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Learning, Sharing, and Teaching => Investor Alley => Topic started by: Kalergie on May 08, 2017, 04:10:21 AM

Title: Interactive Brokers - fixed vs. tiered commissions
Post by: Kalergie on May 08, 2017, 04:10:21 AM

Hi.
I am currently using IB with their fixed commission model. When I first opened the account, I was quite a novice DIY investor and did not want to make any mistake. So I just went with the simple fixed model. I barely ever incur more than a 1.00USD in fees per trade when I top up with around 20-30K USD per quarter. This is nice. But since optimization, efficiency and curiosity is in my blood I can't help but wondering if I should go for the tiered model instead. On paper, it seems cheaper. But I might have missed something. I would love to hear your opinions.

Both models are well documented here:
https://www.interactivebrokers.com/en/index.php?f=commission&p=stocks2

Does anyone use IB's tiered pricing model rather than the fixed one?

Title: Re: Interactive Brokers - fixed vs. tiered commissions
Post by: Financial.Velociraptor on May 08, 2017, 10:03:03 AM

I find IB fixed model is already so cheap it isn't worth chasing a few pennies to try to optimize.  Also, I mostly trade options and that has a separate commission structure.

Title: Re: Interactive Brokers - fixed vs. tiered commissions
Post by: Kalergie on May 09, 2017, 12:39:13 AM

Agreed! I'll stick to Fixed. Thanks for your opinion.