How are trades allocated among client accounts?


For each trading opportunity, Cable Car first determines the suitability of the trade for each account, which may depend on the account type or size. Cable Car then attempts to aggregate purchase and sale orders for multiple accounts, as doing so typically results in lower commission costs. Cable Car relies on Interactive Brokers’ automated trade allocation software to allocate aggregated orders proportionally among suitable client accounts. Due to market conditions and rounding, this may result in client account performance diverging over time. Cable Car cannot guarantee that every trade opportunity will be allocated equally to all suitable accounts; however, Cable Car attempts to allocate opportunities fairly to clients over time.

When it is not possible to aggregate orders, Cable Car places orders for client accounts before accounts in which its principals have a beneficial interest.

Posted in: Managed accounts