zboy: thanks for the reply. However first: the question about routing comes from the premise that i DONT have Level II access. I can get the Arch. feed but none of the MM's are shown and only REDI, and ISLD of the ECN's are displayed. I watch CIEN,QCOM,JNPR,VRTS and usually the ECN's are only close to inside in the direction of the current momentum. This may be a problem with the free data feed -- i don't know. Second: why do you suggest not going BEST if a MM is on the inside? Interesting view that i don't quite understand the reasoning behind. regards/greg
Had problems in IB today. This morning orders hung up in blue - cancelled thereafter and they hung up in pink. Service froze with no data feed update. Half a dozen calls to IB produced nothing. I was long 500 in Yahoo at the time and the price was dropping. Lucky for me the price eventually recovered. Thereafter, the IB data feed miraculously recovered. Then in the afternoon I was short 1000 in YHOO and the same thing happened. YHOO had dropped like a rock and was beginning to rebound. After 3 calls I got hold of someone, but not before it cost me more than $250. I am so frustrated I could spit through walls. Oh God, I wish this service were dependable.
Greg, The reason I'm not crazy about using Best Execution if a market maker is at the inside is because I try to never have to execute against a market maker. As a rule it will cause problems, as they can hold your order, back away, etc. while you sit there waiting to see what they'll do. That's why I choose to deal almost exclusively with ECN's only. Therefore, if there was a market maker at the inside quote, but an ECN nearby, I'd rather grab the ECN and lose an 1/8 or 3/16 than take my chances with the MM.
Mr.F, I'm surprised regarding your problem this morning. My feed was fine, in fact I completed a quick daytrade (in options no less!) with no problems whatsoever.
If you are trading a NYSE stock that also trades on some ECNs, is the Best OK to use. I am new to IB, and have been a little disappointed in the speed of execution on NYSE stocks when I use Best. Is it appreciably faster to route directly to the NYSE or Island, or is the Best routing about the same speed, since there are no MM involved.
The Best routing should be about the same as the others with the NYSE, as most of the time the best inside quote will either be the specialist or ISLD. Whichever it is, Best Execution will automatically route it there, so if ISLD had the best inside quote, the speed should be the same as if you routed it using the ISLD direct route.
Unlike with Nasdaq stocks using BE with NYSE stocks can be a good choice at times. However, you need to be aware that the specialist's quote is often not indicative of where you would be filled by him. So by taking an ECN offer/bid you may actually be giving up a potential price improvement.
Help - I just did an after hours trade with IB. I offered a stock at say 35.40. I was the best offer. I walked away and when I got back I had been executed at 36.00. It was then offered at 35.25, but I don't know what sequence took place. I called IB to make sure that the trade was good, and they can't tell me. Nor can they tell me when I will know. The other side (an ECN) has the right to cancel the trade apparently, and there is no time limit as to when they have to do it. How can this be. I may not know for sure by tomorrow afternoon whether I am long or short. What can I do? I also don't understand how I can put in a limit order at 35.40 and several minutes later have it executed at 36. Any thoughts.