Is IB a Bucket Shop

Is IB a bucket shop?

  • IB is a bucket shop

    Votes: 19 18.3%

  • IB is not a bucket shop

    Votes: 64 61.5%

  • IB can be both

    Votes: 21 20.2%
  • Total voters
    104
Quote from hoodooman:

I was talking to a broker/trader last night who said that all brokerage houses were bucket shops, i.e., they take the other side of your trade.

I told him he was wrong because IB was one broker who would route your order to other ECN's.

Then he got loud and bad tempered and that ended the conversation.

So what do you think?
More...

Ask him again and see if he gets loud and bad tempered again.
Then ask him why he is getting loud and bad tempered.

It would be interesting to hear his story. Unless he is ranting and
raving so loudly you can't hear his story.

He might just have some kind of mental problem...:p
 
Quote from walterjennings:

I am not 100% familiar with how all this works. The reason I would have an issue with IB taking the other side of my positions is that they then have an interest in seeing my trades fail. Its like a doctor owning the graveyard next door :p I am unsure if there is anything they could actively do to make or break my trades (maybe something to do with hunting stops and limits). or possibly forerunning or making sure they get the other side before they decide on which price they will give me my side at. but it would make me feel better if they didn't have a stake in my trades.

On the other hand I do like the idea of faster execution of over the counter securities provided by them taking the other side. So I am sitting on the fence in this issue.
More...



LOL, another way to look at it is, if IB does take the other side of your trade, and it is executed quickly, get out, but I guess it comes down to your trading.
 
Here out of 2,000,000 shares/month... about 2.2% print SMART...
Though I suppose that does not rule out arrangements with ECNs.

For example, IB often routes to Island instead of AMEX...
And the Island order is Dead On Arrival...
Whereas it would have a good chance of fill on AMEX.
What is the deal with that?

But the interesting thing is that the average share size that prints SMART...
Is much less than average size NYSE or any ECN.

IB has some kind of sophisticated strategy...
Where they peel off about 200 shares from very select trades.
 
Actually...
The routing issue is probably related to "unbundled" pricing...
Which pretty much forces you to use only SMART.

Like... right now...
I CANNOT route an order for a particular stock to the AMEX...
IB will NOT route the order... just sit on it and freeze it.

But if I route SMART...
It goes to Island... where chances of execution are near zero.

But this is quite rare...
And a small price to pay... for those great "unbundled" rates.
 
IB even pays for order flow from other brokers; so obviously IB customers' orders will be routed to IB/Timber Hill.

But I don't see anything wrong with the above unless YOU were trying to buy at the bid OR sell at ask, but the trades of IB customers were being routed to the exchange where Timber Hill places their bid/ask, instead of to you. As to the answer to this question (at least about options), see http://www.elitetrader.com/vb/showthread.php?s=&postid=1263185#post1263185
 
Quote from Option Trader:

IB even pays for order flow from other brokers; so obviously IB customers' orders will be routed to IB/Timber Hill.

But I don't see anything wrong with the above unless YOU were trying to buy at the bid OR sell at ask, but the trades of IB customers were being routed to the exchange where Timber Hill places their bid/ask, instead of to you. As to the answer to this question (at least about options), see http://www.elitetrader.com/vb/showthread.php?s=&postid=1263185#post1263185 [/

IB doesn't pay for order flow. stop passing false information.
More...
 
to be fair, as far as my experience goes, it just cannot be even be close to a bucketshop: when i had timber fillin' me trades i was doin' much better than now and when i was goin' trough my worse period timber just disappeared and was never to be seen again. i am really wonderin' why on earth i never get a fill there with all the trades i make. i mean, if they make a mkt what are the odds?
 
You must log in or register to reply here.
Back
Top