Hi IB-AN, I've asked a similar question regarding Friends and Family Account to IB online support and the answer was contradicting to what you've stated:
>>Q: 1. If a client sub-account is below the limit for activity fee (due to being composed of long-term investments and conservative strategy), does it incur the $10 minimum monthly commission fee even if other accounts under the same Family Advisor account exceed the minimum activity requirement?
A: 1. Yes the account will still have to 10 USD a month activity fee, it's based per account.
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Could you tell me why Friends and family accounts are treated different than linked accounts?
Thanks
The responses aren't necessarily inconsistent but there are subtle nuances between linked accounts and accounts held under a master account structure (e.g., Introducing Broker, Financial Advisor, Friends & Family Advisor) which bear explaining. As background, we allow individual accounts to be linked because they represent the same beneficial owner and it's therefore logical to consider all of the activity that individual conducts when considering the monthly minimum activity fee.
Accounts held under a common master account do not necessarily represent the interests of the same beneficial owner, however we do consider their common relationship (e.g., the master) in determining how this fee is to be applied. It's determined in a different manner than linked accounts, but can result in the same outcome if the aggregate commissions are sufficient. Here, we take the aggregate commissions for all accounts and if it exceeds the sum of the minimum for all accounts (including the master), none are charged. If it does not, then all the accounts are subject to the calculation as if they were independent accounts and not part of a master account structure.
Take, for example, a Friends & Family account with two client accounts "A" and "B". If "A" generates $40 of commissions for the month and "B" none, then neither of those accounts or the master would be charged the fee as the aggregate commissions exceed $30 (3 x 10). If, however, "A" generates $20 of commissions for the month and "B" none, then "A" is not subject to the fee (as $20 > $10) and "B" and the master are (assuming neither maintains equity of at least $100,000 in which case the minimum is also waived).
As for the prior posting, which questioned whether the commissions generated by the same individual who maintains one independent account and another beneath a master can be consolidated for purposes of determining the minimum, the answer is no. The reasoning behind this is explained by the fee logic which, as noted above, differs between individual linked accounts and accounts that are part of a master account structure.
