I had looked at both Schwab and IB. Navigating IB was just a mess. Schwab was more intuitive and more like previous daytrading software I have used. I have been using Schwab and I haven't had problems with reliability. The important thing I liked about Schwab was being able to put direct limit orders in on the ECNs.
Bye bye IB, hello Schwab
- Thread starter tonyf
- Start date
In account size there is no comparison. Robinhood has an average account size of like $1000 to $5000. Schwab has a much higher average account size. Most of the experienced traders I know have gone to Schwab. There are many more features. Robinhood is really for the novice traders just doing a trade now and then.
Ok. Same comm.. srructure?
Both offer zero commissions on stock trades.
Something potentially very important in IB's favor:
o Reputation for tight risk management on customer leverage
ie fails of other over-leveraged customers have much lower probability of bankrupting IB and thus your account
IB risk-rates EVERY tradable and periodically reviews the rating, potentially adjusting permitted leverage w/ every review.
Also means that borrow rates are lower than avg, and interest paid higher
I don't know the relative degree to which IB is better than other brokers on this metric, but it seems to be considered substantial.
Have been long-time IB account holder and have found support to be very professional and wait times usually reasonable.
Biggest gripe is layered complexity of TWS, but it does a LOT, w/ some very sophisticated order types and account/position/option analytics. TWS has a software architecture that seems to date from mid 90s at least, likely in Java, and bolted on is a plethora of sophisticated software apps -- it's a Model T body stuffed w/ 21st Cent state-of-the-art components.
Also, a remind that IB offers "IB Lite" accounts for $0 commissions and reduced trading env capab (as well as non-TWS trading GUIs that are much more intuitive). I would expect the same standard of risk mgt on leverage. (The commissioned accounts are "IB Pro" but you don't need to be a Pro to have such an account)
o Reputation for tight risk management on customer leverage
ie fails of other over-leveraged customers have much lower probability of bankrupting IB and thus your account
IB risk-rates EVERY tradable and periodically reviews the rating, potentially adjusting permitted leverage w/ every review.
Also means that borrow rates are lower than avg, and interest paid higher
I don't know the relative degree to which IB is better than other brokers on this metric, but it seems to be considered substantial.
Have been long-time IB account holder and have found support to be very professional and wait times usually reasonable.
Biggest gripe is layered complexity of TWS, but it does a LOT, w/ some very sophisticated order types and account/position/option analytics. TWS has a software architecture that seems to date from mid 90s at least, likely in Java, and bolted on is a plethora of sophisticated software apps -- it's a Model T body stuffed w/ 21st Cent state-of-the-art components.
Also, a remind that IB offers "IB Lite" accounts for $0 commissions and reduced trading env capab (as well as non-TWS trading GUIs that are much more intuitive). I would expect the same standard of risk mgt on leverage. (The commissioned accounts are "IB Pro" but you don't need to be a Pro to have such an account)
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Why not just move half over? Run it for a month. If you save that much, you can move the rest.
Beyond commissions, you do need to worry about execution time (will IB execute your order faster so you get it at the appropriate price, rather than wait so long with another broker that the price has shifted away).
Beyond commissions, you do need to worry about execution time (will IB execute your order faster so you get it at the appropriate price, rather than wait so long with another broker that the price has shifted away).
I have moved less than half - have not found much difference in execution so far but it could be related to the products I trade (illiquid warrants)
Exactly. Most traders don't consider being in the same boat with lots of traders margined to the hilt at a super low margin for futures contracts, during a market meltdown. I do.
As far as the trading interface, they should have purchased Buttontrader when it went out of business. TWS does do a lot though; you just have to make accommodations for it. And as far as I can tell, it is pretty much totally reliable/up now, unlike say, ThinkorSwim, splashy interface aside.