Hedge Fund Marketplace
The Hedge Fund Marketplace gives you access to our online version of a traditional Capital Introduction program and is designed to help Hedge Funds who use IBKR as their principal Prime Broker market their Funds to our customers who are Accredited Investors and Qualified Purchasers, as well as other Hedge Funds who have opened their funds to investing by qualified IB clients.
The Hedge Fund Marketplace is provided free of charge to all Hedge Funds who use IBKR as their principal Prime Broker and have at least $3 million in assets under management. In addition, eligible Hedge Fund accounts must be have a demonstrated track record of trading for at least one year.
In order to apply for the program the fund needs to complete the Hedge Fund Capital Introduction Program (HFCIP) application. To do this, the fund manager (F account) needs to log into Portal with the primary user. If the fund is not linked to a fund manager then fund itself needs to log in with the primary user to complete the application.
Once logged in select:
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Settings > Investors' Marketplace > Hedge Funds
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From there they follow the instructions on the screen to complete their application.
Secondary users cannot complete the application.
If you do not see the Hedge Funds link in the Investors' Marketplace menu, then you do not qualify for the program.
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Click Application Checklist to view a list of information that you will be asked to provide in the application.
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Click Hedge Fund Marketplace FAQs to view a list of frequently asked questions about the program.
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To apply for participation in the program:
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Read the question on the screen and click either Yes or No to answer.
If you answer No, a message appears informing you that you are not eligible to participate in the Hedge Fund Capital Introduction Program. -
If you answered Yes to the question, click Continue.
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Complete the application, which comprises several pages. Click Continue to advance to the next page in the application; click Back if you need to correct an error on a previous page.
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A list of required documents appears on the last page of the application. Follow the instructions on the page to provide us with the required documents, which will complete your application.
We will review your application as follows:
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Confirmation of a third-party administrator.
Each participating Hedge Fund account identifies at least one Third-Party Administrator, who functions as a second level of approval for investment and redemption requests.
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We will ensure that you have provided proof of commitment from an auditor to complete an audited financial statement for the following year.
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Our Compliance department will review your fund's trading history, investment strategy/objectives, regulatory/legal history and registration status.
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Our Compliance department will review your Fund Management entity, including searches on the company, contact person and officers/directors, and third-party professionals.
Advisor Client Investments in Hedge Funds
Hedge funds can offer advisor clients who invest in their funds a discount on the hedge fund’s standard management fee to encourage investments by financial advisors and their clients. Funds may offer discounts of up to 1% of AUM and/or 5 % of profits.