Playing the stock market needs strong will and commitment, you either need to do your research and know what you’re putting your money on or have a great gut instinct, especially if you start trading in block trades. When it comes to buying or selling of stock, you’ll need to place an order. Sometimes though you’ll second guess yourself or learn some vital piece of information just after you’ve already placed an order. If your order hasn’t been filled yet it’s time to cancel and re-think, but cancelling orders could realistically incur a charge, however in-short, Questrade does not charge for cancelled orders as long as they haven’t been executed. If they already have been filled, well, you can’t cancel a buy after you’ve already exchanged securities.

No fees?

Does Questrade charge for cancelled orders? It is a perfectly valid question and one which you may be surprised by the fact that a lot of people tend to ask precisely that. While fees are usually associated with all aspects of trading, charging someone what is necessarily a penalty fee for making the wrong decision ends up being counterproductive. People tend to think twice about everything if a wrong choice ends up costing them money. When it comes to trading, there’s enough double thinking already, without adding more to the pile. So, quite rightly, Questrade decided to do away with cancellation fees on order.

Why would I cancel an order?

Canceling orders is probably more common than you’d think and can happen for a few reasons. Let’s remember that orders are simple instructions to buy or sell at a price through the stock, bond, commodity and financial markets as well as cryptocurrency exchange. As any market can be volatile and influenced by some factors, finding out new information that will affect your yield post order decision is a real possibility.

For example, in the morning you could place an order to buy 100 Tesla shares and by midday you’ve found out Elon Musk has released some controversial news about his company, you check your order and find none of the 100 shares luckily have been bought yet, so you have time to cancel that order and re-think.

Do I pay commission on filled orders?

Paying commission on orders is only valid if the order has been filled. If the order has been cancelled, then no commissions are due. Be wary of commission rules though and try not to be caught out by them. If you’re placing an order which takes multiple days to be fully executed, you’ll be charged commission fees for various days. So, try to think of commission as a daily price per order or set it as Good till’ cancelled (GTC). A more excellent commission fact is that you don’t pay any on IPOs (initial public offerings) or any new Questrade offered issue.

Are there any other order types?

There are various other types of orders to know about but be careful; they aren’t the same. It might seem confusing, but this sentence will help clear things up. Canceling alternative to day orders (GTC) incur no fees whatsoever as they’re more instructions of what to do with your portfolio. Bracket orders, for example, are one type of these alternative orders, giving you an option to put stop and limits on your stocks, merely giving you calculated exit prices. Other order types include locked orders, limit to open/close, anonymous orders, fill or kill, minimum quantity, and iceberg to name a few.

Furthermore, some orders will automatically be rejected by the exchange and canceled. An accompanying reason will display along with the status of the order. Requests are often dismissed and withdrawn by the exchanges due to off-hours trading. An alternative to day orders (GTC) is generally canceled after they reach the 90 days mark.

Hopefully, you can walk away from this article and won’t have to ask does Questrade charge for cancelled orders’ again. Just remember, if you change your mind, reverse it. Act fast; the markets wait for no man. Make calculated not emotional decisions. And above all do your research.