Here's why I ask the question. If I'm not wrong, NITE would batch opening orders together, open a stock up large, short the shares to their own traders, and then cover. I'm sure IBKR doesn't do that, but I'm wondering if any brokerages still do something like that.
I don't think brokers (especially ones with strong reputations and management like IBKR) would do this with internalized orders as it would be frontrunning. But that's just my opinion as I've never worked for a brokerage myself
So now you're worrying about what NITE did 10 years ago which has nothing to do with current direct access markets. I'm worried the Inquisitor might come to my door and claim I'm the devil. Worry about your exits and entries, this discussion is a waste.
there was a time a few years ago when i saw TMBR on the other side of my exits. got worried about it, then realized it didn't matter. short term, they weren't right or wrong more often. besides, timeframes are different. my exit on a 15 minute chart might be someone else's ENTRY on a 1 minute, or a 1 day, or...etc.
There are things a broker can do that might disadvantage a large trader. Few if any of the pikers here fall into that category.
After reading the IBKR conf call, it's pretty simple actually. IBkr is just a plain vanilla market maker (plus a brokerage) which tends to be long volatility. So if a customer wants to sell AAPL calls, IBKR will buy the calls and short stock against it. If realized volatility is higher than the implied, IBKR does well. It can also make money off the bid ask, but that doesn't mean customers get worse prices. Interestingly, Peterfy mentioned on the call that there's only one brokerage that IBkr is losing customers too in NA . . . but wouldn't say who it is. Any guesses?