How much does quality of order execution matter for SPY options which mostly have $.01 wide spreads? Is IB more likely to fill buys at the bid and sells at the ask than a place like Optionshouse?
So your idea of "quality of order execution" is buying at the bid and selling at the ask? You will not get a penny discount on those options - the odd order might get filled but 95% of the time it will sit unfilled.
well the implied question is if there are any benefits to switching from optionshouse to IB if the spreads of the options I trade are only 1 cent wide.
It doesnt matter. And the beauty is that you can give up that half cent from mid price and get an instant fill. What is more important is to stick to a platform you like or are comfortable with; and other things like margin efficiency, other charges like exercise fee etc. Regards! -gariki