Most interbank execution is still priced by the ticket. A subscription trading platform prices access instead. What changes, who gains, and who does not.
A subscription trading platform charges its participants a fixed fee for access, rather than a commission or brokerage charge on every trade. The fee is known in advance and does not change with the number of tickets a desk executes.
In most financial software that model is ordinary. Market data, risk systems and communications are paid for by subscription. Interbank execution is one of the few places where the price still rises with every order.
Per ticket. A fixed charge on every trade, often scaled by size and tenor. Common in voice and hybrid broking.
Per volume. A charge in basis points or a fixed amount per million of notional, so the cost grows with size.
Tiered. Per ticket or per volume rates that fall as activity rises, usually reset each month or each year.
Subscription. A fixed fee for access, independent of activity.
The first three share one property. The more a desk trades, the more it pays, so the venue earns most from its busiest participants on their busiest days.
Under a subscription, the cost of one more ticket is zero. A desk can split a large order into smaller pieces, roll a hedge more often or respond to a volatile session without the bill rising with each decision. Execution cost becomes a budget line rather than a variable.
It also changes the incentive of the venue. A venue paid per ticket benefits when its participants trade more. A venue paid a flat fee does not, and earns its renewal by being worth the subscription. What per ticket brokerage actually taxes.
IDBX charges a fixed monthly subscription per active trader, with no brokerage on individual tickets. The same model applies across the venue, from FX swaps and NDFs to interest rate swaps and bonds. Why IDBX.
Orders match on published rules, net obligations are computed inside each settlement set as trades execute, and AIDANN, the IDBX trade assistant, explains positions and netting from day one. It holds no permission to trade.
A subscription is not cheaper for everyone. A desk that trades a handful of tickets a month may pay less under per ticket pricing, and a flat fee is still a cost in a quiet month. The model suits desks whose activity is high or uneven, because those are the desks whose costs grow fastest under per ticket pricing.
The only way to know is to run your own numbers. The Meter takes your ticket count, notional and current rates and shows where the line falls. Where per ticket is cheaper on your assumptions, it says so.
What is a subscription trading platform?
A trading venue that charges a fixed fee for access rather than a charge on every trade.
Is a subscription always cheaper than per ticket brokerage?
No. It depends on how much a desk trades. A desk with very low activity may pay less per ticket.
How does IDBX charge?
A fixed monthly subscription per active trader, with no per ticket brokerage.
Which instruments does the subscription cover?
The instruments on the venue, which launches in FX swaps, NDFs, interest rate swaps and bonds.
Who can subscribe?
Banks and dealers, onboarded institution by institution. Request onboarding.