T
teenie_weenie
Im sure def can give a more accurate answer, but...
I believe IB started in equities about Sept/Oct 1999 timeframe.
I believe IB started in equities about Sept/Oct 1999 timeframe.
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D
def
IB started offering equities and options to the retail investor in Sept/Oct of this year. However, IB has been offering equities, options and futures to it's institutional client base since 1995.
You are correct about the web site. Originally it was designed with futures in mind. Within a week a so expect a much more informative and new design which will make it easier to navigate and provide the information you demand.
Orders are handled a number of ways depending on the exchange and trading system. All stocks and futures are electronically executed. We route to a number of ECN's as well as selectnet. Recently Instinet was added. An algorithm routes to the market with the best market at the time an order is sent. If not filled or partially filled within X number of seconds it is sent elsewhere.
Equity options are a bit different. If an order qualifies (size) for auto execution, we route to the exchange with the best price. If not, we have brokers in most option pits with handheld computers. The order goes directly into the put and the order is worked by the broker.
The only way to offer the commissions we charge is to automate the process as much as possible. What may interest you (read it while you can as I am not sure how much will be on the revamped site) is a little background on the company).
The links are www.interactivebrokers.com then click on about IB (where executions are explained) then click on about THG which tells a bit about Timber Hill. I also recommend clicking on the HISTORY button on that page as it may give you an idea why the chairman of the company is dedicated to level the playing field.
Hope this answers a few of your questions.
You are correct about the web site. Originally it was designed with futures in mind. Within a week a so expect a much more informative and new design which will make it easier to navigate and provide the information you demand.
Orders are handled a number of ways depending on the exchange and trading system. All stocks and futures are electronically executed. We route to a number of ECN's as well as selectnet. Recently Instinet was added. An algorithm routes to the market with the best market at the time an order is sent. If not filled or partially filled within X number of seconds it is sent elsewhere.
Equity options are a bit different. If an order qualifies (size) for auto execution, we route to the exchange with the best price. If not, we have brokers in most option pits with handheld computers. The order goes directly into the put and the order is worked by the broker.
The only way to offer the commissions we charge is to automate the process as much as possible. What may interest you (read it while you can as I am not sure how much will be on the revamped site) is a little background on the company).
The links are www.interactivebrokers.com then click on about IB (where executions are explained) then click on about THG which tells a bit about Timber Hill. I also recommend clicking on the HISTORY button on that page as it may give you an idea why the chairman of the company is dedicated to level the playing field.
Hope this answers a few of your questions.
M
meanyme
def, thank you for your reply. One thing that has impressed me about IB is the responsiveness -- your help desk has always been prompt and considerate and very good. Also, recently, when I requested a funds withdrawal, I was pleasantly surprised when I got a call from IB explaining when the money would be remitted. I didn't expect that level of service. IB's customer service, the great order-entry software, and the product breadth (stock, futures, options, exchanges in other countries) , and of course, the low commissions make IB really interesting and worth another try. Thanks again.
A
ArchAngel
def - thanks for the info. About the equity option trades, it sounds like you make the determination of which exchange to route the order to in a "best price" manner.
However, there are many times when I am seeking to split the spread with a limit order that I find it advantageous to override the automatically determined exchange and send the order to an exchange on which my price will be more attractive.
Likewise, being able to control the routing makes it possible to take advantage of interexchange pricing differences which I did yesterday on MSFT put options.
Any plans to permit trader override of the exchange to route the order to? Same question for equities - can a trader indicate how to direct the order (and what are their options) or must they exclusively rely on your algorithm?
Also, is there support for automatic trailing stops and stops on options contingent on the underlying as well as the premium. Does your system support OCO orders?
On the futures front, do you support OCOs and contingent orders (e.g., when my buy stop fills, automatically initiate a sell stop at fill price - X)?
Thanks a lot.
However, there are many times when I am seeking to split the spread with a limit order that I find it advantageous to override the automatically determined exchange and send the order to an exchange on which my price will be more attractive.
Likewise, being able to control the routing makes it possible to take advantage of interexchange pricing differences which I did yesterday on MSFT put options.
Any plans to permit trader override of the exchange to route the order to? Same question for equities - can a trader indicate how to direct the order (and what are their options) or must they exclusively rely on your algorithm?
