Hedge fund prime brokerage statistics from Preqin reveal that Interactive Brokers comes out on top for providers serving hedge funds with assets under management (AUM) up to US$50 million and the fifth largest provider of prime brokerage services overall by number of hedge funds.
The news comes as many funds find themselves underserviced as some large banks exit their prime brokerage businesses. Despite this, hedge fund assets grew to more than US$4 trillion as of Q3 2023.
Interactive Brokers ascribes its success in this environment to its “strong” capital position with equity capital of US$13.3 billion and excess regulatory capital of US$9.4 billion, as well as no custody fees or AUM minimums, and margin rates as low as US$ 5.83%.
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