How is the IB commission calculated?

You receive the commission in the amount of a certain percentage of the spread of clients’ orders. It depends on your current IB Grade.

It is calculated the following way: 

Spread * Commission level multiplier = Commission per trade, where

• Spread is the difference between a trading instrument Buy and Sell prices at the moment of order opening and closing;
• The commission level multiplier depends on your average commission for the last three months; 
• The Commission per trade is the amount of commission you receive. 

For example, if you are a Grade 1 IB, the commission percentage is 30 %. A client has traded 5 lots of GBPUSD, with a spread of 13.6, then the calculations are as follows: 

Commission = 5 * 13.6 * 30% = $20.4

You can use this formula to calculate the approximate amount of the commission for the particular instrument based on the average spread.