Does IB negotiate futures commissions?

Discussion in 'Retail Brokers' started by DisciplinedHedg, Dec 15, 2009.

  1. I'm currently on the unbundled, but it's not that competitive vs other futures brokers.

    I trade in the <=20k category each month so it's about 1.60 for each ES trade and 1.90 for each GC trade.

    Does IB negotiate futures commissions?
  2. no
  3. Benign


    I don't think so. As a global brokerage firm, IB is a very rigid company and is refused to offer personalized (or more fine-tuned) services. This is one of the areas IB is clearly weak at.

    Local firms, at least in my country, are much more flexible than IB's. A phone call can get your account unlocked immediately if my account gets locked for some reasons (e.g. security alerts triggered). However you have to wait for 1 whole day just to get it unlocked in IB. I once get locked out because IB said I had a few incorrect login attempts one day. But I'm very certain username/password I input first time is correct. The popup just keeps saying "invalid username/password" so you get no hints that your account has been locked until you suspect it and ask them. It would be disastrous if you need to trade but get locked out for a whole day.

    The IB unbundled pricing plan is somehow tricky because it is calculated on marginal basis. Let's say you trade 1000 ES contracts. You might believe your commission will be 3.15. In fact it's 3.21 (+0.06) on average. Don't forget the first 300 contracts are always charged at 3.35 commission per side regardless of how much in total you trade.
  4. Benign


    IB is uncompetitive as a discount broker when it comes to futures:

    1. Full intraday margin for most contracts - this means reduced profitability. Full intraday margin isn't justifiable for traders who practice low-risk / tight-stop trading, for example scalpers.

    2. The commission is generally higher than other discount brokers. Commission is a major part of your cost especially if you trade high volume. Reducing cost helps especially when you are at losing period.

    3. Lack of flexiblity and personalized services - some discount brokerage (at least in my countries) adjust their pricing or give discounts and benefits for loyal customers. Data fee, commission and intraday margins are all negotiable and are tailored to suit individuals' needs. For example they can lower my intraday margin when I show I have clean records (no margin calls, never fall below maintenance margin). Data fee is waivable if you meet certain volume requirements. IB only want to waive data fees for US only.
  5. Never believe a word from benign. malignant would have been a better name for the little spiv.

    He is paid by another broker to post anti-ib bullshit on any thread he can.
  6. Then I guess I am also on the payroll to bash IB, because I would dissuade any scalper from using IB, for the same reasons as noted, especially the obscene intraday margins for scalpers.

    Damn, that payoff check is late again...
  7. Benign


    I haven't received my first check yet. I'm working and answering questions without payment. Dammit! :(
    Anyone who wants to be my first sponsor please PM me for contacts. Thank you. :p