ibkr-mcp — an LLM-driven trading agent for Interactive Brokers

A Model Context Protocol server that exposes an Interactive Brokers account — account data, market data, and order entry — as a set of tools an LLM agent (Claude Desktop, Claude Code, any MCP client) can call. It pairs that with a pre-trade risk engine and a two-step confirm-before-trade flow so an autonomous model can't fat-finger a live account.

The whole thing runs offline out of the box against a built-in market simulator, so it's reviewable with zero setup — no TWS, no IB Gateway, no network, not even the mcp package for the demo and tests.

python examples/demo_cli.py     # full preview -> place -> blocked-order flow, offline
python tests/test_risk.py       # 7 risk-engine tests
python tests/test_session.py    # 6 session/safety-flow tests

=== 5. Preview BUY 50 NVDA (risk check) ===
{
  "symbol": "NVDA", "action": "BUY", "quantity": 50, "order_type": "MKT",
  "reference_price": 167.95, "estimated_notional": 8397.5,
  "risk": { "approved": true, "reasons": [] },
  "trading_enabled": true,
  "confirmation_token": "d2bfa616602b",
  "token_expires_in_seconds": 120,
  "next_step": "Call place_order('d2bfa616602b') to submit."
}

=== 6. Place order via confirmation token ===
{
  "order_id": "1000", "symbol": "NVDA", "action": "BUY", "quantity": 50,
  "status": "FILLED", "filled_quantity": 50, "avg_fill_price": 167.36,
  "message": "Filled."
}

=== 9. Preview BUY 400 TSLA -- expect REJECT (over notional cap) ===
{
  "symbol": "TSLA", "action": "BUY", "quantity": 400,
  "estimated_notional": 99748.0,
  "risk": {
    "approved": false,
    "reasons": [
      "Order notional $99,748 exceeds per-order cap $20,000.",
      "Resulting position notional $99,748 exceeds position cap $60,000."
    ]
  },
  "confirmation_token": null,
  "next_step": "Order REJECTED by risk checks; not placeable."
}

=== 10. place_order with a bogus token -> guarded ===
{ "blocked": "Unknown or already-used confirmation token. Call preview_order first." }

On the backends. The live ib_async backend (broker/ibkr.py) is fully implemented; the server simply defaults to the offline simulator so the project is reviewable with zero setup. Pointing it at a real IBKR paper account is a two-env-var change (IBKR_BACKEND=ib, IBKR_TRADING_ENABLED=true) — see Against a real (paper) IBKR account.

Why this design

Letting an LLM place trades is the interesting, dangerous part. Three decisions carry the design:

1. The agent never touches the broker SDK directly. Tools talk to a TradingSession, which talks to a Broker interface. Two implementations sit behind that interface — a live ib_async backend and an in-memory simulator — so the agent-facing contract is identical whether you're on a paper account or running offline.

2. Trading is a two-step handshake, not one tool call. The model must preview_order(...) first; that returns the live quote, the estimated notional, a risk decision, and — only if risk passes and trading is enabled — a single-use confirmation_token. Only place_order(token) submits. The order is re-validated against the risk limits at execution time, because price and position may have moved since the preview.

3. Safe by default. With no configuration you get the mock backend with trading disabled (read-only). Going live is an explicit, multi-flag opt-in.

Related MCP server: IBKR TWS MCP Server

Architecture

   MCP client (Claude)
          │  stdio / JSON-RPC
          ▼
   ┌──────────────────┐   tool docstrings = the agent's contract
   │  server.py       │   get_status · get_account_summary · get_positions
   │  (FastMCP tools) │   get_quote · get_open_orders · get_trades
   └────────┬─────────┘   preview_order ──► place_order · cancel_order
            ▼
   ┌──────────────────┐   two-step order flow, single-use confirmation tokens,
   │  session.py      │   execution-time re-validation
   └────┬───────────┬─┘
        ▼           ▼
   ┌─────────┐  ┌──────────────────┐
   │ risk.py │  │ broker/ (Broker) │
   │ pre-    │  │  ├─ mock.py  ◄── offline simulator (default)
   │ trade   │  │  └─ ibkr.py  ◄── live ib_async → TWS / IB Gateway
   │ checks  │  └──────────────────┘
   └─────────┘

Everything except server.py (FastMCP) and broker/ibkr.py (ib_async) is pure standard library, which is why the simulator and tests need no dependencies.

Tool catalog

Risk controls (risk.py)

Enforced before any order is accepted, and again at execution time:

• per-order quantity cap

• per-order notional cap

• resulting position notional cap

• short-selling switch (off by default)

• optional symbol whitelist

• daily order count cap

All are configurable via environment variables (see .env.example).

Running it

Offline demo / tests (no install)

python examples/demo_cli.py
python tests/test_risk.py && python tests/test_session.py

As an MCP server

pip install "mcp[cli]"
python -m ibkr_mcp.server          # serves over stdio

Register it with an MCP client using examples/claude_desktop_config.example.json.

Against a real (paper) IBKR account

1. pip install ib_async

2. Launch TWS or IB Gateway with the API enabled, logged into a paper account (account id starts with DU).

3. Set the environment and run:

   export IBKR_BACKEND=ib
   export IBKR_TRADING_ENABLED=true
   export IBKR_PORT=7497            # paper TWS
   export IBKR_ACCOUNT_ID=DUxxxxxxx
   python -m ibkr_mcp.server

Safety: keep IBKR_TRADING_ENABLED=false for read-only analysis. Point at a paper account before ever enabling trades. The risk caps are the backstop, not the first line of defense — the read-only default is.

Layout

ibkr_mcp/
  models.py        dataclasses: Quote, Position, Order, Trade, AccountSummary
  config.py        env-driven Settings + RiskLimits (safe defaults)
  risk.py          pure pre-trade risk engine
  session.py       two-step order flow, token store, re-validation
  server.py        FastMCP tool layer (the agent contract)
  broker/
    base.py        abstract Broker interface
    mock.py        offline market simulator
    ibkr.py        live ib_async backend
examples/          offline demo + MCP client config
tests/             risk + session/safety-flow tests

License

MIT