IB Best vs Best ECN Execution?

Hi IB Users,

How do you decide between using BEST and BEST ECN execution?

When do you prefer one over the other?

Thanks.

-- Punter

 

I'm still trying to decide which is better. Best ECN definitely used to be the only way to go but now that supersoes is here, Best is quite good too. I still use Best ECN for the majority of trades but I've found Best market orders to be quite fast and reliable. I will usually enter a stock using a Best ECN limit order and then exit with a Best market order. Seems to be working for me so far.

 

My default choice is BEST_ECN, unless ECNs are too far from the inside, in which case I try to get filled via BEST. It usually works, mainly because I seldom go beyond the 500 shares threshold.

Ciao

Guido

 

Yesterday I used Best Execution to market out of MSFT when it was trading at 57.93ish. The order was directed to SOES where it sat for approx. 2 1/2 minutes. I was finally filled on Island at 57.45. In this time 155,400 shares traded on Island alone.

Why did I just sit there? Well, from what I had read I assumed SOES was fast and I wasn’t sure if the confirmation was lagging. I had no idea this type of thing could happen.

I had thought that Best Execution went after any available liquidity at the best possible price. I do not understand how it did not move over to Island when SOES did not respond. Would anyone care to help me to understand?

 

Have had delays also with BEST EX.. but not as bad as over 2 mins.. I try to see if there are enough ecn's on the bid/offer and go with BEST ECN if so.. otherwise best ex..

It is a constant dilema for me.. trying to choose between market versus limit and so on... sometimes try limit to get best price and it runs away from me... usually plump for entry with limit order and exit with market for speed.. decisions decisions...

 

Originally posted by jtrader
Yesterday I used Best Execution to market out of MSFT when it was trading at 57.93ish. The order was directed to SOES where it sat for approx. 2 1/2 minutes. I was finally filled on Island at 57.45. In this time 155,400 shares traded on Island alone.


It is possible your order was stuck in the SOES queue while ECNs remained at the inside price. Market Makers will always take this opportunity to lower their bids, so when you finally do get executed, it will probably be near the bottom of the move. Now this doesn't explain while you were finally executed on Island, but maybe after some predetermined time BEST will cancel a SOES order if not executed, and try the ECN route again.

Alex

 

With CyberTrader, I don't have to worry about that.

CyberTrader's Smart orders can go after the best price, regardless of who is bidding/offering the price. This includes ECN, Market Makers, SOES, Island, etc.

This is my compelling reason why I still use CyberTrader over IB, ProTrader, etc.

MGB

 

mgb,
problem is what happens when an order gets into a market makers hands. They hold on to it and will not release it. Thus it is in effect stuck until they acknowledge a cancel.

 

Def are you saying that the order can be held by a market maker for 2 min or more. How is that possible? Why didn't Best Execution switch to Island because of the incredable amount of liquidity available at better prices.

I know there are many here who seem satisfied with IB, but I caution anyone thinking of openning an account. I have had nothing but bad experiences with IB's executions, stops, and customer service. Please don't get me started on the consistantly rude service reps.

Is this type of situation an industry wide problem? If not I will be moving to another broker regardless of the expense. IB has already cost me more in faulty execution of orders and stops than higher commissions could have.

 

Jtrader,

i just switched to IB from Cyber.. personally, i like IB much better.. there are alot of factors that determine how your order is executed.. with SuperSoes, most execution problems are gone now.. one quirk with IB is that if it tries a particular route and cant get a fill it doesnt quickly resend the order to an alternate route.. an easy way to fix the problem is simply to modify the order up one penny and re-transmit it.. as far as rude customer service, its an industry wide problem.. cyber is somewhat better than others that ive been with.. mytrack customer service sounds like they are all directly related to the gambino family.. i have never called IB but if someone was snappy with you, thats just how this industry is..

-qwik