Ex-Ante Costs and Charges Disclosures
Overview:
What is this Disclosure?
MIFID II rules require that Interactive Brokers in Europe and the UK provide its retail clients with a reasonable estimate of the costs and charges related to products and services offered.
Retail clients of Interactive Brokers in Europe can view a per-transaction costs and charges disclosure at the time of the order entry (‘ex-ante’). The disclosure is personalized and corresponds to the conditions applicable to the client account.
While clients have the option to view the disclosure, it is not a mandatory step before the order submission.
The disclosure content and format are largely prescribed by the rules to enable retail clients to compare costs and charges across providers. This article aims to clarify the meaning of these standardized terms.
In addition to Interactive Brokers costs and charges, the disclosure must show implicit costs and costs embedded in the product price itself (and not charged by Interactive Brokers separately).
A per transaction costs and charges disclosure is required for:
- All futures and options globally, including futures options
- ETFs of all types
- Funds, including closed-end funds
- CFDs
- Warrants and structured products
A disclosure is not required for other products such as vanilla stocks and bonds.
Where to Find the Per-transaction Costs and Charges Disclosure?
Access to the disclosure is via a link embedded in the primary order-entry dialog.
TWS Classic:
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The presence of the link does not interrupt the standard order entry workflow if a client chooses not to click it. A client can click the transmit button in the usual way and skip viewing the disclosure.
Clicking the “Cost Impact” link brings up a pop-up with the ex-ante per transaction costs and charges disclosure, with the option to download it as a PDF:
Other Trading Applications:
The other order entry interfaces such as Mosaic, Client Portal and Mobile likewise include a link to the costs and charges disclosure, again without interrupting the standard workflow unless a client expressly wants to see the disclosure.
Below is an example of the order ticket in the Client Portal. Order tickets in TWS Mosaic and Mobile are similar.
The Disclosure Content and Structure
The per transaction costs and charges disclosure includes a summary-section followed by an itemized costs and charges breakdown. The various cost items are presented using headings and terms that are mandated by the regulation to make the disclosures comparable across investment service providers. The example below illustrates the statement structure and contains explanatory notes.
Ex-ante Costs and Charges Disclosure - Illustrative Example
(1) Account detail
(2) Costs and Charges Summary
Please note that the “Financial Instrument Cost” is embedded in the product, and not a cost charged by Interactive Brokers. We are required to source or estimate such costs so you could better understand all of the costs that are associated with some of your securities.
(3) Itemized Breakdown of Costs and Charges
Rentekrediet op korte aandelenopbrengsten
Overview:
Hoe bepaalt u het rentekrediet of de vergoeding voor een aandelenleningpositie
Background:
Wanneer een accounthouder aandelen short verkoopt, leent IBKR equivalente aandelen namens de accounthouder om te voldoen aan zijn verplichting om aandelen aan de koper te leveren. De overeenkomst voor een aandelenlening waarmee deze aandelen worden geleend, vereist dat IBKR de leningverstrekker van de aandelen contant onderpand voor de lening verstrekt. Het onderpand in contanten is gebaseerd op een standaardberekening van de waarde van de aandelen, de zogenaamde Collateral Mark.
De uitlener van de aandelen verstrekt rente aan IBKR over het onderpand in contanten en brengt ook een vergoeding in rekening voor het verlenen van deze dienst door de betaalde rente aan te passen tot een bedrag dat lager is dan de geldende marktrente voor deposito's in contanten (gewoonlijk is de rente gekoppeld aan de Fed Funds Effective rate voor deposito's in contanten in USD). Voor moeilijk te lenen aandelen kan de vergoeding van de uitlener voor het verstrekken van de aandelen resulteren in een negatieve nettorente voor IBKR.
Terwijl veel makelaars een deel van deze korting alleen aan institutionele klanten doorgeven, ontvangen alle klanten van IBKR een kredietrente op de opbrengst van korte aandelenverkopen die hoger zijn dan 100.000 USD of het equivalent daarvan in een andere valuta. Wanneer het aanbod van een bepaald te lenen effect groot is in verhouding tot de vraag naar dat effect, kunnen accounthouders een kredietrente verwachten op hun korte aandelensaldo dat gelijk is aan de benchmarkrente (bijvoorbeeld de Fed Funds Effective overnight rate voor saldi in USD), verminderd met een spread (momenteel variërend van 1,25% voor saldi van 100.000 USD tot 0,25% voor saldi van meer dan 3.000.000 USD). De tarieven kunnen zonder voorafgaande kennisgeving worden gewijzigd.
