Hello, could someone tell me how many times you pay a commission on a single trade? I recently prepaired my first ever oto  order only to see two $4.95 commissions, one for the buy/stop/limit side and one for the sell/stop side for a total $9.90 commision on 1 trade. Is this normal or specific to conditional orders? Also is this how all brokerages do it? Always thought $4.95 meant buy stock, hold into profit, then sell, one price. How does it work? Thanks in advance

In addition, what FoolMBA describes is indeed normal & is also how all the other brokerages do it. You go to any other site, their commission fees are the same way, just more $!

Since we're discussing commissions, I've been wondering something myself. If I were to use all my available funds on a trade (leaving my account balance under $4.95) - When I go to sell the stock/option will TK deduct the commission from the proceeds of the trade or does the commission need to be available in the account when you are making the sale?

REGARDING PARTIAL FILLS >>>> HERE is something that happened to me. I was entering a covered call trade for 3 contracts and decided to edit my debit. The order partially filled prior to the edit (even though it was not showing on my summary at the time). When I went back to check for an  execution the entire order had filled but I was charged 2 commissions at $4.95 plus the option contracts. Contacted TK and they refunded the second $4.95 commission. I am a new trader and was unaware of this scenario at the time. The rep said if I had not edited the debit this would not have occured, even with the partial fill.

I would suppose if you edit a buy order for stock and the order partially filled and then you edited the buy price the same would occur.

Here's something I don't understand (my first order with TK) : I'm doing a "one triggers the other" Option order >> buy 1 option to open, $5.60, then sell 1 option to close, $5.60 (total=11.20) . So, why does the est order total = $21.21 ?  (I'm trying to buy an option with a limit order, then sell with a STOP it if it goes in the wrong direction).

For example(one triggers other) this is what my preview screen shows:

Order #1 Buy to Open 1 $5.60 $165.60 C TR C Aug 2008 17.5 Put Limit 1.60 Day None

Order #2 Sell to Close 1 $5.60 $174.39 C TR C Aug 2008 17.5 Put Stop 1.80 Good Til Cancel None

Commission: $11.20
SEC Fee: $0.01
Estimated Order Total: $8.79

Hey everyone!

First off let me say thanks to everyone for all the great answers that have been given in this thread.  That is what this community is all about; people helping other people become more savvy and educated investors.  I want to clarify a few things that have been discussed in this thread to make sure everyone is clear on how our commissions operate.

1. Partial Fills - We charge one commission for any partial fills that execute over the course of the same day.  If you change your order or the order takes multiple days to execute, you will be charged a new commission for each day a partial order executes or for each changed/new order you create.

2. OTO Commissions - Because an OTO order consists of two orders, you will be charged two commissions.  Please remember though that you are only charged a commission once an order has executed.  We will never charge you a commission for an order that never executes.

3. Estimated Order Total - RetireOnTime explained this just as I would have.  The Est. Order Total is either the net credit or debit, including all fees and commissions, that occurs in your account when your order(s) execute.

Hope this adds a little clarity to all the questions in this thread. Give us a buzz at 877-495-5464 if anyone has any account specific questions.  Thanks everyone!

Chris Lebhar
TradeKing Customer Service Representative

Thanks a lot everyone for posting and responding to my question. You've cleared up the OTO's quite a bit for me. Didn't even think about it as being the net difference between the two orders.

On my other brokerage acct, I was used to logical orders for buying with a limit, then selling if the price went above this level or below that level. That would have been two commissions also, one on each side. From what I see so far, I could do a Contingent order to BUY then SELL at either "above" or "below", but not both. That was with stock trades though, not options. TK is still a much more robust trading acct. Thanks again for all your help!!

Good Morning SF:
AON is an alternative to avoid split and partial fills, however that does also make it harder for the order to be executed. This is particularly problematic when dealing with an options without much liquidity. If you place a day order which is partially filled, the unfilled portion of the order would expire at the close of business on the day it was placed. The decision to weigh when considering whether or not to use AON, is the possibility of not being filled at all worth the cost of the possible extra commission you may incur if you do not qualify the order as AON.
Regards
Neal Atkins- TRADEKING -Supervisor E-Communications