Some commision realities about IB and Tradestation

Quote from Proudrebel:

The beauty of IB is that you CAN change your price, re-transmit and have it fill all as one order. You can do this as many times as you like and it will always remain one order, with the savings in commission over 500 shares. :cool:
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"will always remain one order"

After a partial fill?
 
Quote from Proudrebel:

The beauty of IB is that you CAN change your price, re-transmit and have it fill all as one order. You can do this as many times as you like and it will always remain one order, with the savings in commission over 500 shares. :cool:
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Actually Proudrebel...this is wrong. Jay123 is 100% correct I checked it out after reading this forum. You can change the price yes and have it turn around as a cancel and replace with ease ( a plus for IB). However, once that price is changed the commision reschedule resets back to .01 for the first 500 shares and .005 for anything remaing greater than 500 shares.

Example:

Place an order to buy 1500 shares of MSFT at 27 limit
According to the IB commision schedule if your FILLED all in at 27 without moving your price during anytime of this fill your commision charges would be as follows:

First 500 shares = $5
Next 1000 shares = $5
Total for 1500 shares = 10 bucks.

However if you change your limit price because the market is moving around..and usually the market is moving around from what I noticed in 10 years of trading all day long (little humor there) commisions MAY look like this instead:

Place same order to buy 1500 MSFT at 27
Filled on 500 shares at 27 = $5
(Then MSFT price moves up a bit so you decide to change order price upwards to 27.03)
You then get filled on the remaining shares at 27.03
Last 1000 shares = $7.5
Caluculated as follows. first 500 = $5 second 500 = $2.50

Now you all in price because you changed your limit price from the original order is a total of $12.50 on 1500 shares.

Of course if you changed your price 3 times the max price you would ever pay on 1500 shares would be $15 bucks if all shares got filled at .01 per share.


These are subtle difference that due add up over time..however who ever said trading was free.
 
Hmm I've never been charged that way. On Friday, for example I offered 1500 shares at 2.24 and was partially filled for 300 shares. Price dropped so I changed the price to 2.16 and was filled for the remaining 1200 there. I was charged $10 for the trade. A couple days earlier I had a similar trade for 900 shares which I changed twice, resulting in 3 partials of 600, 200 and 100. Resulting commission: $7.
 
Proudrebel is right. I change price on limit orders everyday and am ALWAYS charged the lower commission as if the order was filled all at once. These other people must not really trade at IB or i get a hell of a deal for a couple years now, thank you IB. On a 1,000 shares i am always charged $7.50 no matter how many times i change the price. I trade mostly NYSE stocks if that makes a difference.

Are there really just a couple people on this site that actually trade.

Quote from Proudrebel:

Hmm I've never been charged that way. On Friday, for example I offered 1500 shares at 2.24 and was partially filled for 300 shares. Price dropped so I changed the price to 2.16 and was filled for the remaining 1200 there. I was charged $10 for the trade. A couple days earlier I had a similar trade for 900 shares which I changed twice, resulting in 3 partials of 600, 200 and 100. Resulting commission: $7.
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This Jay guy is a joke.

If you are "trying to enlighten people" as you suggest, you should direct your posts to complete newbies. Did you honestly think that all of these veteran IB traders were suddenly going to start thanking you for sharing this incredible revelation you just had? That none of us had experienced partial fills or read our statements?

From someone who started trading for $30 a side when quotes were only available (to retailers) out of the next morning's newspaper, you strike me as someone who truly doesn't get it. Where we are in this industry as retailers is incredible, especially when you look at where we've been. You should be thanking IB for all the money they've saved you instead of initiating this senseless thread.

You ever heard of IB's account status called "closing only"?
 
Quote from egusc:

Proudrebel is right. I change price on limit orders everyday and am ALWAYS charged the lower commission as if the order was filled all at once. These other people must not really trade at IB or i get a hell of a deal for a couple years now, thank you IB. On a 1,000 shares i am always charged $7.50 no matter how many times i change the price. I trade mostly NYSE stocks if that makes a difference.

Are there really just a couple people on this site that actually trade.
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same here. I'm always charged the lower fee no matter how many times I CFO an order.

i.e. on Friday after the close I bought 5,000 SPY - cfo'd several times and got filled at several different prices and was charged
$27.50.
 
lets be thankful we are not charged SEC and cancel fees

from the stand alone TWS ( not sure about API users )

from trading stocks .... with IB
 
This is how it works at IB:

Say you submit an order to buy 1000 shares. After the partial fill of 600 shares, you MODIFY the price up for the balance of your order. And you do it again, and again, and again ...

When you finally purchased your 1000 shares, your commission will be 1 cent for the first 500 and 0.5 cents for the second 500 shares.

What matters is the duration of the order and not the duration of a price level of the order.
 
Thanks for setting that straight guys.

I took Jay for his word. Jay if you are truly an IB customer on the futures side, why not do a stock trade today and post your findings, taking SEC, ECN, and most likely much lower margin financing fees into account, you may find we are actually cheaper than your per ticket broker.
 
TradeStation 7.2 (about to be released), will offer Cancel/Replace order functionality. Users will have the ability to change the price of a limit order, the share quantity of the order, or change the order from a limit to market in one action. In such a case where there is a partial fill, and the remainder of the order is replaced, the commission will be charged as one order. For example:

A user enters an order to buy 1500 shares of XYZ stock at 10.00. The order is filled on 500 shares. The user then uses the new cancel/replace functionality and replaces the order price to 10.01 and is subsequently filled. The commission charged would be $11.00 ($5 for the first 500 shares at $0.01 per share and $6 for the other 1000 shares at $0.006 per share).

Fred McEnany
Vice President Sales
TradeStation Securities
 
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