Is IB the cheapest broker for larger investors trading frequently?

Discussion in 'Retail Brokers' started by tonyf, Jun 4, 2019.

  1. tonyf

    tonyf

    You can guess what the answer to this question is and why most experienced traders prefer a pricing per share vs flat rates.

    As to no automated liquidation, I actually prefer that as it lowers your risk from failing. MF Global is still fresh in my mind.
     
    #11     Jun 4, 2019
  2. tonyf

    tonyf

    And am keen to hear about others besides IB and Lightspeed.
     
    #12     Jun 4, 2019
  3. can your platform be used anywhere in the world while travelling?
     
    #13     Jun 4, 2019
  4. tonyf

    tonyf

    all platforms can. This post is not about convenience, tech or customer service. Just about pricing per share.
     
    #14     Jun 4, 2019
  5. That is not true in any shape of form cause you are selling the flow to get a fixed rate and giving HFTs a free back to lean on.

    For the OP, the .002 fee you are looking at should also factor in the quality of execution, whether or not you are getting rebates (ie. if you are adding liquidity it is possible to have a negative commission), margin (if used) and interest earned on spare cash to name a few things. You have many factors to consider.
     
    #15     Jun 4, 2019
  6. Robert Morse

    Robert Morse Sponsor

    Depends on the average order size. IF you do a lot of small lots, per share is better.
     
    #16     Jun 4, 2019
  7. Robert Morse

    Robert Morse Sponsor

    As long as you can download it and have internet access you can use it.
     
    #17     Jun 4, 2019
  8. tonyf

    tonyf

    Very true. i did not want to discuss margin since IB are the most aggressive. Not sure about rebate (I assume they are not very good since I am not seeing much coming my way).
    Quality of execution is a bit of a black box where everybody claims to be better. DMA to NASDAQ and the NYSE with access to ARCA and the likes is sufficient for me. Latency is another unbenchmarked black box.

    Hence why commission per trade seems to be the best objective factor in my view.

    What are your thoughts regarding IB's second tier?
     
    #18     Jun 4, 2019
  9. It think it is quite good and I my experience with execution is excellent. I like the transparency put out each month on the investor relations site where a breakdown on execution cost is provided. Other brokers don't do this and you have to assume it isn't so favorable to them. I also trade globally and need tight FX and access so I'm a fan but it will depend on what you trade and need but don't discount access to dark pools and all the other venues.
     
    #19     Jun 4, 2019
  10. tonyf

    tonyf

    Saw you reply to that other thread regarding the 8 dark pools IB has access to.

    Dark pools (very much like latency) is a black box that we are not able to use for bench marking purposes it seems.
     
    #20     Jun 4, 2019