Hedge Fund

Hedge Funds

Interactive Brokers provides cost-sensitive hedge funds with trading, clearing, custody, reporting and other services.

PREQIN a part of BlackRock

Recognized by Preqin1

  • #1 Prime Broker for Hedge Funds with AUM under $50 million
  • #4 Prime Broker Servicing Hedge Funds for 2025

IBKR Hedge Fund Clients
 Outperformed the Market in 2025

S&P 500 Index

17.9%

2025 Return

IBKR Hedge Fund Clients

28.91%

2025 Average Return

IBKR returns shown are net of commissions and charges.

Securities Financing Securities Financing Professional Pricing Professional Pricing Global Markets Global Markets High-Touch Prime Brokerage Service High-Touch Prime Brokerage Service Prime Brokerage Services Prime Brokerage Services IBKR OMS IBKR OMS Innovative Technology Innovative Technology Advisor Services: Reporting and Analytics Reporting & Analytics Capital Introduction Capital Introduction Integration with Fund Administrators Integration with Fund Administrators Soft Dollar Commission Program Soft Dollar Commission Program Advisor Services: A Broker You Can Trust Strength & Security Account Structure Account Structure Advisor Services: Open Account Open Account

Contact our institutional sales team to learn more.

Sales Contacts

The IBKR Advantage

  • Interactive Brokers Group (IBG LLC) equity capital is $22.3 billion, over $13.9 billion in excess of regulatory capital.2
  • Low margin rates, with rates as low as 4.13%*
  • Depth and breadth of short securities availability, transparent loan rates, global reach, dedicated support and automated tools to simplify the financing process.
  • No custody fees or AUM minimums and transparent, low commissions and financing rates, support for best price execution, and a stock yield enhancement program to help minimize costs to maximize returns.4
  • Invest globally in stocks, options, futures, currencies, bonds and funds from a single unified platform.
  • Integrated OMS / EMS setup offers a one-stop solution for funds looking to reduce costs and improve productivity.
  • IBKR BestXSM is a powerful suite of advanced trading technologies designed to help clients achieve best execution and maximize price improvement while minimizing market impact.
  • 100+ order types – from limit orders to complex algorithmic trading – help you execute any trading strategy.
  • Build customized trading tools, access news, charting and market data, and manage client accounts with our API solutions.
  • Our Hedge Fund Capital Introduction Program allows Hedge Funds who use IBKR as their principal Prime Broker to market their Funds to IBKR clients who are Accredited Investors and Qualified Purchasers.

Securities Financing

IBKR combines deep stock availability, transparent stock loan rates, global reach, dedicated support and automated tools to simplify the financing process and allow you to focus on executing your strategies.

Securities Financing

Professional Pricing - Maximize Your Returns

IBKR offers low trading fees1 and access to stocks, options, futures, currencies, bonds and funds from a single unified platform. If an exchange provides a rebate, we pass some or all of the savings directly back to you.

Learn About Commissions

Earn interest rates of up to USD 3.13% on instantly available cash.3

Compare Interest Rates

Margin rates up to 55% lower than the industry.2

Compare Margin Rates

Earn extra income on your lendable shares.

See Stock Yield Enhancement
  1. Low trading fees according to BrokerChooser Online Broker Survey 2026: Read the full article Online Broker Reviews, December 2025. "Interactive Brokers has low trading fees and one of the best margin rates in the industry. IB currently pays interest (up to 3.13% for USD) on cash balances if you have a $100k account (net asset value)."
  2. Restrictions apply. See additional information on interest rates. Credit interest rate as of July 6, 2026.

Discover a World of Opportunities


Invest globally in stocks, options, futures, currencies, bonds and funds from a single unified platform. Fund your account in multiple currencies and trade assets denominated in multiple currencies. Access market data 24 hours a day and six days a week.

170

Markets

40

Countries

29

Currencies*


Global Markets

*Available currencies vary by Interactive Brokers affiliate.

Graphic is for illustrative purposes only and should not be relied upon for investment decisions.

Map Locations
Local Time: Open Closed

mssage123

High-Touch Prime Brokerage Service

IBKR simplifies trade processing for prime brokerage clients by providing seamless clearing and settlement services, ensuring timely and accurate execution across diverse global markets and instruments.

Large, active hedge funds receive enhanced support, which includes:

  • A dedicated Relationship Manager who acts as your primary point of contact.
  • Access to Subject Matter Experts in Risk/Margin, Compliance, Securities Finance, Corporate Actions, Proxy, Clearing, Transfers and Tax.
  • Prioritization of requests and expedited review/processing of exceptions.
  • 24/5 access to our Global Outsourced Trading Desk for execution of orders in North America, Europe and Asia by experienced traders.

