Price improvement with IB

Discussion in 'Interactive Brokers' started by Option Trader, Aug 14, 2006.

  1. Maybe you missed this, but IB did solve this problem by providing each customer a choice as to whether to exclude NYSE from SMART's routing decisions, and also from your market data lines. Please don't make it sound like IB-SMART has a limitation which it does not actually have in reality.
    #31     Aug 14, 2006
  2. The point is that one first has to lose opportunities before it even dawns on him that smart route isn't gonna do the job, then everytime he places a trade from then on he has to go through this sequence.
    #32     Aug 14, 2006
  3. IBsoft

    IBsoft Interactive Brokers

    The 5 cent rule had been added a while ago.

    When a better price is displayed by another market center, the Smart router should send the order there and not to NYSE or NYSE-NX.

    Please try again. Thank you.
    #33     Aug 14, 2006
  4. excuse moi but did i say 'u get executed at a better price' or 'there's a better price'[?]
    #34     Aug 14, 2006
  5. i thought many times ib will match the nyse best bid or ask internally with a timberhill fill?i trade threw a few prop systems were you can direct orders quickly to any exchange and believe me if a nyse stock is moving going threw nyse takes forever with terrible fills. but many times if you route threw arca or inet the fills are even worse as the spreads are wider there. i really think ib's nyse fills are better than any prop fills i've seen were the orders can be directed. why not set up an arca key with ib so if there's shares there you can bang it?
    #35     Aug 14, 2006
  6. i keep arca and island ladders ready and armed side by side together with smart...if the spread becomes attractive and there's shares available i hit 'em. u can also populate your tws with the stock tradin' @the ecn of your choice.
    #36     Aug 14, 2006
  7. Out of curiosity, I just went through my logs. Out of my ~900 option orders filled this year, 40 received price improvement. 39 at BOX, 1 at CBOE, 0 at ISE.
    #37     Aug 14, 2006
  8. That's about 4%. Bitstream claims if they would have been routed to BOX, it would have been a DRASTIC difference, and IBsoft says it would make NO difference.
    #38     Aug 15, 2006
  9. #39     Aug 15, 2006
  10. u get better prices at box for the obvious reason they are quoted in pennies...i mean this is simple math and likely is that u get a full tick price improvement vs a few pennies?

    your stats are similar to mine and they tell the tale about box.
    #40     Aug 15, 2006