Soft Dollar Commission Program
Soft Dollars to Offset the Cost of Research Products and Services
Interactive Brokers' Soft Dollar Commission Program gives eligible clients the flexibility to offset the costs of purchasing approved research products and services by using soft dollars.
As provided under paragraph 13 of the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission ("Code"), a portion of commission dollars can be set aside to pay research-related costs incurred by intermediaries. Eligible clients can specify amounts to add to IB commissions to set aside as a pool of available money (Soft Dollars), which can be used to pay for research products and services.
Clients can then pay allowed expenses for research products and services to external vendors. Allowed categories of expenses include:
- Research and Advisory Services
- Economic and Political Analysis
- Portfolio Analysis, including Valuation and Performance Measurement
- Market Analysis, Data and Quotation Services.
Our Soft Dollars Commission Program offers the following benefits:
- Unbundling execution and research allows money managers to seek best execution while acquiring research from virtually any source.
- Online account management lets you view your soft dollar balances and invoices, and request disbursements at any time.
- Specify up to five soft dollar tiers, and select a tier at the time of order submission.
- Soft dollar amounts accumulate and are available for US stock and option products.
- Use your accumulated soft dollars to pay for research products and services.
- Your soft dollar balances are segregated under Securities and Futures (Client Money) Rules and held separately from the firm’s assets.