Based on what I can find on IBs website, it only makes sense to go unbundled if you trade >10k ES and NQ contracts/month: $1.14 CME Globex fee + $0.35 IB Execution fee + $0.10 IB Clearing fee + $0.10 IB Carrying fee + ---------------------------------- $1.69/contract This is compared to IB's $1.81/contract bundled fee. If you trade 1k-10k contracts/mo., then your unbundled rate goes up to $1.89/contract. Are my calculations correct? Has anyone else here done this analysis? Thanks for any help. --Rick
If not mistaken, and the way I read their chart, the bundled pricing you reference is for OPTIONS ONLY. Being that the ES was not specifically mentioned, it would fall under the all others quote of 2.4/side, which makes any unbundled pricing cheaper. Also, if you are doing 2k+ a month, then you should seek out ECM privileges, which reduce your exchange fees from 1.14 to .49/side, which is something you couldn't do if you chose the bundled pricing.
Thanks cstfx. I stand corrected. So it looks like you start saving money as soon as you get up to >300 contracts/mo, which is a much lower threshold than I had thought. Also, thanks for the idea on getting ECM privileges. Is that something that you can do through IB, or do you have to do it directly with the CME?
Most brokers will help you get it as you need sponsorship, but I have never known IB to go out of their way in re: to customer service. I got mine thru another broker who was more than willing to help, but it can't hurt to ask them. If you are doing more than 2k a month, the cost savings are more than worth the effort.