Interactive Brokers' Soft Dollar Commission Program gives Hedge Funds, Mutual Funds and Professional Advisors the flexibility to offset the costs of purchasing approved research products and services by using soft dollars.
As defined under the Securities Exchange Act of 1934 section 28(e), a portion of commission dollars can be set aside to pay research-related costs incurred by advisors and fund managers. Eligible clients can specify amounts to add to IB commissions to set aside as a pool of available money (Soft Dollars), which can be used to pay for market data and research.
Clients can then pay allowed expenses for market data and research subscriptions to external vendors. Allowed categories of expenses include: