It was figured out a long time ago when the fee kicks in, just keep your total loss exposure below 125,000 USD. In other words, if your position(s) move 30% up or down (equity has a special 20% up move, so calculate it based on that) overnight would your account have a negative liquidation value of >$125,000 USD – if so, you’re going to be paying the fee.
I’ve found that this exposure fee typically negatively effects option sellers, but I’ve also found that buying very cheap protection (essentially turning positions into credit spreads) just below the 125,000 USD account “exposure” no-fee limit line removes it altogether, and the long options cost less than the fee, especially if you’re holding the short options for >30 days.
I paid the fee on a number of days back when it was first introduced spanning a few months, but haven’t paid it since. If you trade any sort of volume, IB is still more cost effective compared to the others who don’t charge any fee (the commissions are higher).
I even sometimes (though very rarely) make a small profit on those deep OTM long options, but I know they accomplish two things; 1. No exposure fee, 2. Loss limiting on unforeseen, unprecedented one-way moves.
