is there a difference between tiered and fixed commission structure?

I

IBRex&me user

l notice there are 2 commission structures, which is more suitable for someone who trades low volume, ~1-4 legs option combos only. all smart directed. as l noticed in my statement, there are other charges too, 'broker charges' both clearing and execution, ontop of IB's commissions. do all other brokers charge those fees. l know all have to pay exchange, regulatory, clearing, etc fees
was told that the fixed structure i am on, is more suitable for those trading high volume like 10K legs! this is where TW really shines as they have a $10 cap per leg?
 
IBRex&me user said:
l notice there are 2 commission structures, which is more suitable for someone who trades low volume, ~1-4 legs option combos only. all smart directed. as l noticed in my statement, there are other charges too, 'broker charges' both clearing and execution, ontop of IB's commissions. do all other brokers charge those fees. l know all have to pay exchange, regulatory, clearing, etc fees
was told that the fixed structure i am on, is more suitable for those trading high volume like 10K legs! this is where TW really shines as they have a $10 cap per leg?
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If you trade low volume per trade, then use tiered. Sometimes I have even seen negative commissions.
 
When you trade large enough of shares and shares only, yes, there is a difference especially if you are able to route your orders to specific exchanges to take advantage of rebates.
 
The major difference is that fixed price includes different kinds of fees such as regulatory, clearing, and exchange fees, whereas tiered is not inclusive of these components. Hope that’ll help you decide.
 
IBRex&me user said:
so for someone who just trades 1-4 legs a time in a combo of 1-3, so 12 legs max, 4 legs typical, tiered or fixed offer better commission?
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I had to write a program to analyze my orders to see which would be better. And it turned out tiered was much better for my style of trading. You'll just have to go through a few examples of your "normal" type of orders and do the calculations.
 
nice, but this smartness is beyond me. i trade small only 1-4 legs a time, 12 legs max in combo, tiered would likely work out better?so in a day typically trade ~12 legs?
 
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