If you are either an RIA or Registered Hedge Fund Manager, you may complete the “Become a manager” application available here.
Once you submit the form, our Manager Relations team will contact you to determine whether you are a fit for the Covestor platform.
We generally require Portfolio Managers to meet certain minimum criteria (such as AUM and proportion of personal funds invested in the strategy) and to certify that they will not trade ahead of Covestor clients in the other accounts they manage.
Covestor will ask you to complete our paperwork. Then you will open and fund a brokerage account with Interactive Brokers - our affiliated broker-dealer.
That account will be used to track your trading.
Covestor assigns risk scores from 1 to 5 to portfolios it offers on the marketplace. These risk scores indicate the level of risk posed by the investments in each portfolio.
The purpose of the portfolio risk score is to ensure that the risk level of the portfolio is consistent with client expectations and satisfies client suitability requirements.These are the individual risk scores that Covestor assigns to portfolios.
Risk score 1: This score indicates that a portfolio is less risky than the equity market. Risk score 1 portfolios are long-only and typically have a greater allocation to lower risk securities such as Exchange-Traded Funds.
Risk score 2: This score indicates that a portfolio has a level of risk similar to the equity market. Risk score 2 portfolios are long-only and typically have a similar risk level to a broad equity market benchmark such as the S&P 500.
Risk score 3: This score indicates that a portfolio is riskier than the equity market. Risk score 3 portfolios can use leverage, short securities or have concentrated positions.
Risk score 4: This score indicates that a portfolio is riskier than the equity market. Risk score 4 portfolios are likely to use leverage, short securities or have concentrated positions.
Risk score 5: This score indicates that a portfolio is significantly riskier than the equity market. Risk score 5 portfolios are likely to use leverage, short securities, have concentrated positions and may experience significant losses at various times.
If you currently have an account with Interactive Brokers, you may be able to use that account and link it to Covestor or open another IB account.
If you do not have an existing account with Interactive Brokers, you will need to establish one there before being able to offer a portfolio on Covestor.
With your permission, Interactive Brokers is able to provide us with a real-time view of your trading activity and cash position for purposes of live replication in client accounts investing in your portfolio.
Once you sign up to manage a portfolio on Covestor, we send you all the information needed to open an Interactive Brokers account linked to Covestor.
You may manage multiple portfolios on Covestor, but you are still required to satisfy our minimum criteria (including AUM and proportion of personal funds invested in the strategy) across all those multiple portfolios to do so.
Most managers only manage one portfolio on the Covestor platform. You may contact Manager Relations to determine whether you meet these criteria and could manage multiple portfolios. Managers who wish to run more than one portfolio need to submit a new Portfolio Risk Form, and open and fund a new account at Interactive Brokers, exclusively associated with the new portfolio.
Feel free to share or link to your profile on Covestor. We can also provide you with a customized widget to use on your website or marketing materials.
If you submit content for Covestor’s Smarter Investing blog, you can republish it on your own blog or website. In many cases, you may also share media mentions and article placements that Covestor obtains for you.
Marketing Guidelines to protect your legal status are available on request from Manager Relations.