Order Entry Commission Markup

Brokers have the ability to configure markups via Broker Portal. These markups take a least one day to become effective and are meant to be static. Certain Brokers offer additional services, research, or trade desks where the Commission to be collected from a client for a trade should differ from the regular commission markups already configured for the client account. In order to accommodate such cases we develop the ability for a markup to be specified at the time of the order entry for a single order.

  1. Broker submits a request to IB explaining why their operations and fees require this feature.
  2. Broker provides IB with a list of users they want to enable this feature with.
    • When a new user is created additional requests to enable this feature is required.
  3. Once approved the Broker will have this ability enabled.

Available Selections for Order Entry Commission Markup

  1. Absolute per Contract/Share - Based on Absolute Markup; the broker can charge an Absolute Markup per trade. Absolute Markup is a specific amount added to the Interactive Brokers commission.

    • For example; a broker enters 1 as the Absolute Markup for USD Stock and Index Options

    • When the contract is executed the client will be charged $2 ($1 IB's commission + $1 Absolute Markup).

  2. Percentage of Commissions- Based on Percentage Markup; the broker can specify a percentage of Interactive Brokers' standard commission to charge per trade

    • For example; a broker enters 100 - this indicates the trades for this client will pay a broker markup of 100% in addition of IB's commission.

    • Say the value entered in is "200" for a single USD Stock Option contract trade. When the contract is executed the client will be charged $3 ($1 IB's commission + $2 Percentage of Commission Markup)

  3. Ticket Charge + Regular Commissions - Based on Ticket charge + regular commission; the broker can charge a flat fee per trade in addition to the commission schedule entered in the Broker Portal.

    • For example; a broker sets a $5 fee per transaction. The broker also has enabled a $1 USD Absolute Markup. The client buys 1 Stock Options Contract; when executed the client will pay $6 ($1 IB's commission + $1 Absolute Markup + $5 Ticket Charge).

How to create an Order Entry Commission Markup

  • Begin a normal order by selecting Buy or Sell.

  • Next to Allocation select an account, a group of accounts, or all of your accounts.

  • Then click on Advanced.

  • On the Advanced menu option select any of the three Order Entry Commission Markup options.

  • Once you select an option select the field labeledCMS(for Commission) from within Advanced menu screen and enter the amount of the Absolute per Contract/Share, Percentage of Commissions, or Ticket charge + regular commissions and then click Submit.

    • Once the order is completed you will receive the additional commissions based on the Commission Markup selected.

  • Begin an order by right clicking on a ticker symbol and selecting Trade >> Order Ticket

  • Select the Advisor tab and select an account, a group of accounts, or all of your accounts next to where it says Allocation.

  • Once an account, a group, or all the accounts have been selected click on the Basic tab.

  • Select the Commission Type option and select any of the three Order Entry Commission Markup types.

    • Absolute per Contrac/Share

    • Percentage of Commissions

    • Ticket Charge + Regular Commissions

  • Then select the Commission option and enter the amount of the Absolute per Contract/Share, Percentage of Commissions, or Ticket charge + regular commissions and then click Transmit.

  • Begin an order by right clicking on a ticker symbol and selecting Trade >> Order Ticket

  • Select the Advisor tab and select an account, a group of accounts, or all of your accounts next to where it says Allocation.

  • Once an account, a group, or all the accounts have been selected click on the Basic tab.

  • Select the Commission Type option and select any of the three Order Entry Commission Markup types.

    • Absolute per Contrac/Share

    • Percentage of Commissions

    • Ticket Charge + Regular Commissions

  • Then select the Commission option and enter the amount of the Absolute per Contract/Share, Percentage of Commissions, or Ticket charge + regular commissions and then click Transmit.

For more information, visit the IBKR Website