On the Interactive Brokers Other Fees page:
If an exchange or other market center charges Interactive Brokers a trade bust, trade cancel fee or trade adjust fee because of an order placed by an IBKR customer, or because of a customer bust or adjust request, the customer is fully responsible for the fee and the fee will be deducted from the customer's account.
In addition to fees charged by exchanges (and in cases where exchanges do not charge a fee), IBKR will charge the following fees for requests to have trades busted:
- $50 for the first bust request in a calendar month.
- $100 per incident for subsequent bust requests in the same calendar month
Interactive Brokers further says that the CME Group charges 500 USD for a trade bust, and Nasdaq charges 250 USD for a trade bust.
- What exactly is a busted trade, and how could it happen to me when trading stocks? I do not want to charged hundreds of dollars for something I could prevent.
- What is the difference between a "trade bust, trade cancel fee or trade adjust fee" and a "customer bust or adjust request"?
I found a description in the Interactive Brokers glossary, but I don't know what exactly it means and how busted trades could happen to me:
A busted trade refers to a situation where an execution occurs and IB receives the execution message from the exchange. The exchange then realizes some type of error (Pricing, electronic, obvious error, etc) and rules to bust (cancel) the trade. The exchange makes these rulings entirely on their own.