You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
IB Bundled vs Unbundled Pricing.
- Thread starter walterjennings
- Start date
Quote from Bitstream:
that's your freaking choice innit.
No - even when you choose to add liquidity, Smart routing may remove liquidity for all or part of your order and you will pay .005 more than you intended for those shares.
In other words: you place an order to buy at the bid, therefore it's non-marketable and is placed on the INET book (the default for OTC stocks). If your bid is hit, you've added liquidity and you're happy. BUT, if an order at ARCA lowers the ask to your bid price (crossing the market), the Smart router will send your order to ARCA and remove liquidity there.
Quote from palmbeachdude:
I don't think he's saying unbundled won't apply. He's saying that you will get stuck taking liqu, not adding.
Right. The only reason I mentioned unbundled was that a potential solution to the above problem would be to direct the order to INET and then the Smart router wouldn't take liquidity at ARCA - thus any execution would be guaranteed to be adding liquidity. Unfortunately, if you go direct to INET, you don't qualify for unbundled pricing so you're in even worse shape.
Quote from SL65:
Unfortunately, if you go direct to INET, you don't qualify for unbundled pricing so you're in even worse shape.
Wrong. If you execute thru TWS, then you will get unbundled pricing on non-SMART routed orders. If you execute thru the API, then you can exclude ARCA, NYSE, and AMEX from SMART-routing, and still avoid the particular scenario you give.
Anyone know if I limit my smart routed orders not to go to NYSE ARCA and AMEX, will the smart quoted price still include orders on those exchanges?
Quote from jimrockford:
Wrong. If you execute thru TWS, then you will get unbundled pricing on non-SMART routed orders. If you execute thru the API, then you can exclude ARCA, NYSE, and AMEX from SMART-routing, and still avoid the particular scenario you give.
Some months ago, you had a problem with commish on an unbundled trade and said you were going to get back when you got an answer. I never did find out what resolution you got. What I am getting at here is can we trust unbundled or not?
Quote from palmbeachdude:
Some months ago, you had a problem with commish on an unbundled trade and said you were going to get back when you got an answer. I never did find out what resolution you got. What I am getting at here is can we trust unbundled or not?
The problem I had back in February, IB has determined, resulted from IB's failure to update IB's documentation, to reflect changes to ECN fees and rebates. The commission charges were correct, but since I was relying on bad documentation, my expectations and calculations, as to commissions, were incorrect.
I think we can trust unbundled, but based on this and many other incidents encountered by many other IB customers, I think that we need to keep reminding IB that it needs to place higher priority on keeping documentation up to date and accurate.
Quote from jimrockford:
The problem I had back in February, IB has determined, resulted from IB's failure to update IB's documentation, to reflect changes to ECN fees and rebates. The commission charges were correct, but since I was relying on bad documentation, my expectations and calculations, as to commissions, were incorrect.
I think we can trust unbundled, but based on this and many other incidents encountered by many other IB customers, I think that we need to keep reminding IB that it needs to place higher priority on keeping documentation up to date and accurate.
Thanks. I believe that at that previous time, there was also a question about how to asign commish to specific trades for tax purposes. As I recall, there was no breakdown as to what charges went with what trades. Is that still the case, and how do people handle that tax-wise?
Quote from jimrockford:
Wrong. If you execute thru TWS, then you will get unbundled pricing on non-SMART routed orders. If you execute thru the API, then you can exclude ARCA, NYSE, and AMEX from SMART-routing, and still avoid the particular scenario you give.
That would be great but I looked through the API docs again and don't see how to exclude exchanges. Where do I specify what to exclude? Thanks.
Quick question about unbundled pricing. Does a single round trip (1 buy and 1 sell) of a future count as 2 future contracts traded in the unbundled pricing model? so would I just need 150 round trip trades to make the 300 contract mark?