Prime Brokerage Services

For 49 years, Interactive Brokers has served our clients by creating and delivering advanced trading technology. Our uniquely automated approach to managing brokerage services builds on our firm's principles:

  • Provide around-the-clock global service coverage for Prime Brokerage clients.
  • Maintain a strong capital position and conservative balance sheet.
  • Operate a low-risk business model.
  • Customer fund protection
  • Use automated risk controls to help protect the firm and our clients from large trading losses.

Our continuing dedication to these principles results in Prime Brokerage Services that deliver real advantages to institutions:

  • Custody
  • Execution and Clearing
  • Securities financing
  • Margin financing
  • Take up trades from other brokers
  • Corporate Actions
  • Client service
  • Outsourced Trading
Learn About Prime Brokerage Services

View our Due Diligence Information for Advisors, Brokers, Hedge Funds and Other Financial Institutions
and Intermediaries using or considering Interactive Brokers LLC as Prime Broker/Custodian.

IBKR OMS: Your Complete One-Stop Solution

OMS computer screen OMS computer screen

Our IBKR OMS software integrates with our award-winning EMS, the IBKR Trader Workstation (TWS).


This one-stop solution is perfect for institutions looking to reduce costs and improve productivity with a fully integrated OMS/EMS setup. Order management, trading, research and risk management, operations, reporting, compliance tools, clearing and execution – all are available as part of our complete platform. The IBKR OMS offers a robust and customizable order management platform that you can use within your current multi-broker setup. Route orders to your existing execution providers, and allocate pre- or post-trade to multiple custodians using the IBKR OMS platform. With over 40 years of industry experience, we can easily configure our robust technology to fit the complex needs of your business.


Learn About IBKR OMS



Trading Technology to Help Hedge Funds Succeed

Trading Platforms

Powerful, award-winning trading platforms and tools for managing client assets. Available on desktop, mobile, web and API.

Order Types and Algos

100+ order types – from limit orders to complex algorithmic trading – help you execute any trading strategy.

API Solutions

Our proprietary API and FIX CTCI solutions let institutions create their own automated, rules-based trading system that takes advantage of our high-speed order routing and broad market depth.

Sophisticated Risk Management

Understand risk vs. returns with real-time market risk management and monitoring that provides a comprehensive measure of risk exposure across multiple asset classes around the world.

Fractional Trading

Buy or sell any eligible US, Canadian or European stocks/ETFs using fractional shares, which are stock units that amount to less than one full share, or by placing an order for a specific purchase price rather than quantity of shares.

Advanced Trading Tools

Spot market opportunities, analyze results, manage your account and make informed decisions with our free advanced trading tools.

Free Account Tools

Manage taxes and corporate actions, learn about T+0 settlement and trade allocations, and read about additional tools and services available to clients.

Reporting & Analytics

Powerful Reporting Solutions

Easy to view and customize, our statements and reports cover all aspects of your Interactive Brokers account.

Section 13 Reporting

Receive alerts and/or reports when your positions meet thresholds for Form 13F and Schedules 13D/13G.

Capital Introduction

Tailored Capital Introduction

Interactive Brokers provides a traditional capital introduction program through an arrangement with Regiment Securities1. The service includes a review of the fund’s marketing material, introductions to institutional investors through reverse solicitation and feedback from prospective investors. Please contact your Sales Representative or Client Services for more information.

Online Capital Introduction in the Hedge Fund Capital Introduction Program

An online version of a traditional Capital Introduction program designed to allow hedge funds which use IBKR as their principal prime broker to market their funds to IBKR clients who are Accredited Investors and Qualified Purchasers.

This program is provided free of charge to all hedge funds who use IBKR as their principal prime broker, have at least $3 million in assets under management, and either have an audited track record of at least one year or have traded exclusively with IBKR for the past year and are in the process of engaging an auditor.

Access the Hedge Fund Capital Introduction Program at the Investors' Marketplace, our online forum where you can meet and do business with traders and investors, institutions, and other third-party service providers.

Learn About the Hedge Fund Capital Introduction Program

Integration with Fund Administrators

IBKR seamlessly integrates with many fund administrators by utilizing automated feeds.

Providers include SS&C, NAV Consulting, Opus, MUFG, HedgeServ and others.

Soft Dollar Commission Program

Interactive Brokers' 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’s 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.

Learn About Soft Dollars

A Broker You Can Trust

When placing your money with a broker, you need to make sure your broker is secure and can endure through good and bad times in the broader financial markets. Our strong capital position, conservative balance sheet and automated risk controls are designed to protect IBKR from major market events that can threaten the stability of financial institutions.

