The company reported 2,951 employees in Q2 2024, of which only 1% are in sales. These 30-odd salespeople handle institutional prospects such as introducing brokers, hedge funds and investment advisors. Individual clients are mainly acquired through word of mouth and automated advertising channels. This has resulted in customer acquisition cost[8] per new account declining by over 70% over the past 10 years. IBKR’s lowest-price philosophy extends beyond net execution costs, as the platform also interactive brokers white label pays the highest interest on idle cash and charges the lowest interest on margin loans.

What is the cost of establishing a White Label brokerage?

Once the White Branding ID is entered, click save and the broker will be redirected to the main White Branding configuration page. Interactive Brokers provides the ability for Brokers and Professional Advisors to white brand the Contract Database on the IBKR website by entering information in Client Portal. Part of the information you enter includes links to two images that you create – a leftmost image that must be 244 x 58 pixels and rightmost image that must be 371 x 58 pixels – and a link to your own stylesheet. White branding gives you the ability to display your own logos and company information on our trading platforms and reporting https://www.xcritical.com/ systems. Valuations look stretched across asset classes which means that stagnation of valuations, or a downside correction, are more likely than a continuation higher.

Sales Enablement: Design Programs That Drive Business Strategy

However, there is no free lunch and investors who opt for commission-free Non-fungible token trading tend to pay higher prices. The Shortable Instruments (SLB) Search tool is a fully electronic, self-service utility that lets clients search for availability of shortable securities. Shortable availability and borrow fees are broadcast in real-time on Trader Workstation (TWS), IBKR Desktop, the Client Portal, FTP files and API data feeds. The Investors’ Marketplace lets individual traders and investors, institutions and third-party service providers meet and do business together.

Adding Contacts in the Broker Portal

Individual investors account for around 50% of market cap and 60% of trading volume in China’s A-share market. While there’s a lot of competition for IBKR in North America, globally there’s less competition among brokers. One of the major trends in investing in the last few years has been the massive growth of passive investing through vehicles such as ETFs.

Best White Label brokerage providers (

Therefore, it may not be necessary for the advisor to white brand these sections. However, in this lesson, we will still cover how to white brand these sections in the event the advisor chooses to do so. Advisors can also opt to hide the Investors’ Marketplace from their clients as well as IBKR’s customer service tools and instead replace them with a link to the advisor’s customer service page.

With such a high degree of customisation capabilities, your white-label forex broker will have the opportunity to establish itself as an independent and distinguished provider of forex brokerage services. IBKR has decided to transform their robust service package into white-label trading software, letting businesses tap into extensive brokerage offerings and start their own forex brokerage companies. Potential downsides when using a White Label solution include the lack of control over product development.

I am just calling out macro-economic factors that may impact all businesses in this space over the next 5-10 years. Money was so easy to make during this period, often referred to as the “everything bubble,” that nearly everyone fancied themselves a financial expert with the Midas touch. IBKR is likely to see steady revenue growth in US in the next few years. Overseas revenue is likely to grow faster due in large part to growth in emerging markets.

The solution is highly customizable, which allows for a quick and easy setup of the broker’s business. Furthermore, the white label service includes detailed documentation for each feature and transparent pricing. X Open Hub’s complete outsourcing solution offers a cost-effective way for brokers to offload expensive licensing, ownership, IT infrastructure, maintenance, and additional staff costs.

In particular, with recent the growth of information systems online directed at DIY investors, many new active investors are emerging particularly in the emerging economies. IBKR currently has $380 billion in AUM, which is less than 1% of retail equity. They have been growing faster than the market for many years and are likely to continue to do so. IBKR’s number of accounts has grown by about 25% CAGR in the last ten years. Customer equity has also grown impressively grown in line at about 26.62% CAGR. The two items have grown in line but current assets have always been greater than liabilities as shown below.

Senior management have a technology background and have all been with the company over three decades. IBKR lost $104mn when oil prices went negative in 2020 and $120mn during the Swiss franc event in 2015. IBKR has strong risk management and a huge $10bn in excess capital to cushion potential losses.

The IBs pay standard commission rates and pay or receive interest on cash or borrowings before marking them up to their end clients. A division of HSBC Bank acts an IB and offers IBKR platform to its trading clients. IBKR appeals to professional traders including Hedge Funds who are unable to secure Prime Brokerage relationships with the likes of JP Morgan, Morgan Stanley or Goldman Sachs. These Fund may be too small, or their investment strategies do not require the high levels of trading the big banks demand. As many exchanges stopped opened outcry trading formats and became electronic in the 1980s, there was need for an electronic platform for professional traders who did not want to miss out on the growing electronic liquidity.

• The company’s pre-tax margins are phenomenal – right up there with top S&P 500 margin earners such as Visa and Nvidia, and more than twice the margin of peers.
• Over 20 years of White Label experience providing tailored off-the-shelf and customized solutions, enabling licensed financial institutions to expand their product offerings with full client control.
• The branded platforms are available on both the web and mobile, with advanced branding possibilities enabling their partners to start a new line of business immediately.
• IBKR earns interest income on margin lending as they lend money to clients to leverage their portfolios.
• Once the White Branding ID is entered, click save and the advisor will be redirected to the main White Branding configuration page.

On the client-facing side, IBKR has been developing and improving its desktop Trader Workstation (TWS) for over 20 years and it is regarded as one of the most fully featured platforms available to professional traders. In this article, we have reviewed some of the top White Label providers in the industry, offering a wide range of products and services to suit brokers of all sizes and levels of expertise. With their cutting-edge technology, personalized support, and flexible pricing plans, these providers can help you build and grow a new brokerage business while providing traders with a seamless and secure trading experience. Brokers can also opt to hide the Investors’ Marketplace from their clients as well as IBKR’s customer service tools and instead replace them with a link to the broker’s customer service page. When all the requested changes have been made, click Save and a popup menu will appear indicating the broker can logout and log back in to view the updated changes.

The Client Account Templates allow the broker to specify the account type, trading permissions and trading objectives that will be automatically applied to the application. IBKR offers Introducing Brokers (IBs) multiple options for adding or migrating clients to our platform. This lesson will walk through initiating client applications through the Broker Portal. The team behind this reliable platform has constantly iterated on their core products and delivered much-needed improvements regularly. So, pairing with IBKR ensures safety, regulatory prowess and the ability to provide a wide range of forex services.

It supports various platforms, including Web, desktop, PWA (Progressive Web App), iOS, and Android. Advisors can easily access white branding through the Advisor portal and configure the settings to fit their needs. Interactive Brokers offers comprehensive instructions on how to set up white branding on their website and a dedicated team available for further information about the program. The IBKR white branding process usually takes no more than two hours, except for statements, which may take up to 24 hours.