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JasonH

Anyone using Interactive Brokers Fixed commissions?

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So I've adjusted the sheet to only have $1 for the initial order. However it's still not quite cheaper depending on how often you partial. Because you will still pay $1 for each of those.

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@Justin Thanks for sharing the chat log.

To be clear about what Justin is saying about commissions for partials adding up... that's only relevant for small share sizes that run into the minimum commission, and we already know Fixed pricing may be a problem in that case (trades less than about 150 shares as shown in the chart).

Most traders with IBKR Pro accounts funded >$25,000 are going to have trades >>500 shares.

My IBKR Pro account was setup this weekend. Going to request Fixed pricing. I'll share the results. Probably a "Misc" fee of $0.50 per second you hold the trade open or something like that.

155146426_ibtieredvsfixedlowvol.thumb.png.6f69fe7c56e0e50be7b24283c2caebd8.png.3dd9289449662c242039f0628e66d21d.png

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12 hours ago, JasonH said:

@Justin Thanks for sharing the chat log.

To be clear about what Justin is saying about commissions for partials adding up... that's only relevant for small share sizes that run into the minimum commission, and we already know Fixed pricing may be a problem in that case (trades less than about 150 shares as shown in the chart).

Most traders with IBKR Pro accounts funded >$25,000 are going to have trades >>500 shares.

My IBKR Pro account was setup this weekend. Going to request Fixed pricing. I'll share the results. Probably a "Misc" fee of $0.50 per second you hold the trade open or something like that.

200 shares seems to be the threshold 200*$0.005= $1.00

Definitely will be interesting to see your results. You don't need to request fixed pricing though - it's default on new accounts. Also you can change it at will in your account settings.

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1 hour ago, Justin said:

200 shares seems to be the threshold 200*$0.005= $1.00

Definitely will be interesting to see your results. You don't need to request fixed pricing though - it's default on new accounts. Also you can change it at will in your account settings.

It’s not that simple since there are other fees involved with trading besides commissions. All fees were included in the calculations and charts that I shared. It looks like the lines for Fixed and Tiered intersect around 150-175 shares. 

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Yeah, even at 166 shares it became cheaper. Still will be interested to see your fees when you trade on fixed though. It's not always so clear cut with IB

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Following are actual reports from my account. I had fixed commission rate for few days before I switched to tiered. That's not a lot of trades, on average it's same. Commissions go high for low volume and when you use market or marketable limit orders. There's no one best commission structure, it all depends how one trades. Tiered or fixed, IB does not break down commissions costs. Some of ECN charge pretty hefty fees, there's no single ECN fee value for all executions.

Your research further in to this will be insightful.

Fixed: Average: 0.00545

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Tiered: Average 0.0055

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14 hours ago, Ahmed said:

Fixed: Average: 0.00545

Thanks for sharing @Ahmad.  $0.0055 is also what I thought it would be based on IB website (for share sizes not running into minimums). This also confirms $0.0025 is a good estimate for ECN fees at IB, and the Fixed rate does in fact include everything but SEC and FINRA. 

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On 12/21/2020 at 7:55 PM, JasonH said:

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.

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Is this in the tiered commission structure? I use CMEG and it always charges me .5 per fill as my minimum. So if I buy 1000 shares and it makes it 4 separate fills to get me to that 1000 it charges me .5 per fill. 
Example:

I buy 1k shares and it’s 250, 250, 250, 250, I’m always charged $2 for that. 

Edited by Njohnson20

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@Njohnson20 I would contact CMEG support if they are charging you a commission for every fill. It's supposed to be by the ticket/order. As you can see in my table, I was only charged one commission for the order, although it took 3 very small fills to fulfill the order. Did you pull the detailed account report from CMEG backend and see a commission for every fill? The report I'm referring to looks exactly like the table you quoted.

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