Cancel Fee question

[rmorse]

If it's a charge that is standard, you will see it with your confirm, I expect. If it's a charge from the exchange, it will be delayed. You might not get charged these fees for a month or two because it takes time for the charge to be calculated to be charged. If you are not entering a lot of orders or not automated, you likely won't be charged this. Any automated option trader will likely have to claim pro-customer status that would get rid of the cancel fees anyway. (More than 390 orders/day on average over any quarter)

 

[sprstpd]

They do? where can I see this fee on the statements?

It should be in an "Other Fees" section under "Order Cancellation Fees". If you don't see it, then they probably don't apply to you.

 

[Xela]

No offense, you know how people throw the term "shill" around on this site.

A shill, in this context, is generally considered to be someone who tries discreetly to promote something without admitting to his/her own incentivized connection with it (like the idiots who post in forums about "this wonderful site/service I happened to find", when it turns out that they own it, or the one-time-wonder posters who appear "magically" in forums when some product/service is publicly trashed, announcing their own wonderful experiences of it).

Robert's profile states openly that he's a sponsor of the forum. He also adds tremendous value, here, with his answers in a wide range of threads, and we're lucky to have him.

He's about as far from being a "shill" as you can get.

"Just saying".

 

[Sig]

Also keep in mind that spreads aren't charged order cancellation fees by any of the exchanges, so its a good way to get around them if you can adapt your strategy to using them.
The advice to just hit the bid or ask is horrible in many cases. For example, SPX options often trade with very wide quoted spreads, but a limit order 5 cents inside the market maker mid will always fill (note that another retail limit order can obscure the actual mm mid). I could literally pay double for some of my spreads if I naively hit the bid or ask.