IB's new US equity commission

Discussion in 'Retail Brokers' started by GTC, Oct 24, 2005.

  1. sail


    IB's competitors have higher costs and will not be able to compete. IB should gain market share.
    #21     Oct 24, 2005
  2. Yahoo!
    #22     Oct 24, 2005
  3. taigong


    #23     Oct 24, 2005
  4. yeayo


    If true, that'll blow away all the competition. I wonder how they will respond, especially Genesis.
    #24     Oct 24, 2005
  5. #25     Oct 24, 2005
  6. r-in


    Crap!!! I may have to go back to IB after all for my equity trading.
    #26     Oct 24, 2005
  7. At the bottom of the email it says $1.00 minimum


    October 24, 2005

    Interactive Brokers Announces the New Industry Standard in Deep Discount Commissions for Professionals

    In keeping with our mission of providing low cost trade execution and clearing services to professional traders and investors worldwide, IB is pleased to announce the following new US commissions schedule to take effect Tuesday, November 1, 2005.

    Stocks*: $0.005/Share (all-in)
    Options*: $0.75/Contract (all-in)
    Futures: $0.25 to $1.20/Contract (plus exchange costs)
    Forex**: 1 to 2 PIP wide EUR/USD spreads

    As you already know, lower commissions does not mean no-frills technology. Over the coming months IB will continue to enhance the industry leading direct access trading platform with the following:

    The addition of new markets and countries to enhance your ability to trade stocks, options, futures, forex, ETFs, and bonds worldwide from a single account
    Additional forex dealers to keep our fx spreads the tightest in the industry
    More real-time risk management tools so you can assess your portfolio risk at any second of the day
    Modifications to our smart router to take advantage of rule changes in the market place so you are assured of always getting best price execution on your trades
    More charting and market scanner functionality
    We do not believe that there is another broker providing this much functionality at ANY price in the industry, and we will continue to upgrade our platform to ensure that we remain the trail blazer for professional traders and investors worldwide.

    *$1.00 minimum on all orders, no extra ticket charge
    ** Whereas other brokers inflate their forex spreads with more than their fair share for commissions, IB quotes the best bid/offer from multiple large banks and charges a separate 0.2 PIP commission on EUR/USD.
    #27     Oct 24, 2005
  8. GTC


    It does say $1 minimum. However, when the details of the new commission rates get starightened out in the next few days, we will find out if IB is willing to go below $1 for the minimum in the near future since $1 minimum was originally based on the old 1c/share commission rate.
    #28     Oct 24, 2005
  9. nitro


    IB to the head of the class again.

    #29     Oct 24, 2005
  10. The $1 minimum only affects you if you trade a 0-200 share lot, anything above 200 shares and you pay .005/share all in. If IB is still making a ton of money at .005/share, then I wonder how low they can go.
    #30     Oct 24, 2005