Interactive Brokers has expanded its suite of investment management tools with the launch of a new tax planning capability designed to help investors forecast and manage their annual tax liabilities.
The Nasdaq-listed brokerage, known for its low-cost global trading platform and automation tools, said on Thursday that the new Tax Planner module — integrated into its PortfolioAnalyst platform — would allow users to model their total tax exposure by combining investment activity with personal financial data such as income, deductions and withholdings.
The move adds to Interactive Brokers’ existing range of tax optimisation functions, including tax-lot matching and tax loss harvesting tools that help investors manage capital gains and offset losses across multiple portfolios.
What’s included in the service?
The new Tax Planner aims to bring professional-grade tax modelling within reach of retail and professional investors who use PortfolioAnalyst to consolidate data from multiple accounts and institutions. The platform already includes goal-setting, budgeting and retirement planning features, allowing users to view their overall financial picture in one place.
By creating a personalised tax profile, investors can use the tool to estimate year-end tax bills and assess how trading decisions may affect after-tax returns. Users can also choose which investment accounts to include, adjust tax rate assumptions, and integrate investment income with other sources of taxable income.
Milan Galik, chief executive of Interactive Brokers, said the addition of the new functionality was consistent with the company’s focus on providing investors with sophisticated analytical tools at low cost. “Our mission is to equip clients with tools that make managing investment performance, including tax outcomes, more efficient while maintaining the low costs and global market access that sets Interactive Brokers apart,” he said.
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In addition to the Tax Planner, the broker continues to offer tools that identify tax loss harvesting opportunities across portfolios, flagging potential wash-sale conflicts and suggesting replacement securities. Investors can also use the platform’s Close Specific Lots feature to preview tax implications before executing trades, or optimise realised gains and losses after execution using Tax Optimizer.
Integrated financial management solution
The enhancement comes as investors increasingly look for integrated financial management solutions that combine trading, portfolio analysis and tax reporting. Interactive Brokers has sought to differentiate itself from traditional retail trading platforms by offering advanced capabilities typically aimed at professional or high-net-worth investors.
Tax planning and optimisation tools have become a growing focus across the investment industry as clients pay closer attention to after-tax returns and the impact of trading frequency on long-term performance. By embedding those functions directly within its platform, Interactive Brokers is seeking to deepen engagement with clients and position PortfolioAnalyst as a comprehensive financial management hub.
The Tax Planner is available immediately through PortfolioAnalyst, which Interactive Brokers offers free of charge to both existing clients and external users seeking consolidated portfolio analytics across multiple financial institutions.
