Detailed comparison: trial and client accounts


 

IB Asset Management trial account

IB Asset Management client account



Scope of services

IB Asset Management trial account

A IB Asset Management trial account is for demonstration purposes only, with functionality limited to the following:

  • - All account activity utilizes simulated account balance, with an initial balance of $100,000 virtual dollars;
  • - Investing in & redeeming from IB Asset Management portfolios;
  • - Simulated performance and account valuation changes, based on the manager returns net of fees;
  • - Simulated risk profile and investment objectives; and
  • - All results in IB Asset Management trial accounts (gains, losses, portfolio valuations, and performance returns) are fictional and will not result in any financial impact to the user, and no actual investment orders or security trades are executed in this account.
IB Asset Management client account

IB Asset Management provides discretionary investment advisory services, as disclosed in our Investment Management Agreement and Informational Brochure, found at http://site.ibkram.com/agreements

Clients authorize IB Asset Management to make investment decisions for their assets under IB Asset Management’s management.

All ibkram.com client account pages are available and functional for IB Asset Management clients, including the following:

  • - Portfolio valuation and performance results;
  • - Holdings and transactions history;
  • - Investment instructions and history; and
  • - Risk profile and investment objectives

The investment account results displayed on these ibkram.com client account pages reflect the actual investment results of the client’s assets as managed by IB Asset Management.


Registration

IB Asset Management trial account

IB Asset Management and a trial account subscriber do not enter into an investment services contract.

A IB Asset Management trial account may be established upon registration at ibkram.com with a valid email address.

IB Asset Management trial accounts require the use of a unique email address. If trial account users wish to become clients of IB Asset Management and use the same email address, they must terminate their trial account prior to establishing their actual managed client account.

IB Asset Management client account

Clients wishing to open an IB Asset Management client account must execute IB Asset Management's Investment Management Agreement and complete the online sign-up process at ibkram.com to obtain IB Asset Management’s discretionary investment advisory services.

If you are considering engaging IB Asset Management as your investment adviser, go to http://site.ibkram.com/why-choose-us


Duration

IB Asset Management trial account

Active for 30 days, starting on the date the trial account is established.

IB Asset Management trial accounts will be deactivated by IB Asset Management at the end of the 30-day time period.

IB Asset Management client account

The Investment Management Agreement is in force until terminated by either the client or IB Asset Management.


Brokerage account

IB Asset Management trial account

No brokerage account is required or used in connection with the IB Asset Management trial account

No actual funds are held or invested in the trial account.

IB Asset Management client account

A separate brokerage account is required to be opened and funded by the client. Currently, clients must open a brokerage account with Interactive Brokers and authorize IB Asset Management’s use of that account.

For more information on Interactive Brokers, see http://www.interactivebrokers.com/ibg/main.php.


Funding

IB Asset Management trial account

Virtual funds for demonstration purposes only ($100,000).

IB Asset Management client account

Brokerage account must be funded by client in US dollars.


Minimum account balance

IB Asset Management trial account

Virtual (fake) dollars ($100,000)

IB Asset Management client account

Minimum account requirement: US $5,000.

Recommended for day trading account: US $30,000.


Fees - IB Asset Management

IB Asset Management trial account

IB Asset Management management fees are not charged on trial accounts and are shown as a deduction from the account for illustrative purposes only.

Sample billing statements will be generated for demonstration purposes only.

IB Asset Management advisory fees are estimated based on current portfolio management fees applicable to the specific portfolio selected for investment.

Estimated trial account fees are applied the first day of each month and calculated based on the valuations for each investment as of the last day of the previous month.

IB Asset Management client account

IB Asset Management’s investment fees are a percentage of funds invested in each portfolio and vary by portfolio. Investment fees are billed monthly and debited directly from client’s brokerage account.

For more information on fees, see: http://site.ibkram.com//low-fees


Fees - broker costs

IB Asset Management trial account

Estimated brokerage commissions are not charged on trial accounts but the simulated performance and account valuation for trial accounts is based on the manager returns net of fees and commissions.

Actual client accounts will incur brokerage commissions including commissions associated with establishing and redeeming individual investments, which will vary from the brokerage commissions used for purposes of simulating the performance and account valuation of trial accounts.

IB Asset Management client account

Client account costs are subject to a separate brokerage account agreement and includes all applicable trade commissions and account activity fees incurred by the client.

Actual client accounts will incur additional expenses (e.g., commissions) associated with establishing and redeeming individual investments (holdings).


Risk score & exclusions

IB Asset Management trial account

Simulated risk score:

IB Asset Management calculates a risk score, based on answers provided by clients to a risk questionnaire.

But, unlike in an actual managed client account, clients cannot exclude specific securities from the results of a trial account.

IB Asset Management client account

Actual client risk score:

IB Asset Management calculates a risk score, based on answers provided by clients to a risk questionnaire. Clients are also able to specify individual security exclusions or investment restrictions.


Performance & results

IB Asset Management trial account

Net account value in the trial account is the sum of the latest value of the investments and unallocated cash.

Daily valuations of investments are estimated based on:

  • - the dollar amount allocated to each investment, and
  • - the cumulative manager return for each portfolio for the duration of the investment, net of fees.

Investments in trial accounts will not result in any replicated trade activity and are not included in the count of actual investments into portfolios.

Trial account valuations are calculated using the manager return net of fees, reflecting the deduction of actual brokerage fees incurred and a simulated IB Asset Management advisory fee that would be charged to an actual IB Asset Management client account. The impact of these expenses may be understated or overstated.

Trial account performance returns are limited to the calculation of simple returns for investment gain or loss in investment value divided by initial investment amount, calculated on a nonaccrual basis.

Actual client results and performance will vary from activity shown in the trial account.

IB Asset Management client account

Net account value in the client account is the sum of the latest value of the investments and unallocated cash.

Daily valuations of investments in client accounts are based on actual investment activity in the client’s account (holdings and current market prices).

For more information on IB Asset Management performance, go to http://site.ibkram.com/help/disclosures

Actual client results will vary. Sources of this variation may include:

  • - Individual client restrictions or excluded securities;
  • - IB Asset Management’s trade replication process and trading rules;
  • - Client account size; and
  • - Investment suitability as determined by IB Asset Management.

Additional information regarding services and functionality

IB Asset Management trial account

Limited services & functionality:

  • Place instructions to invest or redeem individual portfolios
  • No IB Asset Management trade replication
  • ibkram.com online account information
  • (limited access - virtual funds)
  • - Account summary - enabled
  • - Investment instructions - enabled
  • - Account holdings detail - enabled, but displays holdings in underlying portfolio(s)
  • - Account transaction detail - enabled, but displays transactions in underlying portfolios
IB Asset Management client account

Full service & functionality:

  • Place instructions to invest or redeem individual portfolios
  • IB Asset Management trade replication - enabled
  • - IB Asset Management is authorized to initiate investment trades in client accounts based on investments in IB Asset Management portfolios and IB Asset Management’s trade replication process.
  • ibkram.com online account information
  • (Full access - live assets)
  • - Account summary - enabled
  • - Investment instructions - enabled
  • - Account holdings detail - enabled
  • - Account transaction detail - enabled

Available portfolios to follow

IB Asset Management trial account

Limited by IB Asset Management for demonstration purposes, generally based on the manager and IB Asset Management’s decision to make a trial account available for a specific portfolio.

IB Asset Management client account

All active portfolios available for investment, subject to IB Asset Management suitability evaluation and risk score matching.