IB ratings on elitetraders (what its going on?)
- Thread starter trader578
- Start date
There is always a reason why someone would say or is saying that IB is the best or the contrary.
The ones that like IB, do it because the features, the low commissions are helping them greatly in their trading.
For the ones who have only negative comments about IB, it may be because they blowed their accounts (due to high leverage as example) and are then blaming the broker, when they were the ones who made the mistakes.
One interesting aspect to see in the threads recently is that when someone makes money, it's his or her achievement and the broker who helped them is forgotten. But when someone forgets that leverage works in both ways and can induce heavy losses, then it's 'of course' the broker's fault.
Not to forget, that one direct option IB's competitors can't use is to highlight the different features, services, prices between them and IB.
Why? Imagine as example an Etrade TV ad in which they compare themselfs to IB.
The pitch would be like : come to Etrade!
You will pay only a flat fee for 6,99- 9,99$. Ok at IB you will pay only 1$ , but don't expect any service. (Flat fees are mainly interesting for penny stocks, but not if you buy 100 shares of a XYZ stock)
What would Joe, Tom, Bob, Jane, etc do?
Probably say :"wait a minute, on 100 trades, that would make a saving of 599-899$ !"
So who would be deserted: IB or Etrade, Ameritrade, etc in droves like the basher(s???) love to say.(Some people don't have a static IP adress, so it's easy to post under several names)
When a broker writes in an ad, that you would pay as example 6$ for a trade, it means in practical terms, that the second you enter an order you lost 6 bucks. So to get those $s back, the stock or derivative should go in the direction you chosed, even if it is only for a fraction of a percent. The point of trading or investing in general is naturally to earn money, right? Not lose money.
When you have to pay a lot more as commissions, what do you do when the instrument you trade on doesn't go in your direction : you wait and hope? Instead of having cut your loss very, very short.
The ones that like IB, do it because the features, the low commissions are helping them greatly in their trading.
For the ones who have only negative comments about IB, it may be because they blowed their accounts (due to high leverage as example) and are then blaming the broker, when they were the ones who made the mistakes.
One interesting aspect to see in the threads recently is that when someone makes money, it's his or her achievement and the broker who helped them is forgotten. But when someone forgets that leverage works in both ways and can induce heavy losses, then it's 'of course' the broker's fault.
Not to forget, that one direct option IB's competitors can't use is to highlight the different features, services, prices between them and IB.
Why? Imagine as example an Etrade TV ad in which they compare themselfs to IB.
The pitch would be like : come to Etrade!
You will pay only a flat fee for 6,99- 9,99$. Ok at IB you will pay only 1$ , but don't expect any service. (Flat fees are mainly interesting for penny stocks, but not if you buy 100 shares of a XYZ stock)
What would Joe, Tom, Bob, Jane, etc do?
Probably say :"wait a minute, on 100 trades, that would make a saving of 599-899$ !"
So who would be deserted: IB or Etrade, Ameritrade, etc in droves like the basher(s???) love to say.(Some people don't have a static IP adress, so it's easy to post under several names)
When a broker writes in an ad, that you would pay as example 6$ for a trade, it means in practical terms, that the second you enter an order you lost 6 bucks. So to get those $s back, the stock or derivative should go in the direction you chosed, even if it is only for a fraction of a percent. The point of trading or investing in general is naturally to earn money, right? Not lose money.
When you have to pay a lot more as commissions, what do you do when the instrument you trade on doesn't go in your direction : you wait and hope? Instead of having cut your loss very, very short.
I have used many On Line Brokers. You can read my review in the broker review section, it is objective and not biased. Currently I only Day Trade with Ib and MB . I used Datek when I first Day Trading part time in 1998 . When I did it full time I started with Cyber Trader , then went to MB and then opened an account with IB. I have never had Trade issues with IB , quote issues were very few.
If you read the last 10 or 15 IB ratings...
Half of them are spammer rants.
This proves ET allows SPAMMING of the Broker Ratings.
Therefore...
The brokers ratings now have ZERO credibility with me.
I'm surprised some large broker hasn't sued the ET owners...
Or the NASD hasn't asked questions...
Because this place is out-of-control.
Half of them are spammer rants.
This proves ET allows SPAMMING of the Broker Ratings.
Therefore...
The brokers ratings now have ZERO credibility with me.
I'm surprised some large broker hasn't sued the ET owners...
Or the NASD hasn't asked questions...
Because this place is out-of-control.
This seems like a fun way to kill a few minutes on a Saturday afternoon, so here goes.
Here's MY ratings for IB. Note: I am not a past or present IB client; all ratings are based on reading, hearing, seeing, and thinking. Additionally, I am a futures trader, not stocks, so my opinions are based on the needs of trading futures. My guess is this will be the most honest "rating" of IB seen here on ET in a long time...
Quote and Execution Speed... 3
Standalone, the execution category gets a 3. For regular trading hours (of a given instrument) no problems other than mentioned below regarding data. There does however, seem to be issues regarding execution outside of regular market hours. Additionally, there is an auto-liquidate feature which begins at approximately 3:45pm EST on normal trading days. For US-traded instruments, auto-liquidate occurs regardless of instrument, exchange, or exchange-created trading hours. This topic bleeds into an accounting issue, too complex for this overview. As I stated above, my interpretation is based on futures.
