Interactive Broker Commission/Brokerage Fee

EmporioArmani

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Hi guys! I was thinking of opening an IB account since I heard that it has a lower comms rate as compared to other brokers. just wish to get more information from you people here.

I understand that there is a Monthly Comms of $10USD. But i wish to know what are the rates for each trade for the US Stocks? I saw on web it was $1USD but i just wish to confirm with the people here who are using that platform!

Thanks in advance!

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Kinetic88

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if need to worry about trading cost, chiu are not suitable to trade, as simple as that.

just like owning a car and need to worry about the running cost, better take BMW. :s8:
 

Opps-gal

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I think is more suitable for those who do more trade. Most of the time I didn't do much trade. So sticking to local brokerage.
 

Shiny Things

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Hi guys! I was thinking of opening an IB account since I heard that it has a lower comms rate as compared to other brokers. just wish to get more information from you people here.

I understand that there is a Monthly Comms of $10USD. But i wish to know what are the rates for each trade for the US Stocks? I saw on web it was $1USD but i just wish to confirm with the people here who are using that platform!

I think some of these are partial fills, but I pulled my trading records for this year to date and I'm averaging about 40-50 US cents per trade for US equities, 30 cents per trade for US equity options, and $2 a trade for US futures.

Things that might make a difference: I'm on tiered pricing; I usually add liquidity; and I always use IBKR's smart-router instead of routing to a specific exchange.

if need to worry about trading cost, chiu are not suitable to trade, as simple as that.

I'd disagree with that. The more often you trade, the more you care about cheap brokerage and good execution, no?
 

EmporioArmani

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I think some of these are partial fills, but I pulled my trading records for this year to date and I'm averaging about 40-50 US cents per trade for US equities, 30 cents per trade for US equity options, and $2 a trade for US futures.

Things that might make a difference: I'm on tiered pricing; I usually add liquidity; and I always use IBKR's smart-router instead of routing to a specific exchange.



I'd disagree with that. The more often you trade, the more you care about cheap brokerage and good execution, no?
I was looking at the Tiered Pricing. They were saying that for US stocks, it will be priced at 0.0035USD per share.

So example if i were to have buy 1000units and sell 1000 units in that month, does it means that my commission will be $7USD, adding on a $10USD charge monthly which means my total comms for that month will be $17USD?

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limster

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I'd disagree with that. The more often you trade, the more you care about cheap brokerage and good execution, no?

kinetic shu shu is probably referring to the SSI warriors that constantly ask questions about minor things but are too scared to buy anything.

i find that ARCA gives me the lowest commissions.

I am very suspicious about exchanges like ISLAND. I have been routed there before and hammered with much higher commissions. The only explanation for my higher comms in some of these exchanges s that they somehow managed to convert me from a 'maker' into a 'taker', eg: by orders vanishing and suddenly i become a taker.
 

BBCWatcher

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So example if i were to have buy 1000units and sell 1000 units in that month, does it means that my commission will be $7USD, adding on a $10USD charge monthly which means my total comms for that month will be $17USD?
No. The US$10 is a monthly minimum commission. If you have US$7 of commissions for the month, then (assuming your total account value is below US$100,000) you will be charged...US$10, the monthly minimum.

You are charged the monthly minimum (only) or your total commissions for the month, whichever is higher. But not both.
 

foozgarden

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No. The US$10 is a monthly minimum commission. If you have US$7 of commissions for the month, then (assuming your total account value is below US$100,000) you will be charged...US$10, the monthly minimum.

You are charged the monthly minimum (only) or your total commissions for the month, whichever is higher. But not both.

is it worth to pay for this min 10/mth fee?
assuming trading one or twice a month.
and also , how close is the spread from XE.com for USDSGD?
 

tiertime

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if need to worry about trading cost, chiu are not suitable to trade, as simple as that.

just like owning a car and need to worry about the running cost, better take BMW. :s8:

True... its always good to have more people who more willing to pay and less calculative, keeps economy running and very good for business owners
 

Kinetic88

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True... its always good to have more people who more willing to pay and less calculative, keeps economy running and very good for business owners

小財不出大財不進 :s8:
 

Kinetic88

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Just in case you wish to trade stocks on SGX, there are local brokerages pricing even lower than IB, the latter costing 0.08% for fixed and 0.02% for tiered, if you are "big"enough.

My last SGX trade was done at 0.001%.

csb.

pls name the brokerage. :s8:
 

awful999

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No. The US$10 is a monthly minimum commission. If you have US$7 of commissions for the month, then (assuming your total account value is below US$100,000) you will be charged...US$10, the monthly minimum.

You are charged the monthly minimum (only) or your total commissions for the month, whichever is higher. But not both.

something is wrong? if your trade commission is $7 that month, $10-7=3, so that month you only need to pay $3 but not $10
 
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BBCWatcher

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something is wrong? if your trade commission is $7 that month, $10-7=3, so that month you only need to pay $3 but not $10
Keep it simple, for it is simple.

If your total account value is at least US$2,000 but less than US$100,000, your monthly commissions will be US$10 or actual, whichever is higher. That's how it works.

OK, so you have a $7 commission charge calculated for your 3 trades, let's suppose. $7 is less than $10, so for that month you're charged $10, the minimum monthly commission.

Next month, you have $12 in commissions, let's suppose. $12 is greater than $10, so for that month you're charged $12.

And so on. See how simple it is?
 

BBCWatcher

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is it worth to pay for this min 10/mth fee?
assuming trading one or twice a month.
Maybe. What's your next best alternative? Just do the math and compare.

and also , how close is the spread from XE.com for USDSGD?

I just took an instant look at IB's IdealPro forex market for the USD.SGD pair. At the instant I looked the Bid price was 1.31926 and the Ask price was 1.31932....

OK, looking again (random look), now it's 1.31947 and 1.31953.

It looks like that 5th decimal place has a bid-ask gap of between 5 and 8 as it bounces around -- in other words, 5/ to 8/100,000ths of one Singapore dollar. That's tight.

You can also set limit orders.
 

awful999

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Keep it simple, for it is simple.

If your total account value is at least US$2,000 but less than US$100,000, your monthly commissions will be US$10 or actual, whichever is higher. That's how it works.

OK, so you have a $7 commission charge calculated for your 3 trades, let's suppose. $7 is less than $10, so for that month you're charged $10, the minimum monthly commission.

Next month, you have $12 in commissions, let's suppose. $12 is greater than $10, so for that month you're charged $12.

And so on. See how simple it is?

:D you make it confusing actually, in simple term, if you trade $7 commission in a month, then for that month, you paid

$7 for commission for the trades and then $10-7= $3 pay for monthly activity fee :s13:
 

Perisher

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:D you make it confusing actually, in simple term, if you trade $7 commission in a month, then for that month, you paid

$7 for commission for the trades and then $10-7= $3 pay for monthly activity fee :s13:

Think he got it wrong. Then again who knows.
 
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