Fees for Trading Warrants and Structured Products on Euronext

Overview: 

Euronext's fee thresholds on structured products and how it impacts clients' trading, for both fixed and tiered commission models

Background: 

Clients that place orders and trade for more than EUR 6'000 in Warrants and Structured Products will be charged a 2.5 basis points fee with a maximum of EUR 20. 

 

The table below displays the exchange fees for warrants and structured products when trading on Euronext:

Product Group

Fee

Minimum per Trade

Maximum per Trade

Warrants & Structured Products – trade value up to EUR 6’000

0.00

N/A

N/A

Warrants & Structured Products – trade value more than EUR 6’000

2.50 bps

N/A

EUR 20 per Trade

 

Calculations:

For Cost Plus (Tiered) Clients:

Example: Client wishes to trade structured products on Euronext for a total trade value of EUR 10’000.

Scenario A:

Trade value = EUR 10’000

Fee = 2.5 Bps

As the trade value is above EUR 6’000, the fee of 2.50 bps applies and therefore an additional EUR 2.50 will have to be paid for the trade.

Scenario B:

Order 1:

Trade Value = EUR 5’000

Fee = 0.00

Order 2:

Trade Value = EUR 5’000

Fee = 0.00

As the trade value of each trade is below EUR 6’000, no additional fees apply.

Note: This calculation does not impact clients on the Fixed commission schedule.

Добавление/удаление ликвидности

Overview: 

Цель данной статьи - разъяснить биржевые сборы, а также плату за добавление/удаление ликвидности при раздельных комиссиях.

 

Принцип добавления или удаления ликвидности применим как к акциям, так и к опционам на акции/индексы. Влияние ордера на ликвидность зависит от того, является ли он реализуемым или нереализуемым.

Реализуемые ордера УСТРАНЯЮТ ликвидность.
Реализуемые ордера - это либо рыночные ордера, либо лимитные ордера на продажу/покупку с предельной ценой на уровне или выше/ниже рыночной.

1. Лимитная цена реализуемого ордера покупки находится на уровне аска или выше него.

2. Предельная цена реализуемого лимитного ордера продажи находится на уровне бида или ниже него.

Пример:
Текущий размер/цена АСКА (предложения) XYZ составляет 400 акций по 46.00. Вы вводите лимитный ордер на покупку 100 акций XYZ по 46.01. Этот ордер будет считаться реализуемым, поскольку он немедленно исполнится. Если на бирже установлен сбор за понижение ликвидности, то клиент должен будет его оплатить.


 

Нереализуемые ордера ДОБАВЛЯЮТ ликвидность.
Нереализуемые ордера являются лимитными ордерами на покупку/продажу с предельной ценой ниже/выше рыночной.

1. Предельная цена нереализуемого лимитного ордера покупки находится ниже аска.

2. Предельная цена нереализуемого лимитного ордера продажи находится выше бида.

Пример:
Текущий размер/цена АСКА (предложения) XYZ составляет 400 акций по 46.00. Вы вводите лимитный ордер на покупку 100 акций XYZ по 45.99. Данный ордер будет считаться нереализуемым, поскольку он разместится на рынке как лучший бид вместо того, чтобы сразу же исполниться.
Если кто-то отправит ордер, на основе которого ваш лимитный ордер покупки исполнится, и если будет доступен бонус за добавление ликвидности, то вы получите рибейт (ретроспективный вычет).

ПРИМЕЧАНИЯ:
1. На все счета, торгующие опционами, распространяются биржевые сборы или бонусы за устранение/добавление ликвидности.
2. Только отрицательные значения в графе устранения/добавления ликвидности на сайте IB являются рибейтами (возвратными бонусами).

https://www.interactivebrokers.com/ru/index.php?f=5492
Справка о комиссиях/сборах, действующих для акций и опционов, доступна по ссылке выше

Почему отличаются комиссии за опционы США?

В комиссии IB за опционы входят две составляющие:

1. Плата за исполнение, причитающаяся IB.  Для Smart-маршрутизированных ордеров действует плата в $0.70 за каждый контракт, но она понижается до $0.15, когда сделки начинают превышать 100,000 контрактов за текущий месяц (посетите наш сайт, чтобы узнать стоимость ордеров с прямой маршрутизацией, льготные ставки для опционов с низкой премией и минимальные сборы за ордер); и 

2. Сторонние биржевые, регуляторные и/или операционные сборы.

