Our brokerage custodian, Interactive Brokers1, is preparing for elevated volatility before and after the 2020 United States presidential election in November. As a result, margin requirements2 on Futures & Derivatives will increase by as much as 35% above normal requirements, starting September 28, 2020.

What instruments are impacted?

Interactive Brokers plans to increase Equity Index Futures & Derivatives margins by the aforementioned 35%. For example, ES futures and similar products based on the S&P 500 index would go from a scanning range of approximately 7% to 9.6%.

These instruments will NOT be impacted, as their margin rates already exceed their futures equivalents:

• Stocks
• ETFs
• Commodities
• Forex
• Bonds

Other instruments not mentioned above may also not be affected.

Schedule of Changes

1. Initial margin requirements: Gradual daily increases from normal levels starting September 28th to a rate that will be 35% higher by October 23rd.
2. Maintenance margin requirements: Gradual daily increases in a similar manner between October 5th and October 30th.

These new requirements will be implemented daily after the market closes in New York, and will be effective the next trading day.

Based on these new changes, accounts that are unable to meet the new margin requirements will be subject to automated liquidations3 in order to bring the account into margin compliance. Accounts subject to risk based margin will have their scanning ranges increased in a similar manner.

Example

Consider a Reg. T margin account with stock XYZ having an Initial Margin requirement of 50% and a Maintenance Margin requirement of 25%. With the increase fully implemented, the new requirements would be 67.5% Initial and 33.75% Maintenance.

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1Euro Pacific Trader is offered by Euro Pacific Securities Inc. (“Euro Pacific Securities”), as an Introducing Broker to Interactive Brokers LLC. Interactive Brokers LLC is the custodian, technology provider, and clearing broker to all transactions executed through Euro Pacific Trader and thus the rates, conditions, and examples shown on this site may be subject to change and differ from what is displayed on Euro Pacific Trader. The rates, conditions, and examples on this site are provided on a best-efforts basis and should not be taken as final.

Euro Pacific Securities will not be held responsible for pricing and conditional discrepancies that may arise in the normal course of offering Euro Pacific Trader. Customers should always review and rely on the conditions that are shown directly on Euro Pacific Trader, and it is the responsibility of all customers to carefully review the conditions of every action before approving execution on Euro Pacific Trader.

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 LLC does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including Euro Pacific Securities. Interactive Brokers LLC provides execution and clearing services to customers. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers LLC to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers LLC makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

2 Information on Interactive Broker’s margin rules can be reviewed in this article. To monitor your Euro Pacific Trader available margin balance, please read this guide.

3 Interactive Brokers (IB) will liquidate your positions without prior notice until your account complies with margin requirements. IB automatic liquidation of under-margined accounts is designed to protect customers and to protect IB in times of market turmoil.

Interactive Brokers1 will begin to incorporate the following changes to their margin methodology2 calculations for HKFE and SEHK products3, effective Friday, September 18, 2020.

Methodology Update

1. Risk Scenarios: The Risk Scenarios will be computed based upon Interactive Brokers’ intraday mark price of the underlying stock, instead of previous end-of-day data.
2. Price Scans: Scanning ranges, which apply to stock or derivative products, will reflect the margin requirement percentage of the underlying stock. For example, if the underlying stock has a margin requirement of 40%, then the price scanning will also reflect 40%.
3. Volatility Scanning Range: Interactive Brokers will introduce implied volatility scans (at all price levels) in which the volatility is increased/decreased by 15%, 75% for broad-based indexes, and 150% for all remaining classes. Additionally, Interactive Brokers will recognize a given stock-specific implied volatility surface to predict the rate of change for implied volatility under each price scenario. For example, a stock with a daily volatility of 5% is unlikely to see much increase in the implied volatility of its options if the stock drops 10% because it is within its normal range of moves. However, a 10% drop for a stock with a daily volatility of 0.5% will probably experience a ten-fold increase in implied volatility as the volatility increases to 5%. Additionally, Interactive Brokers will apply a stock-specific implied volatility surface to predict the rate of change for implied volatility under each price scenario.

