Where do you get this info? As per this, regardless of what exchange your order was placed on, you will never be charged more than $1.50 per order cancellation/modification: http://www.interactivebrokers.com/en/accounts/fees/otherFees.php?ib_entity=llc These fees can be partially offset by execution credits. As you can tell, if you plan on making changes or cancelling your order, the best choice is to explicitly specify the exchange when placing the order, BOX or PSE being the best.
Try www.interactive brokers.com/en/accounts/fees/otherFees.php?ib_entity=llc It's not just cancellation fees, it's modification fees. I asked IB about this recently because I didnt understand why I was charged cancellation/modification fees on option contracts in one case but not another after modifying the limit price on the order. It turned out that I hadnt been charged canx fees when the number of contracts was 6 or greater in the one order but I had been charged canx fees when the order was for 3 contracts only. In other words I got the credit for the 3 contracts I eventually bought but still paid modification fees of $1.50 less the credit. Also to be noted is that when the limit order was modified more than once for the same order, the $1.50 was charged again. So after the limit price for a 3 contract order was modified 3 times and then eventually filled, I paid $1.50 each time less $0.75 credit i.e. $3.75.
Okay, so as long as we trade more than 6 contracts a time, then we are safe from cancellation and modification fees? Thanks for bringing up the modification fee. That's also important. I do modification of limit prices all the time, depending on market conditions. I also do modification on stocks all the time. Anybody knows the IB modification and cancellation fees for stocks and futures? Just want to confirm ... Thanks!
IB does not charge cancellation fees. They PASS ON the charges that the option exchange make. The option exchanges are the culprits. No such fees for stocks. I don't know about futures. Mark
IB charges an approximation of the fees they pay to the exchanges. In their words, For instance, AMEX charges $1 per options order cancelled in excess of the number of orders executed for a given month http://www.amex.com/amextrader/membership/fees/fees_Options.pdf . IB charges for any options cancellation (for AMEX, the charge is $1.25), but gives credits for executed orders. http://www.interactivebrokers.com/en/accounts/fees/otherFees.php?ib_entity=llc So you may be paying more or less than what IB is paying. On the other hand, you know how much you're paying in fees at the end of the day, which IMO is better than being hit with a charge a month or two after you make the trades. For US stocks, IB charges cancellation fees for directed stock orders placed through the API, with offsetting credits for directed executions.
If there are options where you're going to cancel a lot as you try to get a good price (such as a company that's received a buyout offer and the options now have a bid-ask spread of $1.50), you may be better off for those options using someone like Ameritrade or Schwab where you'll pay an extra $9 per order but aren't charged for cancellations/modifications.
Does modifying the price of a limit order amount to canceling that order and creating a new one and thus incurring this fee?