Interactive Brokers Fixed Pricing vs Tiered Pricing | Which Should You Use?

Do u have any referral code / promo code to share for opening an account with IB?

Can you do something similar for Options trading on IBKR? I think the Third Party Fees are different depending on how your orders are filled.

Thank you for informative video. So for those trading Ireland Domiciled any trades over USD 7260 should choose Fixed pricing correct ?

HoneyMoneySG posted "I Finally Found the Cheapest DCA Investing Strategy" on 4th Sept showing real transaction of him buying VWRA with tiered pricing of USD0.35, instead of what you showing here with the pricing of USD1.70, I wondered how he did that.. what am I missing here?

Dividends for UK stocks also have a 15% withholding tax ?

For large quantity contracts like >30 contracts for 0.05-0.1 selling put and calls is fixed pricing cheaper?

Thanks for this video! The recommendation is for per trade that I make right? Or cumulative for a particular stock/ throughout all trading for all stocks?

Let's say I purchased 10 US shares, followed by 141 US shares, will it combine to hit 151 shares and becomes more expensive (under tiered for US shares)?

Thanks!

Thks kelvin. Btw do u know how to look at buying power for each ticker for options in ibkr.. need a tutorial badly i just trans from td.. ibkr is soo diff🤦‍♂️

Thank you for your great work.

Thank you. This is very informative. As many people( especially Singaporeans) are switching to IBKR for trading, are you able to do a video on the pricing info of IBKR trader workstation?

can't I just buy using the tiered one but in multiple orders instead of one big chunk i would get the benefit of it. or does ibkr accumulates my trades overtime. You said the min was 150 shares say I want to buy 300 shares and I instead made two orders for 150 shares each would that work ?

Is this only for Stocks/ETF?
How about US options?

Hi Kelvin, how about trading options? How is the pricing like?

I only trade option 😅 which tier shd i sign up please ?

If I plan on buying 100 shares $500 stock price x1000 separate trades a day
OR
If I plan on buying 200 shares $500 stock price x1000 separate trades a day

FIXED is better for both or only above 150 shares per single trade

Also very important, I think that is the Selling Fees you addressed, there are "buying" fees that are different for both Tiered and Fixed

Hi Kevin, Are you saying that paying 0.005 per share is cheaper than paying 0.0035 per share? Are you sure? Is it suppose to be cheaper to use tier pricing if you trade with default currency of market you are trading? it means no exchange fees. Please clarify.

Thank you so much! I opened a IBKR account today for options trading from the UK. It was set to fixed by default for me to £1.70 per contract. Changed it to tiered and it's at £0.70 per contract.

This pricing didn't make sense to me but your video summarised it really well appreciate it. Keep up the good work.

If you are providing liquidity, like a limit order Tier is cheaper

In what case would you be charged the maximum per order of 1%

Hi Kelvin, May i know which pricing plan more cheaper to buy lumpsump order of 131 stock of CSPX in Ireland ETF worth of USD65.2k right now thru IBKR ?Fixed or Tired.For me is Fix right..

Hi, Exchange fees is fixed, it is $0.003 for NYSE/NASDAQ as per IBKR website. But in you spreadsheet, it is varying with respect to number of shares?

tee erd pricing not chiered

Thank you! What about option's trades? and what when options are executed (which are a multiple of 100 shares) ?!

Basically if you trade more penny stocks Fixed pricing is cheaper. (More shares) If you trade more expensive stocks or buy/hold tiered pricing is cheaper. (less shares)

Thanks for sharing the spreasheet and awesome video!

Hi Kelvin, thank you for your video; I think you need to say out loud the assumption is you are always removing liquidity (meaning the orders are always market orders ) for your calculations to be true. When you add liquidity (limit orders) the commission for tiered is much cheaper (as you get a rebate for NASDAQ Fee).

love

Kelvin missed out video on the IBKR additional sub account
Hence a single login can have many sub-accounts (selectable)
eg
US - Tiered
US - Fixed
UK - Tiered
UK - Fixed
SG - Fixed

on IBKR I cannot buy less than 100 shares or USD 2,000 - how can I buy in smaller amounts?

thank you so much! god bless you

Thank you ! Kelvin

THANK YOU SO MUCH Kelvin, this really, really helped me understand IBKR's complicated fee structure, which was making me quite anxious! Good luck with all your trading Bro!!

It's really hard to imagine this analysis is correct for US institutional traders. The conclusion means they would never use the tiered plan (since the conclusion states that fixed is better once you're past 150 shares a trade). I can't imagine in the U.S. that tiered is mostly for retail traders when they have a tier that's for greater than 100 million shares a month. I might have missed something.

Thank you for this

Commissions really seem to hurt the small trader. I will look for a different broker. Anyone's thoughts??

Thank you!!!

What if I buy fractioned shares of CSPX? (100 USD per month) is it still better the tiered??

Hi Kelvin, thanks for creating this video. Fixed pricing is better for >150 shares -> is this 150 shares referring to per month or per transaction? Thank you.

Per month or per order ?

straight forward to the point, I appreciate your video!

Thanks!

nice instruction! love it!

13 Jan-25: Pertaining to US Markets, I believe the Regulatory fees have changed so the values in the formulas need to be changed

Also, for the Pass-Through Fees formula, can you confirm/are you certain the pass through calculation is based on the summed (Regulatory+Exchange+Clearing) and not the commission fees? That's because IBKR's site stated:

NYSE Pass Through Fees: Commissions * 0.000175
FINRA Pass Through Fees: Commissions * 0.00056


Your Calculation: =0.000175*SUM(C4:E4) + ...
Cells C4:E4 are referring to Regulatory+Exchange+Clearing respectively

Very useful tip. Google cant even advise me on this

how abt hk shares? is ibkr still the cheapest?

Thank you! Very informative!

Had no idea about Ireland-domiciled ETFs having withholding tax. just that single tip was tremendous help

thanks for explaining! Do they charge separately for each buy and sell? Or only for the sell order?