Что касается сторонних сборов, структура некоторых опционных бирж США включает в себя сборы/рибейты за ликвидность, поэтому, в сумме с платой IB за исполнение и прочими регуляторными или операционными издержками, общие комиссии за контракт могут отличаться между ордерами. Это обусловлено с биржевыми расчетами, результатом которых может быть не сбор, а выплата клиенту, и которые зависят от ряда факторов вне контроля IB, включая атрибуты клиентского ордера и преобладающие котировки бида/аска.

Биржи, работающие на основе данной модели сборов/рибейтов за ликвидность, взимают плату за ордера, способствующие снижению ликвидности (т.е. реализуемые рыночные ордера), и предоставляют возвратную скидку за ордера, повышающие ликвидность (т.е. лимитные нерыночные ордера). Сборы могут отличаться в зависимости от биржи, типа клиента (напр., брокер-дилер, фирма, маркет-мейкер, профессионал) и андерлаинга опциона; рибейты (вовзратные выплаты) публичных клиентов, как правило, составляют $0.10 - $0.42, а сборы $0.15 - $0.50. 

IB обязаны направлять реализуемые опционные ордера на биржу, предлагающую самую лучшую цену исполнения. При наличии нескольких вариантов Smart-маршрутизатор выбирает место назначения ордера, опираясь на плату за устранение ликвидности (т.е. ордер будет направлен на биржу с наименьшей или отсутствующей платой). Соответственно, Smart-маршрутизатор направит рыночный ордер на биржу с более высоким сбором, только если это обеспечит выигрыш в цене хотя бы на $0.01 (что, с учетом стандартного множителя опциона 100, приведет к улучшению цены в $1.00, которое превосходит самую высокую плату за устранение ликвидности).

Дополнительная информация о добавлении/устранении ликвидности, включая примеры, доступна в статье KB201.

Hong Kong - China Stock Connect

Hong Kong – China Stock Connect (“China Connect”) is a mutual market access program through which Hong Kong and international investors can trade shares listed on the Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) via the Stock Exchange of Hong Kong (SEHK) and their existing clearinghouse. As a member of SEHK, IBKR provides you with direct access to trade with eligible listed products on the Shanghai and Shenzhen Stock Exchange. IBKR clients with China Connect trading permissions will be eligible to trade SSE/SZSE securities through Shanghai and Shenzhen - Stock Connect.

Among the different types of SSE/SZSE-listed securities, only A shares (shares in mainland China-based companies that trade on Chinese stock exchange) are included in the Shanghai and Shenzhen Stock Connect.

Shanghai Connect includes all the constituent stocks of the SSE 180 Index, SSE 380 Index and all the SSE-listed A shares that have corresponding H shares listed on the SEHK.

Product List and Stock Codes for SSE

Shenzhen Connect includes all the constituent stocks of the SZSE Component Index, the SZSE Small/Mid Cap Innovation Index that have a market capitalization of not less than RMB 6 billion and all the SZSE-listed A shares that have corresponding H shares listed on SEHK.

Product List and Stock Codes for SZSE

IBKR Commission for Trading SSE/SZSE Securities

Same as trading Hong Kong stocks, IBKR charges only 0.08% of trade value as a commission with a minimum CNH 15 per order. Detailed fee rates can be found in the Hong Kong – China Stock Connect Northbound fee table.

Daily Quota

Trading under Shanghai Connect and Shenzhen Connect is subject to a Daily Quota. The Daily Quota is applied on a “net buy” basis. The Daily Quota limits the maximum net buy value of cross-boundary trades under Shanghai Connect and Shenzhen Connect each day.

If the Northbound Daily Quota Balance drops to zero or the Daily Quota is exceeded during the opening call auction session, new buy orders will be rejected. Or if it happens during a continuous auction session or closing call auction session, no further buy orders will be accepted for the remainder of the day. SEHK will resume the Northbound buying service on the following trading day.

SEHK will also publish the remaining balance of the Aggregate Quota and Daily Quota.

For details, please refer to HKEX Stock Connect FAQ or HKEX Stock Connect Rule 1407

Trading Information of Shanghai and Shenzhen Connect

Trading currency

RMB

Order Type

IBKR offers various order types but will stimulate the order into limit order for execution. More information can be referred to our website.

