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IB's BEST market orders
- Thread starter o10maximus
- Start date
Originally posted by Eldredge
Vikana,
I thought BEST would avoid SUPERSOES if an ECN was on the inside. Have you had trouble with this? BEST seems to be back to normal except it isn't showing where the order is working. As long as fills are fast, I guess that's what matters.
I actually don't know how it is supposed to work. I just know that when I used BEST on AMAT and a couple of other large cap NASDAQ stocks I got terrible fills (see posts above). No such issues with best_ecn. So I'm just going to stick with best_ecn. I usually get filled on ISLD or ARCA, which is what I'd expect.
Vikana,
Not to belabor the point, but BEST wasn't up to snuff at the end of last week. I trade AMAT every day, and once in a while SUPERSOES comes in handy. BEST seems to be back to normal now (except that it isn't showing where the order is working). That being said, I doubt that you will see any difference between BEST and BEST_ECN very often on a stock like AMAT (assuming everything is working properly). Good luck with the NAS stocks - I have trouble with NYSE.
Not to belabor the point, but BEST wasn't up to snuff at the end of last week. I trade AMAT every day, and once in a while SUPERSOES comes in handy. BEST seems to be back to normal now (except that it isn't showing where the order is working). That being said, I doubt that you will see any difference between BEST and BEST_ECN very often on a stock like AMAT (assuming everything is working properly). Good luck with the NAS stocks - I have trouble with NYSE.
AUTOMATIC EXECUTION AND PRICE IMPROVEMENT: Electronic
Communication Networks ("ECNs") and exchange automatic
execution systems generally execute orders instantaneously
at the posted bid or offer, rather than routing orders to
a specialist or a trading crowd for manual handling. Wherever
possible, when an IB customer selects "Best Execution" or
"Best ECN" routing, IB routes eligible customer orders to
exchanges and market centers currently offering automatic
execution of orders. While automatically executed orders
do not have an opportunity to be executed at a price better
than the market center's posted bid or offer, automatic
execution of customer orders is faster and more certain than
other methods of execution and eliminates execution of orders
at prices inferior to the prices posted at the market when the
order was routed to it. IB believes that use of the IB Best
Execution System to route orders to the exchange or market
center with the best posted price, combined with automatic
execution, provides IB customers overall with the most
favorable order execution.
PAYMENT FOR ORDER FLOW: IB does not generally accept
payment for order flow for stock orders. An exception
exists, however, for certain orders routed to the Island
ECN. Island pays subscribers, such as Interactive Brokers,
a rebate of $.0010 (1/10th of 1 cent) per executed share
for orders that add liquidity to the Island book. This
rebate is credited against the fees charged by Island
to execute other orders.
IB receives order flow payments in varying amounts from
U.S. option exchange specialists and/or market makers
pursuant to the mandatory marketing fee programs that
have been adopted by the exchanges and approved by the
SEC. Receipt of payment for order flow under these
exchange programs plays no role in determining where
IB routes non-directed customer orders.
Originally posted by TriPack
Island pays subscribers, such as Interactive Brokers,
a rebate of $.0010 (1/10th of 1 cent) per executed share
for orders that add liquidity to the Island book
At some point in my past, I know I used a broker that was passing through all the ECN fees. At the time, I thought the rebate was $0.0025. Does anyone use one of these brokers now, and can you tell us what the rebate is there? I'd be surprised if IB isn't getting the best deal.