IB Unbundled better even if you are low volume trader??

Discussion in 'Retail Brokers' started by BlackBison, Jul 30, 2007.

  1. Hi guys,
    I have just opened an account with IB and i intend to trade FESX and FDAX once i have gotten used to the software, etc.

    During the signup process i chose unbundled even tho i will prolly be hardly trading at first. It seems to me unbundled is ALWAYS cheaper than bundled even if you trade 1 contract a month!

    EG. FDAX 1.51 euro unbundled, 2.00 bundled at first tier

    ES $2.36 unbundled, $2.40 bundled

    FESX 1.31 euro unbundled, 2.00 bundled

    YM $2.12 unbundled, $2.13 bundled

    these numbers are off their own homepage and i added up the exchange fees etc myself to check they included everything and it seems ok.

    http://www.interactivebrokers.com/en/accounts/fees/futuresPricing2.php?ib_entity=llc

    am i just being stupid and missing something??

    Thanks,
    David
     
  2. anyone?
     
  3. Right, bundled is slightly better only if you hold overnight. Otherwise, unbundled is the way to go.
     
  4. danoXP

    danoXP

    IB introduced "unbundled" in Jan 2004. At that time, they charged a $0.10 "overnight carrying fee" for each contract held overnight. Every night.

    It appears those fees listed in the table you reference do not include this fee.

    If you day trade and close out each night it may not matter. If you position trade <300 contracts, bundled might be more economical.

    ps. I could not find the "overnight carrying charge" on their website just now.

    Best of luck trading - dan
     
  5. thanks for the replies...yes i trade intra day only so this carry charge thing does not apply to me.