Strategic Capital Management Limited is a investment advisory company setup to offer individually managed accounts tailored towards individual traders and investors who are looking to invest into an alternative asset class that is not correlelated to buy and hold investments. We have noticed a huge gap in the product available to clients who wish to trade the market using a short term approach, yet do not have the time to allocate to this style of investing, but still wish to profit from the short term opportunities inherent in the markets. We provide individually managed accounts and personalised portfolios for clients who wish to invest in a more active manner and who wish to make money during periods in the business cycle where other asset classes may not be doing so well. Subsequently our research is all about maximizing short term gains from trading well researched strategies that are tested over long periods of price history and show consistent performance across the entire period, whilst having an underlying fundamental reason as to why the trade shows a positive expectancy.
Strategic Capital Management is authorised by you to place trades on your account in line with the trading strategies you select when opening an account.
Whilst Strategic Capital Management Limited is a licensed advisor and is authorized by you to execute trades in your account and charge fees for service, we are an introducing broker and clear through Interactive Brokers. This means that your brokerage account is setup and held with Interactive Brokers via an advisor-client invitation e-mailed to you from us. All account opening documentation, deposits and withdrawals are processed through Interactive Brokers. All statements and reporting is also done through Interactive Brokers and is detailed, yet concise and suitable for tax purposes without the need to reconcile multiple accounts through the one broker. In addition your account balance is available online and you can view the performance of your investment live via the account management or Trader Workstation platform. This investment is therefore very trasnparent and at the end of each month you can view the performance of your portfolio and compare it to the performance statistics updated on our website.
We have chosen Interactive Brokers as our clearing broker on the basis that they are financially sound and from our research represent a safe brokerage firm for our clients to hold their funds with and because they integrate well with our research platforms and automated trading strategies we offer. Your counter-party risk is therefore with Interactive Brokers, not Strategic Capital Management. One of the risks of this investment is that stock and commodities brokers, in this case Interactive Brokers could fail. In the unlikely event of this happening you could lose your entire investment or a pro-rata portion of your investment capital. By accepting an agreement with Strategic Capital Management and opening your account with Interactive Brokers you agree that Strategic Capital Management is not responsible for any possible loss caused by a failure of Interactive Brokers. Please also bear in mind that Strategic Capital Management also has funds invested with Interactive Brokers and would be subject to the same result as you.
Interactive Brokers Group Strength and Security
When placing your money with a broker, you need to make sure your broker is secure and can endure through good and bad times. The financial statements of Interactive Brokers LLC are available www.interactivebrokers.com for your review. Note that Interactive Brokers LLC and its affiliates* are owned by Interactive Brokers Group LLC.
Important Strength and Security Facts about Interactive Brokers Group
- Interactive Brokers currently holds over $4 billion in equity capital.
- Interactive Brokers is a dominant player in the options market executing 14.1% of the world’s equity options and 18.3% of US options.
- Interactive Brokers handle over 700,000 trades per day.
- Memberships held on over 70 exchanges, market centers, and clearing corporations around the world.
- Interactive Brokers have been in the trading business for 31 years.
- Interactive Brokers have always been at the forefront of trading innovation, starting with the invention of the first floor-based handheld computer in 1983.
- Interactive Brokers are rated Investment Grade by S&P.
- Customers are protected by $30 million of SIPC and Lloyd’s of London securities account protection.
- Interactive Brokers real-time margin system continuously enforces limits for each account, and automatically liquidates positions if any individual account violates its limits at any time.
- Interactive Brokers do not hold CDO or Subprime Debt.
- With the exception of foreign exchange, Interactive Brokers trade only exchange listed products that are cleared through central clearing houses and are marked daily to external closing prices disseminated by the exchanges.
- Positions and resulting payables/receivables are automatically reconciled against external sources daily.
Investment Policy
As a regulated broker, Interactive Brokers is subject to SEC and CFTC regulations on investment of customer funds. Permissible investment vehicles include bank deposits and a variety of top-rated government securities and related instruments. IB’s effective investment policy is more stringent than this, reflecting our risk-averse philosophy. We only invest customer funds in government securities and repos, cash deposits in bank accounts at the largest banks and the triple A-rated Money Market Funds (in which we invest less than 2% of customer assets).
Additionally, Interactive Brokers limit customer exposure through the following credit policies:
- Keeping investments in highly liquid, short-term instruments.
- Distributing client funds among a variety of banks and counterparties to avoid concentrated exposure to any single counterparty.
- Rigorous analysis by our Credit Committee of Counterparty Financial Conditions as well as review of risk factors prior to permitting investment activity with or via any counterparty.
- IB’s investment policy is very conservative. Interactive Brokers strict policies when investing client money minimizes our and your exposure in uncertain credit environments.
The advising firm responsible for providing this investment to you is Strategic Capital Management Ltd.
To summarize, the investment is setup by Strategic Capital Management (SCM) in such a way that you authorise SCM to place orders on your account which is held with Interactive Brokers. You can read more about how the Interactive Brokers Advisor Account structure works by clicking HERE (directs through to Interactive Brokers website)
