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The transaction would be risk free. I'd say that Timber Hill losing $22M while having access to captive order flow from IB indicates that apparently IB group hires the same quality employees across the enterprise and not just in their "customer service" division, but I have a chip on my shoulder...

I always wondered where sle had worked:) On that note, I'll leave the thread to those who have firsthand experience in the subject!

That's true, although I'd say that's more true of those with an old-school view of trading and not SIG, they've got some MBAs on their executive team and liberally sprinkled throughout. I think the feeling was a bit mutual until recently when the more data driven version of trading we have today...

And your chances of getting into SIG given that you've gone to HBS are even greater! In all seriousness, to add to what Bob pointed out, just go to their website and look at the representative example of traders they've hired. They all went to top quant schools like MIT and Carnegie Mellon and...

In general you're completely correct, although I'd throw in that you have to clear the risk free rate to be true risk-free arbitrage. I don't have a concrete example to get the hat on this one, but one potential example, especially now with Timber Hill leaving IB, would be opportunities to be on...

There are professional traders trading binary options with expirations of less than 30 days. There are entire exotic options desks at all the big investment banks that do nothing but this. And that's what they're banning, just to be specific, not bucket shops. They intended to ban bucket shops...

Why wouldn't these kind of trades be busted?

IB does have better margin rates than anyone. There are plenty of brokers who can meet or beat their commissions, see Bob's comment above. The rest are pretty subjective and I don't know what you're referring to with "free algos", an API? You may very well be someone with a combination of needs...

Like I said, different outlook in life. Take it easy.

This post is rational, you admit IB has issues but they're the only game in town. Fair enough, you didn't feel the need to personally attack anyone who dared criticize them or make shit up about how great they are. That behavior is the baffling part I'm questioning. I will note that I once...

I guess we just have a different view of the world. In my world I expect my broker to maximize value for me on fills. If I put an order in at .37 but it's possible to get a better price I'd like to expect that to happen. If IB is doing something that benefits themselves to their customer's...

This defense of IB and personal attacks on the OP are almost religious in their zeal! You've got Humble Investor entirely fabricating not just a "fact" but an entire story about the pious IB who fought a brave battle against their shareholders (Here's a quote from one of their own filings...

If IB shopped your order to all the dark pools you may very well have been filled at .35. You'll never know, because they never showed your order. To be honest, you can be unhappy with behavior that provides suboptimal fills for customers no matter how you're doing in the market. Most of us...

See the problem is that you have no idea if IB gave you a "price improvement". It may have been an improvement on your limit order, or an improvement on the NBBO. But you might have also gotten a better price if they'd shopped it to all the dark pools, so by internally matching it they actually...

I see EasyJet is as generous with the help they offer their partners as they are with the seat pitch and service they offer their customers!

Well it wasn't an arb once you include transaction costs, but well done nonetheless.

I run a business that uses credit reports. There's no reason aside from some kind of comeuppance for me to stop using Equifax. The breach didn't impact the quality of their data and if hackers use the hacked info to open credit under the names of innocent consumers it will impact all 3 credit...

Pekelo and cdcaveman bring up a good point. Whoever sold that to Pekelo was was getting a $10 loan for 18 months and paying only $.05 interest plus their transaction fees, that's a .3% interest rate!

There are risk free arbitrage opportunities in the market. They last microseconds before they're picked off by programs that have been written for the sole purpose of finding and exploiting those opportunities. Even more important from your perspective, is transaction costs. What you're really...

You're making a persuasive qualitative argument for diversification. If you'd bought pieces of 500 NY buildings, instead of one particular NY building, you'd have been fine, to extend your example.