Wanneer vraag en aanbod van een bepaald effect zodanig zijn dat het moeilijk wordt om te lenen, zal de door de uitlener verstrekte korting afnemen en kan deze zelfs leiden tot een last op de account. De korting of heffing wordt aan de accounthouder doorberekend in de vorm van een hogere leenvergoeding, die hoger kan zijn dan de rentelasten op korte termijn en kan resulteren in nettokosten voor het account. Omdat de tarieven per effect en datum verschillen, raadt IBKR aan dat klanten de Short Stock Availability tool gebruiken die toegankelijk is via de Ondersteuning in het Klantenportaal/Accountbeheer om indicatieve tarieven voor shortverkoop te bekijken. Let op: de indicatieve tarieven in deze tools zijn bedoeld om overeen te komen met de rente op korte verkoopopbrengsten die IBKR betaalt op Tier III-saldi, dat wil zeggen extra korte verkoopopbrengsten van 3 miljoen USD of meer. Voor lagere saldi wordt het tarief aangepast op basis van het niveau en de benchmarkrente van de handelsvaluta. Het exacte tarief kunt u opzoeken met behulp van de calculator voor de rente die aan u wordt betaald op opbrengsten van shortverkoop.
Meer voorbeelden en de calculator vindt u op de pagina Effectenfinanciering.
BELANGRIJKE OPMERKING
De informatie in de Short Stock Availability Tool en TWS met betrekking tot aandelen die beschikbaar zijn om te lenen en indicatieve tarieven, wordt naar beste vermogen aangeboden zonder garantie op nauwkeurigheid of geldigheid. De beschikbaarheid van aandelen omvat informatie van derden die niet in real time wordt bijgewerkt. De tariefinformatie is slechts indicatief. Transacties uitgevoerd in de huidige handelssessie worden doorgaans in 2 werkdagen vereffend en de werkelijke beschikbaarheid en leenkosten worden bepaald op de dag van vereffening. Handelaren moeten zich ervan bewust zijn dat tarieven en beschikbaarheid aanzienlijk kunnen veranderen in de tijd tussen handels- en vereffeningsdata, vooral bij aandelen die weinig worden verhandeld, aandelen met een kleine beurswaarde en aandelenklassen met een komende verrichting op effecten (inclusief dividenden). Zie Operationele risico's van shortverkoop voor meer details.
IMPORTANT NOTE
Information provided within the SLB tool, particularly that relating to shares available to borrow and indicative rates, is offered on a best efforts basis without warranty as to its accuracy or validity. Share availability includes information from third parties which is not updated in real time. Rate information is indicative only. Trades executed in the current trading session typically settle in 2 business days and the actual availability and borrow costs are determined on settlement day. Traders should be aware that rates and availability can change significantly in the time between trade and settle dates, particularly in thinly traded stocks, small cap stocks, and classes of stock that have an upcoming corporate action (including dividends).
-->Inzicht in de rentelasten wanneer het nettokassaldo een krediet is
Onder de volgende omstandigheden wordt een account onderworpen aan rentelasten ondanks het behoud van een netto long- of kredietsaldo:
1. Het account houdt een short- of debetsaldo aan in een bepaalde valuta.
1. Het account houdt een short- of debetsaldo aan in een bepaalde valuta. Bijvoorbeeld, een account met een netto kaskrediet van $ 5.000, bestaande uit een long USD-saldo van $ 8.000 en een short EUR-saldo van $ 3.000, betaalt rente op basis van het short EUR-saldo. Er zou geen compenserend krediet zijn op het lange saldo in USD, aangezien het lager is dan het niveau van USD 10.000 Tier I waarboven rente wordt verdiend.
