Below is from the IB website http://www.interactivebrokers.com/en/p.php?f=advisorWrapFees My understanding from this is that the fees are calculated daily, but charged quarterly/annually. I had a few questions about how the fee deduction works. 1/ What happens if you had some fees built up during the quarter but then the client account got absolutely smashed in the last few days of the quarter to bring the quarter end balance to negative? If no fee is charged in this instance then why do they say calculated daily? 2/ If the fee is calculated daily, but not charged till the end of the quarter, does that mean that the clients account can continue of having the benefit of compounding the fee component of the profits? 3/ Does IB still deduct fees when coming back from a drawdown or does it incorporate high watermarks? If anybody can answer my questions that would be great. Perhaps even an example if anybody has some time. Cheers, its much appreciated.