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If markets fall consistently, trading volumes will fall and this will directly affect IBKR’s revenues. IBKR retains most of its earnings and maintains a strong and conservative balance sheet. Over his long career, Thomas Peterffy has experienced many financial crises, His overriding interactive brokers white label priority is that IBKR should be a safe-haven during market downturns. The EU plans to ban PFOF starting in 2026, and if the US follows suit, the zero-commission brokers could face significant challenges. SES is where companies use their position of the lowest cost producer to offer the lowest prices and win market share and use the scale to win further market share.
How Interactive Brokers Helps Businesses Stand Out
However, the monthly fees can vary depending on the services requested and the level of customization needed to offer the desired services to clients. Regulated UK White Label provider offering multi-asset liquidity and advanced trading technology to financial institutions and retail brokerage firms worldwide. This enables businesses to begin providing brokerage services without requiring considerable capital investment or technological Digital asset skills. It allows them to focus on growing their business while leaving the technical aspects of the platform to the third-party brokerage firm. The TWS User Guide cannot be white branded with the advisor’s logo banner.
Fintech Integration Marketplace
As reviewed in this lesson, White Branding is simple and easy to set up, allowing registered advisors to brand the IBKR software with their own organization’s identity and information. If the advisor is configuring White Branding https://www.xcritical.com/ for the first time, they will need to enable it by clicking Enable and entering a White Branding ID. The White Branding ID must be six to ten characters but if the advisor would like to white brand SMS communications, the ID cannot exceed seven characters. Once the White Branding ID is entered, click save and the advisor will be redirected to the main White Branding configuration page.
White Branding for Introducing Brokers
IBKR understands the challenges of opening a brokerage firm, including the need to highlight your unique services and style among other white-label brokerage companies. For that reason, IBKR has decided to provide a flexible and easily customisable white-label brokerage platform, letting businesses personalise their infrastructure and create a unique brand. Established and experienced broker with customizable services for professional advisors and brokers, offering fast and efficient access to global markets with risk management tools. White branding is a great marketing tool that can give their customers the impression that they are offering a complete package of in-house trading tools and supporting products. Securities or other financial instruments mentioned in the material posted are not suitable for all investors. The material posted does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies.
No marketing outside of the United States
IBKR Pro is the traditional IBKR service designed for sophisticated investors. It offers the lowest cost access to all classes of financial instruments. This product is aimed at Institutional Investors, Funds and Professional trading firms. 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.
Institutions and Trading Groups are more profitable than retail investors and IBKR focus on the former makes sense. IBs are brokers who have their own client bases composed of relatively small clients. IBKR stands somewhere in the middle between the large investment banks on the one hand and the retail targeting entities such as Charles Schwab, Robin Hood, Fidelity or Raymond James on the other. SCHW has a $118bn market cap and it is a diversified company which is an S&L (Savings and Loan) as well and an asset manager and advisor. Peterffy was a pioneer of digital trading in the 1980s, he was the first to build computer systems able to trade financial assets electronically, independent of direct human intervention.
Sometimes there is limited customization available, and potential conflicts may arise with the provider that might affect the services. Additionally, white labeling may not provide a competitive advantage in industries where differentiation is required. One of the most significant benefits is the ability to quickly broaden the product or service range without the need for extensive research and development or extra staff.
IBKR integrates their technology with electronic exchanges and market trading venues, and this leads to transparency, liquidity and efficiencies of scale. IBKR’s philosophy has always been to offer the lowest cost, which encompasses more than the headline trading commissions. As a platform designed for active, professional traders, execution quality matters more than low commissions and fees. IBKR indicates that on average, total commissions and fees amount to just 1 bps of trade value, with execution costs in the range of 2-5x higher.
However, unlike the large firms, IBKR is not involved in equity research, corporate finance or asset management. The company also licenses its trading interface to large banks and brokerages through white branding agreements. IBKR operates worldwide but generates about 70% of its revenue in the US. Fully Disclosed Brokers provide their clients with customer service and marketing.
- Leverate offers a white-label solution for both MT4 and MT5 trading platforms.
- Interactive Brokers offers a solution for Brokers and Professional Advisors to use their own banners for white branding purposes.
- Combining the information from this network with the routing algorithms he devised, Peterffy was able to create a system that could route orders to the exchanges that offered the best prices.
- Fill out the form, and our experts will help you choose the best solution tailored to your specific needs.
- Finally, it is the easiest way for new businesses to enter a new industry.
The management panel displays the risk level at any given moment and allows brokers to configure their settings for different groups of traders or market conditions. Leverate offers a white-label solution for both MT4 and MT5 trading platforms. This allows new brokers to provide this popular Forex trading platform to their own traders without purchasing a full MetaTrader server license. Similarly, for brokers, Interactive Brokers offers a turnkey solution providing access to powerful trading technology and advanced trading tools for trading on over 150 markets in 33 countries. IBKR’s services include pre-trade compliance, real-time market-risk management and monitoring, lower costs with no ticket charges or minimums, and a suite of advanced trading technologies called IBKR BestX.
This, in part, reflects a different business mix and approach but also reflects the efficiency that accrues to IBKR due their technology platform. IBKR’s DNA is leveraging technology to automate as much as possible, which drives down costs. A large part of the workforce and most of the senior management have a technology and systems background. Although a high percentage of current income comes from the USA, 80% of new customers coming from outside the US.
IBKR has excellent technology and processes to monitor markets and collateral values and trigger margin calls. However, these can still fail to prevent losses during periods of higher market volatility. IBKR focuses on customers who trade the most volumes as well as those who trade the most frequently. It also means not actively chasing the resource-intensive small, and relatively inactive, retail clients.
The TWS User Guide cannot be white branded with the broker’s logo banner. Once the banner has been uploaded, brokers can use their custom white branded link which contains their White Branding ID at the end of this link. This caused a huge increase in trading activity which was the wave which all of the brokerage businesses have enjoyed riding, including IBKR. IBKR lends money to investors and is at risk if customers default after losing money, during financial crises or big market events.
Timber Hill came to serve as a vehicle through which equity options trading activities were undertaken as well as a laboratory for implementing Peterffy’s vision for making financial markets more efficient. Not satisfied with using daily cheat sheets, Timber Hill created the first handheld computers for live option pricing in 1983, which gave Peterffy’s traders an advantage over their counterparts[5]. Note we use the term “trader” to describe IBKR’s clients because that’s what the company uses; many clients use the platform to buy and hold stocks (i.e., invest rather than just to “trade”). Saxo Bank assists its partners with a pre-launch project management team, including design and architecture experts who can configure and implement the white-label solution. They offer both off-the-shelf solutions and tailored packages to meet specific business needs.