IB unbundled commission fees

Discussion in 'Retail Brokers' started by sunggong, Jul 29, 2008.

  1. Why is there such a HUGE difference in commission fees for IB when my orders are executed via SMART? (Same number of shares for a same stock)???

    I pretty much hit the ask every single time, so I'm removing liquidity I guess, but I still don't understand why there is such a huge difference in commission fees.

    they seem so random....
  2. Bob111


    i just notice another thing...regardless to what you do- orders executed via "SMART" are way more expensive now.
    while adding liquidity i got 0.71 cents,0.85 cents per trade from smart compared to 0.5-0.6 cents if trade executed at ISLAND for same size.
    wtf is going on?
    order submitted to ISLAND, sitting on this ECN picked by smart and my commissions are 0.85 cents! probably because IB remove this order and pass those fees for removing liquidity on me.
    i would really appreciate some explanation from IB representatives here, on ET
  3. This whole SMART routing is a complete black hole to me.

    Same # of shares exectued via their SMART routing feature can vary in fees so much.

    100 share via SMART (partial fill of 1000 buy order) at the fee of 0.97.

    100 share of SMART (same order) at the fee of 0.27.

    I suppose these went through via different exchanges but what the heck.... That's just a huge difference.

    Customer chat rep told me to submit a webticket to see the breakdown.

    Why can't they just let me know which exchange the order went through in the first place?

    This unbundled commission structure needs to be more transparent.
  4. Bob111


    you can review your executions in TWS, even if they are partially executed on different exchanges,along with commissions for each trade. there is a box with + in it, in executions window. click on it, to expand whole order
  5. That's exactly what I do currently.

    But as my previous post indicates, it just says SMART under exchanges and I got charged 0.27 for 100 shares on one and 0.97 on another 100 shares.

    This was from the breakdown of 1000 share buy order executed via SMART and 700 of those 1000 shares went through SMART, 200 went through ARCA, and 100 through ISLAND.

    If SMART is a collection of exchanges, why still show SMART under the partial fill breakdown? Tell us EXACTLY where it went through so that I don't have to question ENORMOUS diffference in fees like 0.27 and 0.97.
  6. Bob111


    now those commissions for orders executed at "smart" really pisses me off. 1.2 for 180 shares, 1.85 for 250 shares.
  7. Bob111


    please enlighten me about how suppose to communicate with those clowns at IB?
    chat doesn't work..
    ticket system...well...picture is attached
  8. samaritan

    samaritan Interactive Brokers

    I apologize for any confusion here.
    SMART, as it appears as an exchange where a trade took place, actually represents any number of dark pools of liquidity that IB has access to. These dark pools charge different amounts for taking liquidity, but all of them are less than what would be charged at any exchange or ECN. We recently added a new pool, which unlike the others we have, charge for taking liquidity.
  9. So customers are supposed to just believe a statement like the one you just made?

    I thought IB was more transparent about the fees, but I guess not.
  10. samaritan

    samaritan Interactive Brokers

    The fees for all exchanges and dark pools are listed on our website.
    #10     Jul 30, 2008