Accounthouders worden erop gewezen dat indien zij een effect kopen in een valuta die niet op hun account staat, IBKR een lening in die valuta zal creëren om de transactie met het clearinghouse af te wikkelen. Als u dergelijke leningen en de bijbehorende rentelasten wilt vermijden, moet u ofwel geld in die bepaalde valuta storten of bestaande kassaldi omzetten via de Ideal Pro (voor saldi van USD 25.000 of meer) of odd lot (voor saldi van minder dan USD 25.000) voordat u uw handelstransactie aangaat.
2. Het kredietsaldo bestaat voornamelijk uit opbrengsten uit de shortverkoop van effecten.
Bijvoorbeeld, een account met een netto kaskrediet van $ 12.000 dat bestaat uit een debet van $ 6.000 op het effectensubaccount (min de marktwaarde van eventuele korte aandelenposities) en een krediet van $ 18.000 voor de marktwaarde van korte aandelen, zou rente verschuldigd zijn over het Tier 1-debet van $ 6.000 en zou geen rente ontvangen over het krediet voor korte aandelen omdat het onder het Tier I-niveau van $ 100.000 valt.
3. Het kredietsaldo omvat niet-vereffende middelen.
IBKR bepaalt af- en bijschrijvingen van rente uitsluitend op basis van vereffende middelen Net zoals een accounthouder geen rentelasten wordt aangerekend op fondsen die zijn geleend om een effect te kopen totdat de aankooptransactie is vereffend, zal de accounthouder geen rentekrediet ontvangen, of een verrekening met een debetsaldo, op fondsen die afkomstig zijn van de verkoop van een effect totdat de transactie is vereffend (en IBKR-fondsen heeft ontvangen van het clearinghouse).
Alternative Streaming Quotes for European Equities
Alternative Streaming Quotes for EU Equities
On August 1st, 2022, clients with non-professional or non-commercial market data subscriber status will receive complimentary real-time streaming Best Bid and Offer and last sale quotes on European Equities. These quotes will be aggregated from exchanges such as Cboe Europe, Gettex, Tradegate and Turquoise. The data will display in the SMART quote line and can be used to generate a chart as well.
Eligible users will see a no charge service called 'Alternative European Equities (L1)' added to their account on or before August 1, 2022. Please note this will be a default Market Data service that cannot be removed.
Users who would like to receive the full EBBO (European Best Bid and Offer) will need to subscribe to the individual exchange subscriptions.
FAQs for February 23, 2022 messages regarding CME exchange fee credits
Why did I receive this message?
You received a message from IBKR on February 23, 2022 because your account traded spread trades on CME in (1) one or more of the following products between January 1, 2015 and late September 2021: E-Mini Equity index Futures (including Housing Index Futures); Micro E-Mini Index Futures; Micro E-Mini Index Options; and Nikkei Equity Futures, and/or (2) certain FX futures products between February 1, 2018 and mid-December 2021.
Why did I receive a credit?
As set forth in the message, certain spread trades in those products (see response #1) are subject to discounted CME exchange fees (as compared to outright trades in those products). Your account traded spread trades in one or more of those products between January 1, 2015 and late September 2021 (or FX futures between February 1, 2018 and mid-December 2021) and, as a result of an inadvertent error, overpaid associated CME exchange fees. IBKR has credited your account for the overpaid CME exchange fees.
What do I need to do?
You will need to log into your account and withdrawal the funds.
Am I owed money for other trades?
Not that we have identified.
How long do I have to withdraw the funds?
Please withdraw the funds within 30 days of the date of the message you received (by March 25, 2022).
The message I received says something about owing an outstanding debt to IBKR. What does that mean?
This means that your account owed an outstanding debt to IBKR, and the amount you received in reimbursement was credited against the outstanding debt amount. If the reimbursement amount exceeded the outstanding debt about, you received a credit and may withdraw the difference.
Sending Funds to IBKR Post Migration
If your account has recently migrated to IBKR Ireland (IBIE) or IBKR Central Europe (IBCE), it is likely that you have outdated bank instructions saved in your Client Portal or with your bank. When transferring funds to IBKR after migration, you will want to enter a new deposit notification/bank instruction within Client Portal and update any saved IBKR bank information that you have with your bank.
