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Duration: 7:10

Instructor:

Contributor: Interactive Brokers

Level: Beginner

The IBKR Client Risk Profile tool is designed to help Advisors determine the most suitable investments for their clients, based on each client’s risk capacity, risk need and risk tolerance. This information is collected through the distribution of a custom-designed client questionnaire. Advisors can view the scores through the Advisor Portal and can even create custom pre-trade allocation groups and profiles from the scores in TWS to place orders and allocate trades for clients with similar risk profiles.

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Study Notes:

IBKR’s Client Risk Profile Tool will assist you in determining the right mix of assets for your clients by assessing their risk tolerance, need and capacity.

You can receive the answers that matter most with our customizable, white-branded questionnaire and flexible scoring system. You can pick from over 50 questions to get exactly the information you need and configure the risk scoring to reflect how you run your practice.

You can view the scores through the Advisor Portal and can even create custom pre-trade allocation groups and profiles from the scores in TWS, enabling you to place orders and allocate trades for clients with similar risk profiles.

Before you can use the IBKR Client Risk Profile tool, you’ll need to enable it within the Advisor Portal. Just log in to the Advisor Portal and navigate to Settings and then Account Settings.  From the Configuration panel on the right side of the window, select the Client Questionnaire Editor gear icon.  Check the box to enable the tool, and then click Continue.

Note: For newly added financial advisor client accounts, it takes up to one full business day from the time the account is approved before it will be available as a questionnaire recipient in the Message Center.

The next step is to create a questionnaire designed to identify your clients’ risk capacity, risk need and risk tolerance.

Back on the Account Settings page, from the Configuration panel on the right side of the window, select the Client Questionnaire Editor gear icon.

In the editor, create a questionnaire by choosing questions from the Available Questions panel on the right side of the page.

Click the “+” sign to add a question to the draft version of the questionnaire in the left panel.

To remove a question: Hold your mouse over the question and click the “x” to remove the question from the questionnaire. You can re-add at any time from the Available Questions panel.

To move a question higher or lower: Hold your mouse over the question, then click and drag it up or down using the three horizontal lines.

The Available Questions list is broken into three categories: Capacity, Need and Tolerance.

You must include at least two (2) Primary questions from each category. Click the category title to switch between categories.

You must include a minimum of nine questions total and there is no limit to the number of questions you can include.

The bottom of the questionnaire provides a dynamic checklist that tells you when you have satisfied the minimum requirements of a completed questionnaire.

To help you better understand a question, hold your mouse over a question to see the answers that will be available to clients.

Continue to add questions until the questionnaire is complete.

When you’re done, click Save to save your draft. Click Make Active to activate the questionnaire so you can distribute it to your clients.

You can edit a questionnaire from the Advisor Portal or from within TWS at any time.

To edit within the Advisor Portal:

  • At the bottom right of the active questionnaire, click Edit.
  • Add, remove or rearrange questions as needed.
  • Click the “down” arrow to expand a question and change the score values.
  • Click Save at the bottom of the page to save your draft.

There are some considerations to consider when editing an existing questionnaire:

If you ADD questions to the questionnaire, existing risk scores for clients who took the original version will be deleted. You will need to ask these clients to take the questionnaire again to calculate their risk score.

Disclosure: Interactive Brokers

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Supporting documentation for any claims and statistical information will be provided upon request.

Any stock, options or futures symbols displayed are for illustrative purposes only and are not intended to portray recommendations.

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