Home > General Topics > Trading > WHY DOESN'T Interactive Brokers rebate traders for adding liquidity?????

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

  1. 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. 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.......
    :cool:
     
  5. 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. 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. 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. 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. Isn't there a law or regulation to stop firms like IB from fleecing its account holders????
     
  11. If you trade alot of volume and you are an active liquidity adder, wouldn't the rebates add alot to your performance.
     
  12. Not sure, probably not though. How about you research it and update us, oh say, next month about this time, with any information you find? Sounds good to me.
     
  13. It would also be just and fair if they charged for taking away liquidity and charged ECN fees like most other brokers. Every time I hear about another broker that is supposed to have commissions as low as Interactive Brokers I check it out. By the time I work my way through their convoluted fees and charges, they are much more expensive for the way I trade. IB has a very simple structure that apparently is profitable for them, and is very easy for their customers to deal with. I probably add liquidity more than I take it, but I still much prefer the simple commissions - I can execute wherever I want, whenever I want, and know exactly what my commissions will be.
     
  14. Are you asking us or telling us? Aren't you supposed to be shamelessly self-promoting your firm? You had better work harder.
     
  15. IB is definitely not the cheapest commission structure out there, what planet are you guys from?
     
  16. That is a joke!!!!!!!
     
  17. Well, who is then?
     
  18. I think "beaburt" is a message board auto responder. I think they call them trolls. Notice he does not respond to any posts.
     
  19. There are firms that offer all in rates with liquidity rebates, and sub 1 dollar rates on options, deal with that IB, Cybercorp etc, it is simply the truth!!!!!!!
     
  20. I will second that. Who is cheaper for less than 1000 shares of stock?
     
  21. I look for these firms. Please tell me who because I have never found one. If you don't want to post the names for some reason, please send me a PM.
     
  22. I don't believe in taking advantage of innocent traders, they should be entitled to liquidity rebates and low transaction costs
     
  23. This thread has been closed because of numerous complaints about beaburt. This thread will be deleted shortly.