Reducing Interactive Broker trading fees with direct routing?

Discussion in 'Retail Brokers' started by trader112255, Oct 6, 2016.

  1. Hey I've been looking at all the exchanges smart routing routes to from interactive brokers. I see a few options that I could perhaps directly route to to save on the standard $0.003/share exchange fee for taking liquidity (I do market orders at the moment).

    My questions are will these orders be executed at a decent price, or at all? Say I see a top mover like NASDAQ:ALNY which had a couple of scalp/swing trade opportunities for me today. Would I be able to select these brokers and trade directly using them and tiered pricing to reduce my fees?

    iex exchange
    Remove Liquidity 1 Add Liquidity 2
    Trades >=$1.00 USD 0.0009 USD 0.0009
    Trades < $1.00 Trade Value * 0.003 Trade Value * 0.003

    nsx exchange
    Remove Liquidity 1 Add Liquidity 2
    Trades > = $1.00 USD 0.0003 USD 0.0000
    Trades < $1.00 Trade Value * 0.003 (Trade Value * 0.0025)

    nasdaq bx
    Remove Liquidity 1 Add Liquidity 2
    ETF >= $1.00 (USD 0.0006) 4 USD 0.0020 3
    ETF < $1.00 Trade Value * 0.0010 USD 0.0000
    NASDAQ >= $1.00 (USD 0.0006) 4 USD 0.0020 3
    NASDAQ < $1.00 Trade Value * 0.0010 USD 0.0000
    AMEX >= $1.00 (USD 0.0006) 4 USD 0.0020 3
    AMEX < $1.00 Trade Value * 0.0010 USD 0.0000
    NYSE >= $1.00 (USD 0.0006) 4 USD 0.0020 3
    NYSE < $1.00 Trade Value * 0.0010

    nasdaq byx
    Remove Liquidity 1 Add Liquidity 2
    NASDAQ = $1.00 per share (USD 0.0015) USD 0.0018
    NASDAQ >= $1.00 per share, Hidden Liquidity (USD 0.0015) USD 0.0024
    NASDAQ < $1.00 per share Trade Value *.0010 USD 0.0000
    NYSE >= $1.00 per share (USD 0.0015) USD 0.0018
    NYSE >= $1.00 per share, Hidden Liquidity (USD 0.0015) USD 0.0024
    NYSE < $1.00 per share Trade Value *.0010 USD 0.0000
    AMEX >= $1.00 per share (USD 0.0015) USD 0.0018
    AMEX >= $1.00 per share, Hidden Liquidity (USD 0.0015) USD 0.0024
    AMEX < $1.00 per share Trade Value *.0010 USD 0.0000
     
  2. Robert Morse

    Robert Morse Sponsor

    trader112255,

    At Lightspeed Trading, we introduce to Wedbush Securities for custody and clearing. Lightspeed uses our relationships for routing. In addition to DMA, we also offer a smart route that will avoid the maker/taker fees during trading hours. In fact, we can offer both so you can choose on each order, what is best for you.

    Bob
     
  3. bln

    bln

    Isn't direct routing more expensive? SMART routing goes through their market making venue Timber Hill, thus this order flow get a lower commission than direct exchange.
     
  4. Sig

    Sig

    There isn't really a good answer to your question because it depends so much on what you're trading. In general the prices on the various venues reflect the benefits and costs of trading on those venues, it's a basic no risk arb situation that prevents any major imbalance. It could be that in some combination you're better off, but all you can do is give it a try with real money to find out.
     
  5. I suspect many ETers "default to" other brokers because of small required minimum account sizes. What does Wedbush require?
     
  6. Robert Morse

    Robert Morse Sponsor

    I know it is for options, as they lose control of some of the PFO
    Reg-T= $25,000 USD
    PM= $175,000 USD
    Futures= $25,000 USD
     
  7. Thanks I would switch but I don't have 25k for trading yet. Lightspeed may be my upgrade path. I am in Canada and Interactive Brokers allowed me to open an account with 7k and I can still daytrade.

    Thanks I did not know this, if it was less than 0.003/share that would definitely help. I was comparing the 300k discount with tiered which is 0.002/share right, so if you can get routed for less than 0.003 then its savings.

    I agree I will probably just try it out and see for myself thanks. Right now I'm fixed so its 0.005/share
     
  8. Robert Morse

    Robert Morse Sponsor

    We can't do Canada.
     
  9. Why do you have to weigh in on every thread about a competitor with your own promotional material? It shows tremendous insecurity. Don't worry: If anyone has questions about your firm, I'm sure they will create a thread for it.
     
    zdreg likes this.
  10. Uhhh, because he's a Sponsor and you're not? Write a check to Baron and you can promote Shadetree Capital all you want.
     
    #10     Oct 8, 2016