Is NBBO guaranteed with Interactive Brokers' SMART routing?

E

elitetradesman

Are all market orders and marketable limit orders guaranteed to be filled at NBBO with SMART routing at Interactive Brokers?

If not, will checking off Seek Price Improvement on Trader Workstation Configuration do it?

Thanks.
 
Quote from elitetradesman:

Are all market orders and marketable limit orders guaranteed to be filled at NBBO with SMART routing at Interactive Brokers?

If not, will checking off Seek Price Improvement on Trader Workstation Configuration do it?

Thanks.
More...

No one will ever use that word "guaranteed. " market can always change.
 
Quote from 1245:

No one will ever use that word "guaranteed. " market can always change.
More...

http://www.investopedia.com/terms/n/nbbo.asp

Doesn't SEC require NBBO on brokerages?

Anyways, my concern is whether IB will fill my marketable orders at the best price they can find.

For example, if my trading program places a marketable limit buy order at $10 for a stock when the best offer IB can find is $9.75, will IB fill my order at $9.75, or will IB route it to a preferred dealer that will fill it at $10?
 
Quote from elitetradesman:

http://www.investopedia.com/terms/n/nbbo.asp

Doesn't SEC require NBBO on brokerages?

Anyways, my concern is whether IB will fill my marketable orders at the best price they can find.

For example, if my trading program places a marketable limit buy order at $10 for a stock when the best offer IB can find is $9.75, will IB fill my order at $9.75, or will IB route it to a preferred dealer that will fill it at $10?
More...

they are required to fill your order at the best available price at that time. No trading through other markets.
 
Quote from elitetradesman:

http://www.investopedia.com/terms/n/nbbo.asp

Doesn't SEC require NBBO on brokerages?

Anyways, my concern is whether IB will fill my marketable orders at the best price they can find.

For example, if my trading program places a marketable limit buy order at $10 for a stock when the best offer IB can find is $9.75, will IB fill my order at $9.75, or will IB route it to a preferred dealer that will fill it at $10?
More...

you are missing a BIG number of variables here. and again-there is no guarantee of any kind..re read IB's disclosure
 
Quote from elitetradesman:

http://www.investopedia.com/terms/n/nbbo.asp

Doesn't SEC require NBBO on brokerages?

Anyways, my concern is whether IB will fill my marketable orders at the best price they can find.

For example, if my trading program places a marketable limit buy order at $10 for a stock when the best offer IB can find is $9.75, will IB fill my order at $9.75, or will IB route it to a preferred dealer that will fill it at $10?
More...

IB's SMART routing will seek the best available price. Take a look at the independently audited price improvement stats on our site which speak for themselves. If in doubt of the execution quality, I'd suggest doing a side by test against your current broker and stick with the one that comes out on top.
 
Quote from def:

IB's SMART routing will seek the best available price. Take a look at the independently audited price improvement stats on our site which speak for themselves. If in doubt of the execution quality, I'd suggest doing a side by test against your current broker and stick with the one that comes out on top.
More...

def- Can you provide any further clarity on the "Seek Price Improvement" option in TWS? My understanding is that SMART orders access dark pools regardless of this option being checked, but the number of dark pools that see the order is increased when SPI is on....is that correct? If so, do you have any numbers on additional latency or price improvement that users see when using this option? Basically just looking for some information that will help to make an informed decision on whether to use it or not.
 
Quote from jtrader33:

def- Can you provide any further clarity on the "Seek Price Improvement" option in TWS? My understanding is that SMART orders access dark pools regardless of this option being checked, but the number of dark pools that see the order is increased when SPI is on....is that correct? If so, do you have any numbers on additional latency or price improvement that users see when using this option? Basically just looking for some information that will help to make an informed decision on whether to use it or not.
More...


what he means is that smart routing will look to fill your order if it's marketable at the best price (their claim, not mine). if it doesn't execute, they'll park it somewhere, hand it to their market making arm, and mug you when shares trade through you on any other exchange.

payment for order flow. if you've place a limit order that hasn't executed, you won't get filled until ib's "partners" are guaranteed a slice.
 
Quote from elitetradesman:

http://www.investopedia.com/terms/n/nbbo.asp

Doesn't SEC require NBBO on brokerages?

Anyways, my concern is whether IB will fill my marketable orders at the best price they can find.

For example, if my trading program places a marketable limit buy order at $10 for a stock when the best offer IB can find is $9.75, will IB fill my order at $9.75, or will IB route it to a preferred dealer that will fill it at $10?
More...

http://www.scotiabank.com/itrade/en/0,,3969,00.html

Please learn the differences between order types.

Limit order guarantees price but not execution. If you place a pending buy order above the current market, it becomes a stop order, unless you have a stop limit order (which in this case you would need to get hit first)

in your example, you are placing buy stop limit at @10. if the offer is 9.75 when you place that order, there has to be a trade at $10 for your buylimit to get activated. and your buy limit would then activate at $10. So you would not get 9.75. If you did market buy, then you may get 9.75
 
You must log in or register to reply here.
Back
Top