Why IB have this policy ?

Discussion in 'Retail Brokers' started by itisme, Mar 27, 2008.

  1. itisme


    Hi all,
    From IB site (interactivebrokers.com)

    "only the bundled fee structure is available for Non-Smart Routed API orders."

    <=500 Shares USD 0.013 per share min USD 1.30

    >500 Shares USD 0.008 per share min USD 1.00 .

    What is the problem of Non-Smart Routed API orders ?

  2. sarahs


    seems weird
  3. itisme


    Yes it is, the fees is almost the double for Non-SMART routing API orders, which means IB doesn't like it , and the question is why ? what is their problem ?
    I'm guessing it is something related to auto trading. but the question still the same, a big WHY !!
  4. zhexin2


    this is because under smart route, IB can route your order to its own exchange, which is ideal, if I am rignt, thus IB can make money from your order flow.
  5. itisme


    What do you mean by own exchange ? IB is not an ECN
    Also If I'm going to route my order via TWS ( not API ) I'll be charged the regular fees