Why IBKR?

Institutional and retail clients of the China Foreign Exchange Trading Center can now trade a full range of U.S. stocks, bonds and ETFs through IBKR, as well as access to another 90 stock markets around the world.。

The move will also provide customers of the China Foreign Exchange Trading Center with piecemeal stock trading, extended ETF trading hours, and algorithmic order type and execution services that are currently unavailable elsewhere in Taiwan and will be provided to Sinopac Securities by IBKR's prime brokerage business.。

The business provides a "turnkey" white label solution for introducing brokers (IBs) or agents, enabling them to use advanced trading platforms and helping them reduce operating, brokerage and settlement costs。Under the white label arrangement, IB can use the front end and reports identified by its brand.。

The prime brokerage business also supports IB in regulatory reporting, multi-currency account financing and customer relationship management (CRM).。

IBKR isn't the only online broker offering white-label and prime brokerage services。For example, Danske Bank and Saxo offer their own white-label solutions to regulated entities, which can offer these services on a customer-disclosure or non-disclosure basis.。

Saxo assists white label clients in areas such as KYC and due diligence, risk management and market data, and provides them with all front-end trading solutions。

Saxo also provides special support for robo advisors who have their own front-end but may want to take advantage of managed account technology, or provide specialized execution and post-trade services such as custody and reporting.。The Company also provides collateral management and overnight financing services for leveraged transactions.。

By offering white label and prime broker solutions to third parties, established trading businesses such as IBKR and Saxo can give small businesses and startups a head start and control costs by leveraging the infrastructure and expertise of large companies。This allows them to offer a wider range of services to their own customer base。

IBKR: White Label and Prime Broker

Prime brokers and white labels can help grow investment and trading businesses quickly, allowing business owners to focus on growing their customer base, business and returns, while prime brokers manage daily processing, reporting and technology stacks。

These initiatives are welcome, but they also need to be carefully managed as they pose reputational and business risks to the ultimate provider.。