Advisor fees are calculated based on the average daily balance of the account on the days the market is open during the prior month.  My annual fee for services is 0.75% of your portfolio’s value.

The exact fees are calculated on a per day basis by Interactive Brokers based on each trading day in the year, rather than every day in the year.  There are an average of 252 days in a year where markets are open so they divide my annual fee of 0.75% by 252, which equals 0.0029762% per day. The number of chargeable trading days of the month are then added up and that total is what my billable services are.  

Dividing 252/12 = 21 so an average month will have 21 trading days that are billable.  To have an idea of what your typical month’s charges would be let me show you an example.

Let’s say there is a miracle and there are a perfectly average 21 trading days in a billing month and that average daily balances in your account work out to a perfect $100,000.00 every single day the markets are open for that month.  We would then take the $100,000 average balance and multiply that times its average daily fee of 0.000029762 for a daily fee of $2.98 (rounding up to the penny) and then multiply that by the 21 trading days in the month for a total bill during the month of $62.58.  

You can expect that for each $100,000 of money I help manage with you there will be a charge of about $62.58 per month which is automatically deducted from your account.

Copies of invoices with the exact daily advisor fees are configured to send to your email address on record with Interactive Brokers every month.  

Note: Trading Fees are still charged to your account by Interactive Brokers at their normal rates, but they have extremely low fees.  Most trades I enter for client accounts have commissions under $1.50. If you have an account balance under $100,000 Interactive Brokers will charge you a minimum of $10 in fees per month, which can be offset by trading commissions.  I receive no financial benefit for trades made in your account and receive no share of the $10 monthly fee. You can visit Interactive Brokers Fees for updated commissions rates.