Is IB telling the truth?

Discussion in 'Retail Brokers' started by empee, Sep 12, 2008.

  1. empee

    empee

    Hi,

    I have an experimental account I test strategies with. I bought a small odd lot of DGIT today at the open with a market order.

    I got filled at 21.88; the official open was 20.18 and 20.59 was the HOD.

    I called IB and they said odd lot orders don't get printed to tape (ok) and I get filled at whatever price is available.

    My question is this true, that I can be filled this far outside the market on odd lot orders? When I have orders (not necessarily odd lot) and I get filled outside the market in my favor I always have them busted later (doesnt happen often).

    I've never had a broker try to justify a fill like this, and am curious if its IB or if its legit.

    I have to file a bust request which costs $50 regardless of what happens. They might adjust the price, cancel the order, or do nothing.

    Once again, official open 20.18, HOD 20.59 my fill: 21.88.

    I also bought round lot shares in another account (Scottrade) which filled at the opening print.


    Thanks
     
  2. Bob111

    Bob111

    where trade take a place? at which exchange? exact time? nbbo at that time?
    they are right about few things-odd orders have no priority,can be traded thru them. and official open...it can be anywhere,not even close to what you going to get in real life(nasdaq).
    that's why i do not trust "systems" where open price is involved
     
  3. empee

    empee

    I used IBs smart router, it took place at 9:30:01 on NSX; as note they don't let trades execute until the primary exchange opens. Does anyone know what the case is for odd lot orders?

    HOpefully def can shed some light on this situation.
     
  4. Try not to do odd lots of stocks <$50.
     
  5. Bob111

    Bob111

    Def is from HK office,probably don't know much about US exchanges, but my experience with IB trading desk is positive most of the time. they do know stuff and they are really trying to help you.
    very unlikely bust request will be honored, also-double check the fees.nasdaq can charge up to 500$ per request on top of IB fees

    http://www.nasdaqtrader.com/Micro.aspx?id=ObviousErrorPolicy
     
  6. empee

    empee

    how long does it usually take to find out about a bust request?
     
  7. Bob111

    Bob111

    probably within an hour or so.
     
  8. then you haven't had enough experience with other brokers. They are no different - in fact, they probably have LESS capability than IB.
     
  9. empee

    empee

    well, they said the trade stands. Does anyone see a HOD of 21.88 for DGIT today, out of curiousity.
     
  10. d08

    d08

    Why not submit the order as OPG? That way I've always got the official opening - for the last couple of hundred trades anyway...most have been odd lot. You need to take into account the 2 minute window (must be submitted before 0928 eastern). By sending regular market orders IB doesn't guarantee open and why should they? AFAIK the data vendors (CSI et al) filter out spikes, and I guess 21.88 qualified as a spike - trade was most likely valid.
     
    #10     Sep 12, 2008