Should you inadvertently use outdated bank instructions to send funds to IBKR and they arrive at the incorrect IBKR entity, as a courtesy we will attempt to forward the funds to the correct IBKR entity. Please note that this transfer will be done free of charge for the first instance. For subsequent transfers, IBKR will charge your account a processing fee of EUR 50 (or equivalent). You will also receive a message notifying you of the transfer and advising you to update your bank information.
Summary of Third Party Transaction Fees
Stamp taxes and transaction taxes, where applicable, are passed through to Interactive Brokers clients on top of the standard IBKR commission charge. You can see details of any stamp taxes charged in the Transaction Fees section of your Activity Statements. Below is a list of the taxes charged by various countries.
United Kingdom
- 0.5% of trade value Stamp Tax
- Panel of Takeovers and Mergers Levy of GBP 1.00 on all orders over GBP 10,000 on shares of companies registered in the United Kingdom, Isle of Man or Channel Islands
Ireland
- 1% of trade value Stamp Tax
Switzerland
- The Swiss transaction tax is not charged automatically by Interactive Brokers on individual accounts. Clients who are subject to the tax should consult a local tax advisor for support with their tax obligations.
France
- French Financial Transaction Tax: 0.30% of trade value applied to shares of companies whose head office is located in France and whose market capitalisation exceeds EUR 1 billion
Italy
- Italian Financial Transaction Tax: 0.10% for shares transacted on regulated markets and MTFs and 0.20% for those transacted outside of these markets.
Spain
- Spanish Financial Transaction Tax: 0.20% or trade value applied to shares of Spanish companies whose market capitalisation exceeds EUR 1,000 million as of December 1 of the year preceding the date of acquisition.
Belgium
- The Belgian Tax on stock-exchange transactions (TST) is not charged automatically by Interactive Brokers on individual accounts. Clients who are subject to the tax should consult a local tax advisor for support with their tax obligations.
Hong Kong
- For stocks, warrants and structured products traded on the SEHK:
- Government stamp duty: 0.13%, rounded up to the nearest 1.00 for SEHK stocks, normally applies only to stocks
- SFC transaction levy: 0.0027%, normally applies to stocks, warrants and CBBCs
- FRC Transaction levy: 0.00015%, normally applies to stocks, warrants and CBBCs
- For products traded on the Shanghai-Hong Kong Stock Connect Northbound Trading Link and Shenzhen-Hong Kong Stock Connect:
- 0.1% Sale Proceeds Stamp Duty
Shares Subject To The Spanish Financial Transaction Tax
The following table lists the companies included in the scope of the Spanish Financial Transaction Tax as of December 2020. Based on the Spanish declaration, companies meeting the following qualifications would fall within the scope of the FTT:
- The shares must have been admitted to trading on a regulated market which may be the Spanish market, a market of another European Union Member state or an equivalent market in a third country
- The company's market capitalization must exceed EUR 1,000 million as of December 1 of the year preceding the year that the acquisition takes place (reviewed annually)
The list of companies provided below is being done on a best efforts basis and may be subject to ammendments at any time and without notification.
The list of ADRs which are subject to the Spanish Financial Transaction Tax are detailed at the bottom of this page.
