News at IBKR vol 7

Interactive Brokers | NEWs @ IBKR vol.7

New Product

Access CME Group Micro E-mini Futures at IBKR

Micro E-mini Futures

As of May 6, 2019, Interactive Brokers clients with Futures trading permission can begin trading CME Group Micro E-mini futures. If you do not have futures trading permission and would like to trade micro e-mini futures you will need to log in to Client Portal and request Futures trading permission via the Settings > Account Settings > Trading Experience & Permissions menu item. Trading permission requests are typically approved overnight.

About Micro E-mini Futures

At 1/10th the size of their classic E-mini counterparts, Micro E-mini futures make it easier for a broader universe of traders to discover the benefits of trading futures. Trading began on May 6, 2019, with the launch of four index contracts:

  • S&P 500: Trade exposure to U.S. large-cap stocks, leading barometer of U.S. stock market
  • Nasdaq-100: Trade exposure to largest non-financial companies in the Nasdaq stock market
  • Russell 2000: Trade exposure to 2,000 U.S. small-cap stocks; leading small-cap benchmark
  • Dow Jones Industrial Average: Trade exposure to 30 U.S. blue-chip companies, widely followed indicator of U.S. stock market

$0.32 to $0.47

PER CONTRACT   •   ALL IN

These four index contracts join our existing offering of Micro E-mini futures contracts for gold, silver and foreign exchange.

Please click either link below to learn more about Micro E-mini futures.


Industry-Leading Growth

Payment for Order Flow

For most brokers payment for order flow (PFOF) has become a larger component of their revenues. In spite of Interactive Brokers’ growth, we have not disadvantaged our clients by focusing on this revenue. We provide our clients with a $0.52 per 100 shares stock price execution advantage over the industry.1

payment for order flow and daily average revenue trades charts
  1. A US equities execution price improvement comparison from IHS Markit, a third-party provider of transaction analysis, determined that Interactive Brokers' US stock price executions were significantly better than the industry's during the second half of 2018. For more information, see ibkr.com/bestexecution
  2. Includes purchase of Scottrade in 2018.
  3. This revenue is from Options exchanges only, where the payment isn’t tied to specific orders.
  • Source: Alphacution, SEC, company data

Low Cost

New Commissions Structure for European Stocks

On April 1, 2019, IBKR lowered its European stock commission rates for the company's tiered commission schedule. The most expensive tiers above 0.05% (5 bps) were eliminated for all 23 currencies clients are able to trade in.

For EUR, CHF, PLN, ILS and HUF-denominated products, commissions for all Monthly Trade Values up to EUR 50,000,000 are now 0.050% (5 bps). In the United Kingdom, commissions on all Monthly Trade Values up to GBP 40,000,000 are now 0.050% (5 bps).

All exchange, clearing and regulatory fees will continue to be passed through with no markup. There are no changes to the order minimums or maximums, flat rate commissions and commissions for Norway or Sweden, where commissions already start at 0.050%.

Visit our website to view our full commission schedule.


New Tool

When Was Your Last Portfolio Checkup?

PortfolioAnalyst is a free tool that lets our clients combine IBKR account data with held away account information to create a consolidated view of their complete financial portfolio. PortfolioAnalyst now includes Portfolio Checkup, a dynamic tool that transforms portfolio data into powerful analytics. Portfolio Checkup helps you:

  • Measure your performance against more than 200 industry benchmarks or your custom benchmarks, and toggle between money and time weighted returns with the click of a mouse.
  • Use risk metrics such as max drawdown, peak-to-valley, Sharpe ratio and standard deviation to understand at a glance your portfolio's risks relative to its returns.
  • Understand your portfolio exposure by geography, sector and asset class.

Take control of your financial health by using PortfolioAnalyst with Portfolio Checkup.

IBKR Trading Platform

New Offering

Interactive Brokers First to Offer a Stock Yield Enhancement Program for Canadian Assets

Interactive Brokers Canada (IBC) clients participating in its Stock Yield Enhancement Program can now lend Canadian fully-paid shares of stock as part of the program. This first to the market service gives IBC clients the opportunity to lend their Canadian shares to IBC in exchange for a portion of the interest short sellers are willing to pay to borrow the shares.

IBC cash accounts with equity equivalent to US $50,000 and all IBC margin accounts are eligible to participate in the new program. Enrollment is easily completed online and program activation generally takes place overnight. After enrolling, IBC handles all program activities with no restriction on a client's ability to trade their shares. IBC clients can monitor in real-time indicative rates by configuring their Trader Workstation platform to display the Fee Rate column.

While the stock is loaned, clients maintain the ability to sell their stock anytime, and continue to recognize any profits and losses. Stocks listed on US or Canadian exchanges can be loaned.

