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IEX versus Interactive Brokers SMART routing

  1. 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?

  2. 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.
  3. 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.
  4. 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
  5. 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.