IB Bundled vs Unbundled Pricing.

Discussion in 'Retail Brokers' started by walterjennings, Nov 26, 2006.

  1. Hey.

    I was wondering if anyone has any experiance using unbundled prices vs bundled pricing on IB. I am interested in shaving off a few dollars in commissions in order to help make a high volume automated system a little more profitable.

    It seems that the unbundled fees are always less than the bundled? Am I incorrect about this? I was also wondering if there were instances I should watch out for like using the SMART routing with unbundled fees.

    Thanks for your time.
     
  2. yeah, i was thinkin' to switch myself. if u trade a lot of listed no matter the volumes u are better off with unbundled...nyse sec fees are pretty low.
    on the other hand if u do not more than 300k a month and trade lots of naz or route your orders to arca/inet u end up payin' much more. i/.e: .0035 per share+.0030 sec fees to remove liquidity. payin' .0015c more than under the bundled structure. check the info on ib website, its pretty straightforward.

    a setback is that u still have to pay .0035 for the first 300k no matter the volumes.
     
  3. how does an order get classified as adding liquidity or removing liquidity?
     
  4. when u hit the bid or lift the ask and viceversa u are removin'.
     
  5. how do you add liquidity then?
     

  6. obviously when u dont trade @market prices.
     
  7. isint by definition every order that goes through goes through @market? limits only get filled when the bid / ask price someone else is willing to pay matches?
     
  8. by market i meant current bid/ask. if u want to add liquidity u place an order anywhere BUT the inside quotes.
     
  9. i notice in thier example island NYSE gives pretty significant rebates to adding liquidity. so if i send all my limit orders in at the current bid / ask +/-1 pip so it does'nt get filled against the current market prices. all my orders will be considered adding liquidity and I might actually get paid money from the exchange instead of paying a commission? ala example 1 30,000,000 Island NASDAQ Shares @ $5 Add Liquidity on the IB site?
     
  10. yes, obviously if u get filled. it's one tick by the way, not one pip.
     
    #10     Nov 26, 2006