IB is going to start charging a daily exposure fee

SteveH said:
For a regular trading hours futures daytrader at IB, what amount per ES contract traded ("initial margin") would one need to not get an exposure fee? Obviously, whatever margin reqs. they post have no meaning in relation to extra charges.
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I think the exposure fee is only for people holding overnight.
 
luisHK said:
Looking to put over 5mil on an account giving access to many markets, at least as many as IB, although I mostly care about stocks, stock options and Cfds but only 2 to 2.5 if giving only access to european markets.
I've looked around a bit but can't say i've been very succesful so far, access from Mainland China is important as well as i'm there quite often, and IB is also decent for that.
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Jesus Christ! Go to newedge. Why the hell are you at IB? Get on the Internet, call around or have your butler do it.
 
Newedge kindly told me they were not interested although I fit both the 5mil minimum and the 100k a year fee.
It might be them not interested in opening new accounts to one man shops or the statements i showed them beeing too volatile (those included the EURCHF mess and I think another large loss)
Met with Abn Amro as well, they didn't even need to see the statement, they claimed in Singapore they were not interested in 1 man shops.
My ears are open for other names though, but again i'd like the broker to have a strong presence in Asia.
 
fbell50 said:
Thanks for the explanation, but I cannot see how this would cause an exposure fee in my case.
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There is a possibility that IB made a mistake in their algorithm. What did they say when you contacted them?
 
luisHK said:
Newedge kindly told me they were not interested although I fit both the 5mil minimum and the 100k a year fee.
It might be them not interested in opening new accounts to one man shops or the statements i showed them beeing too volatile (those included the EURCHF mess and I think another large loss)
Met with Abn Amro as well, they didn't even need to see the statement, they claimed in Singapore they were not interested in 1 man shops.
My ears are open for other names though, but again i'd like the broker to have a strong presence in Asia.
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I must say that those two meetings have dampened my enthusiasm and haven't been looking since then (except an enquiry to Marex in HK which don't seem to offer single stocks). I might get back energy in a couple of months and roam for new brokers again, all serious leads are welcome.
Also it seems IB counts quite a few larger accounts among its customers
 
risknav said:
This exposure fee has been documented only slightly better than when it was first introduced, which isn’t saying much, and apparently to this day some traders are still completely lost on its meaning and how it’s applied.
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They used to explain more about the fee, but that page has been taken down.

https://www.interactivebrokers.com/en/?f=/errorMessages/404.php?ib_entity=llc

fbell50's e-mail snapshot is the first time I've read about the $1 per $76k, geometric sliding scale calculation.
 
I talked to IB. They said my exposure is due to a short position in UVXY. The risk navigator doesn't show enough UVXY VAR (value at risk) to justify the exposure IB specified. If my longs are marked down 50% it would take a price increase of 3.63 in all my shorts to reach the exposure IB specified.
 
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