Is IB the cheapest broker for larger investors trading frequently?

Robert Morse said:
Good question. I'm not sure. I have never been asked before.
More...

You can guess what the answer to this question is and why most experienced traders prefer a pricing per share vs flat rates.

As to no automated liquidation, I actually prefer that as it lowers your risk from failing. MF Global is still fresh in my mind.
 
Robert Morse said:
We can. We can also offer Per Trade rate of $4.50/Trade, max order size of 10,000 shares. If your average order size is more than 2250 shares, that is better than $0.002/share.

https://www.lightspeed.com/pricing/commission/
More...

That is not true in any shape of form cause you are selling the flow to get a fixed rate and giving HFTs a free back to lean on.

For the OP, the .002 fee you are looking at should also factor in the quality of execution, whether or not you are getting rebates (ie. if you are adding liquidity it is possible to have a negative commission), margin (if used) and interest earned on spare cash to name a few things. You have many factors to consider.
 
eastern_warrior said:
That is not true in any shape of form cause you are selling the flow to get a fixed rate and giving HFTs a free back to lean on.

For the OP, the .002 fee you are looking at should also factor in the quality of execution, whether or not you are getting rebates (ie. if you are adding liquidity it is possible to have a negative commission), margin (if used) and interest earned on spare cash to name a few things. You have many factors to consider.
More...

Very true. i did not want to discuss margin since IB are the most aggressive. Not sure about rebate (I assume they are not very good since I am not seeing much coming my way).
Quality of execution is a bit of a black box where everybody claims to be better. DMA to NASDAQ and the NYSE with access to ARCA and the likes is sufficient for me. Latency is another unbenchmarked black box.

Hence why commission per trade seems to be the best objective factor in my view.

What are your thoughts regarding IB's second tier?
 
tonyf said:
Very true. i did not want to discuss margin since IB are the most aggressive. Not sure about rebate (I assume they are not very good since I am not seeing much coming my way).
Quality of execution is a bit of a black box where everybody claims to be better. DMA to NASDAQ and the NYSE with access to ARCA and the likes is sufficient for me. Latency is another unbenchmarked black box.

Hence why commission per trade seems to be the best objective factor in my view.

What are your thoughts regarding IB's second tier?
More...

It think it is quite good and I my experience with execution is excellent. I like the transparency put out each month on the investor relations site where a breakdown on execution cost is provided. Other brokers don't do this and you have to assume it isn't so favorable to them. I also trade globally and need tight FX and access so I'm a fan but it will depend on what you trade and need but don't discount access to dark pools and all the other venues.
 
eastern_warrior said:
It think it is quite good and I my experience with execution is excellent. I like the transparency put out each month on the investor relations site where a breakdown on execution cost is provided. Other brokers don't do this and you have to assume it isn't so favorable to them. I also trade globally and need tight FX and access so I'm a fan but it will depend on what you trade and need but don't discount access to dark pools and all the other venues.
More...

Saw you reply to that other thread regarding the 8 dark pools IB has access to.

Dark pools (very much like latency) is a black box that we are not able to use for bench marking purposes it seems.
 
You must log in or register to reply here.
Back
Top