IB : the end of excessive messaging?

Discussion in 'Retail Brokers' started by TraDaToR, Jul 8, 2010.

  1. TraDaToR


    Here is what I got today:

    "Dear Trader,

    We have noticed a very high ratio of orders and order modifications relative to the number of executions in your account X. Every order instruction submitted by you (includes new order submission, order modification, cancellation) utilizes computing power. Excessive order activity can slow down IB systems and negatively impact other clients.

    IB monitors order/trade ratios to prevent excessive and unnecessary system resource utilization. As a general rule, a ratio value less than 10 order actions per 1 execution will generally be acceptable, although fees may apply for certain markets where the ratios exceed 5:1. Above 20:1, IB will request clients using automated order management tools to optimize their order management behavior. Above 100 orders per execution, or if our analysis indicates a systematic misuse of IB's automation services, IB may take steps to reduce the system utilization including: charging a fee for order modifications (typically 20% of the commission for an execution), or limiting access to API services.

    Most of the time, excessive order/trade ratios are caused by poorly optimized APIs or other order creation programs. These applications generate price changes that do not materially alter the likelihood of the order being filled. By example, when a stock is quoted 50.0-50.2, then an order change from 45 to 46 does not really change the likelihood of execution.

    Most clients are able to easily improve their order management by introducing 'no-waste' logic into their systems. We kindly request you examine your order management logic to reduce unnecessary orders to the recommended levels. "

    Who else got it? Time to move our systems elsewhere?
  2. promagma


    10:1 is quite low. This is the reason I made my original decision against using IB for stock trading.

    It is an IB policy - the only exchanges with such a tight limit would be the options exchanges.
  3. what's the industry's typical allowable ratio?
  4. orionn


  5. Good for IB :D
  6. dafa


    got the same message, it stated the ratio in my account is over 10,
    to save the computing power? how many computers you can buy from my commission alone, time to move on I guess!
  7. Bob111


    i got same shit..this is total nonsense..in 21 century at those prices for PC power...i'm paying about $10K in commissions each month and you telling me that i'm using too much of your computer power? Joe Pecsi phrase comes to mind-

    Get this through your head you Jew motherfucker, you! You only exist out here because of me

    tell you what-there is fucking line of brokers,who literally begging to open an account with them..and there is no fees for excessive usage,no fucking fill rations(btw-your "smart" routing could smarter and that will boost MY fill ratio. no fucking fee to change,modify order, no fucking fee to route API order directly to ECN..
    i guess it's fucking to for me to leave,huh?
  8. Here is the translation of IB message I got using Babel Fish. I like Babel Fish because not only does it translate but it also cuts out the meaningless crap from the text:

    "Since we ourselves prefer to flood the market with billions of limit orders, our customers are our direct competitors. The only way we can compete is to limit their submission/execution ratio to 10:1"
  9. nothing like a hand slap to bring out the latent mental illness.
  10. Very much a pisser. I trade mechanical systems and I trade very actively and I've paid a shitload of commissions to IB. Yes, I have a lot of order cancellations, but I also have a lot of TRADES.

    What bullshit.

    Is there another broker that has something like IB's basket trader? I really need that, but if they start charging for cancelled trades, I'll have to move on.
    #10     Jul 8, 2010