IB unbundled NYSE fees are wrong starting 10/1/07

F

fbell50

I believe IB has been charging my account incorrect exchange fees. On Oct 1 the NYSE changed their fee schedule (http://www.nyse.com/pdfs/2007pricelist.pdf) as follows:

Equity Transactions:
Take liquidity: .0008/share
Add liquidity: No Charge
At the opening or at the opening only orders: No Charge
market at-the-close and limit at-the-close orders: .0004/share

Based on a partial analysis of my executions IB has been charging:

1) Add/Take charges have been correct through 10/25. On 10/26 the take fee has been charged for the add executions that I have checked.
2) It appears all of my on the open executions have been charged the take fee.
3) Some large number (but not all) of my on the close executions have been charged the take fee. Some have been charged nothing.
4) The old schedule was still charged on Oct 1. This would help the takers and hurt the adders.

I have working with support to resolve the situation but progress is slow. At this point they “are investigating this.” If you are on unbundled commissions it might be worth your while to check your fees.

The calculation is #shares * (DTC fee + IB Comm + NYSE fee). If selling add SEC Fee (.0000153 * #shares * price);

DTC fee is .0002 eff 10/1/07 (I’m not 100% sure about the date, it was .00038 before that).
IB Comm is
<=300,000 = $ 0.0035,
300,001-3,000,000 = $ 0.002
3,000,001-20,000,000 = $ 0.0015
 
Not that there seems to be much interest, but IB has agreed that "There was an error in the commission. We are in the processing on writing a script to identify the trades and calculate the adjustment. "

Meanwhile the wrong NYSE fee charges continue.
 
Its hard to imagine why one account would be charged the wrong amount and not have more like it.

I usually provide liquidity both on the NYSE and the naz. Some of my commissions seemed unusual as well.

Thanks for posting and please repost your results.
 
Here is my days blotter. It appears that either I am missing something or I am being over charged as well.

CRM is my first trade on the blotter, its a short sale where i added liquidity.

Here is my math

Commission .0035 / share * 200 shares = .70
Clearing DTC .0002 / share * 200 shares = .04
Transaction Fees ( 56.11 * 200 ) * $0.0000153 = .1716
( 56.11 * 200 ) =11,222

.70 + .04 + .17 = 91 cents. but as you can see with the blotter I was charge 1.07

Perhaps someone can shed some light on my math or confirm that I have been overcharged.
 

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Yes, you have been charged the NYSE take fee. My calc matches yours:

Ib Comm 200 * 0.0035 = 0.70
DtcFee 200 * 0.0002 = 0.04
SecFee = 0.17
nyse add Fee 200 * 0 = 0.00
sell 200 aav nyse add CalculatedComm=0.91 0.0046/share
Difference: Actual(1.07) - Calc(0.91) = 0.16 0.00080/share
 
Quote from fbell50:

Yes, you have been charged the NYSE take fee. My calc matches yours:

Ib Comm 200 * 0.0035 = 0.70
DtcFee 200 * 0.0002 = 0.04
SecFee = 0.17
nyse add Fee 200 * 0 = 0.00
sell 200 aav nyse add CalculatedComm=0.91 0.0046/share
Difference: Actual(1.07) - Calc(0.91) = 0.16 0.00080/share
More...

It appears that way, the problem is that i did not take away liquidity. I posted a limit order that was in play for at least a minute before being hit.
 
That's my point. Since IB is charging me the wrong NYSE fee, they are almost certainly charging everyone the wrong fees. I brought this to their attention two weeks ago and they have barely conceded the point. A proper response would have been to address each of my overcharging issues item by item (either agreeing or disagreeing) and then presenting a plan and timetable to fix.

By my calculation they have overcharged me at least $1200. Who knows what the total is for all their unbundled customers? It's not difficult to imagine the amount is climbing into the millions.

I'm hoping that other customers will complain and press the issue.
 
Pretty interesting just two posters in this thread. Takes more than a few million bucks of overcharges for the IB lemmings to break rank.

Hope you get the answers (and adjustments) you seek. Good luck.
 
Quote from fbell50:

I like IB. I just think they are handling this badly. I am also puzzled at how little interest this is generating.
More...

I suspect most people use the bundled commissions through IB.
 
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