IB and Cancel Fees

Discussion in 'Retail Brokers' started by white17, Oct 12, 2003.

  1. white17

    white17

    I hesitate to post this but am going to anyway.

    On 10/2/03 I had orders execute that totalled 15 contracts, all routed SMART. 15 contracts times .25 = 3.75 credits against cancels. No problem so far and IB agrees with the 3.75

    During the trading day I placed four cancels, two of which actually cancelled my active order. The other two, executed at the same time the cancel went "live". OK that's the way it goes. I have no complaint so far.

    On receiving my statement for that day I see a charge for $1.05 for cancel fees. Obviously my complaint isn't about the amount of the charge.

    I contacted customer service by email and pointed out the error, in my opinion. The person I dealt with was very patient over the next few days and even researched the trades and cancels. When he sent me their records I saw immediately what had happened.

    They showed three cancels and one cancel attempt that actually executed rather than the two attempts that actually executed. My daily statement shows the executions correctly.

    I pointed out that two attempted cancels had in fact been executions and therefore only two actual cancels were effected.

    Even if their records were correct, and there were only three cancel orders that went through, that would result in a cancel fee total of $3.60 which is completely covered by the $3.75 credits earned by executions. ( they even agree with the 3.75).

    My point here is, and the question I originally asked IB was, "if an attempted cancel results in the execution of the original order, it appears as though I am being charged both the execution fee and the cancel fee on the same order."

    Since I have pointed out this reasoning to them I have not had any further response.

    Please point out to me where my thinking is faulty if you see something I've missed.
     
  2. As far as I know,
    the options exchanges (at least CBOE)
    charge for executed cancel attempts.
    IB passes on these charges.
    These exchanges rules are nearly criminal.
     
  3. white17

    white17

    You're right. It was on CBOE. It isn't "nearly criminal" it is criminal or should be.

    thanks
     
  4. those damn cancel fees drove me crazy :p
     
  5. white17

    white17

    Yeah they are a nuisance for sure but can be dealt with. Just a cost of doing business. I just want the policy clarified. Can we be charged both fees on one order?
     
  6. def

    def Interactive Brokers

    I'll check into it. My guess is that is how the exchange set it up and thus that's how we programmed it. If by chance our logic is flawed (ie. we bill on the modify/cancel sent to the exchange and the exchange charges on the confirmation of the modify/cancel), I assume we'll fix it.
     
  7. white17

    white17

    Thanx Def;
     
  8. white17

    white17

    Received word monday morning from customer service; "anytime you press cancel; you will be charged a 1.20 fee, even if the order executes". I wonder what QDZ has to say about that?
     
  9. just21

    just21

    Which option exchanges charge cancellation fees?
     
  10. entern

    entern

    I think ib should give a better clarification on cancel fees...

    Sometimes an order "moves" from one exchange to other all by itself (for example if u get filled on that option or something). This basically means that order is cancelled at one exchange and appears on other..
    Till this day I have two answers from ib, one saying that this is charged and one saying that it isn't

    Ib should clarify when cancell fees are charged and when not..
     
    #10     Oct 21, 2003