Interactive Brokers and their 2 bps Tbill Cost

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Krunk
Posts: 1
Joined: Fri May 11, 2018 5:36 pm

Interactive Brokers and their 2 bps Tbill Cost

Post by Krunk » Sun May 13, 2018 4:17 pm

Hello all! Just a quick question on IB and their T-bill costs.

I currently have an IB account
I want to purchase any T-bill, 1mo, 3mo or 6mo... Doesn't matter
$1 million worth to keep it simple for example below

What's their logic for charging 2bps for Treasuries under one year when Schwab and Fidelity are free and with no markup (at least none that I see)?

Commission charged:
https://www.interactivebrokers.com/en/i ... on&p=bonds
<= USD 1,000,000 Face Value:
USD 1,000,000 Face Value = (0.02% x 1,000,000)
= USD 200.00

Or is there a different way to execute Tbills on IB that I'm not seeing.

Any treasury note on IB is just $5, so I find it weird their T-bill cost is so high.

I've already asked IB via their chat, and they say it's the cost the company charges, and they don't know why.

Thanks!

TravelerMSY
Posts: 197
Joined: Sun Mar 03, 2013 5:40 pm

Re: Interactive Brokers and their 2 bps Tbill Cost

Post by TravelerMSY » Mon May 28, 2018 6:13 pm

They’re .2 bps over a million. I think they don’t want to fool with small orders.

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