Interactive Brokers introduces free zero commission trading platform.

helpme_please said:
INdeed. It targets the Robin Hood market. This Lite plan is only available to U.S residents and not international customers of IBKR who are not eligible for Robin Hood.

If Robin Hood is a listed company, the price will crash double-digit on this announcement. IBKR is big giant which is not to be trifled with.
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Awww... Only available to us residents? Missed that in the fine print?
 
qlai said:
As hard as proving their current execution any better.
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Good point!

If IBKR is confident to feel a commission-free alternative, it means they're confident their execution is good enough to retain existing customers. So, execution cannot be too bad.

How do other members of this forum feel about IBKR's price execution? I feel it's quite good but I cannot scientifically test how good it is compared to IBKR's competitors.
 
comagnum said:
Commission free trading is bad for the retail trader. A market maker (HFT) trades against you when filling the order, this significantly increases your trading costs & will jeopardize getting full order fills consistently.

Every retail trader considering using commission free should read this document. In fact they should know this like the back of their hand.
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Always use limit orders & all their "games" are eliminated. Orders will fill at your limit price. Partial fills only if you pick the exact high/low. SL may get "slipped".

UPDATE:
Just noticed on their website that:
"Order Type & Algos" = "Limited"
"Conditional Orders" = "No"

***Not sure what their definition of these terms are but if that means no "limit orders", then they're going to make the $$ on the spread so I wouldn't consider it "zero commissions".

BTW, IB already has very low commissions on stock trades compared to most brokers so not a huge savings if already using IB.
 
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Bum said:
Always use limit orders & all their "games" are eliminated. Orders will fill at your limit price. Partial fills only if you pick the exact high/low. SL may get "slipped".
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Was about to say...if you are a buy and hold investor and occasionally put in a limit order, then execution quality should not matter.
 
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Bum said:
Orders will fill at your limit price...
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Yes, if the order is filled. In a fast move, your order may be jumped and you are dangling in the wind.

Limit guarantees a price, but market guarantees a fill.
 
Bum said:
Always use limit orders & all their "games" are eliminated. Orders will fill at your limit price. Partial fills only if you pick the exact high/low. SL may get "slipped".
More...

Just limit orders isn't enough. Smart-router at IB will give price improvement over the bid-ask spread generally. Limit orders resting on an exchange can benefit from smart-routers that re-route if they see it's marketable on another venue.
 
This won't help IB much imo. The free commission rate is only for stocks/etf.

Other platforms offer free commission for stocks & options

IE FirsTrade, TradeZero, Robinhood, etc

Why would someone looking for free commission trading go with the limited IB
 
ya no kidding. this is a joke

no tws, no api, and only zero commissions on stock.

maybe this is just a first step but no serious trader will consider this.
 
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