| Company Name | Symbol | Exchange |
| ACS ACTIVIDADES CONS Y SERV | ACS | BM |
| ACERINOX SA | ACX | BM |
| ACERINOX SA | ACXN | MEXI |
| AENA SME SA | AENA | BM |
| AENA SME SA | AENAN | MEXI |
| CORPORACION FINANCIERA ALBA | ALB | BM |
| ALMIRALL SA | ALM | BM |
| AMADEUS IT GROUP SA | AMS2 | BM |
| ACCIONA SA | ANA | BM |
| APPLUS SERVICES SA | APPS | BM |
| BANCO BILBAO VIZCAYA ARGENTA | BBVA | BM |
| BANCO BILBAO VIZCAYA ARGENTA | BBVA | MEXI |
| BANKIA SA | BKIA | BM |
| BANKIA SA | BKIAN | MEXI |
| BANKINTER SA | BKT | BM |
| BANKINTER SA | BKTN | MEXI |
| BANCO SANTANDER SA | BNC | LSE |
| CAIXABANK S.A | CABK | BM |
| CONSTRUCC Y AUX DE FERROCARR | CAF | BM |
| CONSTRUCC Y AUX DE FERROCARR | CAFEN | MEXI |
| PROSEGUR CASH SA | CASH2 | BM |
| PROSEGUR CASH SA | CASHN | MEXI |
| CIE AUTOMOTIVE SA | CIE | BM |
| CIE AUTOMOTIVE SA | CIEAN | MEXI |
| CELLNEX TELECOM SA | CLNX | BM |
| CELLNEX TELECOM SA | CLNXN | MEXI |
| INMOBILIARIA COLONIAL SOCIMI | COL | BM |
| AMREST HOLDINGS SE | EAT | WSE |
| AMREST HOLDINGS SE | EAT | BM |
| AMREST HOLDINGS SE | EATN | MEXI |
| EBRO FOODS SA | EBRO | BM |
| EDP RENOVAVEIS SA | EDPR | BVL |
| EUSKALTEL SA | EKT1 | BM |
| EUSKALTEL SA | EKTN | MEXI |
| ENDESA SA | ELE | BM |
| ENDESA SA | ELE1N | MEXI |
| ENAGAS SA | ENG | BM |
| FAES FARMA SA - | FAE | BM |
| FOMENTO DE CONSTRUC Y CONTRA | FCC | BM |
| FLUIDRA SA | FDR | BM |
| FLUIDRA SA | FDRN | MEXI |
| FERROVIAL SA | FER | BM |
| SIEMENS GAMESA RENEWABLE ENE | GAM | BM |
| NATURGY ENERGY GROUP SA | GAS | BM |
| GRUPO CATALANA OCCIDENTE SA | GCO | BM |
| GRUPO CATALANA OCCIDENTE SA | GCON | MEXI |
| GESTAMP AUTOMOCION SA | GEST | BM |
| GESTAMP AUTOMOCION SA | GESTN | MEXI |
| GRIFOLS SA | GRF | BM |
| GRIFOLS SA - B | GRF.P | BM |
| INTL CONSOLIDATED AIRLINE-DI | IAG | LSE |
| INTL CONSOLIDATED AIRLINE-DI | IAG | BM |
| INTL CONSOLIDATED AIRLINE-DI | IAGN | MEXI |
| IBERDROLA SA | IBE | BM |
| IBERDROLA SA | IBEN | MEXI |
| INDRA SISTEMAS S.A. | IDR | BM |
| INDUSTRIA DE DISENO TEXTIL | ITX | BM |
| INDUSTRIA DE DISENO TEXTIL | ITXN | MEXI |
| CIA DE DISTRIBUCION INTEGRAL | LOG | BM |
| MAPFRE SA | MAP | BM |
| MELIA HOTELS INTERNATIONAL | MEL | BM |
| MELIA HOTELS INTERNATIONAL | MELN | MEXI |
| MERLIN PROPERTIES SOCIMI SA | MRL | BM |
| NH HOTEL GROUP SA | NHH | BM |
| PHARMA MAR SA | PHM | BM |
| PHARMA MAR SA | PHM1N | MEXI |
| PROSEGUR COMP SEGURIDAD | PSG | BM |
| RED ELECTRICA CORPORACION SA | REE | BM |
| RED ELECTRICA CORPORACION SA | REEN | MEXI |
| REPSOL SA | REP | BM |
| REPSOL SA | REPSN | MEXI |
| LABORATORIOS FARMACEUTICOS R | ROVI | BM |
| BANCO DE SABADELL SA | SAB2 | BM |
| BANCO SANTANDER SA | SAN | MEXI |
| BANCO SANTANDER SA | SAN | WSE |
| BANCO SANTANDER SA | SAN1 | BM |
| SACYR SA | SCYR | BM |
| SIEMENS GAMESA RENEWABLE ENE | SGREN | MEXI |
| SOLARIA ENERGIA Y MEDIO AMBI | SLR | BM |
| TELEFONICA SA | TEF | BM |
| TELEFONICA SA | TEF1N | MEXI |
| TELEFONICA SA | TEFOF | PINK |
| MEDIASET ESPANA COMUNICACION | TL5 | BM |
| MEDIASET ESPANA COMUNICACION | TL5N | MEXI |
| UNICAJA BANCO SA | UNI2 | BM |
| VIDRALA SA | VID | BM |
| VISCOFAN SA | VIS | BM |
| VISCOFAN SA | VISCN | MEXI |
| ZARDOYA OTIS SA | ZOT | BM |
| ZARDOYA OTIS SA | ZOTN | MEXI |
The following is a list of ADRs which are subject to the Spanish Financial Transaction Tax.
