Is IB the cheapest broker for larger investors trading frequently?

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

  1. I'm sorry but this is not true. You may have direct access to exchanges but according to your 606 report, you are selling your order flow to Lampost Capital and couple of other firms.

    https://us.tradezero.co/manuals/TradeZero-America-Rule-606-Disclosure_Q1-2019.pdf
     
    #61     Jun 6, 2019
  2. tonyf

    tonyf

    I don't care at all if you are a paying sponsor here. Can you be truthful and honest for us to understand? Documentation to support your answers is welcomed.
     
    #62     Jun 6, 2019
  3. qlai

    qlai

    Guys, can you stop this interrogation silliness! Open account with TradeZero and open account with IB. Send orders and see how fast you get filled and with what slippage. That is all that matters. How they make their money should be irrelevant to you. Keep your eyes on the ball.
     
    #63     Jun 6, 2019
    TradeZero_Mike likes this.
  4. ETJ

    ETJ

    Lampost didn't use to be an HFT - did it change? It was pretty much an internalizer(like Madoff and the Cinncinnati Stock Exchange before decimalization) and a router - both of which you can get paid for. None the less you can't violate reg. NMS.
     
    #64     Jun 6, 2019
    TradeZero_Mike likes this.
  5. ETJ

    ETJ

    Reg NMS - or order price protection in stocks.
     
    #65     Jun 6, 2019
    TradeZero_Mike likes this.
  6. tonyf

    tonyf

    Absolutely relevant if they make money at their clients' expense. There are laws in Europe that ban this misrepresentation.
     
    #66     Jun 6, 2019
  7. qlai

    qlai

    You are making an assumption that if the broker charges you commissions, they will not also try to make money on your order? What is important to your TRADING? How do you quantify/measure that? That's all that needs to be answered. Obviously, I am talking about RegNMS securities only.
     
    #67     Jun 6, 2019
  8. TradeZero_Mike

    TradeZero_Mike Sponsor

    Correct, we receive rebates from these venues. These venues are not HFT. They access exchanges, ATS' dark pools and other execution venues that produce best execution for the client. If you are a client you will notice we have a function where you can hide your Bid or Offer or show a specific amount of shares. This is because your Bid or Offer may end up on Nasdaq, EdgeX to name a few. If your order was sent to HFT you would not have the feature. An HFT would give you a price for all your flow and internally execute everything and trade off of your client flow. TradeZero does not send flow to HFT. Remember, the key take away is that TradeZero gets the client the "best execution" possible.
     
    #68     Jun 7, 2019
  9. qlai

    qlai

    Hm, I wish you didn't go there, Mike. Are you saying HFTs have no "best execution" obligation? Who are these mysterious non-hft "venues" you swear by? Will my resting orders go directly to the National Exchanges no matter how far away I place them?
     
    #69     Jun 7, 2019
  10. TradeZero_Mike

    TradeZero_Mike Sponsor

    I am not saying this. I am saying TradeZero does not have relationships to send orders and receive payment from HFT. All execution venues whether HFT, light or dark pools have to abide by Reg NMS. Remember, the ultimate goal is for the client to receive best execution.
     
    #70     Jun 7, 2019