Interactive Brokers uses its highly automated systems to identify the shares in client accounts which others are attempting to borrow. The company credits loan income to clients and provides daily activity statements detailing the quantity of shares loaned, collateral amount, market interest rate, IBC charges and net interest.

At the end of each day, IBC pays the client half of the gross amount earned by IBC from lending the shares to borrowers and retains half as compensation for coordinating the program and guaranteeing the return of the shares.

Please review the SYEP FAQ and Enrollment Instructions for additional information about participating in the program.

 

IBKR Adds Tradeweb Credit

EXPANDED OFFERING

IBKR Bond Desk Adds Tradeweb Institutional as a Bond ATS

IBKR recently established a direct connection to Tradeweb Institutional, an alternative trading system (ATS) market that uses a Request for Quote (RFQ) model rather than a Central Limit Order Book (CLOB). On average, Tradeweb Institutional facilitates over $570 billion in notional value traded daily (TTM as of Q1 2019).

IBKR clients can send RFQs for bids and offers by opening an RFQ window in TWS, entering a bond and indicating the quantity and direction. IBKR will route the RFQ to Tradeweb, who will return a price based on the size of the RFQ.

We currently support high yield and emerging market bonds and anticipate adding other fixed income asset classes later this year.

Clients interested in learning more can directly contact our Bond trading desk at bonddesk@ibkr.com.

 

New Feature

Electronic Money Transfers to Third Parties Now Available

US clients can now use the Automated Clearing House (ACH) network to safely and securely transfer funds to and from their IBKR account. ACH allows you to connect your IBKR account to your US-based bank account(s) and to transfer funds between them. In addition, you can link your account with mobile payment providers such as PayPal or merchants and pay subscriptions or other recurring expenses such as a mortgage, car payment or utilities to any other entity using a bank on the network.

US clients who would like to use electronic transfers will need to first enroll in our Integrated Cash Management program via the Transfer & Pay > Integrated Cash Management menu in Client Portal. Once enrolled, you can configure electronic transfers via the Transfer & Pay > Transfer Funds menu.

Integrated Cash Management from IBKR

Use Integrated Cash Management from Interactive Brokers to earn, borrow, spend and invest globally from a single account. Earn market rate interest on your idle balances4 and extra income from lending your fully paid shares. Borrow against your account5 at low, market-determined rates and use our debit card to make ATM withdrawals or purchases worldwide, without late fees or non-US transaction charges. Use electronic transfers to quickly and securely deposit funds or pay recurring expenses from your account and invest globally in stocks, options, futures, forex, fixed income and more.

All from an integrated account.

IBKR Trading Platform

New Tools

New Features Added to IBKR Trading Platforms

New functionality added to IBKR Mobile, TWS for Desktop and the Client Portal help to deliver a powerful and seamless trading experience across all platforms, whether you're trading on-the-go or from your desktop.

IBKR Mobile

IBKR Mobile added support for Direct Debit and ChartTrader is now available directly from the Quote Details screen. In addition, Position and P&L values can be converted from another currency into your base currency in italics. Learn more about IBKR Mobile for iOS or Android.

Trader Workstation (TWS)

Snapshot Single-User Market Data

Now benefit from even lower costs by paying only for the quotes you need when you need them. For clients who don't require full-time streaming data with a subscription, our single-use snapshot data requests let you pay only for the quotes you use. Learn more about Snapshot Single User Market Data.

TWS API

The TWS API now provides a DDE Socket Bridge API. This feature provides the DDE API with the same functionality included in our socket-based APIs, so DDE users now have access to many features not previously available, including daily open price, multiple account data subscriptions and more. And, it's backwards-compatible with earlier DDE syntax and worksheets. Learn more about API features.

Client Portal

Client Portal has become the new default access point for account management. It offers the same features of Account Management plus a friendlier interface, the IBKR Forum and an easy-to-use trading interface to submit basic orders.

We also offer a Client Portal Web API, currently in beta. Use the CP API to manage both trading and account information for individual and advisory account structures with one RESTful API solution. Learn more about our Client Portal Web API.

All Mobile and Desktop Platforms

All platforms now display Environmental, Social and Governance (ESG) factors as both a data point in Quote Details and as a column. Learn more about ESG factors.

 

Legg Mason Global Growth

NEW PRODUCTS

Interactive Advisors Rolls Out Legg Mason Global Growth and Income Portfolio

New Portfolio Focuses on Socially Responsible Investments

Interactive Advisors has added the Legg Mason Global Growth and Income Portfolio to its lineup of investment products. The portfolio provides dedicated exposure to Exchange Traded Funds investing in companies that apply environmental, social and governance (ESG) principles. This diversified equity portfolio uses a combination of Legg Mason Exchange Traded Funds to meet its objectives of balancing growth, income, and portfolio risk.

