New IB Commissions for High Volume Stock Traders

[Steve_IB]

New unbundled commissions, with liquidity rebates, available for high volume US stock traders...

http://www.interactivebrokers.com/en/accounts/fees/commission.php#unbundled

 

[nitro]

Nice!

nitro

 

[kingcobra]

i continue to use their adv as contrary indicators as others have suggested.

 

[Bitstream]

Nice one.

Looking forward to see futures commish slashed as well.

 

[hoodooman]

How does this work exactly? Do you trade a large amount of shares one month and then get the lower fees the next month or do they calculate the lower fees and correct account?

 

[libertad]

Excellent !!!!!!!!!!!!!!!!!!!!!!!!!

 

[AllenCook]

From the IB site:

"Applied based on monthly cumulative trade volume summed across all stock and ETF shares at the time of the trade. Only shares that are traded while under the unbundled pricing structure will count towards the monthly volume. Share volumes for advisor, separate trading limit, and broker accounts are summed across all account for the purpose of determining volume breaks. These fees are applied on a marginal basis for a given calendar month. If for example, you execute 500,000 US shares in a month, your IB unbundled fees would be:
300,000 shares at $0.0035
200,000 shares at $0.002"

Thus, it appears it is based on the actual cumulative volume for that month (not in arrears).

Quote from hoodooman:

How does this work exactly? Do you trade a large amount of shares one month and then get the lower fees the next month or do they calculate the lower fees and correct account?

 

[joeyata1]

this in arreas. so somebody doing 600k of vol the commish avg's .00275.i think a retail investor with hi s own money can get .00225 for that with a much easier platform elswere. but you;ll have platform charges. i'm assuming the .007 min commission is before any rebates? so the min share ct is still really 200 shares

 

[JackR]

Quote from hoodooman:

How does this work exactly? Do you trade a large amount of shares one month and then get the lower fees the next month or do they calculate the lower fees and correct account?

IB's commission rate goes down as your volume goes up. You start every month at the high rate and decrement down every time you hit the next volume step. This is the way they work it in the futures commission structure.

IB commission structure is applied to the various exchange and regulatory fees and rebates.

Here is the IB commission portion, all else is constant:
<=300,000 Shares $0.0035
300,001-3,000,000 Shares $0.002
3,000,001-20,000,000 Shares $0.0015
>20,000,001 Shares $0.001

There is an overiding minimum of $0.70 per trade if you don't do enough size in an individual order.


If you were to do 3 million shares your average commission would be .00215 per share. Depending on where and how you trade you could lower that by gaining liquidity rebates.

Jack

 

[trader99]

Quote from JackR:

IB's commission rate goes down as your volume goes up. You start every month at the high rate and decrement down every time you hit the next volume step. This is the way they work it in the futures commission structure.

IB commission structure is applied to the various exchange and regulatory fees and rebates.

Here is the IB commission portion, all else is constant:
<=300,000 Shares $0.0035
300,001-3,000,000 Shares $0.002
3,000,001-20,000,000 Shares $0.0015
>20,000,001 Shares $0.001

There is an overiding minimum of $0.70 per trade if you don't do enough size in an individual order.


If you were to do 3 million shares your average commission would be .00215 per share. Depending on where and how you trade you could lower that by gaining liquidity rebates.

Jack

Dang. This would make IB cheaper than some prop shops! Whoa. And no desk fees crap either. And no push for volume too.

Interesting.