Steve2 Elite    Posts: 750 Joined: 10/11/2012 Location: Annapolis, MD  User Profile | I heard back from Gar Wood on my questions above. Gar Wood passes through any IB credit interest earned by an account without any markdowns. Gar Wood does not mark up IB debit interest (e.g., margin interest) or borrow fees. All great news! A Gar Wood account uses IB's tiered commission structure where exchange and regulatory fees are passed through to the customer. All trades are at the first tier rate which is (for U.S.) customers $0.0035 per share with $1 minimum and 0.05% of trade value maximum. OV always generates marketable trades so exchange fees will typically apply. For the most common exchanges IB uses for OV trades (ARCA, ISLAND, BATS) the exchange fee is $0.003 per share. NYSE is $0.00275. So, for most OV trades above the minimum commission, the rate will be around $0.0065 per share. A little higher than COR's fixed commission rate of $0.005 per share. However, margin interest is a big win. IB has a sliding scale that starts at 1.9% and goes down as the amount you borrow goes up. COR's margin rate was 7.5%. IB's stock borrow fees are also lower than COR's. Anyway, I think the somewhat larger per share commission is a very reasonable trade for having TP server-mode access to IB. [Edited by Steve2 on 8/24/2016 4:09 AM] | |
