How zero-fee trading helped Citadel cash in on retail trading boom

Discussion in 'Wall St. News' started by guru, Jun 22, 2020.

  1. I don't understand IBKR platform, I bought 40 Apple $355s providing liquidity on all trades and they smart route to the highest charging Exchanges. E-Trade I can route to the most popular Exchanges outsmarting Citadel by hiding among routes they screw online Robin or Fidelity traders for less than a third. $15 vs $5(Grandfather Option HouseoHouse)the same trade should make Active Traders question this.
     
    #11     Jun 22, 2020
  2. I still love IBKR, nice having a platform that does not crash makes it worthwhile.
     
    #12     Jun 22, 2020
  3. guru

    guru


    At IB you have some choices in terms of which exchanges to route to, whether specific one, fastest fill, most cost effective one, best rebate, etc.
    But this isn’t guaranteed, while you can get different results across brokers at different times, or even at a single broker at different times. So at different times you may be assuming that one is better than the other. Still, setting up your Smart Routing preferences in TWS could help.

    upload_2020-6-22_10-34-3.png
     
    Last edited: Jun 22, 2020
    #13     Jun 22, 2020
    JesseJamesFinn1 likes this.
  4. VEGASDESERT

    VEGASDESERT

    General public trading 100 or 1000 shares of a large cap 150.00 stock should have zero
    concern about citadel hft algo's making a few bucks on the order.

    I mean, you want liquidity right?

    Compared to the old school specialist model, lol.

    You're making out, trust me.
     
    #14     Jun 22, 2020
  5. newwurldmn

    newwurldmn

    Payment for orderflow is awesome:
    A market maker pays your commissions for you because they think you are stupid. If you aren’t stupid don’t you want to trade with someone who thinks you are?

    They still have to follow reg NMS so you are guaranteed NBBO. You might not get as much price improvement, but smart traders rarely get a lot of people wanting to trade against them.
     
    #15     Jun 22, 2020
    qlai likes this.
  6. VEGASDESERT

    VEGASDESERT

    I don't know about all that, lol.

    They pay your commission so to speak because they have a built
    in structural advantage, an order routing from td ameritrade cannot compete on
    that time frame.

    The more volume the more money they make, its as simple as that.
     
    #16     Jun 22, 2020
  7. qlai

    qlai

    Outsmart them? I doubt it. It’s not where you route, but how fast can you remove your resting orders. If you don’t care about getting the hell out quickly, then the only reason to pay commissions for most retailers is if you take liquidity and you want to be quicker than most.
     
    #17     Jun 22, 2020
    JesseJamesFinn1 likes this.
  8. Fx-Game

    Fx-Game

    You have serious problems in US with flash traders, read the book flash boys.

    What is that?!

    They arbitrate against the customer?

    Wtf.
     
    #18     Jun 23, 2020
  9. outhoe

    outhoe

    You will be astonished to know that Citadel is one of the big winners from a boom in retail investing as it practices the theory of order flow thus making money by receiving orders from the other side.
     
    #19     Oct 27, 2020
  10. guru

    guru


    Another low paid child from Bangladesh posting nonsense on forums to build cred, so that it can post spam later.
     
    #20     Oct 27, 2020