With Avanced Futures now offering $4.8 round turn on eminis and TradeStation slashing commissions, IB is slowly losing its competitive edge... IB wake up and show them some real competition!
i think the commissions are at their low limits. major part is the exchange fee and clearing costs. there is not very much room to lower. maybe IB could go down to 2.00, but these $.80 saved in each RT would definetly not revolutionize trading
the only real chance for lower commissions would be that the CME makes big S&P futures electronic. They should be pressured to do this.
imho IB should strive to keep their MAIN competitive edge, for which traders flock to them, and that edge is: BY FAR THE LOWEST COMMISSIONS. That we pay almost the same rates as a TradeStation user these days is intolerable. Advanced Futures offering same rates as IB for eminis? That is an outright provocation. I truly hope IB will come up with an aggressive answer to the nerve of the competition! 50
There remains an opportunity for IB to improve its option margining algorythms. For one example, IB can stop requiring margin on both sides of an Iron Condor. Given Timberhill's expertise w/ options risk, and that other options brokers like ThinkorSwim and OptionsXpress can do this, I would think this is in the realm of doable. Also a great improvement for options spread traders, and a spur for increased spread trading volume. Def, Steve, I wonder if this even comes up for discussion internally?
another option would be to reduce margin for the following position: - long 100 stock ABC - short 1 contract SSF ABC The margin should be 10% or 20% of market value. This "spread" is useful because it can replace you a bullet.
I'm not sure about IB losing it's edge ... but one area it can improve is Eurex commissions. They're too high given low exchange fees.
IB's commissions is pretty good already I think. But maybe 3/4 to 1/2 of a penny across the board flat rate on stocks would great. And perhaps $2/side on futures. Next year when the Eurex comes in and drive down cost, I think everyone will start to lower their futures commissions. Also, what's going on with bullets? Even other retail platforms have bullets now. If IB can do those rates PLUS bullets then they are probably better than most prop shops right now? I mean they very stable, large, and no worry about a sub-LLC going under etc. I mean most prop traders would rather go with IB then wouldnt' they if they can get 1/2 all inclusive?
Good day. But I am more worried about what other instituations will do to IB if they don't follow IB. They ideally hope IB to lose their customers for whatever reasons.