Hi *. I am learning basic trading, and now it is time for me to open a real account (so far I have been playing with paperMoney at ToS). I would like to try IB more to test it, but the demo is not very good, I think, and I need to have an account in order to play with their version of paperMoney (or am I wrong?) I like IB commissions. But I understand that ToS platform is better. I am also a bit worried about the cancellation fee of IB (although I have to admit, that I didn't quite get it)... Any last minute advice, before I take a decision? Thanks!
The TOS platform has a good risk profile tool for option trades. TOS has a good past reputaion for customer support, and you generally get timely response to questions and problems. IB has a much better commission schedule. The customer service is not nearly as timely as TOS. As to the IB cancellation fees, you get dinged if you cancel or modify an order that is at an exchange. If you subsequently complete that trade on the same day, you get a rebate that often eliminates the cancellation fee. If you use their SMART routing (the default), the chances of getting charged for a cancel/modify are greatly reduced. I have gotten dinged for a total of $7.27 in cancellation fees over the last 3 months, with hundreds of trades completed. Typically I place a spread order at or near the midpoint, let it sit a while, and then modify it until I get a decent fill or give up. Personally I have accounts at both IB and TOS. I use the TOS account as a backup, and for their option trade analysis tools, while doing the trading mainly at IB.
These comments are for IB. For stocks, use SMART for placing/canceling orders and the cancellation fees will be near 0 per month. But for options, canceling frequently can really hurt you. Every slight change in your options order will add up cancellation fees. The details are at IB's site.
remember Spread orders, risk riversals, collars, strangles, straddles don't have cancellation fee in IB. You can change them 100 times or cancel them. No fee. Only single option orders have fee.
Is this still true? If so, can you please direct me to the location on their website that clearly states this? Thanks!
Are there cancel fees for canceling or modifying Us equity option spreads ?(still waiting for IB's response to my email) I got this from the website as a footnote in their fees schedule. I am a little confused w/ the wording . "Neither cancel/modify fees nor execution credits are not applied to US Option combination orders." Should'nt this wording be... "Neither cancel/modify fees nor execution credits APPLY to US Option combination orders. Thanks.
I'd like to know this too. Should the wording be changed to the above IF it is true there is no charge for modifying combination OPTION orders? Also, what's the best way to change a single option order such as a naked put to a combination order to avoid cancel/modify fee?
Since we havenât gotten any responses I setup another thread with a more descriptive subject line in hopes of getting a bite. http://www.elitetrader.com/vb/showthread.php?s=&threadid=217327