Completely disagree. 1 penny for 1000 shares = $10 same for a 10 lot on an option. A penny on an option price is a lot easier to find (and take if you're not seeking the best fill) and thus why many of the firms are paying so much for order flow. At IB, the smart router gave $1.25 per contract in price improvement per contract according to an independent auditor (TAG). That's 60 cents better than the industry average. For the cash markets, IB was 42 cents better per hundred shares. The savings from better executions far exceeds your commissions. http://www.interactivebrokers.com/en/p.php?f=smartRouting&ib_entity=llc
Isn't it a false propaganda and BS? If I have a limit buy @ 1.45 per contact, why the hell my broker will fill it @ 1.43 unless market is falling rapidly. This is only possible when they are not fast enough to execute my order at exact limit price (like I requested). Am I missing something? Cheers, Sudhaker
The TAG audit was for market orders. It also looks at speed of execution though which is also a big factor. If you're placing limit orders that aren't marketable, sure, you shouldn't expect price improvement. However, there are scenarios where you will: what if when you submit the 1.45 bid there is an offer at 1.43 at another exchange the instant you're submitting the order? Will your broker re-route your order? IB's SMART router also scans all the exchanges and will re-route an order if it can get a fill. In addition, IB offers penny increments on many markets and price improvement can also be found there. The stats don't lie.
Nah, I'm out of luck - their TWS won't connect from behind the proxy at work? Does anyone connect over "3G wireless card" - Is 5GB monthly enough for TWS?
FYI: "OptionsHouse" and "eOption", they both use same clearing house. Penson Financial Services, Inc. ftp://public.s3.com/11ac1-6/pfsi/PFSI_4Q2008_Rule606.pdf
I recently opened an account with eOption and over the last week it's been very difficult just to make a trade. Today the system has been down between 9:30am - 10am. Yesterday 2 of my orders were rejected because the interal routing system went down temporarily. And last week I was getting bad real-time quotes (instead of real-time they were delayed about 8 minutes) . Has anyone else been experiencing problems like this? Is this typical for eOption? Any feedback would really be appreciated.
I've used my account for something like 3 trades. I originally got it and funded it with a real small amount just to secure a promotion they were having. It's too much of a pain in the ass to get the small amount of $ I had in there so I occasionally make some speculative plays on it. I put in an order a few weeks ago and I have no clue what was broken, but I was watching the (options) exchanges and the order never showed up. Took a few cancels and then 5 minutes after putting the re-order in for it to show up. If you trade high volume contracts often just save yourself some time and go to OH.