Bundling vs. Unbundling at IB

Discussion in 'Retail Brokers' started by spindr0, Mar 29, 2009.

  1. I guess I've answered plenty of dumb questions here so I suppose I should ask one :)

    Can someone explain what unbundling means and how it will affect me? I trade a decent amount of shares per day (for a retail guy) and it adds up in a year. Does the 300,000 shares in their example refer to a 300,000 share trade (not me) or does it refer to a cumulative total of 300,000? TIA

    http://www.interactivebrokers.com/en/accounts/fees/commission.php?ib_entity=llc
     
  2. AAA30

    AAA30

    Clumulative monthly total.
     
  3. Cumulative over the month.
    unbundled can help you save on fees depending on what you do/trade. But you are not capped at 0.50 per share as in the bundled. You may pay some exchange fees but you can also get the rebates for posting liquidity.
    I lowered my cost on comish with the unbundled.
     
  4. Thanks for the replies.

    As for exchange fees, do I have this right... if I add liquidity I get a credit whereas if I remove liquidity (execute at the bid or ask), I pay an exchange fee?

    Again, TIA.