IB Contract Information

Discussion in 'Retail Brokers' started by cscott, Feb 20, 2007.

  1. cscott


    Is IB ever going to update its contract details? Many instruments have incorrect exchange, trading hours, and share information. Further, most stocks says the minimum trade is 100, yet I've been able to trade 25 shares or less on most stocks. It would be nice if we knew the minmum shares tradeable instead of waiting to see whether an order was rejected.
  2. rcj


    Cscott ... let me give you 2 items re the odd lot issue.

    Here is the current IB policy. If you Smart route you should be ok with an odd lot or odd lot component order.

    Here is part of a thread from Dec 06
    http://www.elitetrader.com/vb/showt...2002&perpage=6&highlight=odd lot&pagenumber=5

    Notice the last para from IB ...

    Registered: Aug 2005
    Posts: 292

    12-06-06 02:03 PM

    Quote from IBj:

    A new set of regulations requiring special supervisory practices for odd lot orders has been put in place. Apparently, traders were/are abusing the NYSE specialists by submitting 10 99-lot orders instead of 1 order for 1000 shares. The specialists complained and there are new rules.

    IB didn't want to expend effort on adding to regulatory programming which is becoming a bigger and bigger part of the business. It was our opinion that more clients will benefit by our efforts to improve our routing and other algorithms than on supervising odd-lot trader practices. So we eliminated opening odd-lots for US markets because if one doesn't trade odd-lots, one is not required to have a compliance team and special programming to analyze these orders.

    Enough people are complaining about this that we are reconsidering. It is likely we will roll back the change and examine more carefully the way odd lot orders are being used by our clients and then decide whether to re-deploy the odd-lot restriction.

    OK, thanks IBj. About 50% of my transactions involve opening a position with an odd lot < 100 which i may add 1 - 3 lots. This will hurt for sure if the policy stays in effect. The effect on me is that i will initiate fewer trades, and that will mean less commish to IB.
  3. cscott


    Thanks for that info. The way I understand it is that we can trade any amount of shares through SMART or INET as long as we don't abuse the system. Is that correct?

    Will SMART route through ARCA?