So basically it costs $1.25 to cancel or modify any order... and $1 for the actual commision on the trade. Do you get the $1.25 credited if on the second modificated your order gets filled.
NO - Its like a service fee. They say it cost the,m money for every cancelled order (there's really no such thing as a modified order with them0 GOOD LUCK WITH THEM _ I USE THEM BUT TRY TO DO MOST OF MY TRADING ELSEWHERE because they have a bad platform & bad service (I've been cheated a number of times).
There is only a fee if you do not trade and just enter and cancel. Your actual cancel charge can go from zero to a bunch depending on what you do on any given day. Cancelling an order costs $1.20 per order no matter how many contracts are on the order. Credit against the cancel fee is based on contracts and is $0.20 or $.25 per contract executed depending on routing selected. There are credit caps shown in the examples below. When an order expires there is no fee. Here are the examples from the IB web site - US Options executed through TWS via SMART: Customer enters 3 option orders, each for 2 contracts, and cancels all three orders. 1 option order for 20 contracts is later executed. 3 x $1.20 = $3.60 Cancel Fee 20 x $0.25 = $5.00 Execution Credit; the cap is $3.75 Since credits are greater than cancel fee, nothing is charged. US Options executed through TWS Direct to a Specific Exchange: Customer enters 3 option orders, each for 2 contracts and cancels all three orders. 1 option order for 10 contracts is later executed. 3 x $1.20 = $3.60 Cancel Fee 10 x $0.20 = $2.00 Execution Credit; the cap is $1.20 $2.40 in cancellation fees is charged.
WTF? Are you saying I would get charged a commission when an order is cancelled? Are you fucking kidding me? What kind of crap is that IBSoft? You never bothered to mention that when you said I would be happier with IB. http://www.elitetrader.com/vb/showthread.php?s=&postid=803161#post803161
Speadgod - finally. I'm reading a thread where people are going along talking about a fee for canceling an order - without organizing a f*cking lynch mob. Your cancelled orders are now a profit center for the exchanges.
As I just mentioned in another thread it is simple math. If the exchanges are charging $1 per cancel/modify and IB charges a minimum of $1 per option trade, it only makes sense to pass along the cost. The credit policy combined with the $1 minimum fee works best for most of our clients. Note: if you use SMART and IB routes to exchange A and then re-routes to exchange B, IB does not charge a cancel/modify fee.
The schedule had been changed approx. 1-2 months ago: BOX and PHLX charges are significantly lower. We will soon be releasing a SMART router upgrade that will take into consideration the varying cancel/modification fees that the exchanges charge. The upgrade is geared towards minimizing the user payment when a routing is performed in response to his/her input. (Recall that when SMART re-routes because of the changes in the market-data, the user does not get charged).