Step 1: Check Your Financial Information

Regulations require you to confirm the trading goals and investing experience of Hedgewise acting as your advisor.

1) Log-in to Interactive Brokers and navigate to Menu -> Settings -> Account Settings -> Financial Information.

2) Update your Investment Objectives to be "Growth", "Hedging", and "Profits from Active Trading and Speculation". Indicate your Investment Experience in Stocks and Options (at a minimum) as >10 Years, >100 Trades Per Year, and Extensive Knowledge. This reflects the experience of Hedgewise as your advisor.

3) Press "Continue" and confirm any remaining steps. If you needed to change this information, you may have to wait 24 hours for this change to be processed before continuing to Step 2.

Step 2: Check your Account Type

Hedgewise requires the use of a 'margin' account, which helps avoid trading delays due to settlement procedures and gives you the ability to trade options contracts as needed. To check and/or change your account type, follow these instructions:

1) Navigate to Menu -> Settings -> Account Settings -> Account Type.

2) Set your Account Type as either "Margin" or "Reg T Margin". If you also need to change your trading permissions, select "Yes" below Account Type and proceed to Part 2 of Step 3. Otherwise, select "No".

3) Press "Continue" and confirm any remaining steps to upgrade your account.

Step 3: Check Your Trading Permissions

Your account trading permissions must match those of Hedgewise for regulatory reasons.

1) Navigate to to Menu -> Settings -> Account Settings -> Trading Experience and Permissions.

2) Ensure that Stocks, Options, and Complex or Leveraged Exchange Traded Products are all permissioned. To update this, either click the gear button or select the linked titled "Request Trading Permission" next to the category. Indicate your Investment Experience in Stocks and Options as >10 Years, >100 Trades Per Year, and Extensive Knowledge and select permission in the United States. For Complex ETFs or Leveraged Exchange Traded Products, select "Global" permission.

4) Press Continue. On the confirmation page, choose "IBCleared" if given the option.

5) Press "Continue" and confirm any remaining steps to upgrade your account.

Step 3: Link Account to Hedgewise

Note that this step is not necessary if you set-up your account through an e-mail invitation from Hedgewise. You will also not be able to link any account that is already managed by another advisor.

1) Navigate to Settings -> Account Settings. In the Configuration panel on the right side of the screen, click the icon next to Create, Move, Link, or Partition an Account.

2) Select the radio button next to Move my Entire Account to an Account Managed by an Advisor or Broker, and then click Continue.

3) Enter our Advisor Identification information as follows:

Account ID: F1415661

Account Title: Hedgewise Inc

4) Click Continue and complete the remaining forms.

Interactive Brokers Disclosure

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 is not affiliated with and does not endorse or recommend any introducing brokers or financial advisors, including Hedgewise Inc. Interactive Brokers provides execution and clearing services to customers of Hedgewise Inc. For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

Disclosure

This information does not constitute investment advice or an offer to invest or to provide management services and is subject to correction, completion and amendment without notice. Hedgewise makes no warranties and is not responsible for your use of this information or for any errors or inaccuracies resulting from your use. Hedgewise may recommend some of the investments mentioned in this article for use in its clients' portfolios. Past performance is no indicator or guarantee of future results. Investing involves risk, including the risk of loss. All performance data shown prior to the inception of each Hedgewise framework (Risk Parity in October 2014, Momentum in November 2016) is based on a hypothetical model and there is no guarantee that such performance could have been achieved in a live portfolio, which would have been affected by material factors including market liquidity, bid-ask spreads, intraday price fluctuations, instrument availability, and interest rates. Model performance data is based on publicly available index or asset price information and all dividend or coupon payments are included and assumed to be reinvested monthly. Hedgewise products have substantially different levels of volatility and exposure to separate risk factors, such as commodity prices and the use of leverage via derivatives, compared to traditional benchmarks like the S&P 500. Any comparisons to benchmarks are provided as a generic baseline for a long-term investment portfolio and do not suggest that Hedgewise products will exhibit similar characteristics. When live client data is shown, it includes all fees, commissions, and other expenses incurred during management. Only performance figures from the earliest live client accounts available or from a composite average of all client accounts are used. Other accounts managed by Hedgewise will have performed slightly differently than the numbers shown for a variety of reasons, though all accounts are managed according to the same underlying strategy model. Hedgewise relies on sophisticated algorithms which present technological risk, including data availability, system uptime and speed, coding errors, and reliance on third party vendors.

Hedgewise can begin managing your portfolio once you establish an account at Interactive Brokers, an unaffiliated company which has been rated the top online brokerage by Barron's for multiple years. By keeping an account at an independent custodian, you get peace of mind that your assets are fully SIPC insured and always under your control. Hedgewise is simply given permission to manage your portfolio on your behalf. After opening, funding, and linking the account to Hedgewise, your work is basically done.

Note that Hedgewise pays for all trading commissions and Interactive Brokers' account fees, such as monthly minimums and IRA fees. Hedgewise may also provide advice on outside accounts, such as 401ks, when your initial Interactive Brokers account has been established.

Once your portfolio is live, Hedgewise provides a separate client dashboard where you can see real-time performance. After account set-up, most clients only log-in to Interactive Brokers to manage deposits and tax statements.

Option 1: Request an Invitation from Hedgewise

Contact us at info@hedgewise.com to request an invitation from Interactive Brokers to set-up an account that will be automatically linked to Hedgewise upon approval. Then, follow these instructions when setting up the new account.

Option 2: Set Up a New Interactive Brokers Account Independently

If you don't have an Interactive Brokers account yet, you can set one up in about 30 minutes. Simply visit their site and note the following instructions when opening the account.

