ES comissions at IB

Discussion in 'Retail Brokers' started by roncer, Nov 21, 2007.

  1. roncer

    roncer

    Can anybody provide some feedback on IB's futures (ES e-mini's) commissions rates. I trade about 200 contracts a month and wonder if I should be bundled or unbundled or ?

    Comments appreciated.
    Ron
     
  2. Bundled Fee: 2.4 per contract or 4.8 Roundtrip

    Unbundled fee per contract (for up to 300 contracts per month):

    IB execution fee: 0.90
    IB clearing fee: 0.30
    IB carrying fee: 0.10

    CME exchange fee: 1.14

    Regulatory fee: 0.02

    Total unbundled commission: 2.46 per contract or 4.92 for a round turn.

    Now for the volume you do between 300-1000 contracts the IB execution fee drops to 0.70 per contract. So your cost would be 2.26 per contract or 4.52 for a round turn.

    So with unbundled you actually pay 0.06 more for the first 300 trades compared to bundled commisions then your cost drops 0.14 per commisions for anything over 300.

    So unbundled is really only worth it if you trade over 500 contracts a month. Anything over 1000 contracts and you get another 0.55 savings per contract.
     
  3. There is also a 10 cent fee for any contract you hold overnight.
     
  4. hi i wondered about this when i joined ib.

    if you daytrade and never hold overnight unbundled is cheaper even if you trade 1 contract a month.

    if u hold overnight then what u are saying is correct since you have to pay the extra 0.10$ a day per contract.
     
  5. roncer

    roncer

    OK so it seems that in order to get a lower commission rate on e-mini's a person needs to trade about 500 or more contracts per month. Other wise a trader is better off just staying with their regular (bundled) rate of $4.80 per round turn.

    Correct??
     
  6. roncer

    roncer

    aeliodon,

    Yeah I got you. Very clear now. Ok Many thanks for taking the time.

    And Happy Thanksgiving

    :D