IB Exposure Fee
- Thread starter mastacoli71
- Start date
either they stopped to fine tune their "system" or
can IB arbitrarily tack on a fees to regulatory Board's rules without authorization?
Authorization? When most of us open an account and we get all that paperwork, we just sign it without reading every word. Brokers place in that paperwork language that authorizes them to do just about anything with proper notice that is legal under SEC and their SROs guidelines, which are VERY broad.
1245
I wasn't clear...
but authorization from SEC or OCC or FINRA or whoever has power to regulate
IB is basically tacking on their own rule (fee) to their rules
Yup, that they are. I don't like it either.
Did you mean that, to maintain roughly 4000K, he should pay $125 everyday, which is 240*125=30000=30K every year? So the rate is 30/4000=0.75%.
How abut tell IB that "I buy ONLY cash, with NO margin so that I do NOT need to pay the risk. So I am leaving IB any more"
So I'm still puzzled by this "exposure fee" aka "arbitrary nuisance fee".
For Friday the 20th my statement shows no exposure fee.
However, if I go to Account Management>Reports>Risk>Stress Test, then it shows that my exposure has increased 2.5 times for Friday the 20th (from Thursday the 19th) but there is no estimated exposure fee.
For Saturday the 21st (WTF?) the Stress Test shows that my exposure has been reduced by 55%!!! yet there is NOW an estimated exposure fee.
There must be something about Hungarian logic & ethics I do not understand.
For Friday the 20th my statement shows no exposure fee.
However, if I go to Account Management>Reports>Risk>Stress Test, then it shows that my exposure has increased 2.5 times for Friday the 20th (from Thursday the 19th) but there is no estimated exposure fee.
For Saturday the 21st (WTF?) the Stress Test shows that my exposure has been reduced by 55%!!! yet there is NOW an estimated exposure fee.
There must be something about Hungarian logic & ethics I do not understand.
IB wants another source of profits. Under the cover of risk management, they are increasing their profits through extra fees.
They will push the envelope of extra fees until traders start fleeing. From the look of the posts, it seems like no one will leave IB over exposure fees. People are annoyed, but not enough to leave. They have done their job for IB shareholders.
They will push the envelope of extra fees until traders start fleeing. From the look of the posts, it seems like no one will leave IB over exposure fees. People are annoyed, but not enough to leave. They have done their job for IB shareholders.