The Legg Mason Global Growth and Income Portfolio, which has an investment minimum of $5,000, is rebalanced every month. The annual management fee of 0.10% is among one of the lowest in the industry for an ETF-based portfolio.

Please note that commissions for trades in these portfolios charged by Interactive Advisors' affiliated broker-dealer Interactive Brokers LLC are separate and in addition to the management fee.

Introducing Interactive Advisors

In 2015, Interactive Brokers acquired Covestor, one of the pioneers in online investing, which offers over 60 portfolios with low minimums and fees. The division, which was called Interactive Brokers Asset Management, has a new, shorter name: Interactive Advisors.

Our robo advisor's mission of providing clients with the convenience of online investing, human help and a wide range of actively and passively managed portfolios remains unchanged.

Interactive Brokers' clients can partition their brokerage accounts to invest in the Interactive Advisors portfolios and wealth managers can invest in portfolios on their clients' behalf.

Past performance is no guarantee of future results, and all investments, including those in this portfolio, involve the risk of loss, including loss of principal and a reduction in earnings.

Interactive Advisors is currently licensed to offer investment services to US residents only. This communication and Interactive Advisors' website are NOT intended to be a solicitation or advertisement in any jurisdiction other than the United States. Interactive Advisors does not provide tax advice, does not make representations regarding the particular tax consequences of any portfolio investments and cannot assist clients with tax filings. Clients investing in Interactive Advisors portfolios should consult with their tax professional about the tax consequences of investing in Interactive Advisors portfolios.

Client Risk Profile

New Tools

The IBKR Client Risk Profile Tool for Advisors

The IBKR Client Risk Profile tool is designed to help Advisors determine the most suitable investments for their clients, based on each client's risk capacity, risk need and risk tolerance. This information is collected through the distribution of a custom-designed client questionnaire. Advisors can view the scores through the Advisor Portal and use the scores to create custom pre-trade allocation groups in TWS to place orders and allocate trades for clients with similar risk profiles.

The Tool has Three Components:

Questionnaire Editor: Create a custom client questionnaire to help identify your clients' risk capacity, risk need and risk tolerance. Client responses result in a personalized "Risk Score" you can use to determine suitable investment vehicles appropriate to the client's overall risk tolerance.

Score Builder: Customize Risk Score Values for specific questions, create your own Risk Score scale, and choose the scoring calculation method for client score outcomes that complements the way you do business.

Score Viewer: View your clients' overall Risk Tolerance scores.

Advisors can find additional information about enabling the Client Risk Profile tool here.

Please visit our website to learn more about the tool and Advisor Portal.

NEW PRODUCTS

New Fund, Product and Research Offerings

We now offer access to 11,609 mutual funds from 246 fund families, including 8,194 no-load funds and 4,207 funds with no transaction fees.

US Fund Families
  • ACM Funds
  • AGF funds
  • Aperture Investors
  • Canyon Partners Fund
  • Foothill Capital Fund
  • FS Investments
  • Fuller & Thaler Funds
  • Hodges Funds
  • Liberty Street Funds
  • Shenkman Funds

New Trading Venues / Products

Products

Explore all the products available on the IBKR Platform.

Expanded Research Offering

The following research providers were recently added to the IBKR platform.

View our current listing of research providers.

Traders' Academy

EXPANDED OFFERINGS

New Courses Available at Traders' Academy

Traders' Academy offers investors, educators and students more than 20 courses on the products, markets, currencies and tools available at Interactive Brokers. Each course uses a syllabus to define instructional goals, clearly states learning objectives and delivers content across multiple lessons. Quizzes and tests are used to benchmark progress against learning objectives and each course uses a combination of online lessons, videos or notes to help students learn at their own pace. In addition, students can ask questions of IBKR subject matter experts, provide written feedback on each course and rate their learning experience.

New courses include:

Client Portal

Client Portal enables clients of Interactive Brokers to stay connected to what matters as well as access key features and services in their accounts. In a world where news that drives trading rarely ever stops, investors want to access their accounts from multiple devices and around the clock. Client Portal not only provides users with access to details about their accounts, but also allows them to trade using a single log in. This course walks you through the many capabilities of Client Portal.

