IB (finally?) admits to matching orders internally

Discussion in 'Interactive Brokers' started by None Business, Sep 29, 2017.

  1. Ryan81

    Ryan81

    Of all the brokers I've ever used, IB seems to be the most transparent in how they route orders and how their smart-router works if you choose to use it. They have several sub-webpages dedicated to explaining how it works and what your choices are in routing orders and selecting different algo-types. Disclosure far far far above and beyond any other broker I'd ever used. (Of course, my sample size of brokers used doesn't include all brokers in existence, so there are probably better ones.... but all I'm saying is, as far as I'm concerned, IB is the best I've tried thus far in terms of execution and price improvement.)
     
    #41     Oct 1, 2017
  2. Sig

    Sig

    IB does have better margin rates than anyone. There are plenty of brokers who can meet or beat their commissions, see Bob's comment above. The rest are pretty subjective and I don't know what you're referring to with "free algos", an API? You may very well be someone with a combination of needs that only IB can fill. If so I'm a bit sad for you that you're stuck with the downsides of IB, but I'm not going to attack you with the religious zeal and vitriol shown by a number of people on this thread. That's my primary point, pick IB or don't pick IB, just don't feel the need to personally attack someone who lists a legitimate shortcoming or fabricate "facts" (not saying you did, referring to earlier posts). A secondary point is that many of us found we didn't need the combination only IB can provide and when we stopped and thought about it we realized there were better options for our particular trading that allowed us to avoid the many significant downsides we experienced with IB. If that's not you, by all means stay with IB. Just food for thought.
     
    Last edited: Oct 1, 2017
    #42     Oct 1, 2017
  3. truetype

    truetype

    Would be good for RMorse to clarify whether L'speed is competitive on margin rates.
     
    #43     Oct 1, 2017
  4. hajimow

    hajimow

    Last edited: Oct 1, 2017
    #44     Oct 1, 2017
    Shadetree42 likes this.
  5. Robert Morse

    Robert Morse Sponsor

    We can't compete with margin rates with a self clearing broker. If you are a long/short manager, IB will offer better interest rates by far.
     
    #45     Oct 1, 2017
  6. Robert Morse

    Robert Morse Sponsor

    Yes, our retail rates are 7.5% down to 5%. I can do much better for institutional customers. The retail accounts that borrow have more risk and deserve a higher rate. They are more apt to go below $0.00 from trading small cap stocks and highly concentrated portfolios. Institutional accounts are more apt to hedge or be long/short and have less risk.
     
    #46     Oct 1, 2017
  7. maxwerks

    maxwerks

    I like IB a lot but their onerous policies on any VIX related trades has ruined it, for that reason I must switch brokers
     
    #47     Oct 3, 2017
  8. d08

    d08

    Which isn't cheap at all if you trade any size, also there are additional fees now on top of that. I pay around $15-20 per trade average and that's not cheap by any metric. Yes, I can choose to go but I'm hooked in by their API. Also, they don't value loyalty or consistency of revenue. Judging by the amount they advertise, it's clear they just want to cater to the neophytes with their "discount broker" slogan, seasoned traders who bring in more can take a walk.
     
    #48     Oct 3, 2017
    dealmaker and Sig like this.
  9. d08

    d08

    I especially love it when I have leverage below one. So I have 25,000 to put into a short but IB says - "nope, you only get 2,500 worth because we think it's risky". I'm also a big fan when IB delays my marketable order in SPY - massive liquidity near close and I get a partial fill at 252.00, price trades for 2 seconds above my level but do I get any of it? Nope, nothing, I'm left holding the rest.

    Sure, it's all for the traders benefit. Right, losing my money due to IB's poor algo design is for my benefit. Here I thought traders were meant to make money.
     
    #49     Oct 3, 2017
    trader42 likes this.
  10. hajimow

    hajimow

    I do not know what is happening in your account specially the part that you said you have 25k and IB says you only have 2500.
    Was your option a multi leg order or single option order? I just guess maybe that was an all or none order which may be used to transfer positions between accounts in brokers. You can open a ticket and send them your log file and ask them for an explanation. Not to complain, but more to educate yourself on what was going on.
     
    #50     Oct 3, 2017