Soft Dollar Commission Program

Interactive Brokers' Soft Dollar Commission Program gives hedge and mutual funds and Professional Advisors the flexibility to offset the costs of purchasing approved research products and services using soft dollars.

As defined under the Securities Exchange Act of 1934 section 28(e), a portion of commission dollars can be set aside to pay research-related costs incurred by advisors and fund managers. Eligible IB Clients can specify amounts that can be added to IB commissions and set aside as a pool of available money (Soft Dollars), which can be used to pay for market data and research.

IB Clients can then pay allowed expenses for market data and research subscriptions to external vendors. Allowed categories of expenses include fundamental, technical and/or quantitative analysis; portfolio management, valuation and asset allocation services; and economic forecasting.

IB's 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.