What are these IB fees?

8

8hcap

From the website below:

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USD 0.003/Share Additional fee for API equity directed orders.

USD 0.12/Cancelled Order

For API equity directed order cancellations.
USD .24 credit against cancellation charges given for each API equity directed order execution.
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I coudn't find any details on what API means, other than other companies using the API to create order platforms. Is this an extra charge if another app besides TWS is used to enter the order? :confused:
 
I saw this too and can't believe more people haven't moaned about it yet. Maybe their all in denial. Thought of writing my own interface but now why would I want to -- just to pay more?
 
Obviously IB wants TMBR to have a crack at autoexecuting your order, hence the extra fees. Yet traders want to avoid certain exchanges and so may prefer direct routing.

I have a proposal. Semi-SMART routing. You can direct to the exchange you want AND TMBR gets a crack at filling your order, no extra fees.
 
It's only 12 cents for a stock order cancellation. Now it's going to be ten times that ($1.20) for a cancelled direct-routed options order.

Direct-routed options commissions are already 95 cents more per contract than a smart-routed options order. I had the impression that that was because of cancellation charges from the exchanges.

I don't see the advantage to them of having us use smart. I would think smart routing would result in more cancellations, when the system reroutes an order to another exchange for a better price.
 
Def, I hope you mean the 5 minute rule which means that any order that gets filled past 5 minutes are 'billable' by the specialist. I think it used to be 2 min but it changed to 5.
 
Dear IB Trader:

Recently the US Options Exchanges imposed
fees for the cancellation or modification
of option orders. As such, IB needs to
pass these fees on to our customers.
Effective Wednesday, November 13th, IB will
charge $1.20 for each US directed option
order cancel or modification. This fee will
not apply to smart routed orders. For each
option order that is executed during the day,
IB will provide a credit of $1.20 against the
cancellation/modification fees for the day.
 
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