IB tiered and fixed commission fee, which one is better

yulucky

IB tiered and fixed commission fee, which one is better for $100,000 account
? thanks

xiaochong

I use fixed

yulucky

xiaochong 发表于 2016-11-4 09:48 AM
I use fixed

Why? feel like tiered is always better than fixed, because both fee per share and
min fee per order are lower than fixed structure. am I missing something?

yulucky

For example, if I only trade 100 shares, for fixed, I have to pay min $1, but for tiered, I pay $0.34. am I correct?

pdz

yulucky 发表于 2016-11-4 09:51 AM
For example, if I only trade 100 shares, for fixed, I have to pay min $1, but for tiered, I pay $0.3 ...

you're right. I switched to tied after paying IB fixed for 6 years. But it depends on your trading style. Tied costs more if you always place market or more aggressive limit orders.

ysc

pdz 发表于 2016-11-4 10:14 AM
you're right. I switched to tied after paying IB fixed for 6 years. But it depends on your trading ...

what do you mean "more aggressive limit orders."? thanks.

pdz

ysc 发表于 2016-11-4 10:27 AM
what do you mean "more aggressive limit orders."? thanks.

For tied, adding liquidity saves the commission, removing liquidity costs more.

market or better than the bid/ask limit for sell/buy are removing liquidity.

ysc

pdz 发表于 2016-11-4 10:51 AM
For tied, adding liquidity saves the commission, removing liquidity costs more.

market or bet ...

if I place an buy order (Bid/Ask 10.01/10.05) for 10.02, which helps the liquidity, so the commission will be less?

pdz

ysc 发表于 2016-11-4 11:46 AM
if I place an buy order (Bid/Ask 10.01/10.05) for 10.02, which helps the liquidity, so the commiss ...

Yes if Ask stays above 10.03. If Ask moves to 10.02 and fills your order, you will pay more. However, for a small order, the min fee per order is no longer $1, you will save anyway.

pdz

pdz 发表于 2016-11-4 12:14 PM
Yes if Ask stays above 10.03. If Ask moves to 10.02 and fills your order, you will pay more. How ...

Sorry, I think I was wrong. If Ask moves to 10.02 and fills your order, you will still save as long as your order is non-marketable when you submit.

marketable orders, the fixed saves. non-marketable orders, the tied saves. However, for a small order, the min fee per order is no longer $1, the tied saves anyway.