Direct access to IB Servers

Quote from moarla:

i think a simple DSL line for 20EUR/month will do it. If necessary. use a VPN direct conn to IB servers.
More...
If you work for/by yourself, then simple Internet connect like a dsl line is sufficient. But if we are talking a group or office, it behooves you to get a secure line and not get routed over the Internet thru 10 or more different loops before you get to where you are going. If you are hft then a leased line not only makes sense but it necessary. Those loop hops add up.
 
OP, I looked into it and found it to be far more expensive than other options on the street.

PM me if you want any details. Also, FWIW, IB is pretty slow with execution even if you are bundled and have direct access to their execution servers.
 
Can you co-locate with IB?

IF so, why would you not do HFT with them?

If not IB, what other broker would you suggest for HFT?


Quote from dloyer:

If you are doing hft, then you will not use IB and you will be colocated, rather than use a leased line.
More...
 
Quote from Scaramanga:

Can you co-locate with IB?

IF so, why would you not do HFT with them?

If not IB, what other broker would you suggest for HFT?
More...
People who are serious about HFT have direct connection to the exchange(s) that bypasses the broker altogether.
 
Quote from LeeD:

People who are serious about HFT have direct connection to the exchange(s) that bypasses the broker altogether.
More...

Excuse the ignorance, but how is that done? You need a clearing arrangement, right? How does one do that if they are not a b/d? Let's just say that IB is your broker, can you co-locate at the exchange and still clear your trades through IB?

Just curious as to how this is done.
 
Quote from JamesL:

Excuse the ignorance, but how is that done? You need a clearing arrangement, right? How does one do that if they are not a b/d? Let's just say that IB is your broker, can you co-locate at the exchange and still clear your trades through IB?

Just curious as to how this is done.
More...
Well, a broker (the agent that executes trades) and the clearing firm (which does paperwork regarding stettlement and holds deposit for overnight leverage) don't have to be the same company. In fact, a number of clients use IB as a broker (because of access to wide range of markets) but clear through a different firm (there are firms that offer better interest rates and leverage than IB).

If you are an exchange member (remember membership can be leased), you can execute trades in the exchange directly. This set-up originated in floor trading where exchange members were on the floor and traded against each other and anyone else wishing to execute a trade had to call up a floor trader.

If you are trading only your own account (as a person or a firm) you don't need to register as futures commission murchant etc.

An alternative to exchange membership is "unfitered access". In this case orders are still sent via the broker but they bypass checks necessary to establish if the trader has sufficient funds to cover whatever margin is required. This is possible because exchanges often set requiremnts on the overnight margin only and the intraday margin is up to the broker (and can be zero). Bypassing account checks makes substantial difference in speed of access.
 
Quote from LeeD:

Well, a broker (the agent that executes trades) and the clearing firm (which does paperwork regarding stettlement and holds deposit for overnight leverage) don't have to be the same company. In fact, a number of clients use IB as a broker (because of access to wide range of markets) but clear through a different firm (there are firms that offer better interest rates and leverage than IB).

If you are an exchange member (remember membership can be leased), you can execute trades in the exchange directly. This set-up originated in floor trading where exchange members were on the floor and traded against each other and anyone else wishing to execute a trade had to call up a floor trader.

If you are trading only your own account (as a person or a firm) you don't need to register as futures commission murchant etc.

An alternative to exchange membership is "unfitered access". In this case orders are still sent via the broker but they bypass checks necessary to establish if the trader has sufficient funds to cover whatever margin is required. This is possible because exchanges often set requiremnts on the overnight margin only and the intraday margin is up to the broker (and can be zero). Bypassing account checks makes substantial difference in speed of access.
More...


What brokers offer better margin rates than IB?
 
Quote from ecp321:

What brokers offer better margin rates than IB?
More...
As I mentioned, minimum overnight margin is regulated by the exchange. However, intraday margin is entirely up to the broker (and clearing house).

As an example, let's compare Interactive Brokers' initial intraday futures margins to those from another large broker, MB Trading:

Future IB MBT
ES 2,813 1,406
NQ 1,750 875
6E 4,253 1,013

IB: ES 2,813; NQ 1,750; 6E 4,253
MBT: ES 1,406; NQ 875; 6E 1,013


Similarly, other brokers offer better portfolio leverage on equities or equity swaps/NDFs.
 
Quote from WinstonTJ:

Also, FWIW, IB is pretty slow with execution even if you are bundled and have direct access to their execution servers.
More...

Unbundled means IB can do whatever it wants with your order...
Including holding/delaying it 1-2 seconds for any reason...
So I don't see how a leased line helps you much with IB...
But then all kinds of people seem to play out their fantasies here.
 
You must log in or register to reply here.
Back
Top