IB Charging quote fees now?

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

  1. Thankyou Def, I apprecite your advice and knowledge in this field. Like I said, I'm quite new to the game, compared to maný of you from what I read, even though I've been in the investment game for quite a while.

    I suspect I'll keep bugging you all with questions, and, once in a while I expect I'll contribute with one or two good advices as well. And please bear with me, my english may be a bit "off" once in a while as I'm Swedish. However, I'll try to keep myself on topick, and thank the person who recommended me this site.

    A good weeekend to you all!

    Granville X
    /of Sweden
    #61     Jan 18, 2002
  2. drbtk


    I was wondering if IB was charging professional data fees for accounts held by trusts. Trusts are not natural people and by IB's interpertation of the exchange rules, they should be charged the professional rate for data fees. Does anyone know (like Def)?
    #62     Jan 21, 2002
  3. def

    def Sponsor

    you were given bad info re: interest.

    IB calculates interest based on average balances for the month less 10,000. Our system calculates Interest = [Avg balance (for days there is a balance) less 10,000] * Interest Rate / 360 Days * # days there is a balance.

    For example, Customer ABC has the following USD balances:

    12/01 100,000
    12/02 100,000 (withdraws funds on 12/02)
    12/02-12/31 0 (zero balance for remainder of month)

    December Interest for Customer ABC = 90,000 * 2% / 360 days * 2 days = $10

    as for the wires, are you based in Europe? Here is the comment I rec'd:
    Customers often complain that there is a delay in booking funds (especially in Europe where there is not a central banking system such as the Fed) because they don't realize that funds are often sent through various correspondent banks before they reach IB's bank account. We always experience this when we send wires between our clearing firms/banks in various countries within Europe for [our affiliates]. Funds take days to be credited to [the affiliates] account by the receiving clearing firm.

    re: the question on trusts, don't know. i'll hope to hear on Tuesday.
    #63     Jan 21, 2002
  4. ktm


    I checked both sides of the wire. I am US based and have contacts at the Fed and Treasury, I received screenshots from the overnight FED system that showed the money being credited on the Citibank side in a timely manner. I have also been told that an incoming wire list gets passed to managers at IB and must be "approved" before the funds can be credited. I don't have a problem with the delay, provided I can follow-up and get a bit of interest for December. It was the combination of the delay and the interest not being credited that had me upset. Thanks for clearing up the issue, def. I'll post the results in a few days.
    #64     Jan 21, 2002
  5. Okay Def, now I'm confused (and here I thought I had figured this out).

    Is $10k the threshold then? For example, assume a customer has $11k in his account each and every day of a given month. Would the customer receive interest on the entire $11k or just on the $1k (i.e. the amount exceeding $10k threshold)??

    #65     Jan 21, 2002
  6. ktm


    In your scenario, you would receive interest on 1K. You receive no interest on the first 10K. For every day that you have over 10K in cash (I assume overnight), you should receive interest on the balance over and above 10K. I think the ibhelp guy who responded to me misunderstood the specifics of the rule. My situation is being corrected. Thanks again Def.
    #66     Jan 21, 2002
  7. Thanks for responding, ktm. That's what I thought originally; regardless of how much cash one has in the account, IB pays no interest on the first $10k, then LIBOR minus 50 BPS for any amount over $10k up to $100k, and then LIBOR minus 25 BPS for any amount exceeding $100k.

    Thanks for clearing up this issue.
    #67     Jan 21, 2002
  8. drbtk


    #68     Jan 21, 2002
  9. hans130


    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?

    I just signed on to www.pointdirex.com level I software. they charge 1.5 per share for NYSE. They dont charge quote fees and they have charting on their software for free.

    I just opened my account on friday and will be trading shortly this week. Will let you know how it goes.

    Great trading day today, wish we have these ranges everyday like the good old days.

    #69     Jan 22, 2002
  10. def

    def Sponsor

    see the web site for all details.
    the cost at IB would be $7.5 per 1000 shares or $15 per round trip. (500*.01+500+.005) no ECN fees.

    since you do 4 trades a day you easily do more than $30 commission per month and thus your data feed would be free.

    executions are as fast if not faster than anyone else.

    Minimum Savings: 160-60 = 100 per day. assume 20 days per month = $2000 per month = $24,000 per year.
    #70     Jan 22, 2002