Course Lessons:

  • Navigating IBKR's Client Portal
  • Watchlists and Market Scanners in Client Portal
  • Message Center & Ticketing System

Python TWS API

This is a course in programming with the Trader Workstation Application Programming Interface (TWS API) for Python developers. The TWS API is an open source interface to IBKR's flagship desktop trading application, TWS, which allows for automation of many aspects of TWS functionality. In this course, we describe how to get started in developing Python applications that use the API. First, we explain where to obtain and configure TWS and the API source code, then describe the most commonly used API functions with Hello World sample programs to demonstrate their individual use. We end with a case study in pair trade orders to demonstrate one of the many different advanced order types that can be used with the API.

Course Lessons:

  • What is the TWS API?
  • Installing & Configuring TWS for the API
  • Accessing the TWS Python API Source Code
  • Essential components of TWS API programs
  • Receiving Market Data and Historical Candlesticks
  • Placing Orders
  • Option Chains, Portfolio Data and Account Information
  • API Case Study in Pair Trades

EXPANDED OFFERING

New IBKR Market Commentary

IBKR continues to expand the resources available to help its clients understand markets, trading and technology.



traders' insight
Market Commentary from Nearly 70 Firms

Traders' Insight, our market commentary blog, features written and video market commentary from individuals at nearly 70 firms. In addition, IBKR's Chief Options Strategist Steve Sosnick offers market commentary and Senior Analyst Steve Levine provides Asian and US weekly previews.

Watch IBKR Traders' Insight video commentary from the News monitor panel in TWS by clicking the "expand" button in the News monitor panel and selecting Traders' Insight Video.

qunat blog
A Growing List of Contributors to the IBKR Quant Blog

The IBKR Quant Blog serves quantitative professionals who have an interest in programming. Discussion topics include deep learning, artificial intelligence (AI), Block chain and other transformative technologies influencing modern markets. Discussions about R, Python and other popular programming languages often include sample code to help you develop your own analysis. The blog has more than 40 contributors covering markets in the Americas, Europe and Asia.


Connect with IBKR on Facebook, Twitter, LinkedIn or YouTube.

IBKR AWARDS 2019

Interactive Brokers Takes Top Spot in Online Broker Rankings

Interactive Brokers received industry recognition for its low costs, global product selection and premium trading technology.

Interactive Brokers ranked number one in Barron's 24th annual ranking of The Best Online Brokers.6 IBKR was also ranked "Best for Frequent Traders" and "Best for Mobile Traders" and "Best for International Traders." Read the full article.

IBKR also rated #1 for "Commissions & Fees", "Offering of Investments", "Active Trading" and "Professional Trading" in the StockBrokers.com 2019 Annual Review." Read the full article.

IBKR was rated "Best Overall", "Best for Low Costs", "Best for International Trading", "Best for Options Trading", "Best for Day Trading" and "Best for Penny Stocks" in the Investopedia Online Broker Awards 2019. Read the full article.

Margin borrowing is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment.

Supporting documentation for any claims and statistical information will be provided upon request.

Options involve risk and are not suitable for all investors. For more information read the "Characteristics and Risks of Standardized Options". For a copy, call 312 542-6901

Any trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations.

[4] USD credit interest is paid on balances over USD 10,000 in security accounts with Net Asset Value exceeding USD 100,000. For more information, see ibkr.com/interest

[5] Interactive Brokers calculates the interest charged on margin loans using the applicable rates for each interest rate tier listed on its website. For additional information on margin loan rates, see ibkr.com/interest

[6] Interactive Brokers earned top ratings from Barron's for the past nine years with a 4.5 star rating. February 25, 2019, March 26, 2018, March 20, 2017, March 23, 2016, March 21, 2015, March 17, 2014, March 11, 2013, March 14, 2012 and March 14, 2011 Barron's Best Online Brokers. Criteria included Trading Experience and Technology, Usability, Mobile, Range of Offerings, Research Amenities, Portfolio Analysis & Reports, Customer Service, Education and Security, and Costs. Supporting documentation for claims and statistical information will be provided upon request. Barron's is a registered trademark of Dow Jones & Company, Inc.

Please keep in mind that Interactive Advisors is currently licensed to offer investment services to US residents only. This communication or Interactive Advisors' website is NOT intended to be a solicitation or advertisement in any jurisdiction other than the United States. Note that commissions for trades in these portfolios charged by Interactive Advisors' affiliate, Interactive Brokers LLC, are separate and in addition to our management fee. Note that there may be similar offerings in the marketplace with lower investment costs. While based on data provided by FTSE and Russell that calculate the indices these portfolios seek to track, these portfolios are not sponsored or recommended by these two index providers. Past performance is no guarantee of future results, and all investments, including those in these portfolios, involve the risk of loss, including loss of principal and a reduction in earnings. For a set of full disclosures regarding investments in these portfolios, please review this document: index-tracking-risk-disclosure-12-jan-2018.pdf