How is Interactive Brokers Cheaper?

Discussion in 'Retail Brokers' started by FutsTrader111, Dec 20, 2009.

  1. INET? There is not even a Exchange fee listed for INET on your commission page. Where do you come up with the 0.0025/share?

    Stick to FAZ on NYSE as I originally started this thread out with please. I would like for you to list out the entire calculation explicitly so I can see.

    Again my calculation. Under the Unbundled Fees for less than 300,000 shares a month:

    30,000 * 0.0035 = $105 IB Commission

    But what about exchange fees? According to your schedule, the NYSE transaction fee is:

    $0.0018 when I sell
    $(-0.0010) when I buy

    Buy:
    30,000 * $0.0010 = -$30 + $105 = $75

    Sell:
    30,000 * 0.0018 = $54 + $105 = $159


    Don't you pay for the $105 base fee twice (1 for buying 1 for selling)? That is, 30K shares for buying, 30K shares for selling plus ECN fees for both trades?
     
    #21     Dec 21, 2009
  2. rmb623

    rmb623

    BPTrader, please explain how the broker is making you a target.
     
    #22     Dec 21, 2009
  3. This is BPTrader. Do you really think he knows anything about anything here?


    From Newbie to expert in all things important less than 1 year. Sure.

    Yes, I repeat. BPTrader, you are presented with the "Fuckwit of the Week" award. Merry Xmas.
     
    #23     Dec 21, 2009


  4. Kiwi

    I assume "adding liquidity" is a limit order onto the book.

    "removing liquidity" is a market order?


    Limit orders on NYSE ECN say, rebates me ($0.0010)/share on buy/sell side trades according to IB schedule.

    Market orders "Remove Liquidity" at $0.0018/share have a negative impact on trader commission.
     
    #24     Dec 21, 2009
  5. rmb623

    rmb623

    FutsTrader,
    Why dont you call IB tom. and have them walk you through all your scenarios. Go straight to the source and find out. Then post your results on here for us to see.
     
    #25     Dec 21, 2009
  6. An IB rep did respond on this thread but with very confusing calculations. I am waiting for response on calculation of commissions on the following:

    Unbundled
    30,000 shares FAZ buy, 30,000 sell
    NYSE ECN execution
    "Adding liquidity/limit order scenario"
    "Removing liquidity/market order scenario"
     
    #26     Dec 21, 2009
  7. Datek was a good broker (anyone remember them? :)
    They didn't trade against their own customers, they only provided a direct access to the markets with cheap commissions.
    Then Ameritrade bought them and things got bad.
    Then Ameritrade was bought by TD and things got worse.
    Dunno how the situation is for the last 2 years though.
     
    #27     Dec 21, 2009
  8. Steve_IB

    Steve_IB Interactive Brokers

    BPTrader- We (IB) are not paying you for the liquidity. The liquidity rebate is paid to you via the exchange/ECN.



    FutsTrader.
    Yes, for INET the rebate is $0.0025 per share. For NYSE the rebate is only $0.001 per share. Thus, your costs would be $45 per side, i.e. $90 per roundtrip hire than what I quoted you.

    For INET, sorry, we have it listed as Island on our commission page it is $0.0025 per share. NYSE-ARCA will pay you $0.0023 per share, BATS will pay you $0.0024 per share.
     
    #28     Dec 21, 2009
  9. Humpy

    Humpy

    Across the pond most traders use spread bet brokers even for US futures.

    Simple figures = simple calculations

    Probably cheaper too
     
    #29     Dec 21, 2009
  10. TraDaToR

    TraDaToR

    ECN are applying rebates to get more liquidity providers and thus mure volume on their venue. The providing rebate is also slightly < to the removing fee so that any transaction( implying a provider and a remover per se ) is generating revenue for the ECN.

    What is so complicated about it?
     
    #30     Dec 21, 2009