WHY DOESN'T Interactive Brokers rebate traders for adding liquidity?????

Discussion in 'Trading' started by beaburt, Aug 29, 2002.

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  1. beaburt

    beaburt Guest

    Why doesn't INTERACTIVE BROKERS rebate traders for the addition of liquidity using certain ECN's, The group I use passes all Rebates back to me, whats up with that?
  2. Why does IB not rebate for adding liquidity to ECNs? My bet is that it is because they actually keep the rebates themselves. Or, perhaps they donate them to charity. Maybe you were expecting me to ask the name of your broker so you could get a shameless promotion in, without actually soliciting/advertising?
  3. Because they don't charge any ECN fees. I love there simple commissions with no BS and no added fees. A penny a share up to 500, and 1/2 a penny after that - nothing else. No ticket charge, no ecn fees, no cancelation fees, no NYSE fees, no software fees, etc. etc. I hope they don't change a thing - unless they lower their commissions even more. There are places that offer the rebate and charge the fees, if this structure is better for you.
  4. exce26


    IB goal is being a profitable business. Why do they wanna give up ECN profit? They will not give up any rebate nor commision discont unless they have to.......
  5. beaburt

    beaburt Guest

    It just seems just and fair that the trader who is in fact responsible for the addition of liquidity would also be entitled to the rebate. Am I missing something here???
  6. beaburt

    beaburt Guest

    These rebates can save you anywhere from .001- .002 cents per share, I would think that fir day traders that would be a significant issue.
  7. No, you are not missing something. What IS just and fair however, is you choosing what broker you want to trade through. Besides, justice and fairness are two different concepts (without getting too deep into semantics). Bottom line, if you do not like IBs Liquidity Rebate policy, either do not open an account or close the one you already have. Better yet, start your own ECN and charge whatever fees the market will support.
  8. Quah


    Yes - you are missing the fact that if you trade with IB, the trader that is responsible for the addition of liquidity *IS NOT* entitled to the rebate.

    Simple as that, no?
  9. Sanjuro


    Hi beaburt,

    I think Don covered this before when people asked
    him why he doesn't rebate traders for liquidity.

    The reason is BECAUSE they don't charge for ECN fees.
    If a broker charges you for ECN pass-through fees
    (in addition to ticket charges) and then rebates you
    part of those fees, would that make you feel better?

    Don made an offer to charge anyone ECN fees and then
    rebate them for liquidity.

    You can't get it any cheaper then IB commissions.
    The only thing lacking is their support.
    Recently, reliability is not as stable as before.

    Good Trading!
  10. beaburt

    beaburt Guest

    Isn't there a law or regulation to stop firms like IB from fleecing its account holders????
    #10     Aug 29, 2002
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