Shall we apply the part you quoted to a penny stock? 2500 shares at $0.10 = $250, commission cap of 0.5% of notional = $1.25. You think it would be $0.005/share or $12.50, wrong by a factor of 10.
Lightspeed trading or Interactive brokers
- Thread starter Pri
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JB, you need to check the unbundled rate if you do any volume.
But yes IB sounds expensive for penny stocks, and for regular stocks I have a bunch of transactions costing between 50 to 100usd every month (especially lately, after I increased single stock trading) It gets better past the first 300k shares per months, and it's much better when you add liquidity. Buying 10k shares can cost you a couple of bucks when adding liquidity after the 300k treshold, including regulatory fees
Also one has to take into account the margin fees, from memory IB is much cheaper than other retail brokers, which can add to quite a bit of money at the end of each month.
But yes IB sounds expensive for penny stocks, and for regular stocks I have a bunch of transactions costing between 50 to 100usd every month (especially lately, after I increased single stock trading) It gets better past the first 300k shares per months, and it's much better when you add liquidity. Buying 10k shares can cost you a couple of bucks when adding liquidity after the 300k treshold, including regulatory fees
Also one has to take into account the margin fees, from memory IB is much cheaper than other retail brokers, which can add to quite a bit of money at the end of each month.
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I actually thought it was 110k minimum but am not sure what portfolio margin has to do with this thread. If not trading small caps, you actually get closer to 6*1 leverage overnight, more on broad base ETF. Than you start to enjoy the cheaper IB financing costs
About the fees, have you the checked their tiered(or unbundled ) pricing, see below ?
Today premarket for instance I bought 9000shares@19.25 for 1.81 total com , it gets cheaper after 3million shares a months btw.
https://www.interactivebrokers.com/en/index.php?f=commission&p=stocks2
Also a trader on ET mentionned he could be priced on the second tier basis from the beginning of the month after showing several months statements with enough volume, hence a 450usd/month discount.
About the fees, have you the checked their tiered(or unbundled ) pricing, see below ?
Today premarket for instance I bought 9000shares@19.25 for 1.81 total com , it gets cheaper after 3million shares a months btw.
https://www.interactivebrokers.com/en/index.php?f=commission&p=stocks2
Also a trader on ET mentionned he could be priced on the second tier basis from the beginning of the month after showing several months statements with enough volume, hence a 450usd/month discount.
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corrected a bit
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Really? I though the max was 4:1.
Portfolio Margin initial minimum is 110k, maintenance minimum is 100k and that makes sense to me - they don't want people dropping below the minimum after the first losing day.
PM depends a lot on what you're doing. Since stocks have different margin requirements, it can mean anything from 1:1 to 6:1 (plenty of stocks are non-marginable nowadays), if you do CFDs then it can be as high as 7:1 or thereabouts.
PM depends a lot on what you're doing. Since stocks have different margin requirements, it can mean anything from 1:1 to 6:1 (plenty of stocks are non-marginable nowadays), if you do CFDs then it can be as high as 7:1 or thereabouts.
def
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yes but you do have some incorrect statements. let me clarify the fee structure for IB
1. Fixed price
USD .005 per share with a USD 1.00 minimum and a maximum per order of 0.5% of trade value
- Plus the applicable exchange, ECN and/or specialist fees based on execution venue.
- In the event the calculated maximum per order is less than the minimum per order, the minimum per order will be assessed.
2. Tiered
This starts at .0035 per share and slides down to as low as .0005 per share with a max of 0.5% of trade value
plus exchange, ECN fees (which could include rebates).
Finally - most important. Note that IB does not sell order flow and the execution quality as measured by third parties is far superior to the industry average. If in doubt, I'd urge you to trade side by side and go with the firm that gives you the net lowest trading cost (which goes far beyond commission alone).