Cancellation fee with IB ...

Discussion in 'Options' started by vash.amethyste, Oct 27, 2008.

  1. TOS as well as many other brokers do not charge these fees. They are not direct pass throughs. Look at the exchanges' rule books. You will find IB charges the cancel fees according to their own, distinct logic.

    With IB's fees on CBOE for example, canceling and re-pricing your option order to keep up with the underlying can become an expensive proposition. Execution credits are capped. Cancel fees are not capped and are levied on every modification or cancel.

    from http://www.interactivebrokers.com/en/accounts/fees/otherFees.php?ib_entity=llc

    CBOE

    USD 1.50/Cancel or modify order

    Credit: USD 0.25/executed contract capped at USD 1.50/order (up to 6 contracts per order)

    If a customer buys 20 contracts, the credit of $0.25 is given only for the first 6 contracts, and is capped at 1/3 of the commissions paid for the first 6 contracts.

    6 contracts at 0.25/contract in commissions:
    cap = min($1.50, $0.25*6*(1/3)) =
    min($1.50, $0.50) = $0.50
     
    #11     Oct 28, 2008
  2. why not API with TOS !!!!
     
    #12     Oct 28, 2008