New IB Commissions for High Volume Stock Traders
- Thread starter Steve_IB
- Start date
WHOA -- hold on -- where do they offer futures and options on FOREX?????
Although it's a step in the right direction, im disappointed that IB didnt offer a fixed per-ticket commission and pass-thru ECN charges/rebates like all other firms that i know of do (RML, Genesis etc.) I don't see how IB can justify charging an unbundled per-share base commission (0.0035/share under 300K) since they are now passing through the ECN charges to the client. When it was all-inclusive, i can understand that they charge 0.005 per share to cover their costs for the worst case (ie taking liquidity from the highest-charging ECN), but now that ECN charges are passed through to the client, why does IB still need to charge a per-share base commission? Adding liquidity traders can still get significantly better deals elsewhere (ie fixed per-order commission and ECN pass-thru). I hope IB will soon offer a fixed per-order commission and pass-thru ECN charges/rebates to give the adding liquidity traders a real deal, and i invite IB or anyone else to offer an explanation of the logic as to why they still charge per-share commission while passing through ECN rebates/charges to the client. Happy New Year to all...
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DOH!!! I think you meant "FOREX <b>,</b> futures <b>,</b> and options". Here I was hoping they offered options on FOREX.....
Steve IB....
Is it possible to get a previous months trading with your company analyzed reflecting your new charges to get an idea of approx what the costs would be for the future.
I know i can simply wait for January to end to find out,but goddamn it i`m excited to find out now how much i would save
Is it possible to get a previous months trading with your company analyzed reflecting your new charges to get an idea of approx what the costs would be for the future.
I know i can simply wait for January to end to find out,but goddamn it i`m excited to find out now how much i would save
Quote from vhehn:
that nyse clause is for automated systems that enter and cancel a large number of orders automatically. an example would be a enveloping system that followed the stock price up or down.
What it's actually for is this: The NYSE charges $0.01/share for any limit orders that are on the book for more than 5 minutes. Obviously, at $0.005/share (or less), this would be a real loser for IB if someone did it routinely.
that nyse clause is for automated systems that enter and cancel a large number of orders automatically. an example would be a enveloping system that followed the stock price up or down.
What it's actually for is this: The NYSE charges $0.01/share for any limit orders that are on the book for more than 5 minutes. Obviously, at $0.005/share (or less), this would be a real loser for IB if someone did it routinely.
Quote from LordMelbury:
So at the moment i am doing about 1,500,000 per month which would cost me $7500 per month( i do a minimum of 1000 shares per trade).
What would 1,500,000 per month(traded thru nyse) cost me now?
First 300K shares * 0.0035 = $1050
Next 1.2M shares * 0.002 = $2400
SEC fee ~= 750K * $53 * 0.0000307 = $1220
Total ~= $4670 (~$0.0031/share)
Note that the SEC fee is on sales only, and the rate has gone down. Also, I used '~' because the total is rounded up to the nearest penny on each trade, so it depends very slightly on the number of trades (probably an extra $3.75 per month if you did 750 trades ).
This also assumes that your orders do not rest on the NYSE book for more than 5 minutes, or you will incur the huge $0.01/share specialist charge.
So at the moment i am doing about 1,500,000 per month which would cost me $7500 per month( i do a minimum of 1000 shares per trade).
What would 1,500,000 per month(traded thru nyse) cost me now?
First 300K shares * 0.0035 = $1050
Next 1.2M shares * 0.002 = $2400
SEC fee ~= 750K * $53 * 0.0000307 = $1220
Total ~= $4670 (~$0.0031/share)
Note that the SEC fee is on sales only, and the rate has gone down. Also, I used '~' because the total is rounded up to the nearest penny on each trade, so it depends very slightly on the number of trades (probably an extra $3.75 per month if you did 750 trades
).This also assumes that your orders do not rest on the NYSE book for more than 5 minutes, or you will incur the huge $0.01/share specialist charge.