IB Exposure Fee

Discussion in 'Interactive Brokers' started by mastacoli71, May 29, 2014.

  1. Month to Date Year to Date
    -24.80 -24.88


    eh??? i see 8 cents creeping in now.. but its dormant or stopped. dont see tthe incremental 8$ each day...

    what do other folks see? just the charges for 3 days and it stopped???
     
    #121     Jun 21, 2014
  2. lassic

    lassic

    either they stopped to fine tune their "system" or

    can IB arbitrarily tack on a fees to regulatory Board's rules without authorization?
     
    #122     Jun 22, 2014
  3. 1245

    1245

    Authorization? When most of us open an account and we get all that paperwork, we just sign it without reading every word. Brokers place in that paperwork language that authorizes them to do just about anything with proper notice that is legal under SEC and their SROs guidelines, which are VERY broad.

    1245
     
    #123     Jun 22, 2014
  4. lassic

    lassic

    I wasn't clear...
    but authorization from SEC or OCC or FINRA or whoever has power to regulate
    IB is basically tacking on their own rule (fee) to their rules
     
    #124     Jun 22, 2014
  5. 1245

    1245

    Yup, that they are. I don't like it either.
     
    #125     Jun 22, 2014
  6. lassic

    lassic

    funny thing, it seems like I'm complaining about this fee on this board but actually, I can live with it :)

    it reigned me in to be more disciplined and IB is always trying to protect itself from risk,
    I always like that from IB

    just be consistent in reporting and deducting this fee
     
    #126     Jun 22, 2014
  7. Did you mean that, to maintain roughly 4000K, he should pay $125 everyday, which is 240*125=30000=30K every year? So the rate is 30/4000=0.75%.

    How abut tell IB that "I buy ONLY cash, with NO margin so that I do NOT need to pay the risk. So I am leaving IB any more"
     
    #127     Jun 22, 2014
  8. So I'm still puzzled by this "exposure fee" aka "arbitrary nuisance fee".

    For Friday the 20th my statement shows no exposure fee.

    However, if I go to Account Management>Reports>Risk>Stress Test, then it shows that my exposure has increased 2.5 times for Friday the 20th (from Thursday the 19th) but there is no estimated exposure fee.

    For Saturday the 21st (WTF?) the Stress Test shows that my exposure has been reduced by 55%!!! yet there is NOW an estimated exposure fee.

    There must be something about Hungarian logic & ethics I do not understand.
     
    #128     Jun 23, 2014
  9. IB wants another source of profits. Under the cover of risk management, they are increasing their profits through extra fees.

    They will push the envelope of extra fees until traders start fleeing. From the look of the posts, it seems like no one will leave IB over exposure fees. People are annoyed, but not enough to leave. They have done their job for IB shareholders.
     
    #129     Jun 23, 2014
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    #130     Jun 23, 2014