Breaking: Interactive Brokers lite commission free

Wonderful news! Thank you for posting.
Every time I talk to someone at TD Ameritrade I ask: why don't you offer zero commissions? You are approaching a TRILLION DOLLARS on customer assets. Zero commissions will bring you another half a trillion $. That's the trend.
 
Day early but a dollar short.

Whatever influx they were gonna get, now will be a pitiful trickle

Ya shudda moved sooner IB , much

Now you have to do something for the TWS traders. how about .001 per share with a $1 min.
 
NewTraderAdventure said:
if you think .005 is a LOT better , you must trade 10k blocks all day.

My trading does not depend on 1/2 cent diff in execution, if yours does you're not doing it right

Maybe we at ET can help you improve
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I trade 10k positions sometimes and larger, $3-4 priced shares. So yes, half a cent will make a difference.
I never said my trading depended on it, professionals optimize execution among other things. Trolls troll.
 
Math_Wiz said:
My thinking here is that IB is preparing for the distinct possibility of a transaction tax coming down the pike in the summer of 2021. All three top Dems are promoting a transaction tax. Even Biden! So many traders will be closing their accounts if this passes. IB wants to stay in business of course, so perhaps they are beginning the search for ways to keep their customers if a transaction tax rears its ugly head.
Also, with regards to a transaction tax, if the tax were especially large, such as 0.5%, I'm thinking spreads would widen, volatility would increase, and brokers might actually have to start paying customers for their orders. So instead of you paying $1, for example, brokers would pay you $1. (Or 50c, or whatever). Just saying. A transaction tax seems to me that it would change the entire game.
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I rather think they want a piece of the Robinhood pie, since they already have the infra. Most of the RH clowns won't use the API and other tools anyway. IB might just be able to lure them away.

But with the transaction tax potentially coming, I hope IB does more than this and plans for a fluid CFD market that is much better than the current one. Then run it from UK or some other jurisdiction to circumvent this FTT idiocy. This involves loss of deposit insurance but that's an acceptable risk for many since IB's status is quite stable.
In any case, they cannot offer direct market access and free trades. So they will dramatically change their customer base.
 
ZBZB said:
I hope someone compares fills between IB pro and IB lite on the same stock.
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If you do compare fills, my guess is that the result will be surprising.

DMA does not mean we are not getting fucked by Citadel, Two Sigma, etc. When Citadel pays Schwab $0.0030 per share for limit orders, they pay for the right to be the one to fuck that particular order. If that limit order is posted on an exchange through a DMA broker, the order will get fucked anyway, but Citadel will compete with Two Sigma and VIRTU to be the one getting to do the fucking.

"The retail investor is left with two choices in the current market, pay the spread, or remain unexecuted. Passively bidding for or offering stock for sale is a dead end, the opportunity no longer exists."
http://www.nanex.net/aqck2/4713.html

I am starting to think that this development is good for retail traders. Retail traders at Schwab, Ameritrade and the rest of the pack soon to follow suit already have their orders sold, so removing commission must be a good thing?

The rest of us using IB or other DMA brokers are still getting fucked by Citadel, Two Sigma and VIRTU, so we might as well also take advantage of zero commission?

The zero commission at Schwab and Ameritrade seems to apply also to international customers trading US equities, ETFs and options, so IB probably will follow suit and offer zero commission also for international clients.
 
Maverick2608 said:
If you do compare fills, my guess is that the result will be surprising.

DMA does not mean we are not getting fucked by Citadel, Two Sigma, etc. When Citadel pays Schwab $0.0030 per share for limit orders, they pay for the right to be the one to fuck that particular order. If that limit order is posted on an exchange through a DMA broker, the order will get fucked anyway, but Citadel will compete with Two Sigma and VIRTU to be the one getting to do the fucking.

"The retail investor is left with two choices in the current market, pay the spread, or remain unexecuted. Passively bidding for or offering stock for sale is a dead end, the opportunity no longer exists."
http://www.nanex.net/aqck2/4713.html

I am starting to think that this development is good for retail traders. Retail traders at Schwab, Ameritrade and the rest of the pack soon to follow suit already have their orders sold, so removing commission must be a good thing?

The rest of us using IB or other DMA brokers are still getting fucked by Citadel, Two Sigma and VIRTU, so we might as well also take advantage of zero commission?

The zero commission at Schwab and Ameritrade seems to apply also to international customers trading US equities, ETFs and options, so IB probably will follow suit and offer zero commission also for international clients.
More...

I believe IB has statistically proven they get better fills.

"We provide our clients with a $0.52 per 100 shares stock price execution advantage over the industry."

https://www.interactivebrokers.com/en/index.php?f=1685
 
Cdntrader said:
I believe IB has statistically proven they get better fills.

"We provide our clients with a $0.52 per 100 shares stock price execution advantage over the industry."

https://www.interactivebrokers.com/en/index.php?f=1685
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Yes, this is critical. I wish we knew exactly how they calculate this figure, which is now 0.0043 (also in your link).

Ameritrade claim:
"Net improvement per order: Net price improvement per share ($0.0174) in the order size range comprising the vast majority of our clients’ market orders (1-1,999), multiplied by 100 shares. Total net price improvement by order will vary with order size."
https://www.tdameritrade.com/tools-and-platforms/order-execution.page

What does that even mean? Compared to what? What about limit orders?

This industry thrives on a massive wall of opaqueness.
 
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