Reading the article below you get the impression, that you would always be better off sending your order to IEX. However, when using Interactive Brokers' SMART routing, my orders rarely get executed at IEX. Anyone has an idea why Interactive Brokers SMART routing rarely send orders to IEX? http://www.beathft.com/?p=13
IEX is great at PR but not some magic exchange where everyone gets filled for free and with price improvement. Often other exchanges are better outright, or other's are better factoring in fees/rebates, or better fills on dark pools, or any number of things. Smaller orders will often benefit from the HFT's providing liquidity, which is what IEX is trying to make more difficult.
As the article states: No maker/taker rebates – a pricing system designed to give “kickbacks” to certain firms at the expense of other firms. So if one typically provides liquidity to the market, the overall cost of execution might be lower at other exchanges.
Some routes are better at some things, some are better at others. This will change overtime as the technology changes, etc. Do your own testing
IEX is excellent. I use IEX d-peg and smart router for removing liquidity. This should be helpful: https://iextrading.com/docs/A Comparison of Execution Quality across U.S. Stock Exchanges.pdf
I wish they would allow users to create a custom order distributor that would send x% to Exchange A, y% to Exchange B, etc. That way, you could easily compare results. Personally, the only time I route directly to IEX is when placing a pegged to mid stock order.
Agree totally on smart router for taking liquidity, it works great with IB you can get large fills with price improvement at that price without getting carved up by the hft guys. In this instance I don't mind my broker taking the other side against me just give me quality fills. IEX does help with limit orders where the hft guys cant odd lot you to get your order out of the way and print around your resting limit orders. QUOTE="Humble Investor, post: 4576635, member: 488324"]IEX is excellent. I use IEX d-peg and smart router for removing liquidity. This should be helpful: https://iextrading.com/docs/A Comparison of Execution Quality across U.S. Stock Exchanges.pdf[/QUOTE]