IB Exposure Fee

[Gldr]

Oh so wrong. I have 3 other portfolio margin accounts besides IB and was prepared to wire money out of IB, then they stopped the ridiculous exposure fee so I decided not to. I am not wed to any broker, IB included. The exposure fee effectively triples their commissions, thereby making them the most expensive options broker out there. The autoliquidation is bad enough, but when you factor in high commissions, that would have been the final straw.

The people affected by the fee appear to be large account holders, and people like that have accounts spread among multiple brokers. So don't think they wouldn't leave one broker for another.

Same position here, ready to move in case the fee remains.

 

[jk90029]

For european instruments, Saxo bank is a good replacement. Maybe also for american instruments, but I did not check.

For the saxo bank, it seems higher commission than US

http://www.saxobank.com/prices/stocks/commissions

For example, suppose we trade ONLY one buy and one sell everyday, it is huge amount in 240days(1year).
If with 10K as seed, how much is the commission in 240 days?

 

[SIUYA]

I heard that IB hired bunch of mf global risk people, and exposure fee is their idea.

Time to leave IB if that is true - I had first hand experience with MFG

 

[Gldr]

I'm no longer being charged an exposure fee even though my estimated exposure fee in the Risk Stress Test depicts this fee as increasing. Is anyone still being charged an exposure fee? Has anyone received any word from IB as to whether this fee is being dropped?

The charge seems to have halted (?). However, there is a total radio silence about this... and any future status.

For now, I hold my orders until there is any clarity.

 

[lassic]

The charge seems to have halted (?). However, there is a total radio silence about this... and any future status.

For now, I hold my orders until there is any clarity.

must be back, they deducted it from my account:

2014-06-30 Exposure Fee, Equity for 20140628

 

[NeutronJuan]

Oh great, so now it's an "intermittent arbitrary nuisance fee".

I went to an all cash position end of day 6-27-14, so no fee. The soonest I'll put on another position is Thursday morning. Until then I can't confirm.

 

[stevenw]

on 20140630 stress test exposure calculation. why include Es OPTION 20140630 positions, which is already expired on 20140630 1pm pacific time? the position are already expired, why still calculated?

 

[deanthemis]

on 20140630 stress test exposure calculation. why include Es OPTION 20140630 positions, which is already expired on 20140630 1pm pacific time? the position are already expired, why still calculated?

The same thing happened to me. IB has done a horrendous job implementing this 'Exposure Fine' as I like to call it.

 

[darwin666]

yup. its back .and increasing ever.

Other Fees
Date Description Amount Code
USD
2014-07-01 Exposure Fee, Equity for 201406301 -8.65
Total -8.65
Notes
This account incurred an Exposure Fee based on IB's risk analysis of the account, which determined that the account poses an unusually high risk of loss. The Exposure Fee is deducted from high risk accounts to compensate IB for the risk in servicing such accounts. To reduce or avoid the Exposure Fee, add capital to the account or reduce risky positions. Please see the Exposure Fee page in the Account Management Reference Menu under Trade > Exposure Fee for more information, and view the Stress Test Report for more information on the risk analysis of the account. To view the Stress Test Report, login to Account Management and navigate to Reports > Risk > Stress Test.

 

[darwin666]

yup. its back .and increasing ever.

Other Fees
Date Description Amount Code
USD
2014-07-01 Exposure Fee, Equity for 201406301 -8.65
Total -8.65
Notes
This account incurred an Exposure Fee based on IB's risk analysis of the account, which determined that the account poses an unusually high risk of loss. The Exposure Fee is deducted from high risk accounts to compensate IB for the risk in servicing such accounts. To reduce or avoid the Exposure Fee, add capital to the account or reduce risky positions. Please see the Exposure Fee page in the Account Management Reference Menu under Trade > Exposure Fee for more information, and view the Stress Test Report for more information on the risk analysis of the account. To view the Stress Test Report, login to Account Management and navigate to Reports > Risk > Stress Test.

the only thing this does is.. GIVES ME STRESS. no need to go and run the STRESS TEST report.