IB (finally?) admits to matching orders internally

Humble Investor said:
When IB matches orders internally, they won't charge you exchange fees. Actually, I like it when they match my order internally (it doesn't happen very often) because I always get a price improvement on them and no exchange fee. IB internally filled orders are called IBRATS. If you don’t want internal matching, just go to the global configure and uncheck the dark pool option.
More...
I completely agree! Im all for them matching my orders internally. No exchange fees, faster execution - I will happily take their money all day long :D. How do I know if its happening on my account? Do I need to click some buttons in that TWS abomination?
 
Robert Morse said:
What makes you think they don't still charge exchange fees if they find both sides?
More...

I dont know if they do or dont that is why I asked. I didn't even know they took the other side until I read this thread. If it is true then Id like to know if there is a way to identify which trades did not reach the exchange and whether I was charged exchange fees on them.
 
Grantx said:
I completely agree! Im all for them matching my orders internally. No exchange fees, faster execution - I will happily take their money all day long :D. How do I know if its happening on my account? Do I need to click some buttons in that TWS abomination?
More...
Internally matched orders are called IBRATS and no exchange fee is charged, in fact you get rebates.

https://www.interactivebrokers.com/en/index.php?f=1590&p=stocks2

IBRATS is a small dark pool and the probability of getting filled there is very small. In my experience, less than 1-2% of the time.
 
Last edited:
Grantx said:
I completely agree! Im all for them matching my orders internally. No exchange fees, faster execution - I will happily take their money all day long :D. How do I know if its happening on my account? Do I need to click some buttons in that TWS abomination?
More...

You're missing the point, you might not get the best price, commissions are of secondary importance. I've been routed to IBKRATS quite a bit more recently, I assume that's the internal one. There are exchange fees, just a bit lower but not a lot for taking liquidity.
 
d08 said:
You're missing the point, you might not get the best price, commissions are of secondary importance. I've been routed to IBKRATS quite a bit more recently, I assume that's the internal one. There are exchange fees, just a bit lower but not a lot for taking liquidity.
More...
Yeah I guess you are right. What is the reason for re routing orders? What is the criteria or is that unknown? is it simply IB discretion? Not sure Im liking the sound of this after all to be honest.
 
Everyone is overthinking this. You get filled at your limit price, or better, than no problem. I could care less how the broker facilitated it.
 
As long as i am using limit order, who cares. It may be in my favor if others are ahead of me with same bid / ask and I am matched first! Hell if they can match my trades internally at lower price and save the exchange fee and give me a break, i'm for it...
 
And if you're using marketable orders, what then? Price improvement in very different depending on where you're routed.
What if your order is sitting on IB's book while the other venues are filling orders, you'd get nothing. Assuming IB will prioritize you and things will work out fine is not realistic.
I'm not going to assume the worst but as a customer I think IB should be more transparent.
 
You must log in or register to reply here.
Back
Top