 

Tick Size / Spread

Uniform at RMB 0.01

Board Lot

100 shares (applicable for buyers only)

Odd Lot

Sell orders only (odd lot should be made in one single order)

Max Order Size

1 million shares

Price Limit

±10% on previous closing price (±5% for stocks under special treatment under risk alert, i.e. ST and *ST stocks)

Day (Turnaround) Trading

Not allowed

Block Trade

Not available

Manual Trade

Not available

Order Modification

IBKR will cancel and replace the order for any order

modification

Settlement cycle

Securities: Settlement on T day

Cash from China Connect trades: Settlement on T+1 day

Forex*: Settlement on T+2 day

*Due to the unsynchronized settlement cycle, clients who exchange CNH themselves should execute the Forex trade one day prior to the stock trade (T-1) to avoid the extra day’s interest payment (considering normal settlement without involving holidays).

Trading Hours

SSE/SZSE Trading Sessions

SSE/SZSE Trading Hours

Opening Call Auction

09:15 - 09:25

Continuous Auction (Morning)

09:30 – 11:30

Continuous Auction (Afternoon)

13:00 – 14:57

Closing Call Auction

14:57 – 15:00

Note: SSE and SZSE will not accept order cancellations from 09:20 to 09:25 and 14:57 p.m. to 15:00.

Half-day Trading

If a Northbound trading day is a half-trading day in the Hong Kong market, it will continue until respective Connect Market is closed. Refer to the exchange website for holiday trading arrangements and additional information.

Disclosure Obligation

If client holds or controls up to 5% of the issued shares of China Connect, the client is required to report in writing to the China Securities Regulatory Commission (“CSRC”) and the relevant exchange, and inform the Mainland listed company within three working days of reaching 5%.

The client is not allowed to continue purchasing or selling shares in that Mainland listed company during the three days notification period. Visit the IBKR Knowledge Base for more information.

Shareholding Restriction

A single foreign investor’s shareholding in a Mainland listed company is not allowed to exceed 10% of the company’s total issued shares, while all foreign investors’ shareholding in the A shares of the listed company is not allowed to exceed 30% of its total issued shares. Visit the IBKR Knowledge Base for more information.

Forced-sale Arrangement

Each IBKR client is not allowed to hold more than a specific percentage of the China Connect listing company's total issued shares. HKEX requires the client to follow the forced-sell requirements if the shares exceed the limit:

Situation

Shareholding (in a listed company)

A single foreign investor

> = 10% of the company’s total issued shares

All foreign investors

> = 30% of the company’s total issued shares

Margin Financing

Margin trading in China Connect securities will subject to restrictions and only certain A shares will be eligible for margin trading. Eligible Securities, as determined by SSE and SZSE from time to time, are listed on the HKEX website

According to the relevant rules of SSE and SZSE, either market may suspend margin trading activities in specific A shares when the volume of margin trading activities for a specific A share exceeds the prescribed threshold. The market will resume margin trading activities in the affected A share when its volume drops below a prescribed threshold.

Stock Borrowing and Lending (SBL)

SBL in China Stock Connect Securities is subject to restrictions set by the SSE or SZSE and stated in the Rules of the Exchange.
IBHK does not offer this service at the moment.

Eligible Short Selling Securities

SBL for the purpose of short selling will be limited to those China Stock Connect Securities that are eligible for both buy orders and sell orders through Shanghai and Shenzhen Connect (i.e., excluding Connect Securities that are only eligible for sell orders).
IBHK does not offer this service at the moment.

Trading Shenzhen ChiNext and Shanghai Star shares

Trading Shenzhen ChiNext and Shanghai Star shares are limited to institutional professional investors.

Holidays

Clients will only be allowed to trade China Connect on days where Hong Kong and Mainland markets are both open for trading and banking services are available in both Hong Kong and Mainland markets on the corresponding settlement days. This arrangement is essential in ensuring that investors and brokers will have the necessary banking support on the relevant settlement days when they will be required to make payments.

The following table illustrates the holiday arrangement of Northbound trading of SSE/SZSE Securities:

 

Mainland

Hong Kong

Open for Northbound Trading

Day 1

Business Day

Business Day

Yes

Day 2

Business Day

Business Day

No, HK market closes on money settlement day

Day 3

Business Day

Public Holiday

No, HK market closes on trading day

Day 4

Public Holiday

Business Day

No, Mainland market closes

Severe Weather Conditions

Information on the trading arrangement available under severe weather conditions can found on the HKEx website

Where to Learn More?

