short stocks. For information on combination strategies that require borrowing and consequently are not available, see the Reg T Margin IRA column on the Options Margin Requirements page.

Cash (including IRA accounts): Full payment required for all call and put purchases. Covered call writing is allowed, but the underlying stock must be available and is then restricted. Naked put writing is allowed, but the funds must be available and then are restricted. Cash from the sale of options is available one business day after the trade date.

Portfolio Margin1: Same as Portfolio Margin requirements for stocks.

Currency Conversion

Margin: Borrowing in one currency to purchase another currency without leverage is allowed, but margin haircuts will be applied on a real-time basis.

IRA Margin: Never allowed to borrow currencies.

Cash (including IRA accounts): Cash from Forex transactions is available two business days after trade date. Never allowed to borrow currencies.

Portfolio Margin1: Same as Margin account type.

Cash Forex

Margin: Borrowing to establish a position (trading Forex) is allowed. Additional qualifications must be met and additional trading permissions are required for Cash Forex.

IRA Margin: Never allowed to borrow currencies.

Cash (including IRA accounts): Cash from Forex transactions is available two business days after trade date. Never allowed to borrow currencies.

Portfolio Margin1: Same as Margin account type.

Notes:

  1. Portfolio Margin accounts are not available for IUR Canada customers due to IDA restrictions.
  2. Please note that for commodities, including futures, futures options and single stock futures, “margin” refers to the amount of cash that must be put up BY THE CLIENT as collateral to support a transaction, in contrast to margin for securities which refers to the amount of cash a client borrows from IUR.
  3. Accounts with IURPrime services require a minimum of USD 1,000,000 or USD equivalent.

  • Margin accounts have the ability to trade in all available countries.
  • IRA accounts can have cash or margin trading permissions, but margin accounts are never allowed to borrow cash (have a debit balance) as per US IRS regulation.

Client Account Minimums and Activity Fees

  PRO
Account MinimumsUSD 0.00
Account Maintenance FeesUp to USD 10 based on activity
Will be equal to zero if:
  • Greater than USD 100,000 in average equity for a calendar month or

  • USD 10 in commissions generated in a calendar month.

If your Pro account does not meet these criteria, we may charge an activity fee as described below.

Account StructureMonthly Activity Fee 2Waiver

Single Accounts, Individuals and Small Businesses


Monthly Activity Fee = 0 if monthly commissions are equal to or greater than USD 10.

If monthly commissions are less than USD 10,
Standard Activity Fee = USD 10 – commissions.

Example:
Monthly commissions = USD 6
Standard Activity Fee = USD 10 – USD 6
Standard Activity Fee = USD 4


The first three full calendar months 7or

Accounts whose Net Liquidation Value >= USD 100,000 (or non-USD equivalent)

or

Total assets for all related accounts8 > [(number of related accounts) * (USD 100,000)]
Average Equity Balance is less than USD 2,000 3or

A balance is maintained in a closed account
Monthly Activity Fee = 0 if monthly commissions are equal to or greater than USD 20.

If monthly commissions are less than USD 20,
Activity Fee = USD 20 – commissions.

Example:
Monthly commissions = USD 11
Activity Fee = USD 20 – USD 11
Activity Fee = USD 9


Not applicable.
Accounts (employee) linked to an EmployeeTrack accountMonthly Activity Fee = USD 3.

If monthly commissions are less than USD 3,
Activity Fee = USD 3 – commissions.

Example:
Monthly commissions = USD 2
Activity Fee = USD 3 – USD 2
Activity Fee = USD 1


The first three full calendar months 7or

Accounts whose Net Liquidation Value >= USD 100,000 (or non-USD equivalent)

or

Total assets for all related accounts8 > [(number of related accounts) * (USD 100,000)]
Client is age 25 or underMonthly Activity Fee = 0 if monthly commissions are equal to or greater than USD 3.

If monthly commissions are less than USD 3,
Activity Fee = USD 3 – commissions.

Example:
Monthly commissions = USD 1.25
Activity Fee = USD 3 – USD 1.25 Activity Fee = USD 1.75


The first three full calendar months 7

or

Accounts whose Net Liquidation Value >= USD 100,000 (or non-USD equivalent)

or

Total assets for all related accounts8 > [(number of related accounts) * (USD 100,000)]

Account StructureMonthly Activity Fee 2Waiver

Linked Accounts


Monthly Activity Fee = 0 if consolidated monthly commissions are at least equal to (number of accounts x USD 10).

