Ask your experience about total commission + slippage

Greetings everyone!

based on data from here Commissions - Tiered | Interactive Brokers LLC




There are so many types of commissions that must be paid that I do not understand how much it is actually for 1 trade (buy and sell) the total cost will be incurred FOR STOCK.

So far, I have used this setting, but in your experience,

is my setting correct? and how much slippage must be set FROM YOUR EXPERIENCE. of course the answer will be different for each person.

Thank you for your help

Slippage is going to totally depend on the liquidity of the symbol that you are trading @ibenxs. Limit orders can help prevent slippage at the risk that the order will not get filled.

To make sure that you are correctly accounting for any commissions/fees, try placing some trades using the paper account at IB. You will be able to look at the statements (I use the flex queries) and they will list out the commissions/fees in the CSV provided.

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If you are only trading stocks at one broker, you should be able to estimate commission cost fairly precisely from their schedules unless you are trading on multiple exchanges, then it will be more complicated. Slippage, on the other hand might vary significantly depending on the types of stocks you trade, overall market volatility, time of day, etc. You'll want to get familiar with the concept of liquidity and the many factors that contribute to it.

Then there is the art and science of order entry that you will learn only through experience using different order types and timing strategies, Many brokers will have the ability to "paper trade" so that you can become somewhat familiar with the processes and nuances before you enter "the ring".

In the end, you will always be estimating and using assumptions.

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As your picture says, you should have AT LEAST defined:

Per share: 0.0035
Min amount: 0.35
Max % of value: 1%

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Thank you all its helpfull,

I use a market order and trade on NASDAQ stock, like AMZN, AAPL....etc

The large stocks like AMZN and AAPL are very liquid and won't normally expose you to slippage that you need to plan for. There will be exceptions, though, especially if using market orders. Of all of the order types to use, you will experience more slippage with market orders than any other order type. You really shouldn't start live trading until you understand this. Market orders have there place, but should probably not be your first choice.

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Hi again Tomasz, when I fill the Min amount and not fill it, its make significant difference in backtest

I wonder what the difference between the Min amount in the commission table and SetOption ("MinPosValue") ?

I still haven't experimented with paper trading because today is closed, maybe you can provide direct input with numbers according to your experience? for example 0, XXX% of trade value?

Thank you

First of all You need to understand that historical backtests and real life results often will be different. And You need to build your system with more restricted conditions

In your case it’s better to use fixed pricing structure with 0.005 USD per share and 1.00 per minimum order

As long as You are going to trade large stocks with good volume slippage will not be your issue in most cases. It depends on system rules You are using and order types

Also I want to mention that paper trading results with IB and live real account results will also be different. The best way is to open account and make some real trades. Then collect the data and compare it with theoretical results. That will give You idea about the real performance


Thank you @Ector

so, from your advice is

Per share: 0.005
Min amount: 1.00

My question is the same as the question above that has not been answered, maybe if you know is it Min amount at the commission table the same as SetOption ("MinPosValue")?

That is NORMAL. If you trade often SMALL number of shares (<100) then this setting will have much impact.

They are totally different and completely unrelated. Min amount in COMMISSION table is minimum value of COMMISSION, not position.

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Thank you @Tomasz , I understand now

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