How much do you pay your broker?

1

Just looking at my 2024 IBKR statement, I paid more than I realised:

  • Commissions: 1’353 CHF
  • Transaction fees: 321
  • Other fees: 385
3 Likes
2

CHF 58.95.-

How do you manage to spend 2k on commissions?!

1 Like
3

I just checked and in 2023, I spent around 3k on commissions. I need to check exactly where these costs are coming from.

I have tiered pricing, so trade costs should be small. I’m probably over-trading!

4

Thank you for this information. It would also be interesting to know the broker for comparison purposes. Additionally, knowing the number of trades would be relevant, as costs alone are not necessarily always representative.

5

What is the performance of your trades over time?

6

CHF 61.08 in 2024

(Buy-and-hold ETF portfolio on IBKR)

7

I checked and in 2024 I had around 20 pages of trades, so it was a matter of a lot of small costs adding up. A few countries seemed to have higher costs than others.

2023 was more expensive as I went a bit crazy on option trading which turns out to be very expensive.

Eyeballing the figures, it seems like bond trading and futures trading are cheapest for fees.

1 Like
8

IBKR and around 20 pages of trades.

3 Likes
9

They pay me.

4 Likes
10

Same. Thanks to IBKR referral program. :moneybag:

11

So much for a cheap brokerage account :wink:

I see about 80 USD for 2024 for IB for commissions and other fees. I don’t have any transaction fees ( not sure what they are )

1 Like
12

How do you advertise? On internet? With friends?

13

Oh, my profit is from securities lending, so actually these are short sellers paying more (3 digits*) than I pay to IB in commissions (2 digits*).

* In USD per year, number of significant digits before the decimal point.

1 Like
14

Is it still the case, that if you have a margin account, IBKR is lending out your shares anyway even if you are not part of the lending program?

15

Only if you have a debt.

1 Like
16

Good idea.
Can you calculate which percentage of the total invested on these brokers ?
It can help to compare it with others and if it’s an important TER.

17

I think transaction fees are fees charged by exchanges, clearing houses, or regulatory bodies for processing trades.

18

Just checked, am at $394 for a transaction volume of USD 1.8 million.

Securities lending is not a good money maker when you work with a margin loan; IBKR chooses the highest paying equities for itself as you can only collect on “fully paid” shares. They just decide themselves which shares are “fully paid” and those are usually the ones with the lowest lending fees. I got $7.21 interest on collateral… not really worth it.

1 Like
19

I don’t advertise. 2024 it was only the free stocks I got due to opening an account with a referral code from someone else.

But for the following years, if I would recommend 1 person per year (200$), I would get more back than paying in fees.

Not that I’ll push it in any way though.

20

OK. I just reviewed and shocked myself:

2024: trading value: 10.4 million
2023: trading value: 17.9 million

2 Likes