| Company Name | Symbol | Exchange |
| ACERINOX SA-UNSPON ADR | ANIOY | PINK |
| ACS ACTIVIDADES CONS-UNS ADR | ACSAY | PINK |
| AENA SME SA-ADR | ANYYY | PINK |
| AMADEUS IT GROUP-UNSP ADR | AMADY | PINK |
| BANCO BILBAO VIZCAYA-SP ADR | BBVA | NYSE |
| BANCO DE SABADELL-UNSPON ADR | BNDSY | PINK |
| BANCO SANTANDER SA-SPON ADR | SAN | NYSE |
| BANKIA SA-UNSP ADR | BNKXY | PINK |
| BANKINTER SA-SPONS ADR | BKNIY | PINK |
| CAIXABANK- UNSPON ADR | CAIXY | PINK |
| CELLNEX TELECOM SAU-UNSP ADR | CLLNY | PINK |
| EBRO FOODS SA -UNSP ADR | EBRPY | PINK |
| ENAGAS-UNSPONSORED ADR | ENGGY | PINK |
| ENDESA SA-UNSP ADR | ELEZY | PINK |
| FERROVIAL SA-UNSPONSORED ADR | FRRVY | PINK |
| FOMENTO DE CONST-UNSPON ADR | FMOCY | PINK |
| GRIFOLS SA-ADR | GRFS | NASDAQ |
| GRIFOLS SA-SPON ADR | GIKLY | PINK |
| IBERDROLA SA-SPONSORED ADR | IBDRY | PINK |
| INDITEX-UNSPON ADR | IDEXY | PINK |
| INDRA SISTEMAS SA-UNSP ADR | ISMAY | PINK |
| MAPFRE SA-UNSP ADR | MPFRY | PINK |
| NATURGY ENERGY GROUP SA-ADR | GASNY | PINK |
| PROSEGUR CASH SA - UNSP ADR | PGUCY | PINK |
| RED ELECTRICA COR-UNSPON ADR | RDEIY | PINK |
| REPSOL SA-SPONSORED ADR | REPYY | PINK |
| TELEFONICA SA-SPON ADR | TEF | NYSE |
| TELEFONICA SA-SPON ADR | TNE2 | IBIS |
| TELEFONICA SA-SPON ADR | TEFN | MEXI |
| ABENGOA SA-UNSPON ADR | ABGOY | PINK |
| ABERTIS INFRAESTR-UNSPON ADR | ABRTY | VALUE |
| ATRESMEDIA CORP DE -UNSP ADR | ATVDY | PINK |
| BOLSAS Y MERCADOS ESP-UN ADR | BOLYY | VALUE |
| DISTRIBUIDORA INT-UNSP ADR | DIDAY | PINK |
| GAMESA CORP TECN-UNSPON ADR | GCTAY | PINK |
| PROMOTORA DE INFORMA-ADR | PRISY | PINK |
Information Regarding the Spanish Financial Transaction Tax
Overview
This document provides an overview of how the Spanish Financial Transaction Tax (FTT) will be handled by Interactive Brokers.
Effective January 16, 2021, a new tax will be implemented on the purchase of certain Spanish securities.
Tax Rate
The announced tax is 0.20%.
Scope
The FTT will be applied to shares of Spanish companies whose market capitalisation exceeds EUR 1,000 million as of December 1 of the year preceding the year that the acquisition takes place. The shares must have been admitted to trading on a regulated market which may be the Spanish market, a market of another European Union Member state or an equivalent market in a third country. The Spanish Ministry of Finance will publish a list of Spanish companies with a market cap exceeding this threshold by December 31 each year. The Ministry of Finance will review and republish the list the first month the FTT is in place.