How will these changes impact my portfolio?

The increase will be phased in over a series of daily increments beginning, after the New York close on September 17, 2020 and continuing through trade date September 24, 2020.

To evaluate the full impact of this change on your portfolio so that your account may remain margin compliant, please see this related article and, from the margin mode setting in Risk Navigator, select “Margin 20200924.”

Based on these new changes, accounts that are unable to carry the positions under these new margin requirements are subject to automated liquidations in order to bring the account into margin compliance.

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1Euro Pacific Trader is offered by Euro Pacific Securities Inc. (“Euro Pacific Securities”), as an Introducing Broker to Interactive Brokers LLC. Interactive Brokers LLC is the custodian, technology provider, and clearing broker to all transactions executed through Euro Pacific Trader and thus the rates, conditions, and examples shown on this site may be subject to change and differ from what is displayed on Euro Pacific Trader. The rates, conditions, and examples on this site are provided on a best-efforts basis and should not be taken as final.

Euro Pacific Securities will not be held responsible for pricing and conditional discrepancies that may arise in the normal course of offering Euro Pacific Trader. Customers should always review and rely on the conditions that are shown directly on Euro Pacific Trader, and it is the responsibility of all customers to carefully review the conditions of every action before approving execution on Euro Pacific Trader.

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 LLC does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including Euro Pacific Securities. Interactive Brokers LLC provides execution and clearing services to customers. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers LLC to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers LLC makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

2 Risk-based margin methodology calculates margin requirements by analyzing the potential worst-case loss a portfolio can suffer over a given period (typically one day). The methodology uses a series of hypothetical market scenarios that reflect changes to underlying price moves and, in the case of options, time decay and changes to implied volatility. However, the market scenarios are static and based upon the previous end-of-day data (Source: Interactive Brokers).

3 HKFE: Hong Kong Futures Exchange; SEHK: Hong Kong Stock Exchange.

Tax Reporting

Form 1042-S reports to the IRS any US Source Income earned by non-US persons and entities subject to US withholding tax, which includes interest, dividends, and other fees/payments on your account for the year. You may receive multiple 1042-S forms reporting different types of income.

Learn more about US Source Income here.

Where to Access

Currently, the primary tax form available for viewing is Form 1042-S. To access and print your tax forms, log in to your Euro Pacific Trader Client Portal, and then click Reports > Tax > Tax Forms inside the Menu.

The purpose of this article is to assist you transfer positions from your Euro Pacific Trader brokerage account to another broker of your choice.

Disclaimer

• Only equities (stocks, ETFs, and bonds) are eligible for transfer
• Your receiving brokerage account’s account name must match your account name with us, i.e. first party
• We cannot guarantee that your receiving broker supports all of your securities
• A standard transfer fee will be applied

Transfer Process

1. Gather your transfer details

We will need:

• Receiving broker’s name
• Account name at receiving broker
• Account number at receiving broker
• Receiving Broker’s email address
• Assets to be transferred (Name, Symbol, Quantity)

2. Submit your request

After gathering the information above, please create a case inside your eBanking stating your request and include/attach your information compliance pre-approval.

3. Transfer initiated with your broker

Interactive Brokers1, our brokerage custodian, will initiate contact with your receiving broker. Transfer times vary greatly, depending on how responsive your receiving broker’s transfer department can communicate with Interactive Brokers. The average transfer takes 1-2 weeks.

4. Check the status of your transfer

Interactive Brokers may or may not notify us when the transfer is complete, so we recommend that you check your receiving brokerage account periodically for the securities.

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1Euro Pacific Trader is offered by Euro Pacific Securities Inc. (“Euro Pacific Securities”), as an Introducing Broker to Interactive Brokers LLC. Interactive Brokers LLC is the custodian, technology provider, and clearing broker to all transactions executed through Euro Pacific Trader and thus the rates, conditions, and examples shown on this site may be subject to change and differ from what is displayed on Euro Pacific Trader. The rates, conditions, and examples on this site are provided on a best-efforts basis and should not be taken as final.

