IB - non-US traders penalized under new futures plan

Discussion in 'Interactive Brokers' started by Tradism, Apr 18, 2010.

  1. Don't worry, the IB Customer Service police is all over these boards all the time. No need to directly call or email them, we'll do it for you...
     
    #11     Apr 19, 2010
  2. Anyone who pays attention knows that even IB's new USD futures commissions are still too high and are undercut by many futures brokers.

    Next, the new USD commissions save $210 on 1000 contracts, not $10.


    USD

    Old plan
    First 300 contracts 360
    301-1000 contracts 700
    Total ___________ 1060

    New plan
    1-1000 contracts 850

    Bottom Line: $210 lower


    Next, it looks like some of the foreign currency rates are just current FX conversions of the USD rate. With the Euro at $1.35, $0.85 is 0.63 Euro - close enough to 0.65 Euro. The USD going up in value make the new commissions more expensive in other currencies.
     
    #12     Apr 19, 2010
  3. Tradism

    Tradism

    I don't know what you are talking about.

    The new plan, as IB said, is said to reduce commission. While it's true for US traders but it's not for non-US traders. And it's where IB leave out without telling us explicitly in the announcement.

    I simply pointed out the new plan has <u>silently increased</u> commission prices for non-US traders, nothing more nothing less. It has nothing to do what commission was used in 80's and 90's.

    If McDonald is said to provide discount for burgers but actually it raise the list price of burgers first and the real price is actually 10 cents higher, it's a cunning tactic and I think it's worth mentioning even though the net increase is small (when it's supposed to reduce)

    Did you see the point?
     
    #13     Apr 27, 2010
  4. Tradism

    Tradism

    You are very right about that. IB is probably losing too much business so it reduces the price of futures commission.

    Unfortunately this change remove 1-300 tiers which lead to commission increase for non-US traders who trade non-US markets. It's not a big deal but an unwelcome change. :(

    Yes you are right but it doesn't apply to futures in non-US markets. Those markets are still using old unbundled plan. For those foreign futures in USD currency we only save 10 USD.

    The new plan is bad for other traders who trade in non-US/non-USD markets and products. :(


    True.
     
    #14     Apr 27, 2010