Interactive Broker commissions | Forex Factory

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Interactive Broker commissions

  • #1
  • First Post: Feb 17, 2008 6:27pm Feb 17, 2008 6:27pm
Can somebody please explain to me how Interactive brokers charge comissions on forex?

I know the website sort of explains it, but I don't really get it. (I'm a slow learner ). I don't get this 0.2 basis point*trade size and minimum order stuff

Would be nice if anyone can explain it in terms of real life examples using lots, and what would the commission be.

Thank You
  • #2
  • Edited Feb 18, 2008 7:23am Feb 17, 2008 7:47pm | Edited Feb 18, 2008 7:23am
The minimum is 2.50 $ for every trade.


To calculate the price of a transaction you multiply your lot size by 0.0001.(value of a point) Then you multiply by the commission multiplier depedning on how much trade per month.


For exemple if you trade less than 1 million per month.

Your trade is 100 000

100 000 x 0.0001= 10

10 x 0.2 = 2 $

The minimum is 2.50 $ so you would pay 2.50 $.

If I misunderstand their commission system please let me know.
  • #3
  • Feb 18, 2008 6:55am Feb 18, 2008 6:55am
that's what i thought i works out . It's actually very cheap to go with brokers like interactive broker, especially when they require min 10k deposit. I might switch to an ECN like this in the future if I want to do forex for a loooong time. I love the fact taht they give you true prices without including their own 'commission' already in it like most brokers (including oanda)
  • #4
  • Feb 18, 2008 7:26am Feb 18, 2008 7:26am
They probably charge both ways but still it is true that it's not that expensive and the more you trade monthly the less they charge you.
  • #5
  • Feb 18, 2008 2:21pm Feb 18, 2008 2:21pm
but be carefull with overnight positions. that's where IB gets you with unusual high interest costs.
  • #6
  • Feb 18, 2008 2:46pm Feb 18, 2008 2:46pm
I think they also charge you a fee when you cancel/modify an order:

http://individuals.interactivebroker...?ib_entity=llc
"I say high, You say low, You say why, and I say I don't know..."
  • #7
  • Feb 18, 2008 2:49pm Feb 18, 2008 2:49pm
Quoting Ricardo.
I think they also charge you a fee when you cancel/modify an order:

http://individuals.interactivebroker...?ib_entity=llc
That's only for stocks, not for forex.

The overnight interest rates are actually very competitive.
  • #8
  • Feb 18, 2008 3:02pm Feb 18, 2008 3:02pm
TraderKGB: is it really 0.2 pips commission (i.e. $20 for 1 mio gbp/usd), or do they do the $20/mio USD traded thing (i.e. ~$40 for 1mio. gbp/usd)?
  • #9
  • Feb 18, 2008 3:23pm Feb 18, 2008 3:23pm
Quoting shrike
TraderKGB: is it really 0.2 pips commission (i.e. $20 for 1 mio gbp/usd), or do they do the $20/mio USD traded thing (i.e. ~$40 for 1mio. gbp/usd)?
~$40 for 1mio. GBP/USD. $20 per USD $1mio traded.

The US division of HotSpotFX is the only ECN broker that I'm aware of that charges the same amount regardless of base currency ($30 per 1mio. bcu = ~$15 for 1mio. GBP/USD).
  • #10
  • May 16, 2008 6:36am May 16, 2008 6:36am
I would like to know more about this as well.
Our broker charges $30/mio in USD terms so GBP is double as long as GBPUSD trades near $1.9900. EUR is obviously around $1.5000 so it's 50% more expensive to trade EURUSD than to trade USDCHF. I feel our commissions are too high but I need to know what you all are paying to negotiate with my greedy broker.
It is important to note round turns in forex are per click which is very very misleading. In futures round turn is in and out so you are flat which is what round turn is supposed to mean. Forex is very crooked and you have to monitor your statements to avoid being taken advantage of.
here is what I pay:
$30/mio per side USD base.
It really is that easy.
  • #11
  • May 16, 2008 9:10am May 16, 2008 9:10am
Quoting The Fxorce
I feel our commissions are too high but I need to know what you all are paying to negotiate with my greedy broker.
$30/mio per side USD base.
Well, on the bright side, $30/mio USD certainly beats MBT's rate of $50/mio USD. Only IB beats that rate at $20/mio USD, and HotSpot FXr on GBP and EUR pairs with their rate of $30/mio notional.
  • #12
  • May 16, 2008 11:09am May 16, 2008 11:09am
Quoting Trader KGB
Well, on the bright side, $30/mio USD certainly beats MBT's rate of $50/mio USD. Only IB beats that rate at $20/mio USD, and HotSpot FXr on GBP and EUR pairs with their rate of $30/mio notional.
MBT is for small account anything under 10k.
If I Go Broke Trying Then I Will die happy.
  • #13
  • May 16, 2008 11:33am May 16, 2008 11:33am
Quoting Trader KGB
Well, on the bright side, $30/mio USD certainly beats MBT's rate of $50/mio USD. Only IB beats that rate at $20/mio USD, and HotSpot FXr on GBP and EUR pairs with their rate of $30/mio notional.
Remember Trader KGB - MB offers discounted rates for volume traders and I'll be more then happy to share our scale with anyone who contacts me directly at [email protected]. $5/100,000 is our national rate...but we have plenty of clients paying far less then that.
  • #14
  • May 16, 2008 11:46am May 16, 2008 11:46am
Quoting Moe
MBT is for small account anything under 10k.
Under 7,5k.

With 7,5k you can go to Hotspot. :-)
ForexFactory SUCKS.
  • #15
  • May 16, 2008 12:51pm May 16, 2008 12:51pm
Quoting htbreaker
Under 7,5k.

With 7,5k you can go to Hotspot. :-)
Care to recommend a good Hotspot broker w/7.5k start.

I've heard Hotspot has IB's that can pad the spread???
  • #16
  • May 16, 2008 1:57pm May 16, 2008 1:57pm
Quoting Poocher
Care to recommend a good Hotspot broker w/7.5k start.

I've heard Hotspot has IB's that can pad the spread???
So why dont you go to hotspot directly?
  • #17
  • May 16, 2008 2:37pm May 16, 2008 2:37pm
Oh, I see... so if I see a Hotspotfx broker its the real deal and IB's using Hotspot are called something eles.

Thanks
  • #18
  • May 16, 2008 3:24pm May 16, 2008 3:24pm
Quoting Poocher
Oh, I see... so if I see a Hotspotfx broker its the real deal and IB's using Hotspot are called something eles.

Thanks
Glad you got my point...
  • #19
  • May 16, 2008 6:28pm May 16, 2008 6:28pm
Is there a demo account option with this broker? I can't seem to find it on their page.
  • #20
  • May 16, 2008 10:04pm May 16, 2008 10:04pm
Quoting willis11of12
Here is the link to get their demo account:
http://www.hotspotfx.com/demo/
I am currently in the process of opening an API account with them right now. I have filled out all the papers, tested the demo API, and now just need to fund my account.
I am waiting on the funds to come in from one of my other brokers to send to Hotspotfx, and then I will be trading live. They really do look great to me at this point, especially with some of the crosses. As long as I do nearly as well on the real account as I do on their demo it will be fantastic! Time will tell.
Besides the banks I have not found anything better... enjoy.
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