In past postings, Iâve mentioned the subject of IBâs poor platform performance but Iâve never stressed my personal feelings regarding its Globex functionality. Well, Iâm about to change all that. IT SUCKS! IMHO, IB should only be a back-up broker, at best, used strictly for offsets.
IB quotes are perennially slow in comparison with my data feeds and the software I predominantly execute on. For a long time these observations were purely anecdotal but Iâve since done side-by-side comparisons between J-Trader and TWS. These tests were conducted since Sept. at various times throughout the trading day. Iâve compared quotes and executions transmitted at the same moment on identical DSL and cable connections as well as alternating these lines. Time after time, IB came out the loser.
IBâs quotes consistently lag, due in part to a slow rate of refresh Iâd assume. Executions are inconsistent. Delays were most often apparent from the âtransmissionâ to the âworkingâ phase, but can manifest during confirmations, as well. These delays can make the difference between a limit order being filled properly or at all and it can create significant slippage on market orders.
The worst, of course, is IBâs unnerving ability to hang an order. In these situations, TWS gives no indication that the order has been received and is âworkingâ. It simply âhangsâ in a âtransmittingâ state. Now this type of situation wouldnât normally present a problem except for those instances when I cancel the order after the market has traded some distance away form my intended entry. Now comes the fun part. The cancel âhangsâ in a âtransmittingâ state, as well. According to the TWS colors the order is now neither âworkingâ nor âcancelledâ. Itâs in Cyber Limbo. An unacceptable number of minutes pass as I wait on hold for the IB trade desk and the order continues to hang in a âpendingâ state.
Ironically, only during those instances when the market trades back through my entry and begins moving against me does the platform suddenly become operational. The order confirmation springs to life, although, according to TWS, IB never received the order in the first place. In those instances when the market has continued in my favor, the trade desk has simply informed me that there was an error and no fill occurred. I can assure you that I have never been on the best end of this type of situation. While this is rare and not nearly as prevalent a problem as the others Iâve sited, it is the most suspicious and infuriating.
While others may object to my comments, and claim that I am illustrating situations that are not common to most IB customers, I can only speak to my own experience. An experience that through time and testing has more than convinced me that IB has a long way to go before it can realistically compete, in terms of itâs speed and reliability over Globex, with the other brokers I use. In fact, it seems to be somewhat of a joke to other professionals Iâve spoken with.
IB may offer marginally lower RT rates, but I can guarantee you that those minuscule savings have more than been eaten away by its piss poor quote and execution capabilities. I believe that if other futures traders were to perform the same tests, that they would run, not walk away form IB as a primary broker. At the very least, a trader should do his own comparisons to evaluate what he may be missing.
I can firmly say that I have never regretted my decision to drastically limit my trading with IB. In fact, if you consider IBâs virtually non-existent, apathetic customer support and a trade desk that youâll likely have difficulty getting through to in a timely manner during an emergency, then I can safely say that I have actually profited by it.
As Iâve said, Iâm sure others will have objections, particularly def. I would like to say that I have the utmost respect for def. I am simply relaying my experiences. Unfortunately, they have almost exclusively been negative.
