IB Charging quote fees now?

Discussion in 'Interactive Brokers' started by ddefina, Dec 21, 2001.

  1. This was on the IB website under the section Fees and Commissions/Debit/Credit Interest:

    "The credit rate will be applied to the average monthly credit balance, the short credit rate to the average monthly short credit balance, and the debit rate to the average monthly debit balance. "

    Thus, based on that statement, you should get some interest as long as your average monthly credit balance is over $10,000.
    #51     Jan 17, 2002
  2. def

    def Sponsor

    if you would like to send me an e-mail with your account details, i'll follow through. It is not IB's policy to withhold funds. You may note that banks are notorious at debiting accounts before a cutoff period and wiring the funds after the period to gain some float. the policy at IB is pretty straight forward. if funds are received before, I think 3 PM, they are credited to the account that day. If rec'd after the cutoff, they are credited the following business day.
    #52     Jan 17, 2002
  3. ktm


    This is the reply from IB help when I inquired...


    Dear Trader,

    You must maintain a credit balance above 10000 for every day of the month. Since your account was opened in the middle of the month you will not start accruing interest until January provided you maintain your credit balance above 10000.

    IB Customer Service


    The website is correct and is consistent with Chris from IBhelp. The formula you stated is the way they apply interest....that is - if you are eligible to receive interest. Without at least 10K "every day of the month", you will not receive any interest. You could have a great deal of cash all month and carry less than 10K for one night and you would receive no interest at all for the month.

    That's fine. I will do my best to make up for that lost interest by taking advantage of the cheap commissions. So far, I have saved far more in comm than I would have earned in interest. That's why I'm here.

    Def, I had dropped below 10K in cash for two or three other days during Dec and would not have been eligible under this rule anyway...thanks for trying.
    #53     Jan 17, 2002
  4. jaan


    no, so does Datek (at least i don't remember being presented with an option to register as non-pro when we opened a corporate account with them). so i don't blame IB in that regard.

    however, still the system is screwed. fact is, we're currently paying the NASDAQ pro fee THREE times each month: through our quote provider and both our brokers (well, to be fair, Datek has been paying the fee for us since we were promoted to "elite" status there).

    - jaan
    #54     Jan 18, 2002
  5. NKNY


    What is the rate over at IB anyway...

    #55     Jan 18, 2002
  6. def

    def Sponsor

    i don't have the full scoop on the topic but i have heard that the exchanges are cracking down on quote fees and they sometimes make it too risky to take anything other than a conservative approach. I was told calls were made to the exchanges to gain their interpretation of the rules before changing the policy. As for the professional fees charged, IB is just passing along what they have to pay the exchange.
    #56     Jan 18, 2002
  7. IB really seems popular here! Today I use CyberTrader, and I ask myself why I should change?

    I'm a private investor, mostly trading 1000 or 2000 QQQs with about 5 trades per day. With Cybertrader I pay $15 per trade + 0.005/share for amex trading, meaning 15+5 times 2 equals $40 per roundtrip or 4 times 40 equals 160 per day. With 2000 each trade, that is (15+10) times 2 per trade or 200 per day.

    What would that equal with IB?
    Is execution as good enough?
    As I live in Sweden, do they take international accounts?

    Granville X
    #57     Jan 18, 2002
  8. wild


  9. Thanks!

    Seems my $40 per trade at CT equals $10 at IB for 1000 QQQs.

    CT: $14.95 + 0.005*1000 times 2 = 40
    IB: 0.005 * 1000 times 2 = 10

    What main differences are there, anyone with experience from both of them? I use TradeStation for the charting, so that is taken care of. Only thing I need is an account and a way to execute my orders. I understand there must be some major differences as the price is four times as high in my example, question is if I need that extra value... Besides, if not active, level II costs 199/month with CT and 79 with IB...
    #59     Jan 18, 2002
  10. def

    def Sponsor

    why do you need level II to trade the QQQ's. Also, you may want to consider routing to Island which gives better executions (based upon comments from many people on this board). actually with IB you should used BextEX for the QQQ's as it will look for other sources like the ISE or NYSE if they show the best price.

    one correction, the fee is not $10 per round trip. it is $15. the fee is 1 penny for the first 500 shares and 1/2 penny thereafter. thus 7.5 per 1000 shares.
    #60     Jan 18, 2002