A) Using their smart route it seems to me that's what happens. B) You are right if you are dealing with those types of options.
this question is for users def and regaloptions; what percentage of your retail customers use market orders and what percent use limit orders?
All of this info is public. I encourage you to read the 606 reports that all brokers must publish and provide to the SEC. For IB, non-directed market orders accounted for a very small percentage (5.4%) of option orders last quarter.
Two questions Def: 1. by "non-directed" are your referring to those options orders using smart routing? if so, i'm surprised so many of ib's clients direct the orders to a particular exchange since the commission to do so is relatively hefty at IB. 2. are your comments about order flow to Susq and Cit relevant to orders directed to a particular exchange with eoptions? Seems in this case the fill would have to be at least as good as the particular exchange. The two questions are not meant to compare IB and and EO, since they don't take into account IB's proactive searching for best bids and offers. Thanks.
1. yes, SMART 2. comments are in regards to all routing. Perhaps yes, you'll get the same fill if we all route to one particular exchange but that clearly isn't the case and the TAG stats showing the massive difference in execution quality verify this.
Thanks Def. I'm surprised that only 5% of orders are using Smart - does this refer to options orders alone, or options and equities?
in a different vein there seems to be an excessive use of the words gouge and rip off on ET. just because u don't get the lowest rates doesn't mean that u are getting gouged or ripped off. brokers have different business models while offering variants on the same service and charge accordingly. eg firms have different margin rates. does that make the firms offering the average rate gougers? some average rate firms will selectively give you 3 days to meet margin calls and hand hold by calling you. some low rate firms will simply liquidate positions within a few minutes.