IB shows their futures options at .85 cents? I'm getting at $1.22

[IndyJonerJr]

Hi guys,

wondering why I'm getting charged $1.22 for a futures option when the site shows .85 cents.. I can't possibly believe there is a tack on of .37 cent extra in other fees is there?

am I calculating wrong here?


I've been thinking about trading companies as I hate their exposure fees.. I know where all my lines are and find tons of money locked up that I can do weekly plays on or few day plays, but can't because I'm riding the line of these exposure fees..

but then I am finding everyone else is far more expensive when looking at big broker houses.. I exclude smaller as I need iPhone support as that how I trade.... so I went to go back and look at what I'm being charged and calculating the commissions charge difference, which for me would land somewhere around 3-8k a month, so I'm like ok I'll stick with IB for now, but just wondering where this extra charges are coming in from?

thanks

 

[IndyJonerJr]

answered my own question, damn exchange is costing .55 cents and apparently I'm getting a little reduction on pricing, which I think is at 65 cents

that adds up to 1.22 with a .o2 cent tack on at the end

 

[Overnight]

Hi guys,

wondering why I'm getting charged $1.22 for a futures option when the site shows .85 cents.. I can't possibly believe there is a tack on of .37 cent extra in other fees is there?

am I calculating wrong here?...

Yes, you calculated wrong. It is plain as day, on their site...

"Our transparent Fixed pricing for futures in US markets includes our low broker commission plus exchange, regulatory and clearing fees."

That means they are NOT INCLUDED in the pricing. It means they add those on AFTERWARDS. Always read the fine print, which is usually so in-your-face and self-explanatory that most people gloss over it.

"...IBKR's Tiered commission models are not intended to be a direct pass-through of exchange and third-party fees and rebates. Costs passed on to clients in IBKR’s Tiered commission schedule may be greater than the costs paid by IBKR to the relevant exchange, regulator, clearinghouse or third party. For example, IBKR may receive volume discounts that are not passed on to clients. Likewise, rebates passed on to clients by IBKR may be less than the rebates IBKR receives from the relevant market. For example, IBKR may receive enhanced rebate payments for exceeding volume thresholds on particular markets, but typically will not pass these enhancements directly to clients."

Etc. ad nauseum.