Yesterday I got a $2.40 order cancellation fee on my statement. I place a couple of option day orders but they were never filled and I did NOT cancel them. Turns out, everytime you change the price, they will charge a $1.20 order cancellation fee. They said that the policy currently is for options only. It may be for futures and equities later. -esu2
As far as I know they charge fee even if you modify your option order right? cancel fee = modify fee ?
IB Communique - June 24, 2005 Option cancellation fees have been reduced on BOX and PHLX to USD 0.10 and USD 0.60 respectively, which is reduced or eliminated based on the number of executed orders.
======= Think all or the exchanges were going to raise cancel fees, which may or may not have resulted in brokers passing it on, but aparently public outcry was to much especially on cancel fees on expired day orders. Dont like any extra charge, but i also try to be careful not just because of IB cancel fee; but thought about all the extra work if a 2k or 10,000 contract day and every trader cancels or modifiys 2 or 4 times.
Do they charge you a cancellation fee if your order isn't filled by the exchange and you leave it entered through the close?
This is an outrageous amount... Something on the order of $0.01 might be what exchanges could get away with charging. I have never been charged a cancellation fee... But on the NYSE one must approach a 10:1 ratio of cancels vs fills to for anyone to flag you. Generally... Only ** very badly designed strategies ** would result in > 10:1 cancel/fill ratios... Typical quantitative strategies might have a 3:1 ratio. I'll bet that horribly designed algorithmic "black boxes" are becoming a problem for exchanges... HOGGING bandwidth without making any trades. Exchanges have to defend themselves against idiots running algos.