Letter to IB today....
Hi - I noticed this weekend that beginning around November 13 there was a change in the calculation of Non-direct Hard to Borrow fees. This had the effect of raising the true fee rate % well above the stated rate. I do not remember receiving any notification of such change, nor do I see such prominently displayed on your website.
Prior to that date, the value upon which the fee was assessed was determined by multiplying the number of shares by the price per share.
As of November 13, it appears that the price per share was rounded up to the nearest whole dollar. On many low price issues this can result in a very significant increase in fee, well beyond the stated rate.
For example, I was short CITBQ which had a stated rate of 73.12% on a price in the 20 cent range. However, the 20 cent price was rounded up to $1.00, resulting in a 350% true rate.
I am an admirer of IB in general, but in this instance I feel that IB is being unfair and unreasonable, at best.
I am hoping this is a computer error and will be adjusted.
Thank you, Peter Michaelson |