The following cases are subject to the Spanish FTT:
- Shares acquired on an exchange transaction
- Shares acquired on the execution or settlement of fixed-income securities which may be converted or exchanged for shares
- Shares acquired as a result of execution or settlement of financial derivatives (i.e. stock option exercise/assignment)
- Shares acquired from the execution of finance contracts defined in article 2.1 of Order EHA3537/2005 (contracts not traded on official secondary markets for which a credit institution receives money or securities from customers assuming a repayment obligation)
Accrual
Tax becomes payable on the settlement date of the transaction
Tax Base
There will be a special calculation for intra-day transactions. Therefore, only the net settlement will be taxed.
Exposure Fee Calculations Overview
Introduction
IBKR's global risk management routine includes a daily execution of computations through which each client’s portfolio is stress tested to determine its exposure to a series of prices changes beyond that protected by margin. These stress tests serve to identify accounts that, while margin compliant, project losses which exceed the account’s equity were these scenarios to be realized and which IBKR regards as excessive. In an effort to increase client awareness as to their potential exposure, IBKR has implemented a daily Exposure Fee, that is assessed to any account reporting end of day uncovered risk in excess of specified levels.
Current Exposure Fee Overview
The current Exposure Fee calculation is intended to reflect a more comprehensive set of market scenarios in addition to price dependencies among all products types. The calculation is based upon a Monte Carlo simulation which incorporates thousands of market scenarios and projects the exposure of your portfolio assuming sector-based price changes (e.g., individual stock and sectors such as oil, gas, meat, sugar, cocoa, metals, foreign exchange & crypto-currencies), and then applying this evaluation to all other products based upon their respective sector correlation.
Managing the Exposure Fee
At the initial point an account is detected as being subject to the Exposure Fee, a communication will be sent out explaining the fee and affording the account holder one week to adjust positions and equity before the Fee, if still applicable, will take effect. To assist with avoidance or mitigation of the Fee, IBKR provides a daily Exposure Fee Calculation report via Account Management which details the Fee and provides examples of hypothetical adjustments to existing positions which, if implemented, are projected to reduce the Fee given information then available.
Primary Risk Factors
Each portfolio will be re-valued based upon stressing each primary risk factor, which is represented by a future contract, index or ETF, and all other product(s) in the portfolio will adjusted based upon their correlation associated with that primary risk factor.
Below is a summary of each risk factor, the representing Future Contract, Index or ETF, and the upper and lower range in which we stress each risk factor.
| Risk Factors | Product | Lower Bound | Upper Bound |
| Equity | S&P 500 Index (SPX) | -30.00% | 20.00% |
| Australia Equity | S&P 500 / ASX 200 Index Australia Index (AP) | -30.00% | 20.00% |
| United Kingdom Equity | FTSE 100 Index (Z) | -30.00% | 20.00% |
| European Equity | Dow Jones Euro STOXX50 Index (ESTX50) | -30.00% | 20.00% |
