Understanding IB's commission

Discussion in 'Options' started by marsman, Jul 18, 2016.

  1. marsman

    marsman

    Can you pls make a screenshot and post here? Because we seem to see different pages, it seems. Maybe a geolocation issue?...
     
    #21     Jul 18, 2016
  2. marsman

    marsman

    I think from now on I as a non-pro should route to AMEX only to prevent such silly surprises:
    AMEX_routing_fees.png
     
    #22     Jul 18, 2016
  3. donnap

    donnap

    #23     Jul 18, 2016
  4. mpdxc

    mpdxc

    What are the futures trading round trip charges for like ES and CL please? I'm completely new to IB, thanks.
     
    #24     Jul 18, 2016
  5. JackRab

    JackRab

    It should depend on how wide the spread is at AMEX compared to say BATS. Effectively you only pay half a cent per option with 100 underlying contract value for BATS... (0.49/100) So if you would take the trade to AMEX and their spreads are 1 cent wider, you lose the same on higher option premium paid or lower option credit received.. If you take liquidity that is...

    And you still pay reg fees etc on any exchange...

    Is 30 dollars really that much of a deal on 3.300 in option premium? If your are HFT yes... otherwise maybe not so much... think it through @marsman
     
    #25     Jul 18, 2016
  6. FSU

    FSU

    The problem with routing to the an exchange that doesn't charge a customer exchange fee, is the offer or bid you want might be resting on another exchange that does. For instance there is an offer on the BATS at 1.11. You bid 1.11 and route the order to the CBOE. The CBOE market makers don't want to fill your order here, so they link your order to the BATS. You then will not only pay the BATS taking liquidity charge (which I believe is .85) you will also pay a "linkage" fee from the CBOE of .05 for them sending the order there.
     
    #26     Jul 18, 2016
  7. I'm actually interested in the conclusion on this. Some points:

    1) Can you not specify the order *not* be forwarded?
    2) Per the IB Web Site for OPTIONS: NA/APAC offer Fixed only. Europe offers Tiered.
    3) Per the IB Web Site for STOCKS/ETFs/Warrants - Fixed and Tiered everywhere.

    I suppose one should use Tiered if you have high volume and want to choose which exchange it's executed on (as opposed to a means to simply 'save' on commission?)

    And I further suppose if you are doing combo STK/OPT orders you'll want to use Fixed to keep it simple? :)
     
    #27     Jul 19, 2016
  8. marsman

    marsman

    But this opens up the possibility for all kind of frauds. Think about it: they can make deliberately use of that to generate income for themselves, ie. committing fraud...
    Does the NBBO play no role anymore?

    In another thread here I read about TOS' flat rate commission, ie. "true" flatrate.
    I'll take a closer look at this.

    I remember also another active trader here (Neke) in his journal here showed that he in the last 5 years or so made no significant profits, but paid more than $300k in commission, ie. only his broker has profited from his trading... Commission sums up gigantically, so one should be careful...
     
    Last edited: Jul 19, 2016
    #28     Jul 19, 2016
  9. FSU

    FSU

    Its the exchanges that are making the money off of the exchange fees, not the broker (of course the Broker also may be getting paid for their order flow by routing to specific exchange). NBBO keeps you from getting a worse fill from the best bid/offer, but it still requires you to pay the exchange fees.
     
    #29     Jul 19, 2016
  10. marsman

    marsman

    At TDA/TOS I would have paid this:

    60*0.75+9.99 = $54.99 instead of the $98.08 at IB...

    https://www.tdameritrade.com/pricing.page#Options

    TDA_TOS_commis_options.png


    This I find good (TDA/TOS Asia, practically the same like the above "nickel buyback without any commission and fees"):
    "Option commissions are waived when you buy to close any short individual or single leg option for $0.05 or less".
     
    Last edited: Jul 19, 2016
    #30     Jul 19, 2016