Please refer to the following exchange website links for additional information regarding Hong Kong China Stock Connect:

If you have any questions regarding Hong Kong-China Stock Connect, please contact IBKR Client Services for further information.
 

Shares subject to the Italian Financial Transaction Tax

The following table lists the companies included in the scope of the Italian Financial Transaction Tax as of January 2024. Based on information provided by the Ministry of Finance, the FTT is applicable to

  • Transfer of shares issued by Italian companies
  • Transfer of securities representing the above (ADRs and GDRs) irrespective of the issuer
  • Companies with an average market capitalization lower than EUR 500 Million in the month of November of the previous year will be exempt

The list of companies provided below is being done on a best efforts basis and may be subject to change at any time without prior notification.

 

Description Symbol
A2A SPA  A2A
ACEA SPA  ACE
ALERION CLEANPOWER  ARN
AMPLIFON SPA  AMP2 
ANIMA HOLDING SPA  ANIM 
ARNOLDO MONDADORI EDITORE  MN 
ASCOPIAVE SPA  ASC 
ASSICURAZIONI GENERALI  ASG 
AZIMUT HOLDING SPA  AZM
BANCA GENERALI SPA  BGN
BANCA IFIS SPA  IF
BANCA MEDIOLANUM SPA  BMED
BANCA MONTE DEI PASCHI SIENA  BMPS
BANCA POPOLARE DI SONDRIO  BPSO
BANCO BPM SPA  BAMIN
BF SPA  BFG
BFF BANK SPA  BFF
BPER BANCA  BPE
BREMBO SPA  BRE
BRUNELLO CUCINELLI SPA  BC
BUZZI SPA  BZU
CAREL INDUSTRIES SPA  CRL
CEMBRE SPA  CMB 
CEMENTIR HOLDING NV  CEM
CERVED GROUP SPA  CV7
COMER INDUSTRIES SPA  COM2
CREDITO EMILIANO SPA  CE
DANIELI & CO.  DAN
DE'LONGHI SPA  DLG 
DIASORIN SPA  DIA
DIGITAL VALUE SPA  DGV 
EL.EN. SPA  ELN 
ENAV SPA  ENAV  
ENEL GREEN POWER SPA  ENZ 
ENI SPA  ENI 
ERG SPA  ERG 
ERMENEGILDO ZEGNA NV  ZGNN 
FERRARI NV  RACE 
FINCANTIERI SPA  FCT 
FINECOBANK SPA  FBK 
GRUPPO MUTUIONLINE SPA MOL 
GVS SPA  GVS 
HERA SPA   HER 
INDUSTRIE DE NORA SPA  DNR 
INFRASTRUTTURE WIRELESS ITAL  INW 
INTERCOS SPA  ICOS 
INTERPUMP GROUP SPA  IP 
INTESA SANPAOLO  ISPN 
IREN SPA  IRE 
ITALGAS SPA  IG 
ITALMOBILIARE SPA  ITM 
IVECO GROUP NV  IVG 
JUVENTUS FOOTBALL CLUB SPA  JUVE 
LEONARDO SPA  LDO 
LOTTOMATICA GROUP SPA  LTMC 
MAIRE TECNIMONT SPA  MAIRE 
MARR SPA  MARR 
MEDIOBANCA SPA  MB 
MFE-MEDIAFOREUROPE NV-CL B  MFEB 
MONCLER SPA  MONC 
NEXI SPA  NEXIN 
OVS SPA  OVS 
PHILOGEN SPA  PHIL 
PIAGGIO & C. S.P.A.  PIA 
PIRELLI & C. SPA  PIRC 
POSTE ITALIANE SPA  PST 
PRADA S.P.A.  1913
PRYSMIAN SPA  PRY 
RAI WAY SPA  RWAY 
RECORDATI INDUSTRIA CHIMICA  REC 
REPLY SPA  REY 
SAES GETTERS SPA  SG 
SAIPEM SPA  SPM 
SALCEF GROUP SPA  SCF 
SALVATORE FERRAGAMO SPA  SFER 
SANLORENZO SPA/AMEGLIA  SL 
SARAS SPA  SRS 
SESA SPA  SES 
SNAM SPA  SRG 
SOL SPA  SOL 
STEVANATO GROUP SPA  STVN 
TAMBURI INVESTMENT PARTNERS  TIP 
TATATU SPA  ALTTU 
TECHNOGYM SPA  TGYMN 
TECHNOPROBE SPA  TPRO 
TELECOM ITALIA SPA  TIT 
TERNA SPA TEZNY 
TERNA-RETE ELETTRICA NAZIONA  TRN 
TINEXTA SPA  TNXT 
TOD'S SPA  TOD 
UBI BANCA SCPA-UNSPON ADR  BPPUY 
UNICREDIT SPA  UCG 
UNIPOL GRUPPO SPA  UNI 
UNIPOLSAI ASSICURAZIONI SPA  US 
WEBUILD SPA  WBD 
ZIGNAGO VETRO SPA  ZV 

