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I placed a market order with my US brokers, namely IBKR. I received the following in an email from them:

Please note that we will send you similar FYIs each month in which you place a Market Order, to remind you of this information, which IBKR is providing in accordance with its regulatory obligations.

Must US brokers send an FYI about market orders to their clients who placed a market order in the past month by law? I believe I placed a market order with another US broker in the past but I don't recall receiving such an FYI, but perhaps the law change since then.


As requested in the comment section, here is the full notice from IBKR:

IBKR FYI: Important information about Market Orders

Dear Client,

We noticed that you have submitted Market Orders in the last month in your account(s) ********. Please see important information below regarding this order type.

Please note that a Market Order is an instruction to trade your order at any price available in the market, subject to any additional instructions for handling/simulating the particular order type you specified and other order conditions you specify when submitting your order. A Market Order is not guaranteed a specific trade price and may trade at an undesirable price. If you would like greater control over the trade prices you receive, please submit your order using a Limit Order, which is an instruction to place your order at or better than the specified limit price, or submit an algorithmic Market Order (IBALGO).

In accordance with our obligations as a broker, large Market Orders may be split into smaller orders, which will be traded over time. This is designed to reduce the impact of these large orders on the market, including the impact your order has on the market price.

Please note that we will send you similar FYIs each month in which you place a Market Order, to remind you of this information, which IBKR is providing in accordance with its regulatory obligations.

Interactive Brokers: This communication is provided for information purposes only and is not intended as a recommendation or a solicitation to buy, sell or hold any investment product. Customers are solely responsible for their own trading decisions.

Interactive Brokers LLC, member NYSE, FINRA, SIPC

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  • What information was in the notice? Can you summarize what it said? Oct 3, 2023 at 16:16
  • @NateEldredge added in the question. Oct 3, 2023 at 21:54

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