IB unbundeled question.

Discussion in 'Retail Brokers' started by tickmagnet, Dec 1, 2009.

  1. Ok, I don't get it.If I trade up to 5000 shares , it's better to use
    unbundeled option right? But, how much is the commission ,
    say on 2000 ,3000 shares. It says .0035 + fees=? how much in fees?

    Thank You
     
  2. Change the commission plan and see by yourself. ISE gives you the best rebates for your LIMIT orders but fills are not that great. Try ISLAND or ARCA routing if you are scalper or top/bottom fisher.

    Rates will make sense only if 80-90% of your orders are LIMIT buy/sell.

    Best of luck.
     
  3. teun

    teun

    In most cases (practically all) unbundled is cheaper, also if you execute only few trades per month. So anyone should turn it on.
     
  4. Thanks teun , that's what I'm gonna do , I don't day trade that much anyway.
     
  5. I was wondering the same thing myself. It seems on many of the exchanges, you actually get a rebate by being a "liquidity provider". From reading the description IB has on their page, it sounds like you are a liquidity provider if you use an order that won't immediately execute at the bid/ask. Is that correct?
     
  6. limit orders => add liquidity
    market orders => remove liquidity
     
  7. Thinking out loud here, so please correct me if I'm wrong:

    Stop Order => Market order when executed so remove liquidity.
    Stop-Limit => Limit when executed => add liquidity.

    So it seems that unbundled is the way to go: IB price is $0.035/share but you get -$0.027 back for liquidity (assume ARCA, but most look the same).
    So it looks like you will mostly get $0.012/share fee versus $0.05/share if you go unbundled and use limit orders.

    Is there still the $1 minimum on the commission?

    Thanks,
     
  8. There is a .70 minimum per order but that is before add/remove liquidity. Just switch, you'll love it.
     
  9. teun

    teun

    Even if you only remove liquidity, unbundled is usually much cheaper.
     
  10. Not if you are on base tier (less than 300K shares).
     
    #10     Dec 7, 2009