Are mkt orders 'safe' w/ IB?

[arzoo]

Is it advisable to use market orders with ib? or just like most other brokers, at least the ones I tried, putting market orders will certainly give you a price way off from the best bid or offer u see on screen.

Thanks.

 

[def]

A market order to buy sent via IB (or any broker for that matter) will most likely get you a fill on the offer in the market. From time to time you might get price improvement by:
a: dumb luck > your offer reaches the exchange a fraction of a second before an order with a lower price gets there
b: The TMBR route for stocks has a better internal price;
c: Your order reaches the NYSE specialist who gives a better fill for any number of reasons.

Personally, I avoid market orders and wouldn't ever consider using them unless the market in question is very liquid.

 

[richk]

I heard that market order for futures are well done by IB, but for stocks I do not recommend it generally (too risky in every broker).

 

[praetorian2]

I use 90% market orders at IB. Few complaints.

 

[quicktrader12]

All market orders must be entered with caution. You are at the mercy of the specialist.

 

[mdmbud]

I use market orders for stocks, but not futures...