http://individuals.interactivebrokers.com/en/general/communiques/2008/04-25-08.php?ib_entity=llc can some one from IB explain-orders routed to which exchanges are subject to those changes? which securities are affected? all products?(as they said in communiqué)
I agree; we need to know exactly which exchanges this impacts, and how it impacts the SMART router. Worst case, it'll double my commissions, as i trade a lot of small orders via the API.
http://individuals.interactivebrokers.com/en/accounts/fees/otherFees.php?ib_entity=llc This links the cancel/modify order page (other fees) from IB (even though it appears as the same link posted above).
Do the "cancel/modify orders" shown on the "other fees" represent the only changes in the commission structure? I can probably live with that depending upon further clarification of the implementation. It looks like ISLAND and ARCA orders aren't affected. Is that true? I get the impression from the example that TWS direct or SMART routed stock orders will not be charged a fee if there is no partial execution prior to the cancel/modify order on any exchange. Is that true? Will IB take cancel/modify fees into account when SMART routing non-executable limit orders? For example, will they avoid the AMEX (or other expensive exchanges) or at least let us exclude these exhcanges from the list of available exchanges for that security in SMART? IB says that "modified orders will be treated as the cancellation and replacement of an existing order with a new order". Does that mean that IB will charge a new IB imposed minimum commission for every modify order after a small partial execution occurs? That could get costly when trading low liquidity stocks as I do.
The way i read the IB email is that "cancel/modify" *is* subject to minimum commission for all partial fills. Just read the example they specifically give on filling 200 shares in two separate 100s fills. Since most stock exchanges don't have such a cancel/replace policy (but many options exchanges do), I'd really like an exchange-by-exchange breakdown of where update/cancel/modify change the commission structure. Combine this with SMART, which can choose to route "anywhere", and IBs commissions could essentially be many times higher for how I (auto)trade.
Not sure if I understand how my brackets will work, either. Assume I am trailing a 200 share to a 300 share target. My 200 share stop gets hit, becomes a market and is filled. I pay the commission on the 200 share fill. My 300 share limit (say on ARCA or ISLAND) now modifies to 100 shares. Do I recieve an additional fee for that modification on the limit? Or let's say I simply move my limit order to a higher or lower price? That would be a cancel at the original price. I get the impression it depends on the exchange, though I would guess that once it starts it will only be a matter of time before all the exchanges will join in.
To clarify one of my questions... IB charges a minimum commission of $1.00 per trade (bundled) or $0.70 per trade (unbundled) on stock trades REGARDLESS of exchange. Will they still charge THEIR minimum comission every time a modification is made after a partial fill? That would be a huge increase in commissions for those of us who have many small partial fills and have to keep moving the limit price.
If an IB rep would care to clarify these changes, I'd much appreciate it, as it's potentially a very significant change to the commission structure.