1. What is Interactive Brokers Commission?

Interactive Brokers charges commission based on the number of shares traded and the per share rate. This calculator helps beginners estimate their trading costs.

2. How Does the Calculator Work?

The calculator uses the simple commission formula:

Where:

• \( Shares \) — Number of shares traded
• \( Per\ Share\ Rate \) — Commission rate per share in USD

Explanation: The total commission is simply the product of the number of shares traded and the commission rate per share.

3. Importance of Commission Calculation

Details: Understanding trading commissions is crucial for beginners to calculate their true cost basis and potential profits when trading stocks.

4. Using the Calculator

Tips: Enter the number of shares you plan to trade and the per share commission rate. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is this the only fee charged by Interactive Brokers?
A: No, there may be additional fees like exchange fees, regulatory fees, or monthly minimums depending on your account type.

Q2: How do I find my per share rate?
A: Check Interactive Brokers' current commission schedule on their website or in your account settings.

Q3: Does commission vary by market?
A: Yes, commission rates may differ for US stocks, international stocks, and other securities.

Q4: Are there volume discounts?
A: Interactive Brokers offers tiered pricing where per share rates may decrease at higher monthly share volumes.

Q5: Is there a minimum commission per order?
A: Some account types have minimum commissions (e.g., $1 minimum per order), which this calculator doesn't account for.