[healey]

I am--I frequently get dinged with "removing liquidity" fees even though I'm not removing liquidity.
(For those who don't know... one "removes liquidity" when one does a market order. One can avoid "removing liquidity" by doing a limit order).

Do you people think this might be some kind of fraudulent practice by Questrade to get more revenue? I seem to be getting dinged on about 10-20% of my trades. If you extrapolate that same figure (ie. 10-20%) over Questrade's whole client base, that would be a pretty nice revenue stream for them...

I think I'm gonna call the IIROC tomorrow, to see if they can put an end to this b.s.
...So, is anyone else experiencing this?

 

[Germack]

It depends. If your limit price equals or is higher than the current asking price and therefore your order is directly executed you are getting charged the "removing liquidity" fee. If your limit price is below the current asking price you should not get charged this fee.

The concept of adding or removing liquidity is applicable to both stocks and stock/index options. Whether or not an order removes or adds liquidity is dependent on that order being marketable or non-marketable. Marketable orders REMOVE liquidity. Marketable orders are either market orders, OR buy/sell limit orders whose limit is at or above/below the current market.

 

[Dave]

Yes, I do. I understand why those fees are charged so they are not bogus, but I still do not like them. However, right now Questrade is my only viable option for a low turnover portfolio because they do not charge any inactivity fees and the comission even with the ECN fees is still low for the amount of shares I buy. However, as soon as my portfolio hits 100K, I am switching to TD Waterhouse (the minimum needed to eliminate inactivity fees which can get quite nasty). Until then, I am stuck with Questrade.

Dave

 

[healey]

Germack: ya I am fully aware of that, and I don't do that. I was thinking about stating that in my original post, but I didn't want to make it too long.

Dave: You understand the method behind the madness? Can you explain? I've made a few inquiries on this with QT's technical support, but the people I talked to each time were incompetent...