Hidden Fees in IB

Discussion in 'Retail Brokers' started by TradingBillions, Jan 24, 2007.

  1. Hi, I'm at IB's website and sometimes get a little confused at what I read for fees. It's 5.00 per 1000 trades, I undestand that. But what about interest, account inactivity fees, under 5000 in account fee, i mean do these hidden or any hidden fees exist with IB? Seasoned IB pros, let me know! Thanks
  2. Bowgett


    They are not hidden. They are very well documented.
  3. cvds16


    exactly !
  4. rcj


    No hidden fees, bro.
  5. where do you see these? and how would you compare IB to just2trade? 2.50 for any stock it seems. i trade cheap 1 dollar stocks sometimes and i hear IB charges a lot for those.
  6. 1. IB doesnt't pay interest on the first $10k deposited in the account (that's like $500/year fee)

    on top of that

    2. There's a mandatory $120/year activity fee.

    Especially for Forex trading, that's very inconvenient and uncompetitive. I hope IB will offer Forex trading that pays interest on all funds deposited and with no mandatory fees, like most other forex brokers do.
  7. cvds16


    they will never do that, they are catering for the ACTIVE trader
  8. def

    def Sponsor

    If you are going to make a blanket statement, you should put it into context. Our policies serve the active and well capitalized trader well....

    if you are going to mention interest you should also mention that IB pays interest much higher than most brokers for amounts > 10K, pays interest on short stock when most brokers don't, and has a margin debit rate that is amongst the lowest in the business.

    The "mandatory activity" you describe above is only $10 per month. For the vast majority of our clients this fee is waived as they generate more than $10 in fees per month. For FX you should also look at the hidden cost of wider spreads which you may be paying at other brokers. As our spreads are tighter than most FX brokers if we save you 1 pip on a 100K trade you're already ahead of the game.

    If you are not an active trader, you might be best served by another broker. However, for those that actively trade we offer exceptional value.
  9. def,

    Nevertheless, those are mandatory Hidden Fees in IB and every IB trader must pay them to IB. [$620+/year(=$500+$120) for a $10,000 account is an IB hidden fee of aprox. -6.2% per year]

  10. zdreg


    what broker is paying 5 percent?
    #10     Jan 24, 2007