Interactive Brokers Group, Inc. (NASDAQ GS: IBKR) announced today the official launch of its Investors’ Marketplace, a new online service where traders can browse and hire financial advisors, fund managers, research analysts, technology providers, business developers and administrators.
With this move IB is trying to leverage its large retail client base of traders to enter the wealth management space, as to advertise their services, advisors, money managers, hedge funds and brokers must have an IB account. Meanwhile, other third-party service providers, such as compliance, legal and administrative firms, can list without an IB trading account.
The firm says the Investors’ Marketplace has grown significantly since its beta launch earlier this year. The Marketplace now lists more than 300 advisors, brokers, money managers and hedge funds, upwards of 120 research providers, 75 administrative service providers and 295 participating technology providers.
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Interactive Brokers has more than 300,000 customers, some of whom are high net-worth clients who may be eligible to invest a portion of their account in a hedge fund. The Marketplace provides a means through which participating hedge funds can market their funds to IB clients who are qualified as Accredited Investors and Qualified Purchasers.
Thomas Peterffy, founder, chairman and CEO of Interactive Brokers, said of the launch, “We believe that the Investors’ Marketplace will make it easier for the investment community to find the best value service providers, and for our participating service providers to more efficiently reach individual and institutional investors worldwide.”
In August, IB will also be adding Covestor to the Investors’ Marketplace, giving investors direct connections to money managers. They will be listed at the Advisors category as robo-advisors.