 

 

Information Regarding the French Financial Transaction Tax

Overview: 

This document is designed to provide an overview of how the French Financial Transaction Tax will be handled by Interactive Brokers.

Effective August 1, 2012, a new tax will be implemented on the purchase of certain French securities.

Tax Rate

The initial announced tax rate was to be 0.10%; however based on updated information the applied tax rate is intended to be 0.20%.

Effective January 1, 2017 the rate will increase from 0.20% to 0.30%.

Scope

The FTT will be applied to shares of companies whose head office is located in France and whose market capitalisation exceeds EUR 1 billion. The French authorities will update a list each December with the names of companies which meet these requirements. At its launch, 109 French companies will fall under the scope of the FTT.

The purchase of a derivative contract is not subject to the FTT; however the acquisition of the underlying stock upon exercise or delivery of the derivative instrument will be subject to FTT. Similarly a convertible instrument will become subject to the FTT upon conversion or exchange into the stock.

American Depsitory Receipts (ADRS) are similarly subject to the FTT however the implementation date has been delayed to December 1, 2012.

Corporate action events which result in the acquisition of a French security subject to the FTT regulation, will have tax applied at the processing date.

Under the present rules, you can trade CFDs on French shares without incurring FTT in the same way as you are able to trade UK share CFDs without incurring stamp duty. All shares affected by the French FTT are available to trade as IB CFDs.

Please click here for for detailed information and frequently asked questions about our CFD offering.

 

Calculation Method

The legislation allows for the application of FTT based on the daily net purchase per final beneficiary. As an Investment Services Provider (ISP), Interactive Brokers will report FTT to our various clearing agents. As such, transactions will be eligible for netting if the shares settle at the same location. For instance, purchases and sales in France may be netted; however a purchase in France will not be netted against a sale in Germany.

 

 

 

 

Shares Subject To The French Financial Transaction Tax

The following table lists the companies included in the scope of the French Financial Transaction Tax as of January 2024. Based on the French declaration, companies meeting the following qualifications would fall within the scope of the FTT

  • Listed on a French or foreign regulated market
  • Issued by a company whose headquartered in France and whose capitalisation exceeds one billion euro on 1 December 2023 (reviewed annually)

The list of companies and ADRs provided below is being done on a best efforts basis and may be subject to ammendments at any time and without notification.

Description  Symbol 
ACCOR SA  AC
ADP  ADP
AIR FRANCE-KLM  AF 
AIR LIQUIDE SA  AI
ALD SA ALD1
ALSTOM  ALO 
ALTAREA  ALTA 
ALTEN ATE
AMUNDI SA AMUN
ANTIN INFRASTRUCTURE PARTNER ANTIN

