IBKR Unfolded: The Swiss Army Knife of Investment Clubs

Join Andrew Wilkinson and Gerry Perez, CEO of Interactive Brokers U.K., as they dive into the growing world of U.K. investment clubs. Discover why IBKR is considered the Swiss Army knife of investing — offering global market access, transparent pricing, advanced tools, and a platform designed to empower clubs to trade smarter together.

Andrew Wilkinson 

Welcome to this episode of the IBKR Podcast. My name’s Andrew Wilkinson. I’m joined today by Gerry Perez, CEO of Interactive Brokers U.K. A huge welcome back to the program, Gerry. How are you? 

Gerry Perez 

Andrew, thank you very much for having me. It’s a great opportunity to take part in this podcast, and I’m doing pretty well here in lovely London. 

Andrew Wilkinson 

Excellent. The topic today is investment clubs in the United Kingdom. There are several of these, Gerry, and I’m glad you brought them to my attention. I’m over here in the United States, so it’s not an area I’m particularly familiar with anymore. These seem to have sprung up over the last couple of decades. These investment clubs vary in scope. They involve people investing locally as well as in worldwide markets. As the reach of investment clubs expands, we thought it might be a good opportunity to provide the audience with some insights. So, Gerry, tell us first of all — give us a definition. What’s a U.K. investment club, and why do people get involved in them? Why are they formed? 

Gerry Perez 

An investment club is like a group of friends pooling their resources, much like a team bringing together different talents or skills to invest collectively and learn from each other’s ideas and strategies. It’s a great way to grow together and share the journey of financial investing. It’s estimated that there are over 2,000 investment clubs in the United Kingdom. Most investment clubs are unincorporated. They have a constitution or charter, which outlines responsibilities and purpose for the members, and some of them actually have a tax ID. However, overall, investment clubs remain a popular and active way for people to invest together across the U.K. and are definitely something to keep an eye on. 

Andrew Wilkinson 

So, Gerry, how would an investor find out more about an investment club? And how are they treated by the government? You mentioned a tax ID and so on. I’m thinking there’s going to be some treatment by the government here.

Gerry Perez 

Good question. If you want to learn more about investment clubs, especially from the official perspective of HMRC — which is the U.K. tax authority and the key government body to consult — HMRC provides clear guidance on how investment clubs should operate and be taxed. Further, there are a lot of social media forums and investment club societies specifically dedicated to investment clubs, so I strongly urge you to take a look. 

Andrew Wilkinson 

And does Interactive Brokers accept investment clubs as clients? 

Gerry Perez 

Yes, we accept investment clubs. Although, because they’re unincorporated, we need to complete some additional steps during our review process to ensure everything aligns with our account-opening requirements. Through our website, an investment club can refer to our small business account type, designed for private, incorporated, or unincorporated entities like investment clubs. This makes investing and administration simple, efficient, and collaborative — just like having a central hub for all of your investment activities. 

Andrew Wilkinson 

What are the benefits specifically of IBKR’s small business account for investment clubs? 

Gerry Perez 

IBKR’s platform acts like a powerful engine that helps your club go further and faster. Investment clubs get access to global markets, some of the lowest trading fees around, and low margin rates. We pay interest on uninvested cash. You also get advanced trading tools, artificial intelligence analytics, and smart research. I’ll use a metaphor: think of your club as a Formula One racing team, powered with IBKR’s tools like a pit crew — ensuring you make the most of every lap on the track. And here’s an extra bonus: each club member can also separately open up an ISA, a SIPP account, or a general investment account. So you have the benefits of collating all of your investment decisions with an investment club through Interactive Brokers, while individually being able to open up these other accounts to support your full range of investment needs. 

Andrew Wilkinson 

But are there costs associated with an investment club when you’re opening a small business account with Interactive Brokers, Gerry? 

Gerry Perez 

Opening a small business account with IBKR for an investment club is completely free. There are no setup costs, no minimum deposit requirements, no monthly account charges, and importantly, no custody fees charged by IBKR for holding your investments. Clubs only pay when they’re actually trading — and those trading fees are among the lowest in the industry, starting at just three pounds per trade for U.K. shares. To put the savings in simple terms: with most other brokers, clubs pay a monthly or annual fee for brokers to hold onto investments (custody or maintenance fees), which can add up over a year or more. At IBKR, you pay zero custody fees — so that’s money saved by the clubs year after year. 

Andrew Wilkinson 

Gerry, we’ve put a tremendous amount of effort over a decade now into educational resources, including the whole podcast channel as well. Do investment clubs get access to that through Interactive Brokers? 

Gerry Perez 

Absolutely. IBKR offers a vast campus of free resources. These include courses, webinars, podcasts, and market commentaries — much like an open library, 24/7, where everyone in your club can sharpen their skills, from beginner to expert. It’s a continuous learning journey with Interactive Brokers.

Andrew Wilkinson  

And how easy is it to open and manage an account with IBKR? 

Gerry Perez 

Opening and managing a club account through our website is a simple process. It’s like unlocking a door with the right key — everything is online, guided, and streamlined. Clubs can choose an IBKR small business account type, whereby they can include members to manage funds and trade without hassle. 

Andrew Wilkinson 

Gerry, I imagine this is quite an active market. You mentioned that there are investment clubs. What makes Interactive Brokers a better choice for investment clubs to consider compared to other platforms? 

Gerry Perez 

Well, I’m going to use a metaphor. IBKR’s platform is like a Swiss Army knife — a brokerage platform with all the tools investment clubs need for different customer needs or situations. For example, multi-member management capabilities, transparent fees, global reach, artificial intelligence tools, and innovative research. Clubs can invest in stocks, options, bonds, futures, currencies, funds, ETFs, and more — all over the world in one place. Plus, our support is always there when your club needs guidance. 

Andrew Wilkinson 

And Gerry, you’ve been with Interactive Brokers for over 25 years. What insights do you have from your experience for anyone thinking about starting an investment club with Interactive Brokers? 

Gerry Perez 

If you’ve ever enjoyed a great team adventure, IBKR is your next best journey. Gather your team, define your goals, and let the IBKR platform empower your club. Don’t wait on the sidelines. Open a small business account with IBKR today and give your investment club that edge with the tools and knowledge it deserves. Start building your financial future — sign up by doing it today at www.interactivebrokers.co.uk. 

Andrew Wilkinson 

Fantastic. Gerry, you’ve mentioned artificial intelligence within our ecosystem, not just our platforms. I think it would make a really good podcast if you can come back and join me in the next couple of weeks and we’ll discuss AI. 

Gerry Perez 

I would love that. We have many tools, we’ve been future-focused for a very long time, and we believe that our tools and artificial intelligence give our customers that extra edge. So I welcome that opportunity. I look forward to seeing you, Andrew. 

Andrew Wilkinson 

Alright, thanks Gerry. And thank you to the audience for joining us. Spread the word — Gerry thinks we’ve got some fantastic opportunities on our platform for U.K. investment club wannabes or existing account holders. Thanks for joining us.