Breaking: Interactive Brokers lite commission free

Discussion in 'Interactive Brokers' started by ZBZB, Sep 26, 2019.

  1. The most important piece of information to gauge the attractiveness of zero commission is:

    What payment per share does the broker receive when they sell your order?

    Anyone?
     
    #41     Sep 27, 2019
  2. mskl

    mskl


    Exactly. This is not for existing users. Just like that recent marketing campaign "Bet, Learn, Win".

    Nothing in this for "active" existing customers who use the tws/api. 20+ years of loyalty and constant 6 figure commissions paid and nothing in this for me (once again). On some level I feel insulted by this.

    But I will be patient......
     
    #42     Sep 27, 2019
    d08 likes this.
  3. qlai

    qlai

    Why is it important? When you buy groceries, do you ask them what their margin is? PFOF is not the only way to make money on the orders.
     
    #43     Sep 27, 2019
  4. tonyf

    tonyf

    The only game changer for people like us is independent custody and API where we can route orders to multiple brokers from a spreadsheet...
     
    #44     Sep 27, 2019
  5. d08

    d08

    API has routing options which are not available in this Lite version, they'd have to modify a lot.
     
    #45     Sep 27, 2019
  6. d08

    d08

    It's by far the most important thing. Buying groceries, you can compare prices easily - when trading you'd have to trade side-by-side to see how much better execution actually is. Execution differences are actually dramatic and I suspect Robinhood traders in practice pay more to trade than I do despite them thinking it's "free". People are notoriously ignorant about math.
     
    #46     Sep 27, 2019
    jl1575 and Math_Wiz like this.
  7. if the order is limit for liquid stocks, I doubt the order information sold to funds would affect the trader at all.
     
    #47     Sep 27, 2019
  8. tommcginnis

    tommcginnis

    TWS is an entire rolling tool cabinet 4' high with a dozen drawers and 3-4 cabinets.

    MOST TWS users have learned how to open 1 drawer, and bitch/complain about the things they wish to do, having no idea of the rich conformability of the platform in front of them. These users are IB's target market for "Lite."

    This "LITE" thing is IB's recognition that TWS -- despite 1,000 pages of documentation and hours of webinars -- is simply too much for the majority of customers. It can also re-brand TWS as something meant for traders who take their trading seriously. Hence, "Pro." {Which is to say, for whom a highly-customizable platform and "Direct Market Access" have some meaning.}
     
    Last edited: Sep 27, 2019
    #48     Sep 27, 2019
  9. qlai

    qlai

    I'm saying it's irrelevant how much they make on your orders, not that execution quality is irrelevant. Just because they get paid for flow, doesn't automatically mean you get worse executions.
     
    #49     Sep 27, 2019
  10. d08

    d08

    That last part is almost never true. The only reason to buy order flow is to give worse execution, otherwise you'd just use the free flow. There's no free lunch.
     
    #50     Sep 27, 2019
    MoreLeverage, comagnum and tonyf like this.