IB backed out of a trade deeming it to be an erroneous trade

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EliteIB

Just want to find out if any of you who trades with IB has experienced this. What happened to me was IB executed an order that I entered outside of market trading hours capable of being executed outside of trading hours and the order was never cancelled until it was executed at 10:30 AM actually during trading hours yesterday at a price that was quite far from the market price at the time. The order was executed completely by IB with no action on my part. And then IB flagged it as an erroneous trade and then subsequently cancelled it. And they cancelled it by entering opposite trades reversing the position out charging me another extra commission.

So the question that I pose here is has this happened to any of you? How can IB back out of a trade deeming it to be an erroneous trade when we are always held accountable for any trades that we might have executed with a wrong price favouring IB? So if we always have to answer to any trades that we executed with a wrong price, why shouldn't a broker like IB get away with it and worse charge me an extra commission when backing out of a legitimate trade? Is there any recourse on this? Should I complain to the SEC or FINRA or any regulatory bodies? Would love to hear your thoughts on this. This is absolutely outrageous!
 
Erroneous trades are called by exchanges, not brokers (most of the time).
Brokers don't give a damn at what price your orders are filled.
IB has no benefit over the orders they receive from customer except from collecting the commissions.

As for the commissions they charged you, you should contact them.
They shouldn't charge you anything to reverse your trade.
 
EliteIB said:
Just want to find out if any of you who trades with IB has experienced this. What happened to me was IB executed an order that I entered outside of market trading hours capable of being executed outside of trading hours and the order was never cancelled until it was executed at 10:30 AM actually during trading hours yesterday at a price that was quite far from the market price at the time. The order was executed completely by IB with no action on my part. And then IB flagged it as an erroneous trade and then subsequently cancelled it. And they cancelled it by entering opposite trades reversing the position out charging me another extra commission.

So the question that I pose here is has this happened to any of you? How can IB back out of a trade deeming it to be an erroneous trade when we are always held accountable for any trades that we might have executed with a wrong price favouring IB? So if we always have to answer to any trades that we executed with a wrong price, why shouldn't a broker like IB get away with it and worse charge me an extra commission when backing out of a legitimate trade? Is there any recourse on this? Should I complain to the SEC or FINRA or any regulatory bodies? Would love to hear your thoughts on this. This is absolutely outrageous!
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1] Could complain, but then again, OOPS they dont have to do business with any they dont want 2, so consider that.
2] I would polite like, ask for IB to eat the comission; may or may not do that .

666] -What if you like someone did, found a ''free'' bag of money but name of group was on bag would you keep that\one did + got arrested , this year.
WHAT if you had lost a lot of money on that, would you be sad about an extra comission=no.
[7.77]Look @ both sides of the trade, what if the bank or brokerage gave [or subtracted] to you an extra accidental 7 figures would you expect them to honor that??
NO not with any sense.
One brokerage wrongly, i thought. sent me an auto message on my order ''too far away from the market'' I fumed ''those clowns just are trying to limit my profit'' OOPs\ i accidently entered it as a day order , meant 60 day GTC order, so they were right anyway.
Sorry stuff happens.:caution::caution:
 
I had this issue with IBKR in 2003, I bought 200 shares of something that was not traded much in the premarket session that was offered in the order book, which was currently $10 below the current market price ($2000 instant winner).
They called me and broke the trade and refunded the commissions.
 
elite1974 said:
I had this issue with IBKR in 2003, I bought 200 shares of something that was not traded much in the premarket session that was offered in the order book, which was currently $10 below the current market price ($2000 instant winner).
They called me and broke the trade and refunded the commissions.
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How does this even work? Sounds very suss
 
rb7 said:
Brokers don't give a damn at what price your orders are filled.
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Maybe before payment for order flow that was true. Now if Citadel isn't making money they're not going to be able to cut those checks to retail brokers.
 
EliteIB said:
Options.
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As others have mentioned, its generally going to be where the order was filled that would bust a trade. The exchanges will have specific rules on how/why/when a bust will take place.

For example, this memo from the CBOE explains and contains links to the rules.
Harmonization-of-Cboe-Options-Obvious-Error-and-Voluntary-Request-Procedures.pdf

You can check with the specific exchange your option order was filled on for their specific rules.

The main thing you want from your broker, (IB here) is they inform you of the bust in a timely manner. If they tell you much later then when they found out of the bust, I think you would have a valid grievance. Other than that, it doesn't seem like IB did anything wrong here.
 
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