Anyone using Interactive Brokers Fixed commissions?

[JasonH 47]

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?

[JS 10]

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

Min./trade for fixed structure is $1.00. 

[Abiel 475]

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. 

[JasonH 47]

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. 
 

 

[Abiel 475]

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? 

[Andreas Langer 1]

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

[JasonH 47]

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/

[JasonH 47]

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):

 

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

[JS 10]

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):

 

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

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. 

 

[JasonH 47]

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.

 

[Justin 264]

@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.

[JasonH 47]

@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).

[JasonH 47]

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.

[Justin 264]

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).

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.

[Justin 264]