ARGAN

ARG
ARKEMA  AKE
AXA SA  AXAN
BELIEVE SA BLV
BIOMERIEUX  BIM 
BNP PARIBAS  BNP
BOLLORE  BOL 
BOUYGUES SA  EN 
BUREAU VERITAS SA  BVI 
CAP GEMINI .  CAP 
CARMILA CARM
CARREFOUR SA  CA
CHRISTIAN DIOR  CDI
COFACE SA COFA
COLAS SA  RE 
COMPAGNIE DE L'ODET SA ODET
COMPAGNIE DE SAINT-GOBAIN  GOB
COMPAGNIE DU CAMBODGE  CBDG 
COVIVIO COV
CREDIT AGRICOLE SA  ACA
DANONE  BN
DASSAULT AVIATION SA  AMN
DASSAULT SYSTEMSES SE DSY
EDENRED  EDEN 
EDF  EDF 
EIFFAGE  FGR 
ELIS SA ELIS
ENGIE ENGI
ERAMET ERA
ESSILORLUXOTTICA EI
EURAZEO SE RF 
EUTELSAT COMMUNICATIONS  ETL
EXCLUSIVE NETWORKS SA EXN
FAURECIA SE ADR- UNSP FAURY
FINANCIERE MONCEY FMONC
FONCIERE LYONNAISE FLY
FORVIA FRVIA
GAZTRANSPORT ET TECHNIGA SA GTT
GECINA SA  GFC 
GETLINK SE GET
HERMES INTL  RMS
ICADE  ICAD
ID LOGISTICS GROUP IDL 
IMERYS SA  NK 
INTERPARFUMS SA ITP
IPSEN  IPN 
IPSOS IPS
JCDECAUX SA  DEC
KERING KER
KLEPIERRE  LI 
L.D.C. SA LOUP
LA FRANCAISE DES JEUX SAEM FDJ
LAGARDERE S.C.A.  MMB
LECTRA LSS
LEGRAND SA  LR 
LISI FII
L'OREAL  OR
LVMH MOET HENNESSY LOUIS VUI  MC
M6-METROPOLE TELEVISION  MMT 
MAUREL ET PROM MAU
MICHELIN (CGDE)  MLN
NEOEN SA NEOEN
NEXANS SA  NEX 
ORANGE ORA
OVH GROUPE SAS OVH
PERNOD-RICARD SA  RI 
PEUGEOT INVEST PEUG
PLATIC OMNIUM POM
PUBLICIS GROUPE  PUB
RAMSAY GENERALE DE SANTE SA GDS
REMY COINTREAU  RCO
RENAULT SA  RNO 
REXEL SA RXL
ROBERTET S.A. RBT
RUBIS RUI
S.O.I.T.E.C. SOI
SAFRAN SA  SAF 
SANOFI  SAN 
SARTORIUS STEDIM BIOTECH DIM
SCHNEIDER ELECTRIC SE  SU
SCOR SE  SCR 
SEB SA  SK 
SES SESG
SOCIETE BIC SA  BB 
SOCIETE GENERALE SA GLE
SOCIETE POUR L'INFORMATIQUE SII
SODEXO  SW 
SOMFY SA  SO 
SOPRA STERIA GROUP SOP
SPIE SA SPIE
STE IND & FIN DE L'ARTOIS SA ARTO
STEF STF
TELEPERFORMANCE TEP
TELEVISION FRANCAISE (T.F.1)  TFI 
THALES SA.  HO 
TIKEHAU CAPITAL TKO
TOTALENERGIES SA  FP
TRIGANO SA TRI
UBISOFT ENTERTAINMENT UBI
UNIBEL UNBL
VALEO FR
VALLOUREC SA VK 
VEOLIA ENVIRONNEMENT  VIE 
VERALLIA VRLA
VETOQUINOL SA VETO
VICAT VCT
VINCI SA  DG 
VIRBAC SA  VIRP
VIVENDI  VIV 
VOLTALIA SA- REGR VLTSA
VUSIONGROUP VU
WENDEL  MF 666
WORLDLINE SA WLN  

 

 

 

Why Do Commission Charges on U.S. Options Vary?

IBKR's option commission charge consists of two parts:

1. The execution fee which accrues to IBKR.  For Smart Routed orders this fee is set at $0.65 per contract, reduced to as low as $0.15 per contract for orders in excess of 100,000 contracts in a given month (see website for costs on Direct Routed orders, reduced rates on low premium options and minimum order charges); and 

2. Third party exchange, regulatory and/or transaction fees.

In the case of third party fees, certain U.S. option exchanges maintain a liquidity fee/rebate structure which, when aggregated with the IBKR execution fee and any other regulatory and/or transaction fees, may result in an overall per contract commission charge that varies from one order to another.  This is attributable to the exchange portion of the calculation, the result of which may be a payment to the customer rather than a fee, and which depends upon a number of factors outside of IBKR's control including the customer's order attributes and the prevailing bid-ask quotes.

Exchanges which operate under this liquidity fee/rebate model charge a fee for orders which serve to remove liquidity (i.e., marketable orders) and provide a credit for orders which add liquidity (i.e., limit orders which are not marketable). Fees can vary by exchange, customer type (e.g., public, broker-dealer, firm, market maker, professional), and option underlying with public customer rebates (credits) generally ranging from $0.10 - $0.90 and public customer fees from $0.01 - $0.95. 