Example:
Two linked accounts
Monthly consolidated commissions minimum requirement is 2 x USD 10 = USD 20
Account 1 monthly commissions = USD 20
Account 2 monthly commissions = USD 0
No Activity Fee charged on either account.


The first three full calendar months 7or

Total assets for all related accounts8 > [(number of related accounts) * (USD 100,000)]

Account StructureMonthly Activity Fee 2Waiver

UGMA/UTMA Accounts


Monthly Activity Fee = 0 if
monthly commissions are equal to at least USD 10.If monthly commissions are less than USD 10,
Standard Activity Fee= USD 3
The first three full calendar months 7or

Accounts whose Net Liquidation Value >= USD 100,000 (or non-USD equivalent)

or

Total assets for all related accounts8 > [(number of related accounts) * (USD 100,000)]

Account StructureMonthly Activity Fee 2Waiver

Advisor, Friends and Family, Family Office, and Hedge Fund Investment Accounts


Advisor Master Account

There is no Activity Fee for the Master Account.
N/A
Advisor Client Accounts5,6

Monthly Activity Fee = 0 if consolidated monthly commissions are less than the Required Minimum, the standard minimum activity fee will be applied to each account, proportionally on an account-by-account basis as described below.

To calculate the Required Minimum, multiply the total number of open client accounts during the month by 10.
  1. Calculate the group's total commission minimum shortfall by adding the standard minimum activity fee for each account and then subtracting the commission generated.
    Deficit for the Group of Client Accounts = Maximum ([total minimum charge for all client accounts*] – [total commissions for all client accounts], 0)
    *The standard minimum activity fees are applied to each account based on the criteria such as age, Net Liquidation Value, etc., as shown in the Single Accounts, Individuals and Small Businesses section.

  2. Calculate the total shortfall for each account individually using the standard minimum activity fees.
    Client Account Deficit = Maximum ([standard minimum charge] – [account's commissions], 0)

  3. Determine the group's commission minimum shortfall by summing each client's commission shortfall
    Total Deficit for All Client Accounts = Sum ([Client Account Deficit]);

  4. Calculate the weighting which will apply to each account.
    Weighted Client Account Deficit = [Client Account Deficit] / [Total Deficit for All Client Accounts].

  5. Apply the weighting to each account to determine its prorated portion of the minimum activity fee.
    Proportionally Charged Monthly Activity Fee = [Weighted Client Account Deficit] * [Deficit for the Group of Client Accounts]


Each client account cannot be charged more fees than the required minimum. That is, if an account meets the required minimum of USD 10, it cannot be charged fees > USD 10. The resulting minimum fees charge for each account = Minimum ([Proportionally Charged Monthly Activity Fee], [Client Account Deficit])
If after performing the consolidated calculation, it is determined that fee must be charged on an account-by-account basis, then the following waivers will be applied to each client account:

The first three full calendar months 7or

Accounts whose Net Liquidation Value >= USD 100,000 (or non-USD equivalent)

or

Total assets for all related accounts8 > [(number of related accounts) * (USD 100,000)]
Separate Trading LimitMonthly Activity Fee = 0 if
consolidated monthly commissions are at least equal to (number of accounts4 x USD 10).

Example:
STL has 12 sub accounts, number of Accounts = 13
Monthly consolidated commissions minimum requirement is 13 x 10 = USD 130




If the monthly consolidated commissions are less thanthe required minimum, an activity fee is charged on an account-by-account basis using the Standard Activity Fee calculation described above. 5, 7
If after performing the consolidated calculation, it is determined that fee must be charged on an account-by-account basis, then the following waivers will be applied to each client account:

The first three full calendar months 7or

Accounts whose Net Liquidation Value >= USD 100,000 (or non-USD equivalent)

or

Total assets for all related accounts8 > [(number of related accounts) * (USD 100,000)]

Notes:

  • To trade a margin account you must maintain at least USD 2,000 or non-USD equivalent. For details on margin requirements, see the Margin page.
  • Pattern Day Traders have higher minimum requirements, which are defined in the Day Trading section of margin requirements.
  • Individual (employee) accounts linked to an EmployeeTrack account have no minimum balance requirement.

Friends and Family Accounts

Client DescriptionAn advisor who is exempt from registration and has 15 or fewer clients.
Account DescriptionA master account linked to individual client accounts. The master account is used for fee collection and trade allocations. The advisor can open a single client account for his or her own trading.
Client Markups% of equity, flat fee, % of P&L, fee per trade, and manual billing.
Trading Access & Account ManagementThe advisor has access to trading and most Account Management functions. Clients do not have access to trading but have access to all Account Management functions.
MarginCash, Reg T and Portfolio Margin are available. Each client account is individually margined.