Standalone, quotes gets a 3. I admit there is some confusion on my part as to whether or not IB has fully implemented and made available a true tick-by-tick data feed. This change, if it is fact, is very new; within the past 2 months or less. The data feed API definitely uses the previous feed which is not tick by tick and is known to have missing ticks. This data feed is said to be extremely stable in almost all market conditions;due to it not being tick-by-tick, bandwidth is minimalized. Of more significance, and critical for execution, is the SMART order route, which is the default order route, uses the same data feed. A delayed or otherwise inaccurate quote is known to produce inappropriate or inferior order routing, which can affect execution and even fees. Of course, if your instrument and order type is acceptable on multiple routes you can specify a specific route.
Range of services ... 5
IB is one of the few places retail traders get access to worldwide markets. If you only trade US instruments and/or instruments on one of the widely available international exchanges such as Eurex, this doesn't mean anything, and maybe IB offers some other feature or service beneficial for you.
Training and Tech Support... 1
The only information I have about this category is from ET and hearsay from personal contacts.
Commissions and Fees ... 3
They are good. But they are not exceptional by any means. There is a handful of other firms with published rate cards meeting or beating IBs bundled commissions on specific types of instruments or even specific instruments. There are many more firms without published rate cards that will meet or beat through negotiations. IB will not negotiate any aspect of an account.
Overall reliability ... 4
No broker is perfect, and no platform, data feed, customer service, etc, has 100% uptime or is otherwise infallible. Will IB and your account be there on Monday morning? I think yes.
Good trading to all
Osorico
Here's MY ratings for IB. Note: I am not a past or present IB client; all ratings are based on reading, hearing, seeing, and thinking. Additionally, I am a futures trader, not stocks, so my opinions are based on the needs of trading futures. My guess is this will be the most honest "rating" of IB seen here on ET in a long time...
Quote and Execution Speed... 3
Standalone, the execution category gets a 3. For regular trading hours (of a given instrument) no problems other than mentioned below regarding data. There does however, seem to be issues regarding execution outside of regular market hours. Additionally, there is an auto-liquidate feature which begins at approximately 3:45pm EST on normal trading days. For US-traded instruments, auto-liquidate occurs regardless of instrument, exchange, or exchange-created trading hours. This topic bleeds into an accounting issue, too complex for this overview. As I stated above, my interpretation is based on futures.
Standalone, quotes gets a 3. I admit there is some confusion on my part as to whether or not IB has fully implemented and made available a true tick-by-tick data feed. This change, if it is fact, is very new; within the past 2 months or less. The data feed API definitely uses the previous feed which is not tick by tick and is known to have missing ticks. This data feed is said to be extremely stable in almost all market conditions;due to it not being tick-by-tick, bandwidth is minimalized. Of more significance, and critical for execution, is the SMART order route, which is the default order route, uses the same data feed. A delayed or otherwise inaccurate quote is known to produce inappropriate or inferior order routing, which can affect execution and even fees. Of course, if your instrument and order type is acceptable on multiple routes you can specify a specific route.
Range of services ... 5
IB is one of the few places retail traders get access to worldwide markets. If you only trade US instruments and/or instruments on one of the widely available international exchanges such as Eurex, this doesn't mean anything, and maybe IB offers some other feature or service beneficial for you.
Training and Tech Support... 1
The only information I have about this category is from ET and hearsay from personal contacts.
Commissions and Fees ... 3
They are good. But they are not exceptional by any means. There is a handful of other firms with published rate cards meeting or beating IBs bundled commissions on specific types of instruments or even specific instruments. There are many more firms without published rate cards that will meet or beat through negotiations. IB will not negotiate any aspect of an account.
Overall reliability ... 4
No broker is perfect, and no platform, data feed, customer service, etc, has 100% uptime or is otherwise infallible. Will IB and your account be there on Monday morning? I think yes.
Good trading to all
Osorico
That's exactly my point. ET shouldn't allow spammers on this thing.
I personally don't give a shit what other people think about a broker (like in a trade, the choise must be on your own).
I've been in IB, MBT, etrade, ameritrade (former datek) and TS.
I currently held my money at IB despite his rude cust service due to the TWS stability and availability to trade dif products from the same platform.
I guess that IB changing margin on VIX this thursday (and margin on Es last week) has caused many people to hate them hard, but well, days like we had on thursday (on JPY for instance) make the difference without leverage lousy traders and pros.
I personally don't give a shit what other people think about a broker (like in a trade, the choise must be on your own).
I've been in IB, MBT, etrade, ameritrade (former datek) and TS.
I currently held my money at IB despite his rude cust service due to the TWS stability and availability to trade dif products from the same platform.
I guess that IB changing margin on VIX this thursday (and margin on Es last week) has caused many people to hate them hard, but well, days like we had on thursday (on JPY for instance) make the difference without leverage lousy traders and pros.
Like exchanges don't do it all the time...
I get margin change emails almost every other day.
For example..... Thursday....
http://www.cbot.com/cbot/pub/page/0,3181,136,00.html
I get margin change emails almost every other day.
For example..... Thursday....
http://www.cbot.com/cbot/pub/page/0,3181,136,00.html