IB Smart Routing vs Direct Routing question

Discussion in 'Order Execution' started by shogu77, Nov 29, 2012.

  1. shogu77

    shogu77

    This morning i got a partial fill on my limit order, then the market moved away, and when it came back others were filled before me. i understand this is possible with smart routing as i will lose time priority when IB shifts my order around.

    I understand using smart routing saves on some fees (Cancellation fees for example), my question here is: other than possibly saving some fees, is there actually any advantage to using smart routing instead of directly routing my orders to, lets say Edgx or Bats? bear in mind i am not using any kind of api or automated system, this is manual point and click orders.

    Fee schedules temporarily forgotten, with the NBBO system, what disadvantage could there possibly be to sending my order directly to edgx and having it stay there? im wracking my brain but cannot imagine a scenario where this will be a disadvantage (other than fees), so im hoping someone can either confirm my thinking or show me what i am missing here. thank you
     
  2. shogu77

    shogu77

    also meant to add, i am speaking strictly about non marketable limit orders on stocks only.
     
  3. Bob111

    Bob111

    based on my experience-as of today-no matter what you do or how or where you route your order-you will be always last in line regardless..(i'm talking about stocks)
     
  4. shogu77

    shogu77

    youre probably right, as even if i had retained time priority, if others wanted they could hop in front of me by subpennies and ensure i was filled last as well.
    however its not the answer im looking for, the question which is : is there any known disadvantage to direct routing instead of smart routing when speaking strictly about nonmarketable limit orders on stocks?
     
  5. Bob111

    Bob111

    -there one huge disadvantage-IB charging a fee for direct orders placed via API. end of story for my type of trading.
    you might gain rebate via direct routing,but again-you need to be at the right place in right time
    :p
     
  6. shogu77

    shogu77

    thank you again for your reply. disregarding rebates, disregarding any IB fees, and speaking strictly about execution, there is no disadvantage to direct routing a non marketable limit order for stock, right?
     
  7. No, it's not that simple.