Also, is there support for automatic trailing stops and stops on options contingent on the underlying as well as the premium. Does your system support OCO orders?
On the futures front, do you support OCOs and contingent orders (e.g., when my buy stop fills, automatically initiate a sell stop at fill price - X)?
Thanks a lot.
D
def
You specify the exchange by the way you load the market on your screen. In other words you can turn off best execution for options and equities. I won't go into details how to do it here.
At this time there are no automatic trading stops contigent on the underlying or the premium. We do have one cancels all for institutional accounts and I'll have to check about retail. We do not have contingent orders you mention on futures. We encourage direct interaction with the market place. However, our software is constantly being updated, innovated and I wouldn't rule out such additions in the future.
At this time there are no automatic trading stops contigent on the underlying or the premium. We do have one cancels all for institutional accounts and I'll have to check about retail. We do not have contingent orders you mention on futures. We encourage direct interaction with the market place. However, our software is constantly being updated, innovated and I wouldn't rule out such additions in the future.
M
meanyme
ArchAngel, thank you for the advice. I really appreciate your input because I've been reading your posts for several months and I have learned a lot from you. I know you're right about quality of execution being more important than commission rate. At this point though, I don't have the experience to trade 1000 shares at a time. Actually, it may turn out that I don't have the ability or mental stabliity to trade at all. In the meantime, while trying to seperate the reality from possible delusions about my trading ability, I will generate around $200 a day, or $1000 a week in commissions at Datek's $10 rate. So, right now, trading 100 shares, commission rates are important to me.
Thanks again for taking your time to reply.
Thanks again for taking your time to reply.
K
kobuk
I'm considering tryin IB for simple stock trading.
I read this page...
http://www.daylighttrading.com/dirty.htm
...and decided I might do far better at IB.
Waterhouse is definitely scalping my orders on both the buy and sell.
Now I wonder just what the heck goes on during all that time I'm sitting there bug eyed looking at my monitor
at my pending execution like an ignorant fool.
Plus they are a browser-based broker, and therefore a big pain in the ass to do fast trades with.
But I can't say Waterhouse is bad.
They are just not for swing or day trading.
Most all of these browser-brokers are scalping and not executing the best trades that benefit the customer and not just themselves.
IB seems ideal for a trader not yet into Nasdaq Level 2 and that level of skill.
I want to enjoy trading without scalping slippage and fighting the slow browser page load times.
If anyone can say they use IB to trade stocks with a reasonable level of satisfaction, I would consider giving them a try.
have a good one....
...kobuk
I read this page...
http://www.daylighttrading.com/dirty.htm
...and decided I might do far better at IB.
Waterhouse is definitely scalping my orders on both the buy and sell.
Now I wonder just what the heck goes on during all that time I'm sitting there bug eyed looking at my monitor
at my pending execution like an ignorant fool.
Plus they are a browser-based broker, and therefore a big pain in the ass to do fast trades with.
But I can't say Waterhouse is bad.
They are just not for swing or day trading.
Most all of these browser-brokers are scalping and not executing the best trades that benefit the customer and not just themselves.
IB seems ideal for a trader not yet into Nasdaq Level 2 and that level of skill.
I want to enjoy trading without scalping slippage and fighting the slow browser page load times.
If anyone can say they use IB to trade stocks with a reasonable level of satisfaction, I would consider giving them a try.
have a good one....
...kobuk
T
trader22
I have been using IB for a few weeks. I'm somewhat disappointed with its execution for limit orders between the spreads. I have never had any success with getting limit orders between the spreads filled. They only get filled when it becomes marketable - sell equals bid or buy equals ask. With other brokers, if my limit order is not immediately marketable, it gets displayed as new bid or offer on NASDAQ within a few seconds. Suppose XYZ stock is trading at 50 X 50 1/2 and I enter an buy order for 50 1/16, the new market should be 50 1/16 x 50 1/2 reflecting my higher bid. I have yet to see this happen with IB. Once I wait several minutes and my new bid never showed up, so I just canceled it. Am I doing something wrong? Anyone with similar experience trying to cut spreads on equities?
