Quote from vansmarket:
IB makes a majority of it's profit via the SPREAD as a market maker.
just remember that IB and most of brokers make markets as there source of revenue.
trading against the client is how they make money and their computers are programmed to trade that way.
IB has countless ways of exploiting their amateurs Customers...
Ways that do NOT affect Pro Traders.
Pro Traders...
Actually benefit from IB in every possible way.
To use IB's market making as an example...
I only hit IDEAL if they post a better price than the NYSE...
So I benefit every time I execute on IDEAL...
And it's slightly cheaper.
(I have all this information from 3rd parties).
Conversely, IDEAL is used to skin amateurs.
SMART will take an amateur Market Order...
Route it away from the bet Bid/Offer at the NYSE...
And execute it on IDEAL for $0.01 or more LESS...
Unethical but "legal" due to incomprehensible "Best Execution" regulations.
Anyone that thinks their broker is their "friend"...
Needs a brain transplant.