If you will be transferring assets from another brokerage, make sure you set-up the same account type in both places and that all of the information matches, like your name and social security number. For example, you would need to set-up a Roth IRA if you will be transferring assets from that type of account. If you will be funding the account from a bank, you can set-up an ACH relationship or wire money near the end of the application process.

Select an account type of "Reg T Margin", or simply "Margin" for IRA accounts, when presented the option. The default will be "Cash", but a Margin account is required with Hedgewise.

Request permission to trade US Stocks and Options contracts. Indicate that you have sufficient experience in these instruments.

Once your new account is approved, the final step is to link it to Hedgewise, which you can do via these instructions.

Option 3: Link an Existing Interactive Brokers Account

If you have an existing Interactive Brokers account, you can move it under Hedgewise, or partition it so that only part of the account is under Hedgewise control. See these instructions to do so.

We're Here to Help

If you have any questions about the account set-up, feel free to reach out along the way. After your account is set-up, we'll check to make sure everything looks right. It's easy to make adjustments if necessary.

Disclosure

This information does not constitute investment advice or an offer to invest or to provide management services and is subject to correction, completion and amendment without notice. Hedgewise makes no warranties and is not responsible for your use of this information or for any errors or inaccuracies resulting from your use. Hedgewise may recommend some of the investments mentioned in this article for use in its clients' portfolios. Past performance is no indicator or guarantee of future results. Investing involves risk, including the risk of loss. All performance data shown prior to the inception of each Hedgewise framework (Risk Parity in October 2014, Momentum in November 2016) is based on a hypothetical model and there is no guarantee that such performance could have been achieved in a live portfolio, which would have been affected by material factors including market liquidity, bid-ask spreads, intraday price fluctuations, instrument availability, and interest rates. Model performance data is based on publicly available index or asset price information and all dividend or coupon payments are included and assumed to be reinvested monthly. Hedgewise products have substantially different levels of volatility and exposure to separate risk factors, such as commodity prices and the use of leverage via derivatives, compared to traditional benchmarks like the S&P 500. Any comparisons to benchmarks are provided as a generic baseline for a long-term investment portfolio and do not suggest that Hedgewise products will exhibit similar characteristics. When live client data is shown, it includes all fees, commissions, and other expenses incurred during management. Only performance figures from the earliest live client accounts available or from a composite average of all client accounts are used. Other accounts managed by Hedgewise will have performed slightly differently than the numbers shown for a variety of reasons, though all accounts are managed according to the same underlying strategy model. Hedgewise relies on sophisticated algorithms which present technological risk, including data availability, system uptime and speed, coding errors, and reliance on third party vendors.

Step 1: Check your e-mail for an invitation

You will receive an invitation from newaccounts@interactivebrokers.com to set-up an account linked to Hedgewise. Click the link in the e-mail to get started.

Step 2: Fill out your personal information

Most of the process is self-explanatory. You will create a username and password for your account and fill out a variety of required personal information. If you will be transferring assets from another brokerage, make sure you set-up the same account type in both places and that all of the information matches, like your name and social security number. For example, you would need to set-up a Roth IRA if you will be transferring assets from that type of account.

Continue through the process until you reach a section asking you for your Account Type.

Step 3: Account Type, Investment Objectives, and Trading Permissions

This section requires specific information to ensure that your account has the appropriate flexibility and trading permissions to allow Hedgewise to manage it. You can think of it as a confirmation that you understand the types of trading that we do.

Your account type will be "Margin", which gives us the ability to more quickly rebalance the account each month.

For your Investment Objectives, select Growth, Hedging, and Trading Profits.

In the section titled "Trading Permissions and Experiences", you will be mimicking the investment experience of Hedgewise as your advisor. Indicate your Investment Experience in Stocks and Options as >10 Years, >100 Trades Per Year, and Extensive Knowledge and select permission in the United States. For Complex ETFs or Leveraged Exchange Traded Products, select "Global" permission.

Step 4: Finish the account set-up

Finish the remaining steps as indicated. Account links are processed every Friday. Typically the first trades in your account will happen on the first trading day of the month after your account is funded.

Disclosure

This information does not constitute investment advice or an offer to invest or to provide management services and is subject to correction, completion and amendment without notice. Hedgewise makes no warranties and is not responsible for your use of this information or for any errors or inaccuracies resulting from your use. Hedgewise may recommend some of the investments mentioned in this article for use in its clients' portfolios. Past performance is no indicator or guarantee of future results. Investing involves risk, including the risk of loss. All performance data shown prior to the inception of each Hedgewise framework (Risk Parity in October 2014, Momentum in November 2016) is based on a hypothetical model and there is no guarantee that such performance could have been achieved in a live portfolio, which would have been affected by material factors including market liquidity, bid-ask spreads, intraday price fluctuations, instrument availability, and interest rates. Model performance data is based on publicly available index or asset price information and all dividend or coupon payments are included and assumed to be reinvested monthly. Hedgewise products have substantially different levels of volatility and exposure to separate risk factors, such as commodity prices and the use of leverage via derivatives, compared to traditional benchmarks like the S&P 500. Any comparisons to benchmarks are provided as a generic baseline for a long-term investment portfolio and do not suggest that Hedgewise products will exhibit similar characteristics. When live client data is shown, it includes all fees, commissions, and other expenses incurred during management. Only performance figures from the earliest live client accounts available or from a composite average of all client accounts are used. Other accounts managed by Hedgewise will have performed slightly differently than the numbers shown for a variety of reasons, though all accounts are managed according to the same underlying strategy model. Hedgewise relies on sophisticated algorithms which present technological risk, including data availability, system uptime and speed, coding errors, and reliance on third party vendors.