Z
zboy2854A
That doesn't sound good to me. If you entered a limit order in between the spread, your order should have shown up on Level II as the new inside bid. Of course, that's still no guarantee that you'll get filled, but you should have shown up on LII. The fact that you didn't says that either IB is doing payment for order flow, or they have something screwy with the ECN(s) they use. You need to find out what ECN's they route an order to, so you'll know what to look for on Level II if you enter an order. With the low commissions they charge, it sounds like you get what you pay for.
K
kobuk
What trader22 did not say is what impresses me the most.
He did not say the system boggs down like E-trade.
Or checks were lost like Datek.
Or it took 3 minutes for an order confirmation like Waterhouse.
If the "real" TWS software is as fast and easy to use for trading stocks as the "demo" version was, then I think I can enjoy trading again.
It's just that simple for me.
I really do not enjoy trading.
Right now whenever a great looking stock spikes down and a great buy suddenly appears, I have to nearly jump outta my chair, flip thru 6 browser pages, type a username and my password (twice), and then triple check that all my typing was correct.
...all that bs, and then more bs as my trade gets emailed to scalpers and I loose the best possible execution.
Timber Hill seems to be into a heck of alot of trading all over the world, and they seem to have a handle on a great deal of complexity.
My bet is if they say they are giving IB traders direct access trades, than that means the best price, and not scalped trades run thru orderflow brokers.
Timber Hills' reputation on WallStreet would suffer greatly if they said one thing and actually did another.
My guess is reputation is everything on WallStreet, and once you loose it your screwed.
My only concern is can I enjoy trading using IB.
Is it even close to being consistantly reliable.
To me that is everything.
Does the TWS software get the job done without to many surprises.
I would like to hear from trader22 if he can trade with the TWS software with 90% or better results as far as botched trades, hung up cancel orders, or executions that take over 3 minutes.
Can he relax and enjoy trading.
If so than I'm impressed.
Right now I consider myself very lucky at Waterhouse if just 50% of my orders go thru as expected.
Usually there is always some catch.
...the browser page times out, or I get asked 3 times for my password not two, or the trade takes well over 90 seconds for a variety of other reasons.
To anyone currently using IB, I would very much like to know if you are enjoying it and if you are satisfied,
...and not stressed out at 4pm like I am when I use my Waterhouse browser-broker.
Please email me at:
kobukvalley@usa.net
Or reply on this board for all to hear.
.......merry Christmas
...kobuk
He did not say the system boggs down like E-trade.
Or checks were lost like Datek.
Or it took 3 minutes for an order confirmation like Waterhouse.
If the "real" TWS software is as fast and easy to use for trading stocks as the "demo" version was, then I think I can enjoy trading again.
It's just that simple for me.
I really do not enjoy trading.
Right now whenever a great looking stock spikes down and a great buy suddenly appears, I have to nearly jump outta my chair, flip thru 6 browser pages, type a username and my password (twice), and then triple check that all my typing was correct.
...all that bs, and then more bs as my trade gets emailed to scalpers and I loose the best possible execution.
Timber Hill seems to be into a heck of alot of trading all over the world, and they seem to have a handle on a great deal of complexity.
My bet is if they say they are giving IB traders direct access trades, than that means the best price, and not scalped trades run thru orderflow brokers.
Timber Hills' reputation on WallStreet would suffer greatly if they said one thing and actually did another.
My guess is reputation is everything on WallStreet, and once you loose it your screwed.
My only concern is can I enjoy trading using IB.
Is it even close to being consistantly reliable.
To me that is everything.
Does the TWS software get the job done without to many surprises.
I would like to hear from trader22 if he can trade with the TWS software with 90% or better results as far as botched trades, hung up cancel orders, or executions that take over 3 minutes.
Can he relax and enjoy trading.
If so than I'm impressed.
Right now I consider myself very lucky at Waterhouse if just 50% of my orders go thru as expected.
Usually there is always some catch.
...the browser page times out, or I get asked 3 times for my password not two, or the trade takes well over 90 seconds for a variety of other reasons.
To anyone currently using IB, I would very much like to know if you are enjoying it and if you are satisfied,
...and not stressed out at 4pm like I am when I use my Waterhouse browser-broker.
Please email me at:
kobukvalley@usa.net
Or reply on this board for all to hear.
.......merry Christmas
...kobuk