We often see questions like this:
Can you explain the relationship between Marsco and Interactive Brokers? We custody with IB and want to keep doing so. I see Marsco and that is who we completed paperwork with, but is Marsco related to IB in some way, or is it a separate custodian altogether?
In short, Interactive Brokers is your custodian, and Marsco is a fully-disclosed introducing broker to Interactive Brokers. Marsco and TradingFront are affiliated and under common control.
Below is the detailed explanation and you can use it in your investment management agreement, ADVs, and/or on a website if you see fit.
Disclosure for TradingFront
The (your brand name of the offering) offers investment advice through the (your brand name of the offering), an online platform that guides clients through the investment management process and provides management services, powered by TradingFront. TradingFront operates a proprietary website, www.tradingfront.com. TradingFront is a white-label, customizable technology platform built expressly for RIAs. TradingFront is not an investment advisor, not a custodian, and only provides technology solutions. Interactive Brokers is an indirect shareholder of TradingFront.
- TradingFront's address: 3803 West Chester Pike, Suite 215, Newtown Square, PA 19073
- For TradingFront's security white paper, please visit https://www.tradingfront.com/security.
Disclosure for brokerage practices
Pursuant to the governing agreements in place with the respective client, the (your brand name of the offering) may have the authority to determine the broker-dealers to be used to effect securities transactions and the commission rates to be paid. Where the Firm has authority to direct brokerage, for the trades generated from (your brand name of the offering), the (your brand name of the offering) will typically direct trades through Marsco Investment Corporation (“Marsco”, https://pro.marsco.com/) which serves as a fully-disclosed introducing broker to Interactive Brokers. Interactive Brokers is the execution broker, clearing broker, and custodian. For more information about Marsco, please visit https://brokercheck.finra.org/firm/summary/18483. For more information about Interactive Brokers, please visit https://www.interactivebrokers.com/en/home.php.
- Interactive Brokers' address: 8 Greenwich Office Park, Greenwich, CT 06831
- Marsco Investment Corporation's address: 101 Eisenhower Pkwy # 105, Roseland, NJ 07068
- For Interactive Brokers's SOC and compliance, please visit https://www.interactivebrokers.com/en/index.php?f=2334.
Please consult with your firm CCO regarding ADV Item 2 (11)/ Internet Advisor to determine whether you need to disclose your firm as an Internet Advisor, if you intend to provide investment advisory solely through the internet.