Jump to content
zahamza

Interactive Brokers

Recommended Posts

With IB ...is there some stocks or exchanges to avoid because of the extra fees that are applied? It seems there is no pattern to how they apply these extra fees either ... but it does still average out to be cheaper slightly than the fixed rate...

Share this post


Link to post
Share on other sites

One I noticed is if i hit buy one time and sale one time, there are more than 1 transactions eventhough all orders are executed at once. I didn't understand this. Can anyone help me

Share this post


Link to post
Share on other sites

U R, that's perfectly normal and does not result in extra fees or commissions. It's called a partial fill (denoted by P below in the IB trade report). Sometimes IB is unable to fill through a single broker/ECN/market maker, so it has to split the order.

 

MAT Partial

 

Regardless of per-trade or share-based commission, the execution counts as one ticket. See this prior post explaining partial fills.

Share this post


Link to post
Share on other sites

Robert... the extra fees (which i found with Lee's post) are Third Party Charges... sometime they add money to my IB commissions (so my total commissions for that trade is lower than IB charges ) ... and sometimes they tack on more commission than my IB commissions... doesnt seem to be any pattern... if this is normal thats fine... but if there is a way to control it, that would nice to know...

Share this post


Link to post
Share on other sites

Louis, you mean this post by Lee?

https://forums.bearbulltraders.com/topic/interactive-brokers-commission-structures-and-regulatory-fees/

 

ECN fees can either be debited/credited depending on whether you add/remove liquidity to the market. Andrew covers this topic in Class 3. That would explain why sometimes you see inconsistent total commissions.

 

The SEC fee is calculated based on the total dollar value of the trade and not share size. I still have no idea how FINRA is calculated. Hope that helps.

Share this post


Link to post
Share on other sites

Hi,

I just opened an account at IB (UK, while I live in the Netherlands).

It is not clear how I can select the DAS platform. In fact, I can't even find the DAS platform. Can it be that I have to wait until I've funded some money on my account?

Share this post


Link to post
Share on other sites

Anyone with experience with IB commissions give me a few examples of total cost to get in and out of a trade, scaling? Ballpark would be great.

Example 1 - 1000 shares in $30 stock. Scaling 25% out 3 times and then taking 100% out? 

Example 2 - 1000 shares in $30 stock. Stop out, selling 1000 shares. 

Share this post


Link to post
Share on other sites
2 hours ago, christophersteven said:

Anyone with experience with IB commissions give me a few examples of total cost to get in and out of a trade, scaling? Ballpark would be great.

Example 1 - 1000 shares in $30 stock. Scaling 25% out 3 times and then taking 100% out? 

Example 2 - 1000 shares in $30 stock. Stop out, selling 1000 shares. 

https://www.interactivebrokers.com/en/index.php?f=1590&p=stocks2

Example 2: $5 each on US stocks. I hesitate to give a more specific answer, nor is it probably needed,  it really depends on a few items like shares, monthly volume, price, but under normal conditions,  you pay 0.005$/share, with their fixed schedule, which probably applies to most. On scaling of that size you will often hit the $1 minimum comm.

Share this post


Link to post
Share on other sites
1 hour ago, Dirk Schillmoeller said:

https://www.interactivebrokers.com/en/index.php?f=1590&p=stocks2

Example 2: $5 each on US stocks. I hesitate to give a more specific answer, nor is it probably needed,  it really depends on a few items like shares, monthly volume, price, but under normal conditions,  you pay 0.005$/share, with their fixed schedule, which probably applies to most. On scaling of that size you will often hit the $1 minimum comm.

I've been reading that tiered is the cheapest but I don't know. @Robert H

Share this post


Link to post
Share on other sites
Posted (edited)

Example 1 - 1000 shares in $30 stock. Scaling 25% out 3 times and then taking 100% out? 

Tiered: in $3.5 out1 $0.9 out2 $0.7 out3 $0.4 exit $1.5
total $7

Fixed: in $5, out1 $1.25 out2 $1 out3 $1 exit $1
total $9.25

Example 2 - 1000 shares in $30 stock. Stop out, selling 1000 shares. 

Tiered: in $3.5 out $3.5
total $7

Fixed: in $5 out $5
total $10

 

the tiered i counted the first one with less than 300 000 shares/monthly. Higher numbers are cheaper

Edited by peterB

Share this post


Link to post
Share on other sites

Tiered works out to be cheaper in nearly all cases. @peterB gives a good breakdown of the $0.0035/share and $0.35 minimum per order. Keep in mind that this does not include ECN, FINRA, and SEC fees.

A good estimate of total fees is to take the total shares traded (in and out), and multiply by $0.005.

So in both examples, that would be roughly $10.

Share this post


Link to post
Share on other sites
23 hours ago, peterB said:

same question same answer - you need to buy DAS separately then use it to trade.

https://bearbulltraders.com/request-special-das-package-for-ib-traders/

Step 2. Complete the Authorization form below and submit a copy of your government issued ID with the IB Attestation Agreement.

What is this 'IB Attestation Agreement'? How do I get that?

Thanks.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×

Important Information

By using this site, you agree to our Terms of Use, Privacy Policy and use of We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue..