advisor
‍ fees

As an Advisor, you can elect to charge client commissions to your own Advisor master account when configuring fees for a client account. Commission charges will revert to the client account if the Advisor master account has a balance of less than 1000 USD or equivalent when the commission charges are posted.

By default, minimum monthly fees, market data and research fees are charged to Advisor client accounts. However, Advisors can elect to charge these fees to their own Master account for each client account. Client fees will be charged to the client account if the Advisor master account has a balance of less than 1000 USD or equivalent when fees are posted.

Advisors can reimburse fees to client accounts up to a maximum of 50% of invoices (net of any prior rebate) for the trailing 12-month period. Advisors can also modify or cancel pending fee reimbursements and view the details of fee reimbursements that have already been processed.

End of Month_/Quarter_ fee is calculated by using the End of Month_/Quarter_ Net Liquidation Value, the rate and the number of business days in a particular month period.

Clients will be charged for number of business days in a month period for which the fee configuration was enabled.

Clients will not be charged if funds are withdrawn on the last business day of the month period.

Fees will be charged the first U.S. business day of the next month.

Formula:
(Last Business Day of Month/Quarter NLV amount * Rate) / (Number of business days per year / Number of Fee Days)
Number of business days per year set as 252
Number of Fee Days is the number of business days in a month period for which the fee configuration was enabled

Entered as an annualized amount, applied on a daily, monthly or quarterly basis (apportioned by 252 days).

Advisors who select a threshold set a static number or index/benchmark as a performance fee on an annual or quarterly basis. Your client's performance must exceed the threshold for the fee to be assessed to the client.

For example, if the Advisor charges an annual performance fee of 20% and sets a 10% threshold, he/she would not be paid a fee if the client account’s annual money weighted return is less than or equal to 10%. If the account’s return for the year was 50%, the FA will receive a 20% performance fee on the excess return. (20% of (50%-10%)).

To help Advisors who bill advisory fees using one of IBKR's Automatic Calculation options meet their compliance obligations, we can send your clients invoices detailing the advisory fees automatically calculated and deducted from their accounts (as they have requested) when those fees are actually charged. These notices describe the method used to calculate the fee, the amount of the fee and the period covered by the fee.

Some states' "custody" rules require that advisors send, or have their broker send, these invoices to clients who sign up for automatic billing of advisory fees. (You may also need to send these invoices to your clients if you have "custody" under the SEC's or your state's custody rule for another reason.) Please review the state (or SEC) rules relevant to your firm to determine if you need IBKR to send your clients these invoices.

In Advisor Portal, you can configure how we send these notices to all of your clients: by email only, by email and in the Customer Service Message Center, or no notification at all. Please note that by default, US Registered advisors will be enrolled during the application. For all other advisors your clients will NOT receive these notices and you must instruct IBKR (through Advisor Portal) to send these invoices to your clients. Regardless of whether you sign up for invoices, all advisory fees processed through IBKR are reflected on the client's Activity Statements.

When you configure client fees or create a client fee template, you can include a maximum invoicing amount or percentage cap on a monthly or quarterly basis. You can charge up to a maximum percentage annually. We calculate the daily equivalent of that limit by multiplying the maximum annual rate by the value of your account at the end of each business day of the previous month or quarter and dividing that by the average number of business days per year. The sum of those daily values over the course of the month or quarter is the maximum amount you can charge for that month or quarter.

You can set an amount or a percentage cap or both. If you set both the amount and the percentage cap, we will use the lower of the two amounts as the amount to be charged.

For percentage cap, we look back on the prior period to calculate the fee limit, while amount looks at the current period.

(Fee Cap % x Ending Client NAV) / 252
where 252 is the average number of business days in a year.

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For example

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• If you configure a new monthly fee percentage cap on July 1st, you will not be able to bill until August 1st. The fee limit in August will be based on the percentage cap you set in July.
• If a client account is configured for a maximum invoicing amount of 500 USD on a monthly basis and you log into Account Management to submit an invoice for the client in July, the total amount processed in July cannot exceed 500 USD. You can submit multiple invoices but the total cannot exceed 500 USD for the month.
• If a client account is configured for maximum invoicing amount of 1000 USD on a quarterly basis and you log into Account Management to submit an invoice for the client in July, the total amount processed between July and September cannot exceed 1000 USD. You can submit multiple invoices but the total cannot exceed 1000 USD for the quarter.
• If a client account is configured for percentage cap on a monthly basis and you log into Account Management to submit an invoice for the client in April, the available fee amount is based on the client's daily NAV for March. You can submit multiple invoices but the total cannot exceed the limit for the period.
• If a client account is configured for percentage cap on a quarterly basis and you log into Account Management to submit an invoice for the client in November, the available fee amount is based on the client's daily NAV from July to September. You can submit multiple invoices but the total cannot exceed the limit for the period.

Automatic Billing and Electronic Invoices are subject to the following caps and limitations:

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• If an auto-liquidation occurs, no client fees will be automatically billed.
• IBKR caps the amount of advisor fees earned in any 360 day period to 25% of the client's average equity over this period, with additional cap limits at 30 day increments in between (i.e. 7.2% over the last 30 days, 17.7% over the last 180 days). When any fee cap is exceeded for a client, the advisor will not receive any client fees until the fee cap is no longer exceeded. IBKR will continue to charge its standard commissions when the fee cap limit is exceeded. Please be aware that advisors are solely responsible for ensuring that the fees they charge are reasonable and in accordance with regulatory requirements. The complete cap schedule is as follows:
• Client fee cap availability for the day will be reported under Account Management/Report Management. For complete details on how the fee cap is calculated, click here.
• A fee per trade may be charged for clients outside of the US (or US protectorates). In addition, a fee per trade may be charged for futures, futures options, Single Stock Futures and Forex trades of US clients if the advisor is registered with the NFA. This fee may not exceed 15 times IBKR's commissions, and no fee per trade will be applied if the client calls IBKR to close a trade.

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