Spindr has got it right. Do note, they are not mentioning the credit applied for executions which eliminates the cost for most clients. Interesting I don't see anyone complaining about IB NOT charging for exercise/assignments for US options. Would it be better for us to start charging like all other firms in return for eating some of the exchange costs for cancels? There is a lot more than meets the eye than listening to some yahoo with a hidden agenda.
Def, at issue is the fact that many on ET seem to have misunderstood the cancellation fee as a pass-through fee. The statement below is confusing. On the one hand IB says the cancellation fees are charged in order to "help cover" exchange fees. On the other hand IB says "IB has created cancellation policy based on ease of implementation and proper resource allocation." Do you know if IB collects more from cancellation fees charged to customers than it pays out in cancellation fees charged by exchanges? Many exchanges charge fees to their members for orders that are cancelled or modified, and IB charges certain related fees to its customers to help cover these exchange fees. Please note however, that the Modify/Cancel fees listed below may not be a direct "pass-through" of exchange fees in all cases as IB has created cancellation policy based on ease of implementation and proper resource allocation. http://www.interactivebrokers.com/en/p.php?f=otherFees&p=cancel
That's unfortunate. I fondly recall shopping there for my first suits and dress shirts back in the day.
It seems like you do as well, given that you posted that "Many exchanges charge fees to their members for orders that are cancelled or modified, and IB charges certain related fees to its customers to help cover these exchange fees." As you noted from the IB web site, "the Modify/Cancel fees listed below may not be a direct 'pass-through' of exchange fees in all cases as IB has created cancellation policy based on ease of implementation and proper resource allocation." What's so hard to understand about their policy??? The bottom line is still that if IB saves you on trading costs, trade there. If not, trade elsewhere. You post on numerous forums in topics relating to IB. Why are you so concerned with them?
Does anyone know if a "Modify" will have the same cost effect as a Cancellation? If I move an option buy/sell price to a lower or higher strike, will I have similar fees, to a cancellation? marc
Yes, I thought the cancellation fee was a transparent pass-through fee. Then I read rmorse's post which quoted exchange rules on cancellations. When you search ET for comments on IB's cancellation fees, you find many ET'ers who also seem to have thought their cancellation fees represented actual exchange fees charged to IB. (See also: Obscene options cancel/modify fees http://www.elitetrader.com/vb/showt...1050&perpage=6&highlight=obscene&pagenumber=7) As for my concerns about IB elsewehere on ET, I'll say that a number of statements IB has posted have troubled me. Some statements have been misleading, others factually incorrect, and others so poorly written that their meaning is muddled. My past phone conversations with IB have been unfulfilling. So published statements like those on ET and on IB's website are, for many, one of the the only effective ways traders can become better educated about IB policies. Also, when I joined ET I was shocked by the fact that on a regular basis, traders who challenge IB policies or statements are berated or disparaged by other ET members. While I don't personally understand any trader who so deeply admires their broker that they would rise to defend them against any challenge, I respect that trader's right to do so. When IB representatives themselves, however, appear on this forum and insult or mock members seeking more clarity on IB policies, I become very concerned about the culture of that company.
I don't see any cancellation fees for options in IB's fees schedule. Are there still cancellation fees or have they been taken away?
Looks like there's only a cancel/modify fee for API/CTCI Directed stock orders: https://www.interactivebrokers.com/en/index.php?f=14718 I cancel/modify option orders on IB all day long with no hit.