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 |