Anyone used Interactive Brokers ? ?

  • Thread starter Thread starter teenie_weenie
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Anyone is using Interactive Brokers or had any comments ? ? (www.interactivebrokers)
They have a trading platform that you download. Low commission fees (1$ minimum and 0.01$ per share). Don't have SOES or ISLD or SNET for a daytrader, but for swing trading could be perfect.
Please would appreciate any comments or reviews
 
T

teenie_weenie

I am investigating right now. Seems they have no phone clerks at all! I am going to open an account. Will report back.
 
Well... They definitely make you take an annoying on-line exam to determine knowledge of stuff. I had to do an annoying online options exam that really added no value, though did put some of their disclaimers right in front of you. They are a private company, and are self-clearing. Will have to investigate if their capital base exists, or whether they are fly-by-night. Probably dont have too big a short list since they are relatively new to stocks. Also seem, initially, thinly staffed. I guess if I finally figure out that they are a bona-fide company, then I will have to evaluate whether or not they have a stable enough platform, esp. since they may have no phone backup for computer death. They clearly recommend having a backup execution system in place. So how many places will I have to post margin
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I am already in the process of opening various accounts. Actually Ill post that on a new heading
 
teenie: Don't envy you all these new accounts. I've been through Waterhouse, ETrade, Fidelity, MBTrading, Preferred and Investrade. None are perfect, although the latter 3 are pretty good. The whole process is a hassle, no matter how you do it. Good luck.
 
I just opened an account with Interactive. Hard to believe they are so cheap. Anyone used them with success? Hope I'm not disappointed.

 
I had a stock account briefly with Interactive Brokers but closed it after the first attempted trade: I entered a limit order to buy; shortly after I entered the order, the stock moved up quickly away from my price; when it was trading 3/4 of a point above my price, I tried to cancel the order. After twenty minutes, no cancellation yet, so I emailed the help desk. Fifteen minutes later, it was still an open order and the stock price was still moving higher. I felt no chance of being filled but wanted to know what I might be doing wrong. So, I called their 1-800 number, and response time was immediate, but they said they were working on getting an answer from the exchange. In the meantime, the stock price dropped briefly to my buy price, but not below. It was now over 1 1/4 hr. after entering the order and there was a possiblity that now it was filled. Finally, a few minutes after the close, and more than two hours after entering the order, I received an email (my choice that they email and not phone me)which had the cancellation confirmation.
After talking with a friend who has more experience trading than I do, which is not much, I closed the account. My friend said that IB is selling orders to other firms--that is how they make money--and that is why my cancellation was hard for them to track down. My friend suggested closing the account before it cost me a lot more than the low commission. From my point of view, I have some regret about closing, because I really liked their order entry software and the low commission. Maybe I should I have given Interactive Brokers more of a chance. Any opinions?
 
If they really are selling the order flow (which is often the case with cheap commission brokers), you're better off without them.

Pay a higher commission and save yourself the pain and cost of having your order sold to someone who's scalping you.

If they're not selling the order flow, you need to know exactly how they route your order and how they can relly get you the best price across all execution forums - since that's what it's all about.

In the big picture, commissions are peanuts and the last thing to worry about. Get fast, quality fills at the best price and let the commissions take care of themselves.

Remember, paying as little as 1/16 point more on 1000 shares because someone is scalping your order actually costs you $62.50. Suddenly, that cheap commission isn't so cheap.
 
Interactive Brokers does NOT sell order flow. My guess is that the problem with your order was with the way NASDAQ market makers can hold onto orders for up to 3 minutes. Issues like this have and are being resolved by IB. If you traded options or futures with the IB system it would be clear that your order is not being sold to another broker. The system is designed to provide the best executions possible. (I am biased as I work for the firm, but I beleive if you spend some more time with the system - you should will be quite satisfied).
 
Since you work for IB, can you tell us when IB started offering equity and equity option trading?

It's only been the last couple of months since any of that kind of trading was reflected on the website - the website previously was completely focused on futures and futures option trading.

Also, one of the previous posters indicated that there was no SOES, ISLD, or SNET routing selections - where do the orders get routed and how do you get the best price? The website is kind of vague about this (or at least I couldn't find it).

Same question regarding equity and index options - is there trader control over exchange selection and routing and is the execution electronic (to the extent supported by the four option exchange systems).

Thanks.
 
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