[RT] IB Communique - new US commission schedule

["EAdamy" <eadamy@xxxxxxxxxxxx>]

I have an IB Communiqué announcing a new pricing structure:

In keeping with our mission of providing low cost trade execution and clearing services to professional traders and investors worldwide, IB is pleased to announce the following new US commissions schedule to take effect Tuesday, November 1, 2005.

Stocks*:	$0.005/Share (all-in)
Options*:	$0.75/Contract (all-in)
Futures:	$0.25 to $1.20/Contract (plus exchange costs)
Forex**:	1 to 2 PIP wide EUR/USD spreads

I'm trying to figure out what the new charges are going to be for futures. As nearly as I can tell, IB is moving everyone to unbundled rates http://www.interactivebrokers.com/en/accounts/fees/commissionFutures-FOPs.php?ib_entity=llc effective Nov 1. As a rough calculation on the emini using the lowest number of contracts monthly in each table:

Execution fee <300    0.90

Clearing fee          0.30

CME Tier 1 - Equity:  1.14

Regulatory USD         .02

                    ------

Total of $2.36 is close to the $2.40 bundled rate with opportunity for lower costs on more monthly volume. So far, no impact ... but then there is a BIG kicker - Overnight carrying fee per day @ $0.10

This looks like a huge cost increase for those of us who carry swing trades overnight. Do my figures look right?

 

Earl

 

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