Buy Calls in the next serial month. Also, most brokers have protective account balance requirements before allowing Uncovered Call writing (in the first place).
CANCEL FEES: Letter to SEC
- Thread starter gerico
- Start date
Buy Calls in the next serial month. Also, most brokers have protective account balance requirements before allowing Uncovered Call writing (in the first place).
The text has such broken English that it will not be taken seriously. You will very likely receive a standard form letter as a response as most of the "items" you list are not addressable issues.
The letter provides no evidence that the writer has done any research on the subject whatsoever and has no knowledge of the facts. An hour spent on the internet researching the issue could provide much more useful background.
IB is passing this charge along to their customers, but most brokers are not. Therefore, you may be told to "take it up with your broker, or switch to a broker that does not charge the fee". Of course that means paying at least 10 times as much in commission.
Most option customers of brokers have no knowledge of this since it is not explicitly charged to them, therefore the backlash will be small. From a regulatory standpoint, the governing bodies aren't required to answer to retail customers since the fee is charged from the exchange to the broker, not to the customer. If you did not already have such a great deal from IB, you wouldn't have noticed this fee.
The letter provides no evidence that the writer has done any research on the subject whatsoever and has no knowledge of the facts. An hour spent on the internet researching the issue could provide much more useful background.
IB is passing this charge along to their customers, but most brokers are not. Therefore, you may be told to "take it up with your broker, or switch to a broker that does not charge the fee". Of course that means paying at least 10 times as much in commission.
Most option customers of brokers have no knowledge of this since it is not explicitly charged to them, therefore the backlash will be small. From a regulatory standpoint, the governing bodies aren't required to answer to retail customers since the fee is charged from the exchange to the broker, not to the customer. If you did not already have such a great deal from IB, you wouldn't have noticed this fee.
Please, help us to improve...
I'm trading from '97, and I know what cancel fees are about. Cancel fees are ILLEGAL. Point. And I'm on the Internet practically 16 hours/day, I've some other options accounts and I've done my research. I know for example that some other options brokers STILL don't charge those fees. But THEY WILL!
From a regulatory standpoint, retail customers CAN ALWAYS ask about ALL the processes involved in trading. They CAN ask who are the counterparts in their trades, they CAN ask to know how much their broker is taking from COMMISSIONS and ORDER FLOW. And they MUST be guaranteed a reply.
About the cancel fees, assuming that these fees are originated from ALL US options markets, ok, let's KNOW if they are ILLEGAL or NOT, and why! Let's see the SEC reply!
Hope that you understand that a Cancel fee, for a trader placing 100 orders/day means HIDING visibility costs and MANIPULATING options markets. That's not justified. If US options markets need money, well they must find another way.
If we don't protest now, you'll obtain what? You'll be charged cancel fees also for stock and futures orders!
Those are some very serious allegations and assertions you are making. I don't see things as you do. The terms MUST, ALWAYS, GUARANTEED and others as you use them in this context are not reality. The business world is much more grey than that.
I assure you that the exchanges have attorneys who feel they are qualified to stand behind the assessment of these fees. I certainly don't wish to pay any more than I have to in order to transact business in the markets, but I am here to make money - not take on the exchanges.
There are things worth fighting for in these markets and the exchanges are certainly not making any friends among retailers (or brokers) with their latest shenanigans. I think your heart is in the right place and I appreciate the effort you are making to that end.
Good Luck.
I assure you that the exchanges have attorneys who feel they are qualified to stand behind the assessment of these fees. I certainly don't wish to pay any more than I have to in order to transact business in the markets, but I am here to make money - not take on the exchanges.
There are things worth fighting for in these markets and the exchanges are certainly not making any friends among retailers (or brokers) with their latest shenanigans. I think your heart is in the right place and I appreciate the effort you are making to that end.
Good Luck.