IB threatens to close my account

trend2009 · Feb 4, 2011

for the last 4 years, I have generated around 750K commissions for IB, which can buy lots of computers.

Quote from Kevin Schmit:

Wow! "Tens of hundreds." I'd bet they'll be sorry to lose you!

LeeD · Feb 4, 2011

Quote from NetTecture:

So basically do not pu the order into their system until.... the market comes close. Track it on your side. Simply reduce the numbers of changes that ar not going to be exeuted anyway. Consider moving our logic to a hosting center close to them, so you avoid large time delays through internet transfers between them and your computer.

That's the best advice. Why force IB servers to do it when your code can take the load?

Quote from trend2009:

for the last 4 years, I have generated around 750K commissions for IB, which can buy lots of computers.

This is a large commission but I expect IB passed a large part of it to relevant exchanges/ECN. In any case, there is no harm in asking IB if they could wave the restriction for you.

Wayne Gibbous · Feb 4, 2011

Quote from NetTecture:

So basically do not pu the order into their system until.... the market comes close. Track it on your side. Simply reduce the numbers of changes that ar not going to be exeuted anyway. Consider moving our logic to a hosting center close to them, so you avoid large time delays through internet transfers between them and your computer.

Exactly. It's easy enough to monitor the prices for the stocks on your alert list. Just send in limit orders when the price gets "close". It's also much easier to control acccount risk this way and you don't have to send in a bunch of cancelations. At least, it works for me.

Good trading to all.

zdreg · Feb 4, 2011

Quote from LeeD:

That's the best advice. Why force IB servers to do it when your code can take the load?

This is a large commission but I expect IB passed a large part of it to relevant exchanges/ECN. In any case, there is no harm in asking IB if they could wave the restriction for you.

IB has a worthwhile philosophy to not negotiate with customers.

trend2009 · Feb 4, 2011

I think the commission of more than 750k to IB is almost net gain to IB since I usually do not hit other's order.

Quote from LeeD:

That's the best advice. Why force IB servers to do it when your code can take the load?

This is a large commission but I expect IB passed a large part of it to relevant exchanges/ECN. In any case, there is no harm in asking IB if they could wave the restriction for you.

BSAM · Feb 4, 2011

So, what did you do today?

Hurricane · Feb 4, 2011

It can't hurt to ask for an exception. But the bottom line is that IB is indifferent as to why you are sending and cancelling so many orders. They've made a business decision that they don't want to do business with you under the present circumstances and they're free to drop your account. So either change your program or seek out another broker who can handle your business.

NY0BScalper · Feb 4, 2011

Go with a prop firm or a CBSX shop, you can get more margin. 10:1 is absurd. I believe the NASDAQ requirement is 300:1, which you fall into.

candletrader · Feb 4, 2011

Leave IB.

LeeD · Feb 4, 2011

Quote from NY0BScalper:

Go with a prop firm or a CBSX shop, you can get more margin. 10:1 is absurd. I believe the NASDAQ requirement is 300:1, which you fall into.

Are you aware of any prop that offers conditions not worse than IB in any single category? Including 100% payout and your money is yours... you can take all of it out the day you join the prop.

Not to mention being rated with S&P, Moody's or Fitch