Member of the

S&P 500

Nasdaq Listed: IBKR

 

$22.3B

Equity Capital*

 

73.5%

Privately Held*

 

$13.9B

Excess Regulatory Capital*

 

5.19M

Client Accounts*

 

4.82M

Daily Avg Revenue Trades*


IBKR Protection
Secure metal vault door

*Interactive Brokers Group and its affiliates. For additional information view our Investors Relations - Earnings Release section.

Hedge Fund Account Structure

Multiple funds managed by an investment manager with a master fund admin account.

Additional Information

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.

Execute trades for multiple funds in an Allocation Account and assign trades before the end of the day to specific cleared fund accounts.

Pre-trade allocation tools.

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.

Link to Administrators for the purpose of providing administrative services such as reporting to your clients. Shop for registered Administrators at the Administrator Marketplace.

Multiple Fund Account PDF Guide

Frequently Asked Questions

A hedge fund account at Interactive Brokers provides hedge funds with institutional-grade trading, clearing, custody, reporting, securities financing, and prime brokerage services through a single integrated platform designed to support fund operations and growth.

Hedge funds choose Interactive Brokers for its competitive commissions, global market access, advanced trading technology, securities financing capabilities, and institutional-grade prime brokerage services.

Interactive Brokers provides access to global markets and allows hedge funds to trade stocks, options, futures, currencies, bonds, funds, and other investment products from a single unified platform.

Yes. Interactive Brokers offers prime brokerage services that include custody, execution, securities lending, financing, reporting, and operational support designed specifically for hedge funds and institutional investors.

Interactive Brokers provides securities lending and borrowing solutions, transparent stock loan rates, access to hard-to-borrow securities, short-selling support, and tools that help hedge funds manage financing costs and trading strategies efficiently.

Yes. Hedge funds can access APIs, advanced order types, automated trading tools, customizable trading technology, and integration capabilities that support quantitative, systematic, and algorithmic trading strategies.

Interactive Brokers provides reporting, analytics, portfolio monitoring, performance reporting, risk management tools, and operational reporting designed to support fund managers, compliance teams, and administrators.

Yes. Interactive Brokers supports integration with fund administrators and operational service providers, helping streamline fund accounting, reporting, and back-office processes.

Interactive Brokers offers transparent pricing, low commissions, competitive margin rates, access to global liquidity, and technology-driven automation that can help reduce operational and trading costs.

Yes. Interactive Brokers supports hedge funds of varying sizes, including emerging managers seeking institutional-grade trading, custody, financing, and prime brokerage services while maintaining cost efficiency.

Fund managers can begin the application process online by selecting a hedge fund account structure and submitting the required documentation. Interactive Brokers' institutional sales and onboarding teams assist throughout the account opening process.

Open a Hedge Fund Account

Our Hedge Fund account types enable investment managers to set up different structures to meet their needs.

Interactive Brokers offers two different Fund account structures: Multiple Fund and Allocation Fund accounts.

Accounts are accepted from citizens or residents of all countries except citizens or residents of those countries or regions that are on the sanction list of the US Office of Foreign Asset Controls or similar lists, or other countries determined to be higher risk. See all available countries.

Hedge Funds are highly speculative and investors may lose their entire investment. Lower investment costs will increase your overall return on investment, but lower costs do not guarantee that your investment will be profitable. Any trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations. Supporting documentation for any claims and statistical information will be provided upon request.

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Hedge funds are highly speculative and investors may lose their entire investment.

  1. Preqin Service Providers in Private Markets 2025 report​ PREQIN® and BLACKROCK® are trademarks of BlackRock, Inc. or its affiliates, used under license.
  2. Interactive Brokers Group and its affiliates. For additional information view our Investor Relations - Earnings Release section. The number of client accounts displayed includes all account types across all IBG affiliates as of June 2, 2026.
  3. According to StockBrokers.com Interactive Brokers Review: Read the full article Online Broker Reviews, January 28, 2026. "The industry’s cost leader: Interactive Brokers continues to set the benchmark for cost efficiency, offering margin rates and high yields on idle cash that consistently outperform the competition." View our margin rates for more information.
  4. Lower investment costs will increase your overall return on investment, but lower costs do not guarantee that your investment will be profitable.
  5. Low trading fees according to BrokerChooser Online Broker Survey 2026: Read the full article Online Broker Reviews, December 2025. "Interactive Brokers has low trading fees and one of the best margin rates in the industry. IB currently pays interest (up to 3.13% for USD) on cash balances if you have a $100k account (net asset value)."
  6. Restrictions apply. See additional information on interest rates. Credit interest rate as of July 6, 2026.
  7. For complete information, see our margin rate comparison
  8. Available currencies vary by Interactive Brokers affiliate.
  9. Clients must meet minimum revenue targets; contact institutional sales for more information.
  10. Any discussion or mention of an ETF is not to be construed as a recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
  11. Interactive Brokers is not a party to agreements between the fund and Regiment Securities.