IB's new US equity commission

Starting Nov 1, 2005, isn't the rate going to be $0.005/share from the first trade?
I am just wondering if that rate is valid for all traders or only specific hogh volume traders or if there are any other special/hidden fees going to be assocaited with it starting next month, and if that fees also apply for API and non-SMART orders.
 
I just saw the following information:

_______________________________
Interactive Brokers Lowers U.S. Equities and Options Fees [FNJWBQL]

GREENWICH, Conn., Oct. 24 /PRNewswire/ -- Interactive Brokers LLC (IB), the technology leader in global brokerage services, is lowering commissions to trade U.S. equities by 50 percent and U.S. options by 25 percent, effective November 1, 2005.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050926/CGM031LOGO )
The announcement follows last week's news that IB was cutting fees for trading futures worldwide.
The new price structure for trading U.S. equities, options and futures is as follows:

Equities: $0.005 per share, all inclusive
Options: $0.75 per contract, all inclusive
Futures: $0.25 to $1.20 per contract, plus exchange fees
Forex: 1 to 2 "pip"-wide EUR/USD spread

Unlike other brokers, IB does not have any additional ticket charge.
"This sets a new industry standard in deep-discounted commissions for professionals," said Interactive Brokers Group (IBG) Chairman Thomas Peterffy. IBG last week also submitted a bid for the exchange-listed futures business of Refco LLC.
"This is in keeping with our mission that is to provide low-cost trade execution and clearing services to professional traders and investors worldwide," Peterffy also said. "Lower commissions do not mean no-frills technology. IB will continue to enhance the industry's leading direct-access global trading platform."
IB will soon announce:

-- The addition of new markets so that professionals can trade equities,
options, futures, forex and bonds in more destinations worldwide from a

single Universal account

-- Additional forex dealers to keep IB forex spreads the tightest in the
industry

-- Additional real-time risk management tools to assess portfolio risk
throughout the day

-- Enhancement to IB's smart-router to take advantage of rule changes in
the marketplace and always ensure best-execution

-- Additional charting and market scanner functionality

"We do not believe there is another broker providing this much functionality at any price in the industry. We will continue to upgrade our platform to remain the trailblazer for professional traders and investors worldwide," Peterffy said.
IBG is the parent of global market-making firm Timber Hill and customer brokerage firm Interactive Brokers LLC (IB), which trades equities, options, futures, foreign exchange and bonds on over 50 exchanges and marketplaces around the world.
Institutional Investor ranked IBG as the 16th largest U.S. securities firm with capital of about $2 billion. IB also won the top ranking in Barron's annual survey of software-based online broker. SOURCE Interactive Brokers LLC

Isabelle Clary, Communication Director of Interactive Brokers LLC, +1-203-618-7711, iclary@interactivebrokers.com 24Oct05 19:49 GMT
Source PRN PR Newswire
 
I wonder if the minimum order will stay at $1.00 or go down to $0.50. If not its a smart way for them to keep 100/share lot traders at 1 cent a share. Will be interesting to see.....
 
IB is already cheaper than most props and you don't even need a Series 7. It would be nice if they cut per share above 500.

I heard there was a prop firm that charges 1.25 cents for all shares before you get your Series 7. After you get your S7, it's still more expensive than IB unless you trade over 2k lots.

Quote from range:

If IB wants to be comptetive, it should also cut the per share commission amount for orders over 500 shares.
More...
 
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