There should be a communique coming out over the weekend. If you have questions after that we'll address them.
upon seeing the cominique the bundled pricing not as good as i thought especially for people doing under 500 k. THERE'S A CLEARING FEE THAT ON 200 SHARES PER TRADE EQUALS 11.40 CENTS. doesn't sound like much but on a 70 cent commission on 200 share orders its alot. i mean someone doing 3 million a month can go to a professiuonal prop house and get sub .002 and 40-1 leverage so they wouldn't need this. i'd say most people much better off staying with ib's all in no sec fee. ib's interface much harder to trade big vol with than most pro platforms like assent or hold. its very cumbersome to direct orders to different echanges as one msut have so many lines open udnerneath the quote vs having one line open on alevel 2 box. PLUS A HUGE SHORTFALL FOR NASDAQ TRADERS IS NO PROACTIVE ARCA ORDERS WHICH IS HUGE. but again ib's a great company and defentitely ahs the widest offerin g in the business
Comparing adding liquidity trades: with IB's new unbundled structure which charges a starting $0.0035 per share commission to a fixed per-order commission charged by Choicetrade ($5 per trade), we can see that the fixed per-order structure used by Choicetrade is better for larger trade sizes (1500 shares and over). If we assume that trade size ranges from 100-5000 shares as below, IB's per share pricing costs a total of $192.55 for all the trades while Choicetrade's fixed per order pricing costs a total of $-5 (ie costs nothing to make all the trades!). Please correct me if im wrong in my analysis. RML, Choicetrade, Genesis, and others do offer it, so why doesnt IB offer a fixed per-order pricing with ECN passthrough pricing also? Formulas used: Assumed typical $0.002 ECN rebate per share Choicetrade commission= 5-(Shares*0.002) IB commission = max(0.7, Shares*(0.0035-0.002)) Shares,Choicetrade,IB 100,4.8,0.7 200,4.6,0.7 300,4.4,0.7 400,4.2,0.7 500,4,0.75 600,3.8,0.9 700,3.6,1.05 800,3.4,1.2 900,3.2,1.35 1000,3,1.5 1100,2.8,1.65 1200,2.6,1.8 1300,2.4,1.95 1400,2.2,2.1 1500,2,2.25 1600,1.8,2.4 1700,1.6,2.55 1800,1.4,2.7 1900,1.2,2.85 2000,1,3 2100,0.8,3.15 2200,0.6,3.3 2300,0.4,3.45 2400,0.2,3.6 2500,0,3.75 2600,-0.2,3.9 2700,-0.4,4.05 2800,-0.6,4.2 2900,-0.8,4.35 3000,-1,4.5 3100,-1.2,4.65 3200,-1.4,4.8 3300,-1.6,4.95 3400,-1.8,5.1 3500,-2,5.25 3600,-2.2,5.4 3700,-2.4,5.55 3800,-2.6,5.7 3900,-2.8,5.85 4000,-3,6 4100,-3.2,6.15 4200,-3.4,6.3 4300,-3.6,6.45 4400,-3.8,6.6 4500,-4,6.75 4600,-4.2,6.9 4700,-4.4,7.05 4800,-4.6,7.2 4900,-4.8,7.35 5000,-5,7.5 Choicetrade total commission = $-5 ($5 rebate) IB total commission = $192.55
Steve or def, I am more confused now with the new price table mentioning 'as charged by the specialist'. Would you check whether the following two examples are correct or not? 1. 1000 share, $50 a share NYSE limit sell order placed through SMART routing, but stays in the book over 5 minutes total. >>> 1000*(0.0035+0.00038) + 1000*50*0.00003070 + regulatory fees + specialist charge (?) what is the specialist charge in this case? 2. everything is the same, but it is a stop order? Thanks for your help. ggoom
Perhaps IB can clarify the following: 1. In the Regulatory Fees section, it lists a number of different fees. Under what circumstances are these charged? It's not clear from the examples (e.g. no distinction between buying and selling for SEC fees, unclear when NYSE 600TC fees apply, etc.). Other than the SEC fees, since the regulatory fees are so small (less than $0.0001/share), why not eliminate this added complexity by absorbing them? This is common practice in this type of structure at other firms, which only add SEC and ECN fees. 2. Notes 3 and 4 seem to conflict. Can you clarify exactly when spec fees are charged and how much? 3. For TMBR, do you mean to include ARCA's outrageous $0.03/share in "Highest charge available from other routing destinations" for either round or odd-lots? If not, why not just specify the $0.001 or $0.003 charge? It's also unclear what distinction there is between adding and removing liquidity.
Follow up question to the definitions of removing or adding liquidity. What if the underlying has a bid ask spread of .01? IN other words XX.05/XX.06. How do you ever add liquidity since you can only hit the bid or ask? Thanks...
To answer your question, if you post a buy(sell) limit order at the bid(ask) then you are adding liquidity. Even at 1 penny spreads. The only special case might be a spread of zero ... but that usually happens when different ecns/exchanges have crossed spreads. So you might still get the rebate if you limit posts to one of the "books" before it gets sucked up.
How about stop orders? If I put a stop in for a stop loss would that be considered adding or taking away liquidity? Ex. I buy XYZ at 40 and immediately put a stop in at $39.25. It drops and stops me out. Thanks