Euro Pacific Securities will not be held responsible for pricing and conditional discrepancies that may arise in the normal course of offering Euro Pacific Trader. Customers should always review and rely on the conditions that are shown directly on Euro Pacific Trader, and it is the responsibility of all customers to carefully review the conditions of every action before approving execution on Euro Pacific Trader.

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 LLC does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including Euro Pacific Securities. Interactive Brokers LLC provides execution and clearing services to customers. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers LLC to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers LLC makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

Due to the current high volatility in energy products, as well as the recent decision by certain exchanges to support negative pricing for a number of energy contracts, Euro Pacific Securities, Inc. has made the following policy changes to its expiration / near-expiration risk policies, effectively immediately.

Two Day Closeout Policy

Cash-settled contracts will be subject to the same liquidation schedules as the physical delivery contracts against which they are indexed.

By example, this will mean that both physical delivery contracts such as [email protected] (physically settled) and [email protected] (cash settled) will both be subject to mandatory closeout commencing the beginning of the regular trading session 2 days ahead of their respective expirations.

Note: The commencement of expiration risk and position reduction policies varies slightly based on the contractual details of the specific underlying commodity product , but is always referential to the earlier of:

• Last trading date
• Expiration date
• First notice date

Five Day Risk Reduction Policy

Starting 5 business days ahead of expiration, only risk-reducing orders in expiring month contracts will be accepted.

Orders that open or increase positions, as well as increase the expiration month risk will not be accepted. Position closing orders and margin reducing will always be accepted.

Applicable Products

Symbol	Security Description	Settlement Method
CL	Light Sweet Crude Oil Futures	Physical Delivery
WTI	ICE West Texas Intermediate (WTI) Light Sweet Crude Oil Futures	Cash
QM	E-mini Crude Oil Futures	Cash
BZ	Brent Crude Oil Last Day Financial Futures	Cash
BB	Brent Crude Oil Futures	Cash
HO	NY Harbor ULSD (HO) Futures	Physical Delivery
RB	RBOB Gasoline Futures	Physical Delivery
HOIL	ICE Heating Oil Futures	Cash
RBOB	ICE RBOB Gasoline Futures	Cash
QU	E-mini RBOB Gasoline Futures	Cash
COIL	ICE Brent Crude Futures	Cash
GOIL	ICE Gasoil Futures	Physical Delivery
QH	E-mini MY Harbor ULSD Futures	Cash

This list is subject to change.

Monitor your margin requirements in real-time. The margin monitor tool helps you view the margin impact of orders and positions, as well as set up margin alerts to track your margin usage. The location of the margin monitor tool depends on which platform you are accessing it from.

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1Euro Pacific Trader is offered by Euro Pacific Securities Inc. (“Euro Pacific Securities”), as an Introducing Broker to Interactive Brokers LLC. Interactive Brokers LLC is the custodian, technology provider, and clearing broker to all transactions executed through Euro Pacific Trader and thus the rates, conditions, and examples shown on this site may be subject to change and differ from what is displayed on Euro Pacific Trader. The rates, conditions, and examples on this site are provided on a best-efforts basis and should not be taken as final.

Euro Pacific Securities will not be held responsible for pricing and conditional discrepancies that may arise in the normal course of offering Euro Pacific Trader. Customers should always review and rely on the conditions that are shown directly on Euro Pacific Trader, and it is the responsibility of all customers to carefully review the conditions of every action before approving execution on Euro Pacific Trader.

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 LLC does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including Euro Pacific Securities. Interactive Brokers LLC provides execution and clearing services to customers. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers LLC to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers LLC makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

Please follow this procedure to change your existing Euro Pacific Trader password.

Step 1: Login to your Client Portal

Login to your Client Portal and go to your Settings > User Settings page in your Menu.

Step 2: Do you see your email address in the Communication section?

Yes, I see my email address

If you see your own email address, please proceed to Step 3.