| Hong Kong Equity | Hang Seng Index (HSI) | -30.00% | 20.00% |
| Japanese Equity | Nikkei 225 Index (N225) | -30.00% | 20.00% |
| Korean Equity | Korean Stock Exchange KOSPI 200 Index (K200) | -30.00% | 20.00% |
| Mainland China Equity | FTSE China A50 Index (XINA50) | -30.00% | 20.00% |
| Indian Equity | CNX NIFTY Index (NIFTY) | -30.00% | 20.00% |
| Individual Stocks | -50.00% | 50.00% | |
| Oil (Crude Oil) | Light Sweet Crude Oil Futures | -32.00% | 62.00% |
| Oil (Brent Oil) | Brent Crude Oil Futures | -30.00% | 60.00% |
| CO2 | ICE ECX EUA Futures (ECF) | -74.30% | 59.50% |
| Treasury | iShares 20+ Year Treasury Bond ETF (TLT) | -19.80% | 15.60% |
| Treasury1 | iShares 1-3 Year Treasury Bond ETF (SHY) | -1.80% | 1.20% |
| Treasury2 | iShares 1-3 Year International Treasury Bond ETF (ISHG) | -9.80% | 10.00% |
| Italian Govt Bond | Euro-BTP Italian Government Bond | -13.00% | 13.00% |
| BAX | 3 Month Canadian Bankers' Acceptance Futures | -0.40% | 0.40% |
| EuroBund | Euro Fund (10 Year Bond - GBL) | -7.60% | 8.60% |
| JGB | Japanese Government Bonds (JGB) | -2.20% | 2.20% |
| Live Cattle | Live Cattle (LE) | -30.00% | 30.00% |
| Feeder Cattle | Feeder Cattle (GF) | -30.00% | 30.00% |
| Hogs | Lean Hogs Index (HE) | -30.00% | 30.00% |
| Ind. Metals. | COMEX Copper Index (HG) | -25.30% | 22.10% |
| Prec. Metals | SPDR Gold Shars (GLD) | -20.70% | 34.50% |
| Silver | COMEX Silver Index (SI) | -26.20% | 28.80% |
| Wheat | ETFS Wheat (OD7S) | -40.90% | 64.70% |
| Corn | Teucrium Corn Fund (CORN) | -23.50% | 41.50% |
| Soybean | Teucrium Soybean Fund (SOYB) | -22.60% | 27.40% |
| Rice | Rough Rice Futures (ZR) | -22.60% | 27.40% |
| Cocoa | iPath Bloomberg Cocoa Subindex Total Return (NIB) | -28.60% | 37.40% |
| Gas | United States Natural Gas Fund (UNG) | -18.80% | 62.00% |
| Crypto | The NYSE bitcoin Index (NYXBT) | -100.00% | 93.90% |
| Sugar | iPath Bloomberg Sugar Subindex Total Return (SGGFF) | -34.50% | 52.30% |
| Cotton | ETFS Cotton (COTN) | -50.00% | 50.00% |
| Coffee | iPath Bloomberg Coffee Subindex Total Return (JJOFF) | -30.00% | 50.00% |
| Lumber | Random Length Lumber (LB) | -30.00% | 30.00% |
| Milk | Milk Class III Index (DA) | -15.00% | 15.00% |
| Orange Juice | FC Orange Juice "A" (OJ) | -35.00% | 35.00% |
| Forex Risk Factor | Lower Bound | Upper Bound |
| AUD | -18.10% | 18.10% |
| BGN | -6.80% | 6.80% |
| BRL | -17.00% | 17.00% |
| CAD | -13.70% | 13.70% |
| CHF | -13.90% | 13.90% |
| CNH | -8.20% | 8.20% |
| CNY | -6.70% | 6.70% |
| CYP | -7.20% | 7.20% |
| CZK | -9.50% | 9.50% |
| DKK | -7.90% | 7.90% |
| EEK | -5.50% | 5.50% |
| EUR | -9.90% | 9.90% |
| GBP | -13.00% | 13.00% |
| HKD | -8.00% | 8.00% |
| HRK | -7.00% | 7.00% |
| HUF | -20.50% | 20.50% |
| ILS | -8.80% | 8.80% |
| INR | -12.40% | 12.40% |
| ISK | -9.90% | 9.90% |
| JPY | -16.80% | 16.80% |
| KRW | -18.00% | 18.00% |
| LTL | -7.20% | 7.20% |
| LVL | -7.00% | 7.00% |
| MTL | -7.20% | 7.20% |
| MXN | -16.70% | 16.70% |
| NOK | -12.90% | 12.90% |
| NZD | -14.60% | 14.60% |
| PLN | -31.40% | 31.40% |
| RON | -6.90% | 6.90% |
| RUB | -40.00% | 40.00% |
| SEK | -13.20% | 13.20% |
| SGD | -6.30% | 6.30% |
| SIT | -7.20% | 7.20% |
| SKK | -7.20% | 7.20% |
| TRY | -40.10% | 40.10% |
| TWD | -14.20% | 14.20% |
| USD | -9.30% | 9.30% |
| ZAR | -19.00% | 19.00% |
For additional information concerning this Exposure Fee Calculation report, please see KB3113.
