Interactive Brokers Launches Hub for Third-Party Service Providers

Interactive Brokers Group, Inc. (NASDAQ GS: IBKR) announced today the official launch of its Investors’ Marketplace, a new online service where traders can browse and hire financial advisors, fund managers, research analysts, technology providers, business developers and administrators.

With this move IB is trying to Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term its large retail client base of traders to enter the wealth management space, as to advertise their services, advisors, money managers, hedge funds and brokers must have an IB account. Meanwhile, other third-party service providers, such as Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term, legal and administrative firms, can list without an IB trading account.

The firm says the Investors’ Marketplace has grown significantly since its beta launch earlier this year. The Marketplace now lists more than 300 advisors, brokers, money managers and hedge funds, upwards of 120 research providers, 75 administrative service providers and 295 participating technology providers.

Interactive Brokers has more than 300,000 customers, some of whom are high net-worth clients who may be eligible to invest a portion of their account in a hedge fund. The Marketplace provides a means through which participating hedge funds can market their funds to IB clients who are qualified as Accredited Investors and Qualified Purchasers.

Thomas Peterffy, founder, chairman and CEO of Interactive Brokers, said of the launch, “We believe that the Investors’ Marketplace will make it easier for the investment community to find the best value service providers, and for our participating service providers to more efficiently reach individual and institutional investors worldwide.”

In August, IB will also be adding Covestor to the Investors' Marketplace, giving investors direct connections to money managers. They will be listed at the Advisors category as robo-advisors.