Avoiding cancellations charges e.g with IB

Discussion in 'Options' started by Option Trader, May 9, 2006.

  1. IB is one of the brokers who charges for cancellations of their option orders. I would imagine that this is because IB as a firm has more cancellations to the exchanges like ISE and CBOE than fills. When possible, perhaps IB customers can be placing several smaller orders instead of one bigger order to save IB from being charged by the exchanges; would this in turn not save the customers from being charged?

    Also, would like to know if an individual IB customer has more fills than cancellations if he will not be charged.
  2. nassau


    you are assuming that the above is the reason IB charges.
    Brokers on the whole or at least the ones I have and or am using charge almost for everything.
    -If you call them, need them to exit, part fills, cancellations, floating of funds waiting to be credited, etc regardless of the reason you need them..
    I have had to call to exit as a result of platform issues with the brokers software and have been charged a fee.
    In my opinion most brokers have a license to steal...legalized theives and they have no remorse in using it.

  3. Lucrum



    Not all but at least some of the fees are simply being passed on because the exchange charges for cancellations.
  4. rosy


    you also get a credit if you fill your order after a cancel
  5. My suggestion was for all IB customers to place many small options orders instead of one big, at least when buying at ask and selling at ask.

    My hope: that the broker (e.g. IB) as a firm will have less cancellations relative to fills, and will not be charged by the exchanges, and then maybe (just maybe) will not charge the traders.
  6. ThinkorSwim does not charge for any cancellations.

    I have dozens of cancels per week, and i am not charged a red cent. I even asked them about cancels and they said don't even sweat it!

    TOS is da bomb, yo! lol
  7. ja, but with tos u pay quadruple commish, innit[?]
  8. I negotiated a buck fitty per, and zippo ticket charge. i am also doing midget size, oh sorry 'vertically challenged' size. needless to say, im a tos'er fer life! :)