Family Office Accounts

Client DescriptionAn individual who is a Family Office Manager.
Account DescriptionMaster account linked to multiple client accounts.
Client Markups% of equity, flat fee, % of P&L, fee per trade, and manual billing.
Trading Access & Account ManagementFamily Office Manager can access some or all accounts or functions. Client users can trade and directly fund and view statements.
MarginCash, Reg T and Portfolio Margin are available. Each client account is individually margined.
Pre-Trade AllocationsFamily Office Manager can pre-trade allocate account %, % of equity, or % of positions.

Small Business Accounts

Client DescriptionA small business corporation, partnership, limited liability company or unincorporated legal structure.
Account DescriptionA single account which holds assets owned by the entity account holder.
Trading Access & Account ManagementUsers can be configured to have some or all trading and Account Management functions.
MarginCash, Reg T and Portfolio Margin are available.

Advisor Accounts

Client DescriptionAn Individual or Organization Registered Advisor that manages both client administration (Wealth Management) and the client's money (Money Management).
Account DescriptionA master account linked to individual or organization client accounts.The master account is used for fee collection and trade allocations. The advisor can open a single account for his or her own trading. The account can be white branded with the advisor's corporate identity.
Client Markups% of equity, flat fee, % of P&L, fee per trade, and manual billing.
Trading Access & Account ManagementThe advisor has access to trading and most Account Management functions. Organization Advisors can have multiple users, each with access to different functions and jurisdiction over different client accounts. By default, client do not have access to trading, but client trading can be enabled. Clients have access to all Account Management functions.
MarginCash, Reg T and Portfolio Margin are available. Each client account is individually margined.
Pre-Trade AllocationsAdvisor(s) can pre-trade allocate cleared trades by account %, % of equity, or % of positions.
Multiple TiersAdvisors have the ability to add an Advisor account with clients, a Multiple Hedge Fund account with fund or SMA accounts, or a Separate Trading Limit account (STL) under the master account.

Money Manager Accounts

Client DescriptionAn Individual or Organization Registered Advisor that is hired on behalf of another advisor (Wealth Manager) to manage some or all of their client's money.
Account DescriptionA new separate client account is opened for any client for whom a Money Manager manages money. Money Managers can manage money across multiple advisors (Wealth Managers) and their clients.
Client Markups% of equity, flat fee, % of P&L, fee per trade, and manual billing, set by the advisor (Wealth Manager).
Trading Access & Account ManagementThe Money Manager has access to trading only. Assets are moved to the Money Manager client account by the Advisor (Wealth Manager). Organization Money Managers can have multiple trading users, each with jurisdiction over different client accounts.
MarginThe Money Manage client account inherits the margin type from the client's Wealth Manager client account. The Wealth Manager and Money Manager client accounts are margined separately.
Pre-Trade AllocationsSame as Advisors
Multiple TiersNot available.

Proprietary Trading Group Accounts

 PoolSeparate Trading Limit
Client DescriptionA corporation, partnership, limited liability company or unincorporated legal structure.Same as Pool.
Account DescriptionSingle account which holds assets owned by the entity account holder.Multiple, linked accounts all in the name of a single entity. Assets in all accounts are owned by the entity account holder. Each account has its own trading limits and can have its own trading strategy.
Trading Access & Account ManagementOne or more users. Users can be configures to have some or all trading and Account Management functions.Master user(s) are designated and can be configured to have some or all trading and Account Management functions. Sub account users only access to their single account functions.
MarginCash, Reg T and Portfolio Margin are available.Cash, Reg T and Portfolio Margin are available. At trade initiation, each sub account is margined separately. For maintenance and liquidation purposes, all accounts are consolidated.

Compliance Officers

 EmployeeTrack
Client DescriptionAny organization that needs to monitor all or some of their employees' trading activity.
Account DescriptionA single account linked to multiple individual, joint, trust and IRA employee accounts for the purpose of monitoring their trading activity.
Trading Access & Account ManagementTrading is completely controlled by the broker employee with Compliance access to trade activity.
MarginNot applicable.

Administrators

Client DescriptionAny 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 DescriptionA 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.
Trading Access & Account ManagementAn 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.
MarginNot Applicable.