IB Charging quote fees now?

observer,
as mentioned via PM, i'll get back to you.

wonderluck,
i think i got back to you as well. but i'll post my feedback. There does not seem to be any problems with option market depth. You need to use Best to see the depth as IB never has supplied (nor do I think it is available) individual depth on any exchange. The IB depth via best will show the markets from all the exchanges. hope this helps.
 
Originally posted by def
observer,
as mentioned via PM, i'll get back to you.

wonderluck,
i think i got back to you as well. but i'll post my feedback. There does not seem to be any problems with option market depth. You need to use Best to see the depth as IB never has supplied (nor do I think it is available) individual depth on any exchange. The IB depth via best will show the markets from all the exchanges. hope this helps.
More...

Thanks Def.:)
 
I recently switched to IB and i am very happy except for the market data fees. I am now being told that because my account is organized as a corporation that I am considered a professional and must pay higher market data fees - $20 for nasdaq and $128 for listed vs. $10 for non-professional.

I have been with 3-4 other brokers in the past and this has never been an issue. I trade my own account for my own benefit. Realtick does not consider me to be a professional. IB wants me to pay the same amount I pay for my entire Realtick subscription. They say it is exchange rules that corporations are considered professional.

Has anybody else run across this? Sounds like a money making gimmick to me. If it is really an exchange rule then I know a lot trades that are classified incorrectly by their broker and chart provider.
 
I am in the same situation with one of my accounts. They froze it yesterday until I signed up for pro quotes. The handling of this was horrendous and I am very upset. I am doing some research on this issue and will post here what I learn. One thing I have learned is that the SEC does not specifically define the term "professional" vs. "non-professional". The SEC also requires that the fees collected by the broker designated specifically as exchange data fees, must be paid to the exchanges. If IB is paying them - and I want to make sure they are - then they are making $0 from the charges. The issue then becomes either compliance with the exchanges or interpretation of an existing regulation. If no other brokers are doing this, then either IB is the only one in compliance or they are reading the regs wrong.

more later...
 
I found some information at the nsye Market Data Services web site: http://www.nysedata.com/index.htm

The following is copied from their site regarding the definition of a non-professional. IB is clearly interrupting the definition differently than all other data vendors i have worked with. I trade my own account for my own individual benefit and my legal status as a sole proprietor vs. an S-corp should have no baring on professional vs. non-professional. IB is telling me the only way to avoid it is to open an individual account.

Like you I am not pleased with the way this was handled by IB.

SECTION 2: NONPROFESSIONAL SUBSCRIBER
9. NONPROFESSIONAL SUBSCRIBER DEFINITION -
"Nonprofessional Subscriber" means any natural person whom Vendor has determined to qualify
as a "Nonprofessional Subscriber" and who is not:
(a) registered or qualified with the Securities and Exchange Commission (the
"SEC"), the Commodities Futures Trading Commission, any state securities
agency, any securities exchange or association, or any commodities or futures
contract market or association.
(b) engaged as an "investment advisor" as that term is defined in Section 201(11) of
the Investment Advisor's Act of 1940 (whether or not registered or qualified
under that Act), nor
(c) employed by a bank or other organization exempt from registration under Federal
and/or state securities laws to perform functions that would require him or her to
be so registered or qualified if he or she were to perform such functions for an
organization not so exempt.


Title: 16. What is the definition of nonprofessional?
Date: 10/24/2000
Description: A nonprofessional subscriber is defined as an individual person who receives market data for his/her own personal, non-business use and who is not registered in any capacity with any self-regulatory body, futures contract market, the SEC, the CFTC, or any state securities regulatory body. All other subscribers that do not meet the definition of nonprofessional subscribers are subject to the rates for professionals
 
I was forced to sign up for professional just to avoid lack of quotes the next day. I assume your commissions offset under professional status? I skipped the NYSE quotes at $120 since I rarely trade them. I emailed them with my position and received no response.
 
I appreciate all your efforts on this board.

I can understand how the exchanges may be getting short changed by some abuse of these definitions and there is quite a jump in fees for listed market data for the professional trader vs. the non-professional. Referring to the definition provided it is very clear that a) i am not registered (no reason to be) and b) i am not an "investment advisor".

Now definition c) looks like one big catch all to me. If I read it in a certain way I can see why IB might say that all account organized as a corporation are professional (it's a stretch for me to read it that way but it is possible). The problem is it refers the requirement of being registered if you were not employed by an exempt organization. Trading my own money on my own behalf does not require me to be registered and how I am legally organized does not change that. Compliance is not as easy as sole proprietors in this basket and legal entities in this higher price basket.

Not a big issue at this moment since i rarely trade listed but it is nice to have that option without having to pay $128 every month just in case an opportunity arises. And based upon the subscription page it does not appear that the fees are rebatable based upon commission volume.

Thanks for listening.
 
Originally posted by zorrotrader
Now definition c) looks like one big catch all to me. If I read it in a certain way I can see why IB might say that all account organized as a corporation are professional
More...
well, according to IB-s memo, it's not (c) that's causing corporations to fall under professional status, it's the "natural-person" clause above. corporations most certainly are not natural persons.

- jaan
 
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