Anyone choose to go with unbundled commission structure in Canada? I just finished reading through and if I understand correctly, it sounds like you could save money. I read that IB will still cap the commission charge at 0.5% of the trade value even under the unbundled pricing structure.
"5. IB's unbundled fee will be capped at 0.5% of trade value."
That's good if it's correct and I'm interpreting it correctly. I wasn't going to switch to unbundled because I like to trade some TSX Venture stocks (low priced). Originally it seemed liked you got hosed if you went unbundled. For example, you buy 10 000 shares at $0.30:
10 000 x (0.008 + 0.0001 + 0.00011 + 0.0004) = $88.30
0.008 = per share charge
0.0001 = clearing fee
0.00011 = regulatory fee
0.0004 = exchange fee
If it is capped it would work out to:
(10 000 x $0.30) x 0.005% = $15.00
Not bad, if it works this way. Although it is ironic that TD Waterhouse is able to offer unlimited shares for $7.00 now.
The upside is that you could earn some liquidity rebates from your TSX trading which could help to reduce overall commissions. There are no rebates from the TSX Venture. And, when you get over 300,000 shares for the month, your per share commission drops to $0.005 and you could earn $0.002 in rebates.
Any comments? Am I reading this correctly? Anyone from IB care to clarify? I'm trying to reduce my commission charges as even a 30% savings would put some good money back in my own pocket.
Thanks in advance.
"5. IB's unbundled fee will be capped at 0.5% of trade value."
That's good if it's correct and I'm interpreting it correctly. I wasn't going to switch to unbundled because I like to trade some TSX Venture stocks (low priced). Originally it seemed liked you got hosed if you went unbundled. For example, you buy 10 000 shares at $0.30:
10 000 x (0.008 + 0.0001 + 0.00011 + 0.0004) = $88.30
0.008 = per share charge
0.0001 = clearing fee
0.00011 = regulatory fee
0.0004 = exchange fee
If it is capped it would work out to:
(10 000 x $0.30) x 0.005% = $15.00
Not bad, if it works this way. Although it is ironic that TD Waterhouse is able to offer unlimited shares for $7.00 now.
The upside is that you could earn some liquidity rebates from your TSX trading which could help to reduce overall commissions. There are no rebates from the TSX Venture. And, when you get over 300,000 shares for the month, your per share commission drops to $0.005 and you could earn $0.002 in rebates.
Any comments? Am I reading this correctly? Anyone from IB care to clarify? I'm trying to reduce my commission charges as even a 30% savings would put some good money back in my own pocket.
Thanks in advance.