IB European commission on Eurex is not 'cheap'...

Discussion in 'Index Futures' started by GeorgeSoros, Aug 9, 2002.

  1. I always thought IB was a discount broker but on European futures they are definitely more expensive than the competition (namely all the RCG Introducing Brokers+ some of the GNI IB too)...

    It is commonly known fact that Euronext is a more expensive place than Eurex but they bill the same price...

    It is also a common fact that Eurex doesn't apply the same commission for Bund, ESTX50 or DAX...

    Unfortunately IB has decided to bill us the highest price...

    Euronext CAC 40 example :
    IB : 4 euros / X : 3.85 euros (-4%)

    Eurex Bund (also for Bobl, Schatz)
    IB : 4 euros / X : 2.40 euros (-40%!!)

    Eurex Estoxx :
    IB 4 euros / X : 2.60 euros (-35%)

    Eurex SMI :
    IB : 8 CHF / X : 2.60 euros ie 5.51 euros vs 2.60 euros (-53%!!)

    Eurex DAX :
    IB : 4 euros / X : 3 euros (-33%)

    PS: X has no monthly fees, or minimum RT per month, and uses JTRADER...

    PS2: and what about the 95% price increase on Option direct routing since a week? 95%....That is a lot!
  2. def

    def Sponsor

    perhaps the fees will be lowered in the future. nevertheless, you're still talking 2 Euros a contract. You can still scalp out for a profit on a 1 tick move and take advantage of the other benefits of IB such as the universal account where you can trade most of the various global futures and cash markets with one currency at a very competitive price.

    Option pricing is quite simple. There has been demand for flexibilty of routing for the API's. However, some of the option exchanges are charging misc fees. Given API's tend to send and cancel many more orders than someone trading manually, something had to give and a compromise was made. The fee for options is still $1 if you use smart routing. It is $1.95 if you don't. Most firms charge a minimum of $15 bucks per option trade and charge for exercise/assignment. No matter how you slice it, $1.95 is still a good deal.

    Using smart will still route your order to the exchange with the best price. I doubt you specifically have a compelling reason to use anything but smart routing given your size and volumes. Given most of our clients use smart for option trading, (i do admit that there are a number that do have compelling reasons for routing to specific exchanges) most will still pay $1.
  3. David,

    Indeed it will be good if IB could differentiate the pricing structure for Europe like this :

    Euronext MONEP

    And inside Eurex to differentiate the 3 price structure they have...

    Do you know when the next commission 'adjustment' is planned ?

  4. def

    def Sponsor

    no, the best i can do is pass the info along. i would imagine that things will move in that direction.
  5. scouse


    What is the cheapest/best broker to use when trading the european future markets?


  6. Is there a website to any of these discount brokers you mentioned whom are cheaper than IB? I am in the USA looking to trade the DJ Stoxx 50

  7. Maybe X will charge you exchange fee in addition ...
  8. For cheap Eurex try Goldenberg Heymeyer. They use Jtrader and I believe it was 1 Euro pass pass thru fees AND they have pretty decent tech support/ order desk
  9. Re: the option increase.

    If IB lowers the rate to 10 cents a contract, then raises it to 50 cents, will be hearing about a 500% increase in fees.

    nuff said.
  10. bone


    Eurex has an all-inclusive exchange fee for the Bund/Bobl/Schatz of 40 Euro-cents per round turn. Anything charged above that is vigorish, pure and simple. If you are paying more than 2 Euro per round turn, you're getting screwed. Try EDFMann direct?
    #10     Aug 10, 2002