Unfair? IB calendar(!!) month unbundled commisions ?

G

Gringinho

I have used several brokers in my time which have offered "unbundled commisions", where commision depends on the volume traded. In every country and with every broker this was calculated on a continous basis, so that accumulated volume ultimo some month affected commisions primo next month etc. - i.e. a rolling continous volume calculation.

On IB it is limited to calendar month volume - meaning that even though you have a continously high volume, you will get ripped off during the first days of every month - with commisions higher than the unbundled offer, and then you will have to "work your way up" every month.

I say "ripped off" because the low-volume unbundled commisions are higher than the fixed-rate commisions, so I think there is grounds to actually claim "being ripped off", considering the continously high volume traded.

I object to the current way IB is using calendar months for calculation of volume, and think that commissions should be calculated on a continous basis - even intra-day (which it seems to be now as well). A 30-day (and intraday) rolling average for calculating volume for commisions is the only fair pricing in my opinion.

If you currently are considering IB unbundled commision: what's your opinion ?
 
No, there is no rip-off with respect to IB.

Although I would consider certain exchange fees as a rip-off.

Simply avoid contracts with high exchange fees (like all the CME Globex stuff) ...

:p
 
Quote from Gringinho:

I have used several brokers in my time which have offered "unbundled commisions", where commision depends on the volume traded. In every country and with every broker this was calculated on a continous basis, so that accumulated volume ultimo some month affected commisions primo next month etc. - i.e. a rolling continous volume calculation.

On IB it is limited to calendar month volume - meaning that even though you have a continously high volume, you will get ripped off during the first days of every month - with commisions higher than the unbundled offer, and then you will have to "work your way up" every month.
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Agree with Gringinho--commission rate calculation should be on a continuous basis. IB's "unbunddle rate" is not only unfair but very unwise if it wants to keep its volume traders.

tc
 
I perhaps should point out again, that I'm not unhappy with IB's low prices in general, but object to the calendar month model for unbundled commissions. I have always been used to continuosly averaged volume for trade commissions, and think that's a fair system.

Of course this would then also rise commissions whenever trade volume slumps within a 30-day period; but still I find it more fair than the calendar month model.
:)
 
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