IBKR is obligated to route marketable option orders to the exchange providing the best execution price and the Smart Router takes into consideration liquidity removal fees when determining which exchange to route the order to when the inside market is shared by multiple (i.e., will route the order to the exchange with the lowest or no fee).  Accordingly, the Smart Router will only route a market order to an exchange which charges a higher fee if they can better the market by at least $0.01 (which, given the standard option multiplier of 100 would result in price improvement of $1.00 which is greater than the largest liquidity removal fee).

For additional information on the concept of adding/removing liquidity, including examples, please refer to KB201.

Handling procedures for fractional fees

It should be noted that certain exchange fees as well as IB commission rates are established at levels beneath  that of the smallest increment by which a given currency is defined (e.g. $0.01 in the case of the USD).  In the event a customer incurs a fee having an extended value below this minimum increment, the fee will be calculated at its extended value and then rounded up or down to the nearest whole minimum increment of that currency.   

This rounding process may result in occurrences where the aggregate rounded commission charge as reflected in the cash balance section of the Activity Statement on a given day is $0.01 higher than the sum of the rounded charge reflected on a line item basis in the trades section. An example of this may occur for a sample series of option trades for a given day is provided below. 

EXAMPLE:

Action Calculated Fee (extended) Statement - Trades  Section (rounded at a line item level) Statement - Cash Balance Section (rounded at an aggregate level)
Customer buys one U.S. securities option, incurring a minimum commission charge of $1.00 plus an exchange Option Regulatory Fee of $0.014 $1.014 $1.01 N/A
Customer buys one U.S. securities option, incurring a minimum commission charge of $1.00 plus an exchange Option Regulatory Fee of $0.014 $1.014 $1.01 N/A
Totals $2.028 $2.02 $2.03

 

 

 

Information Regarding IBKR's Calculation of Tiered Commission Monthly Trade Value

IBKR currently offers a Tiered pricing commission structure for select European and Asian exchanges. Customers may take advantage of reduced commissions based on the volume traded on a monthly basis across eligible exchanges.

European Tiered Commission

Currently IBKR offers the Tiered commission structure for stocks in Belgium, Denmark, France, Germany, Italy, Netherlands, Switzerland, Norway, Sweden and the UK.

IBKR maintains the EUR-equivalent, CHF-equivalent, DKK-equivalent, USD-equivalent, GBP-equivalent, NOK-equivalent and SEK-equivalent trade values of all executions traded under the Tiered model. Conversions are done using the prior day's exchange rate. This accounting allows for a customer whose primary trading is on the Swedish stock exchange to easily compare statement information to the tier breaks on the IBKR website and still receive the benefit of a reduced tier when trading a EUR-denominated stock eligible for Tiered pricing.

Asia/Pacific Tiered Commission

Currently IBKR offers the Tiered commission structure for trades in Australia, Hong Kong, Japan and Singapore. IBKR maintains the AUD-equivalent, HKD-equivalent, JPY-equivalent and SGD-equivalent trade values of all executions traded under the Tiered model. Conversions are done using the prior trading day's exchange rate. This accounting method allows for a customer whose primary trading is on the Hong Kong stock exchange to easily compare statement information to the tier breaks on the IBKR website and still receive the benefit of a reduced tier when trading a JPY-denominated stock eligible for Tiered pricing.

General

Tier breaks and the applicable commission rates are provided on the IBKR website. In general, volume/value tiers are calculated once daily, not at the time of the trade. As such, execution reductions will start the trading day after the threshold has been exceeded.

Example

Assume an account has executed trades on the Hong Kong stock exchange on August 1 against a trade value of 15,100,000 HKD. The account's monthly trading value will be tracked as follows:

HKD value = 15,100,000

SGD value = (15,100,000 x 0.16048 exchange rate) = 2,423,248

JPY value = (15,100,000 x 10.075 exchange rate) = 152,132,500

The following day, for an execution on the Tokyo stock exchange commissions will be based on the month to date trade value as expressed in JPY, which in the example is 152,132,500. This month to date trade value exceeds the Tier 1 threshold therefore the trade will be commissioned at the Tier 2 level, or 0.05%.

Note that the above may lead an account to be charged commissions on two different tiers on the same trade date due to exchange rate fluctuations. Traders should take note of this possibility when trading across multiple venues.

Please be aware that examples provided above are for instructional purposes only and may not reflect current commission rates. Please always refer to the IBKR website for the most updated commission and fee rates.

 

Syndicate content