Is IB the cheapest broker for larger investors trading frequently?

[eastern_warrior]

I am not saying this. I am saying TradeZero does not have relationships to send orders and receive payment from HFT. All execution venues whether HFT, light or dark pools have to abide by Reg NMS. Remember, the ultimate goal is for the client to receive best execution.

Keep it simple. Do you receive payment for orders because your 606 says you do...

Material Aspect of Relationship with Venue
Payments received from Lampost Capital average less than $0.0003 per share Charge from APEX average 0.0003 per share with 50% profit-sharing
Payment received from Cboe EDGX Exchange, Inc. averaged 0.00265 per share Payment received from SageTrader, LLC average less than 0.0025

 

[bawr]

I can see that Vanguard goes to USD 2 if you have more than USD 500.000 invested in their ETFs/money market funds.

I wouldn’t expect Vanguard to sell order flow. Does anyone know whether Vanguard sells order flow?

Apparently they do. Vanguard customer orders are routed to Citadel, VIRTU (Knight), G1 (Susquehanna) , UBS, Citigroup, etc. You can look up SEC Rule 606 reports for Vanguard and other brokers here:

https://vrs.vista-one-solutions.com/sec606rule.aspx

 

[Humble Investor]

Almost all firms sell their order flows. Only IB doesn't. Small firms can't survive without it, it is a big chunk of their revenue.

https://www.interactivebrokers.com/en/index.php?f=563
https://www.interactivebrokers.com/en/index.php?f=44074#section-pfof-drop

 

[GrowleyMonster]

Tony, are you aware that you can trade commission free? We can provide you with a professional grade trading platform along with $0 commissions. We route to exchanges like NSDQ, EDGX and others, as well as dark pools. https://www.tradezero.us/pricing

If you would like more control over your orders, we can also provide you with a rate of .001 per share +/- all routing fees/rebates. There is no per trade minimum and we can provide you with "take" routes and rates that total .001 per share or less.

Maintaining a balance $50k entitles you to our Platinum level service where the monthly platform fee is waived, you have a Series 7 account liaison that will handle your account, 5% discount in intraday locates and much more, https://www.tradezero.us/Platinum

Do you support Linux users? Just curious. Not talking about webware... talking about actual Linux ports of the desktop trading platform. So far I have only found IB and TDAmeritrade to do so.

 

[tonyf]

Almost all firms sell their order flows. Only IB doesn't. Small firms can't survive without it, it is a big chunk of their revenue.

https://www.interactivebrokers.com/en/index.php?f=563
https://www.interactivebrokers.com/en/index.php?f=44074#section-pfof-drop

Vangard is not small i would say

 

[Sig]

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.

How, exactly, would auto liquidation of customers positions have changed the outcome of MF Global? They universally hurt customers and do nothing to make IB any "safer". Your chances of losing a significant amount of money when IB autoliquidates you on a position that is literally impossible to lose more money on than your margin (like some spreads "the algorithm" chokes on) are very real and it's happened to many of us. The chance you lose money on an MF Global is very small, the chances that it was not caused by malfeasance on the part of the broker is even smaller. The chances that autoliquidation eliminates the chance of that... infinitesimally small! Sounds like someone has drunk the IB kool-aid.

 

[ETJ]

Is the issue accepting payment - rebates - ATS fees - maker/taker fees - reciprocal trading agreements or routing to HFTs. Or is it both. IB in their 606 specifically states they don't sell to brokers and uses a "Smart Router". That's just a synonym for self clearing. Does not really address the issue of routing fees paid by venues or MMs. Most genuine institutions will "avoid" interacting with any form of fees, rebates or reciprocal trading agreements. Part of the reason the 606 will be revised in late 2019 or 2020.

 

[Maverick2608]

I said our per trade rate is better if you trade more than 2250 shares.

If you trade more than 1mm shares a month, our rate is $0.0025/share, min $0.25. That matches the blended rate at IB for 1mm shares and our min is lower.

What is the minimum at the larger than 250,000 shares category?

Thanks.