No, I see [email protected]

Before you proceed to the next step, please schedule a call with our Client Services team, as we will need to be on the phone with you to provide you a Security Token.

Step 3: Create your new password

Click the cog icon to the right of Password to go to the main password page, where you will be required to enter your existing password and new password of your choice.

Step 4: Enter Security Token

To accept your new password request, your Client Portal will send a Security Token to the email address listed in Step 2. Hence why if the Security Token is sent to [email protected], you’ll need our Client Services team to provide you the token verbally.

The Euro Pacific Trader brokerage account and its technology provider Interactive Brokers1 offers four trading platforms , the primary platform being the Client Portal. Below are screenshots of the new version of the Client Portal:

Technical Limitations

The corporate (old) version of the Client Portal has several technical limitations:

• No Charts – Because the corporate Client Portal runs on Interactive Brokers’ older WebTrader technology, its trading module does not display charts and graphs at this time.
• No Portfolio News – Please utilize third party sources for market news and updates.
• No Corporate Events Calendar – Corporate events such as Dividends and Splits will be processed automatically, as usual, however calendar events are not available.
• No Watchlists – A Watchlist a a list of instruments that you are interested in tracking, along with their current prices. For now, please manage your watchlists indepedently.

Solution

Interactive Brokers has informed us that they will be upgrading corporate Euro Pacific Trader clients to the new Client Portal later in 2020.

While we wait, we propose that you trade on the TraderPro and/or the MobileTrader, two robust platforms available to all corporate clients.

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1Euro Pacific Trader is offered by Euro Pacific Securities Inc. (“Euro Pacific Securities”), as an Introducing Broker to Interactive Brokers LLC. Interactive Brokers LLC is the custodian, technology provider, and clearing broker to all transactions executed through Euro Pacific Trader and thus the rates, conditions, and examples shown on this site may be subject to change and differ from what is displayed on Euro Pacific Trader. The rates, conditions, and examples on this site are provided on a best-efforts basis and should not be taken as final.

Euro Pacific Securities will not be held responsible for pricing and conditional discrepancies that may arise in the normal course of offering Euro Pacific Trader. Customers should always review and rely on the conditions that are shown directly on Euro Pacific Trader, and it is the responsibility of all customers to carefully review the conditions of every action before approving execution on Euro Pacific Trader.

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 LLC does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including Euro Pacific Securities. Interactive Brokers LLC provides execution and clearing services to customers. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers LLC to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers LLC makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

Follow the instructions below to transfer equities into your Euro Pacific Trader account, whose custodian and technology provider is Interactive Brokers1. Qualified equities include stocks, bonds, and ETFs.

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Transfer Procedure

1. Gather your compliance documentation

We will need:

• Share Transfer Agreement
• Brokerage statements listing all of your positions to be transferred, your name, and account number, going back as far as possible
• Statement of bank account that originally funded your current brokerage account (source of funds)

2. Gather your transfer details

We will need:

• Sending broker’s name (Company)
• Account name at sending broker
• Account number at sending broker
• Name of contact person or department that handles transfers
• Email address of broker or transfer department
• If your brokerage statement doesn’t state each position’s Name, Symbol, Quantity, and ISIN, please provide us a list of this data

3. Email us the above

After gathering all of the documents and information above, please email it to [email protected] for compliance pre-approval.

4. Wait for our pre-approval

Our Trading Support team will confirm whether the Euro Pacific Trader supports your proposed securities.

To expedite the pre-approval process, please cross-check your securities against our Contract & Securities Search Tool yourself, and let us know if your securities are found. You can also bookmark this page and use it to find securities in the future.

5. Transfer is initiated with your broker

We will forward the information to our brokerage custodian, who will initiate contact with your sending broker. Transfer times vary greatly, depending on how responsive your broker’s transfer department can communicate with ours. The average transfer takes 1-2 weeks, but may take longer.

6. Check the status of your transfer

Interactive Brokers may or may not notify us when the transfer is complete, so we recommend that you check your sending brokerage account periodically to confirm the securities have left.

