IB vs Questrade (9.95$max commission) and order routing question

Questrade sells your orders flow to High-Frequency Traders(APEX, Citadel) and is nowhere near as capitalized as IB. The only thing Questrade has going for it is access to the CSE exchange with Interactive Brokers doesn't have yet except for Liquidation orders.

Disclosure: I used to work at Questrade
 
IB has a formula for rebates, you can do quick math to see. I've done it for my trading and came up with a <1.0 multiplier that I use for commissions forecasting in my models. Basically, I consistently pay a fraction of the listed price. But you will need to do your own math on that. Depends on a few things.

When is comes to execution quality comparison - unfortunately, no one here will share this with you. Mostly because most people don't do such comparison and simply don't know, those who do - keep it to themselves. That kind of quality information is very hard to get and it can make or kill your strategy and that might be part of your edge.

Like someone else suggested - there are some edge case trading scenarios when it is indeed might be better to go with another broker. Maybe that's a case for you.

If is really anyone's guess what you gonna lose on executions quality. One penny difference might cost you the commissions benefit plus some. But if you end up trying - let us know how it goes.

Val

Thanks for your reply. Yes you are right. I don't have that much of a big capital (hopefully one day!) and even if I do I think I will stay with IB

Cheers :)
 
Questrade sells your orders flow to High-Frequency Traders(APEX, Citadel) and is nowhere near as capitalized as IB. The only thing Questrade has going for it is access to the CSE exchange with Interactive Brokers doesn't have yet except for Liquidation orders.

Disclosure: I used to work at Questrade

Thanks for your honest reply. Yes so in the end bad execution fill from PFOF will result in higher costs
 
Thanks for your honest reply. Yes so in the end bad execution fill from PFOF will result in higher costs
Also compare the ECN fees as well. IB passes on the cost to clients and offers rebates. Questrade marks up the ECN fees by almost 3x and passes on 0 rebates except to 2 HNW clients.
 
Also compare the ECN fees as well. IB passes on the cost to clients and offers rebates. Questrade marks up the ECN fees by almost 3x and passes on 0 rebates except to 2 HNW clients.

didn't know that! Thanks again :)
 
The sale of order flow can make a huge difference over a large set of orders over time on price improvement and execution quality. It is the same reason why most active clients choose SMART routing over firms that offer free commissions. For an extreme example, read the cases against Robinhood which are in the news and discussed on this forum on how they rec'd maximized their payments at the expense of price improvement.

Will you guys be publishing execution stats for LITE vs PRO? I would imagine that would be a powerful marketing tool to pull people away from the exclusively zero comm firms and into IB PRO.
 
There are firms in Canada with a lower cost per share pricing than IB for day traders. If you are just investing or swing trading then IB is probably fine.
 
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