Interactive Brokers launches ‘IMPACT’ mobile trading app
Electronic trading major Interactive Brokers Group (NASDAQ:IBKR) today unveiled IMPACT, a mobile trading application for socially conscious investors.
Expanding upon Interactive Brokers’ Environmental, Social and Governance (ESG) trading initiatives, IMPACT features a simple and intuitive app design that streamlines the sustainable investing process for any investor and gives U.S. clients access to zero commissions on U.S. stock trading.
The launch comes at a time when ESG considerations have become increasingly important to investors on a global scale. The Global Impact Investor Network estimates the total size of the market at USD 715 billion managed by 1,720 organizations.
IMPACT allows investors to select their personal investment criteria from 13 impact values and principles: Clean Air, Pure Water, Ocean Life, Land Health, Consumer Safety, Ethical Leadership, Gender Equality, Racial Equality, LGBTQ Inclusion, Company Transparency, Sustainable Product Lifecycle, Mindful Business Models, and Fair Labor & Thriving Communities. Investors can also exclude investments based on 10 categories: animal testing, business ethics controversies, corporate political spending and lobbying, energy-intensive, fossil fuels, greenhouse emissions, hazardous waste, high water usage, tobacco, alcohol and gambling, and weapons and gun manufacturers.
Based on these selections, the app provides impact scores on existing portfolios and holdings and identifies companies that align with investors’ selected criteria. (Interactive Brokers uses ESG data provided by third-party vendors and combines it with a client’s value preferences to generate impact scores.) This, along with the ability to review financial metrics for stocks and examine companies’ impact scores, affords investors the opportunity to improve their scores through the selection of alternative companies in a simple and efficient manner.
IMPACT also includes the “Swap” feature, a unique offering that gives users the ability to swap positions in the same dollar amount from one security to another. With one tap, investors can buy and sell securities simultaneously based on the comparative impact scores of one company versus another.
“The IMPACT ‘Swap’ function goes a step further than our competitors to allow clients to easily re-align their portfolio positions with what they care about the most, which we’re really proud of,” adds Edward Soffer, ESG Manager at Interactive Brokers. “The app is designed for modern-day investors who understand that their investments make an impact and catalyze change.”
Additional tools and features available on the IMPACT app include:
- Charitable Giving: IBKR GIVE enables users to align their IMPACT values with non-profit organizations and make cash donations directly from the app. Using a comprehensive directory of U.S. charities and non-profit organizations from GuideStar by Candid, IMPACT gives users the opportunity to easily donate to a charity matching their values or search for a non-profit of their choice. This feature is only available to U.S. clients.
- Guided Investing Experience: IMPACT provides access to Socially Responsible Investment portfolios through Interactive Advisors. IMPACT users who are interested in these ready-made portfolios will be directed to Interactive Advisors to open an account.
- Access to Cryptocurrency: Investors will have access to cryptocurrency trading, enabling clients to trade and custody Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) via Paxos Trust Company. This feature is only available to U.S. clients.