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JasonH

Anyone using Interactive Brokers Fixed commissions?

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Interactive Brokers Fixed commission structure, if I understand it correctly, looks dirt cheap for traders that are usually in the lower volume tiers (<300k share monthly).

Anyone have an IBKR Pro Fixed pricing account? Can you share a couple lines from your statements so we can confirm the commissions? Does that commission rate ($0.005/share) really include everything except SEC and FINRA TAF?

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Tiered is cheaper. $0.0035/share, $0.35 min./trade.

Min./trade for fixed structure is $1.00. 

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3 minutes ago, Jiheng Sang said:

Tiered is cheaper. $0.0035/share, $0.35 min./trade.

Min./trade for fixed structure is $1.00. 

Yes, tiered is cheaper for smaller share size.  If you trade big size fixed is better with $1 USD min / ticket. 


Abiel Guerra

BBT Team

abiel@bearbulltraders.com

 @abielguerra 

Find your answers in our Knowledge Base 

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You guys are overlooking the fact that ECN and other pass through fees are included in Fixed per-share price. That’s about $0.0025 per share on average. So add that to $0.0035 and now you’re looking at $0.006 per share. 
 

Again, this is the whole point of Fixed pricing. At least per IB website. Looking for real world confirmation if someone here actually has an account. 
 

Tiered is only going to be cheaper for sizes of about 150 shares and less. I’ll send graph and Excel later. 
 

 

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7 minutes ago, JasonH said:

You guys are overlooking the fact that ECN and other pass through fees are included in Fixed per-share price. That’s about $0.0025 per share on average. So add that to $0.0035 and now you’re looking at $0.006 per share. 

Source? 


Abiel Guerra

BBT Team

abiel@bearbulltraders.com

 @abielguerra 

Find your answers in our Knowledge Base 

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but tiered can go down to  $0.0005 depending on your monthly volume,

 

VOLUME (PER MONTH) 2, 7, 8 IB COMMISSION PER SHARE
US STOCKS, ETFS, ETPS AND WARRANTS MINIMUM PER ORDER MAXIMUM PER ORDER
<= 300,000 Shares USD 0.0035 USD 0.35 1.0% of trade value
300,001 - 3,000,000 Shares USD 0.002 USD 0.35 1.0% of trade value
3,000,001 - 20,000,000 Shares USD 0.0015 USD 0.35 1.0% of trade value
20,000,001 - 100,000,000 Shares USD 0.001 USD 0.35 1.0% of trade value
> 100,000,000 Shares USD 0.0005 USD 0.35 1.0% of trade value

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Our Fixed pricing for stocks, ETFs (Exchange Traded Products, or ETPs) and warrants charges a fixed amount per share or a set percent of trade value, and includes all IB commissions, exchange and most regulatory fees with the exception of the transaction fees, which are passed through on all stock sales. 
 

https://www1.interactivebrokers.com/en/index.php?f=1590&p=stocks1
 

A key difference to note between the tiered and fixed pricing is that tiered commissions don’t include regulatory, exchange and clearing fees. The fixed pricing factors those fees in.

https://www.magnifymoney.com/blog/investing/interactive-brokers/

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Here are some calculations and charts for comparing Tiered vs Fixed for IBKR Pro. The difference isn't going to make or break your career as a retail day trader as far as I can tell, but I'd like to know more if anyone uses Fixed pricing. Is it really just $0.005/share + SEC + FINRA?

Also, for you guys with IBKR Pro Tiered accounts, what is your average ECN fee? Is $0.0025/share a good average over the course of a month?

Tiered Vs Fixed (low volume):

2024043891_table-lowvol.png.975cf3522a0c60b09d4ad1473ebea3ec.png

155146426_ibtieredvsfixedlowvol.thumb.png.6f69fe7c56e0e50be7b24283c2caebd8.png

 

Tiered Vs Fixed, Medium Volume (300K-3M)

164620767_table-medvol.png.58d39be1620ef0dbca9fcc5e8b041b52.png

1529062460_medchart.thumb.png.0f98c22e725f825053ed06041e751575.png

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39 minutes ago, JasonH said:

Here are some calculations and charts for comparing Tiered vs Fixed for IBKR Pro. The difference isn't going to make or break your career as a retail day trader as far as I can tell, but I'd like to know more if anyone uses Fixed pricing. Is it really just $0.005/share + SEC + FINRA?

Also, for you guys with IBKR Pro Tiered accounts, what is your average ECN fee? Is $0.0025/share a good average over the course of a month?

Tiered Vs Fixed (low volume):

2024043891_table-lowvol.png.975cf3522a0c60b09d4ad1473ebea3ec.png

155146426_ibtieredvsfixedlowvol.thumb.png.6f69fe7c56e0e50be7b24283c2caebd8.png

 

Tiered Vs Fixed, Medium Volume (300K-3M)

164620767_table-medvol.png.58d39be1620ef0dbca9fcc5e8b041b52.png

1529062460_medchart.thumb.png.0f98c22e725f825053ed06041e751575.png

This is good analysis but I am only trading small amount of shares so I cannot comment. 

have you watched Andrews commission video from a few months ago? It seems that he is paying about $0.0055/share for what he trades. The calculation starts at around 23 minutes in the video. 

 

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16 minutes ago, Jiheng Sang said:

have you watched Andrews commission video from a few months ago? It seems that he is paying about $0.0055/share for what he trades. The calculation starts at around 23 minutes in the video. 

Thanks for sharing that. For that video, Andrew's commission rate would be at the lowest volume tier, $0.0035/share, since that's his lower volume account and it's also recorded on Oct 6th, the 4th trading day of that month. Add $0.0025/share ECN to that and you get $0.006/share, which is exactly what he calculates earlier in the video for Oct 6th's trades. So $0.0025/share average ECN fee for IBKR Pro Tiered agrees very well with Andrew's results in the video.

 

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@JasonH

I think you're missing the fact that when you buy 100 shares you wont get it all in one lump. You will get 40 in one transaction, 50 in another, and the final 10 in a third. You will pay $1 on each of those transactions...

Here is a small trade I took on TWTR last week in tiered. And what the actual pricing would be in fixed. As you can see Tiered is $5.06 and Fixed is $8.14.

image.thumb.png.ee2ff0729c627fff4bdbc490f4249bd0.png

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@Justin, do you have actual account data to support commissions being applied to each transaction/fill at IB?

I only know what they do at CMEG, where the commissions are per order/ticket, not transaction/fill. Here's an example from my account report. One order/ticket = one commission (but three fills).

image.png.cee90d41b0e89925863b8aafba4ecb3d.png

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Here's a trade where I did run into the minimum commission at CMEG ($0.50 if you use BEARBULLCMEG2018 per-share pricing). One order, three fills, but just one minimum commission.

image.png.fa402ad0a500190dabbd6f506ed2c139.png

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1 hour ago, JasonH said:

@Justin, do you have actual account data to support commissions being applied to each transaction/fill at IB?

I only know what they do at CMEG, where the commissions are per order/ticket, not transaction/fill. Here's an example from my account report. One order/ticket = one commission (but three fills).

image.png.cee90d41b0e89925863b8aafba4ecb3d.png

No, I got that information by asking IB Support's chat system.... But because of what you said about CMEG, I reached out to IB a second time to confirm.... And support said the complete opposite this time around 🙄

IB support is the worst.

I'm currently back in chat. I'll let ya know.

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