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1Euro Pacific Trader is offered by Euro Pacific Securities Inc. (“Euro Pacific Securities”), as an Introducing Broker to Interactive Brokers LLC. Interactive Brokers LLC is the custodian, technology provider, and clearing broker to all transactions executed through Euro Pacific Trader and thus the rates, conditions, and examples shown on this site may be subject to change and differ from what is displayed on Euro Pacific Trader. The rates, conditions, and examples on this site are provided on a best-efforts basis and should not be taken as final.

Euro Pacific Securities will not be held responsible for pricing and conditional discrepancies that may arise in the normal course of offering Euro Pacific Trader. Customers should always review and rely on the conditions that are shown directly on Euro Pacific Trader, and it is the responsibility of all customers to carefully review the conditions of every action before approving execution on Euro Pacific Trader.

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 LLC does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including Euro Pacific Securities. Interactive Brokers LLC provides execution and clearing services to customers. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers LLC to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers LLC makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

Why?

Our brokerage platform provider and custodian, Interactive Brokers, requires that two-factor authentication (2FA) is enabled.

MobileTrader is both our mobile trading platform, as well as your default 2FA security application. Install it on your iOS or Android mobile device now.

How does it work?

Approximately 1-2 weeks after your Euro Pacific Trader account has been activated, you will be required to enter a 2FA code upon login. The code will then be sent to your MobileTrader, which allows you to log into your trading platform.

If you have multiple Euro Pacific Trader accounts with distinct usernames, you can access all of those accounts from MobileTrader.

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Activation Instructions

1. Launch MobileTrader on your iOS or Android device.
2. Tap the Register Two-Factor button. If you do not see this button, please look for the “Services” button in the upper left corner.
3. Follow the instructions on your device. You will be asked to log into MobileTrader using your standard Euro Pacific Trader login details, as well as register your mobile phone number.
4. Enter your Euro Pacific Trader username and password and tap Continue.
5. Enter your mobile phone number, correspondent country, and tap Get Activation SMS. Please note your device must be able to receive SMS.
6. You will receive an SMS containing an Activation Token. Enter the token into the Activation Code field. Tap Activate.
7. Sign out of your Euro Pacific Trader platform.
8. Sign back in and you will see the notice “A message has been sent to your phone. Tap the link on your phone to complete secondary authentication.” Look for the push notification on your MobileTrader to authorize your login.

Not receiving it?

1. If you do not receive the push notification on your MobileTrader, on your existing Euro Pacific Trader login page, click the link that states “Click here if you did not receive the message.”
2. You will be provided a “Challenge Code” that you need to enter in your MobileTrader to manually authenticate you.
3. On your MobileTrader’s Services page, click the “Authenticate” button.
4. Enter the Challenge Code from your login screen.
5. Follow the instructions to generate “Response String”, which you will need to enter on your login screen.
6. Click Login.

Alternative 2FA Methods

SMS verification is the only alternative 2FA method at this time. MobileTrader authentication is viewed as the most secure and convenient way to authenticate you.

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1Euro Pacific Trader is offered by Euro Pacific Securities Inc. (“Euro Pacific Securities”), as an Introducing Broker to Interactive Brokers LLC. Interactive Brokers LLC is the custodian, technology provider, and clearing broker to all transactions executed through Euro Pacific Trader and thus the rates, conditions, and examples shown on this site may be subject to change and differ from what is displayed on Euro Pacific Trader. The rates, conditions, and examples on this site are provided on a best-efforts basis and should not be taken as final.

Euro Pacific Securities will not be held responsible for pricing and conditional discrepancies that may arise in the normal course of offering Euro Pacific Trader. Customers should always review and rely on the conditions that are shown directly on Euro Pacific Trader, and it is the responsibility of all customers to carefully review the conditions of every action before approving execution on Euro Pacific Trader.

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 LLC does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including Euro Pacific Securities. Interactive Brokers LLC provides execution and clearing services to customers. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers LLC to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers LLC makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.