In the Independent IA Model the question of “What?” (assets to hold) is still answered by the IA – but Banking. and the other questions of “Where?” and “How?” are unbundled from that advisory role.
As to “Where?” (are my assets held) Weatherhelm Capital Management, LLC is an IA that does not have custody of client funds or securities- we are not the custodian. Weatherhelm uses Interactive Brokers as its custodian. This goes to the question of safety we broached at the beginning- it is important to have a big, stable financial institution as your custodian. For more information on Interactive Broker’s strength and security please click HERE.
As to the question of “How?” (are assets bought and sold). Weatherhelm Capital Management, LLC earns fees for advisory services; we are not a broker/dealer and do not charge commissions. Our clients’ transactions are processed by Interactive Brokers and the commissions (ticket charges) are passed through to our customers. Weatherhelm chose to align with Interactive Brokers because these commissions and financing costs are are by-far the lowest in the industry. (COMPARE COSTS HERE) At the same time, Interactive Brokers provides us with what in our opinion is the best technology available for trading and risk management. (TECHNOLOGY INFO HERE)
Finally, as far as banking services go- we do not cross-sell banking services under the guise of providing financial advice. Weatherhelm is not a bank. Interactive Brokers is not a bank. Our clients are free to continue whatever banking relationships they currently have or establish new ones as they see fit. Many of our clients prefer to use local community banks or credit-unions.
The Independent IA model is open architecture and transparent; there is no cross-selling and no hidden fees. The conflicts of interest inherent in the Big-Bank model are therefore eliminated and in our opinion the client is better served as a result.
Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations. Interactive Brokers does not endorse or recommend any introducing brokers or third-party financial advisors, including Weatherhelm Capital Management. Interactive Brokers provides execution and clearing services to customers of Weatherhelm Capital Management. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.