1. What is Interactive Brokers Commission?

Interactive Brokers charges commissions based on trade value, with a combination of percentage-based rates and fixed fees. Understanding these costs is essential for evaluating trading profitability.

2. How Does the Calculator Work?

The calculator uses the commission formula:

Where:

• \( Trade\ Value \) — Total value of the trade in USD
• \( Rate \) — Percentage rate (as decimal) charged on trade value
• \( Fixed \) — Fixed fee charged per trade in USD

Explanation: The commission consists of a variable component (percentage of trade value) plus a fixed component (minimum fee per trade).

3. Importance of Commission Calculation

Details: Accurate commission calculation helps traders evaluate true trade costs, compare brokers, and determine optimal trade sizes for cost efficiency.

4. Using the Calculator

Tips: Enter trade value in USD, rate as a decimal (e.g., 0.1 for 0.1%), and fixed fee in USD. All values must be non-negative.

5. Frequently Asked Questions (FAQ)

Q1: What's typical commission rate at Interactive Brokers?
A: Rates vary by market but typically range from 0.05% to 0.5% of trade value plus small fixed fees.

Q2: Are there volume discounts?
A: Yes, commission rates often decrease as monthly trading volume increases.

Q3: Does this include exchange fees?
A: No, this calculator only estimates IB's commission. Additional exchange and regulatory fees may apply.

Q4: How accurate is this calculator?
A: It provides basic commission estimation. Actual commissions may vary based on specific instruments, markets, and account type.

Q5: Can I use this for options trades?
A: Options commissions typically use per-contract pricing rather than trade value percentage.