U.S. option exchanges have rules that distinguish between orders originating from public customers (i.e., not broker-dealers) whose trading behavior is deemed to be “Professional” (i.e., persons or entities trading in a manner more akin to a market maker than to a typical customer) and those whose trading behavior is not.  In accordance with these rules, any customer that is not a broker-dealer and averages more than 390 option orders (for its own beneficial account(s)) per day in U.S.-listed options in at least one month of a calendar quarter will be classified as Professional.

Orders submitted on behalf of Professional customers are treated the same as those of broker-dealers for purposes of execution priority and fees. 

Brokers are required to conduct a review on at least a quarterly basis to identify those customers who have exceeded the 390 order threshold for any month in that quarter, and such customers will be designated as Professional as of the next calendar quarter.

Order Counting

The definition of an order for these purposes varies slightly across exchanges, and customers seeking specific options counting rules (especially in connection with the use of algorithmic order types that might result in placing orders on both sides of the market under certain circumstances) should review the relevant exchange rulebooks and guidance. However, for purposes of options order counting, an order is generally defined as:

• A single order;
• A complex order of 8 or fewer option legs;
• Each option leg of a complex order of 9 or more option legs; or
• A parent order, even if that order is broken into multiple child orders on the same side/series by a broker for execution or routing purposes (except in connection with orders pegged to the NBBO, as discussed below). 

A customer-initiated cancelation and replacement (by any method, including, for example, as a result of Scale orders) of a parent order counts as a new order(s) according to the logic above (e.g., a cancel/replace of a single-leg order counts as one new order, whereas a cancel/replace of a nine-option-leg order counts as nine new orders). 

Orders Pegged to the NBBO/BBO

Note that for customers who use options orders pegged to the NBBO or BBO (such as, for example, relative orders or Pegged Volatility orders, or other parent order types designed to move with the NBBO/BBO), each cancel/replace of a child order based on a change in the NBBO/BBO constitutes an additional new order. Customers resting pegged orders in IBUSOPT for participation in RFQ auctions should also be aware that a pegged order will be treated as canceled and replaced each time such order participates in an RFQ auction in IBKR’s system (whether or not such order becomes an initiating order in an on-exchange auction). 

Account Aggregation

In calculating order totals, brokers must aggregate the options orders of all beneficially-owned accounts of the customer. IBKR aggregates options orders from an individual’s or entity’s account with those of related joint accounts, trust accounts, and organizational accounts.

Customers will be notified by IBKR upon a status change from a retail customer to a Professional customer. In addition, IBKR’s smart order router is designed to take exchange fees (including differences between professional and non-professional customer fees) into consideration when making routing decisions.

For additional details, please see the following links:

CBOE Regulatory Circular RG16-064

ISE 2014 RIC and 2016 RIC

NYSE AMEX 10-29

IBKR provides account holders with a Market Data Assistant tool which assists in selecting the subscription services available for a given security (stock, option or warrant) they wish to trade. The search results show all exchanges upon which the product trades, the subscription offering and its monthly fee for both Professional and Non-Professional clients as well as the depth of market variations associated with each subscription.

To access the Market Data Assistant:

1. Log in to Client Portal
2. Click on the Help menu (question mark icon in the top right corner) followed by Support Center
3. Scroll down and select Market Data Assistant
4. Enter the Symbol or ISIN and the Exchange
5. Choose a value for the optional filters: Professional/Non Professional subscriber status, Currency and Asset
6. Click Search
7. Review the available options and decide which subscription best meets your needs.

Find more information on the market data selections page of the IBKR website.

The ORF is an exchange fee which OCC collects from its clearing members, including IBKR. Its stated purpose is to assist in offsetting exchange costs relating to the supervision and regulation of the options market (e.g., routine surveillance, investigations, and policy, rule-making, interpretive and enforcement activities). The fee was initiated by the CBOE in mid-2009, by each of the BOX, ISE and PHLX in January 2010, by AMEX and ARCA in May 2011, by Nasdaq in January 2012, by C2 in August 2012, by Miami in January 2013, by ISE GEMINI in August 2013, by BATS in February 2015, by Nasdaq BX in February 2016, by BATS EDGX in February 2017, by PEARL in February 2017, by MERCURY and EMERALD in February 2019, and MEMX in September 2023. As of January 1, 2024, it is assessed to customer orders at a rate of $0.02685 per U.S. exchange listed option contract with the rate per exchange as follows: 

Note that the ORF is assessed on all trades, both buys and sells, in addition to the IBKR commission charge as well as any existing exchange fees (e.g., liquidity removal) and will be reflected on the Activity Statement as a Regulatory Fee.

An account will be subject to interest charges despite maintaining an overall net long or credit cash balance under the following circumstances: 

1. The account maintains a short or debit balance in a given currency.

For example, an account maintaining a net cash credit balance equivalent to USD 5,000 comprised of a long USD balance of 8,000 and a short EUR balance equivalent to USD 3,000 would be subject to an interest debit based upon the short EUR balance.  There would be no offsetting credit on the long USD balance as it is less than the USD 10,000 Tier I level above which interest is earned.  

Account holders should note that in the event they purchase a security which is denominated in a currency that they do not hold in their account, IBKR will create a loan in that currency in order to settle the trade with the clearinghouse. If one wishes to avoid such loans and their associated interest charges, they would need to either deposit funds denominated in that particular currency or convert existing cash balances via the Ideal Pro (for balances of USD 25,000 or above) or odd lot (for balances less than USD 25,000) venue prior to entering into your trade. 

2. The credit balance is comprised  principally of proceeds from the short sale of securities. 

For example, an account maintaining a net cash credit balance of USD 12,000 which is comprised of a USD debit of 6,000 in the security sub-account (less the market value of any short stock positions) and a short stock market value credit of USD 18,000 would be charged interest on the Tier 1 debit of USD 6,000 and would earn no interest on the short stock credit as it falls below the USD 100,000 Tier I level.

3. The credit balance includes unsettled funds.

IBKR determines interest debits and credits solely based upon settled funds. Just as an account holder is not assessed interest charges on funds borrowed to purchase a security until such time that purchase transaction settles, the account holder will not receive an interest credit, or offset against a debit balance, on funds originating from the sale of a security until such time the transaction has settled (and IBKR has been credited funds by the clearinghouse).