Financial advisors using the IBKR platform have multiple options for charging clients, including automatic billing, electronic invoicing, and direct billing. Advisors can set up fee schedules during client registration and modify them anytime within the IBKR Advisor Portal (IBKR Traders´Academy, s.f.).
- Configuring Client Fees
To manage fees for existing client accounts, advisors can navigate to the Fees menu by expanding Administration & Tools and Fees & Invoicing in the left-hand navigation menu. The current fee schedule can be viewed and edited for each account, and any changes require client approval before becoming effective. Clients can approve changes electronically via their Client Portal or by signing a paper form generated by the advisor.
- Client Fee Templates
Advisors can simplify fee management by using Client Fee Templates, which allow for consistent fee schedules across multiple client accounts. A blank default template is available for new advisors, which can be customized and applied to new accounts unless otherwise specified (IBKR Traders´Academy, s.f.).
To manage templates, advisors access the Configure Client Fee Templates page via the Fees & Invoicing section. Templates can be viewed, edited, deleted, or applied to accounts, with any changes requiring client approval.
Creating a new fee template involves naming the template, selecting whether it should be the default, and specifying the fee strategy. Advisors can choose from various methods for configuring fees, such as Annualized Percentage of Net Liquidation, Annualized Flat Fee, Percentage of P&L, and Invoicing. Automated billing structures calculate and debit fees directly from client accounts, while invoicing allows for manual fee calculations and submissions.
- Additional Fee Methods
Advisors may have access to a Fee Per Trade Unit method, depending on their location and registration, allowing them to charge clients per share, per contract, or as a percentage of trade value. This method is not available for US or US protectorate residents, except for US commodity-registered advisors (IBKR Traders´Academy, s.f.).
- Charging Commissions and Client Fees to the Advisor
Advisors can opt to charge client commissions and market data and research fees to their own master account, with charges reverting to the client account if the master account balance falls below $1,000.
- Fee Reimbursement
Advisors can reimburse client fees up to 50% of invoices for the trailing 12-month period through the Fee Reimbursement menu. They can also modify or cancel pending reimbursements and view processed reimbursement details.
- Fee Invoice Notifications
IBKR provides automatic invoice notifications for advisory fees, helping advisors meet compliance obligations. Advisors can configure these notifications to be sent to clients’ email addresses, message centers, or both. US Registered advisors are automatically enrolled for these notifications, while other advisors must instruct IBKR to send them (IBKR Traders´Academy, s.f.).