Interactive Brokers’ TWS platform adds Static and Dynamic investment allocations for advisors
Electronic trading major Interactive Brokers has released build 10.26 of its TWS platform.
Advisors can now choose between “Static” and “Dynamic” methods of applying allocations across models. You define target allocations during initial funding.
Static: If you select “Static,” these initial allocation percentages are saved and applied each time you invest in the model, and are used as the targets when you rebalance the model.
Dynamic: As prices change, the allocation ratios you defined with your initial investment may also change. If you select “Dynamic,” the next time you invest in the model it will use allocation percentages as close to the “new” percentages as possible.
Use the Static/Dynamic toggle in the top right corner of the Set Target Allocation tool to set the method.
Updates to the Tax Loss Harvesting tool allow advisors to take advantage of potential losses across client accounts and multiples securities. Previously the tool showed potential losses for a single stock at a time. This functionality is coming soon to individual accounts.
Tax-loss harvesting is a tax strategy that involves selling investments at a loss to offset capital gains realized elsewhere.
The Tax Loss Harvesting the tool allows Advisors to constantly watch for opportunities to minimize taxes by identifying losing opportunities.
- Identify securities (long or short) with unrealized losses across all client accounts.
- Identify losses and transact at the lot level, as well as at the entire position level. This can be beneficial in instances where the security has overall gains, but has some lots that are at a loss.
- Easily allocate the proceeds into replacement securities.
- Provides indication of how much of the projected losses will be disallowed based on strict wash rules surrounding which losses are allowed.
Advisors can now have the order quantity for Account Group calculated as a percent of their position for Account Groups with “User-Specified” allocation methods. Account Groups automatically calculate ratios and allocate shares to a pre-defined group of accounts based on a selected allocation method.
If you create a group using any of the User-Specified methods which include Contracts/Shares, Ratio Based, Percent Based and Monetary Amount, when you create an order for that group and click in the Quantity field, in addition to USD and Shares you will see the % Chng selection.