Looking to switch from Interactive Brokers to a new broker dealer

def said:
Your comments regarding commissions and routing are incorrect. Fair enough if you want to seek more leverage elsewhere but do get your facts straight if posting.

1. If you choose tiered ("cost plus") pricing, you receive exchange rebates.
2. You state "IB rout[e]s my order to exchanges where they make the most out of" but you omit that for the fixed fee of 1/2 penny a share all exchange fees and rebates are included. More importantly, you leave out IBSmart provides better executions and price improvements than the industry (independently audited). First and foremost obtaining the best price possible for clients is the aim of IBSmart routing.

Furthermore, take a look at the myriad of algos available. You even have the option for IBSmart to look for the best rebate.
https://www.interactivebrokers.com.hk/en/index.php?f=4985
and I quote:

For stocks, clients with the Cost Plus pricing structure can elect to have their non-marketable orders routed to:
  • The exchange with the highest rebate.
  • The listing exchange on the symbol.
  • The highest volume exchange that has a rebate for adding liquidity.
  • The highest volume exchange that charges the lowest fee for taking liquidity.
https://www.interactivebrokers.com/en/index.php?f=1685&ns=T
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Isn't IB a market maker who sets its own prices?
 
profitlocker said:
In regards to stocks, i'm not sure a prop firm is able to provide the same access to inventory and price improvements. I've thought about switching from IB to prop for the leverage alone, but concerned it might just end up just being a wolf in sheep's clothing.
What about execution? I'm assuming most prop routing doesn't even compare to IB. I don't mind paying a little more, as long as I don't miss any trades. I don't scalp
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What are your assumptions based on? Not all props are equal. When you trade prop you are leaving yourself open to risk from the firm, other traders and you have no SIPC and be sure they clear through a reputable firm.

http://www.elitetrader.com/et/index...ppears-with-our-deposit-after-title-t.294886/

http://www.thetimes.co.uk/article/firm-where-flash-crash-trader-first-worked-fails-sl8h87s7p
 
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dealmaker said:
What are your assumptions based on? Not all props are equal. When you trade prop you are leaving yourself open to risk from the firm, other traders and you have no SIPC.
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The additional risk of losing my initial contribution doesn't bother me. What I'd like to know is if there is an equity prop firm that can assure the same, or better execution and inventory than IB offers me. Without that, the additional leverage and lower commission is useless
 
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profitlocker said:
The additional risk of losing my initial contribution doesn't bother me. What I'd like to know is if there is an equity prop firm that can assure the same, or better execution and inventory than IB offers me. Without that, the additional leverage and lower commission is useless
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You do realize that to join a prop firm eg Bright Trading you'll need $50k. At the time that I traded prop some could have ( pre-2013) now I don't know.
 
dealmaker said:
You do realize that to join a prop firm eg Bright Trading you'll need $50k
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So I recently contacted a reputable equity prop firm just for shits and giggles, and asked if they were looking for any traders. They replied "Yes, we are looking for for consistently profitable traders''. I responded with the following:

1. Provide them a 2 year track record
2. Trade my capital only with 100k initial contribution
3. 20:1 intraday leverage
4. Average 7-10 trades a day
5. 95% payout with the potential to get closer to 100% within 1-2 years
6. Also that they provide competitive commission/software/office fees

They completely ignored my response. WTF do they have to lose here? LOL
 
Dude don't even think about Alaric. Alaric trader is going out soon. Lot of issues with there funding. Providing leverage is way too tough for them. The sole reason why a day trader open an account with a prop firm. Leverage and commission. They have now all of sudden started asking for higher commission like a broker and provide leverage like a broker (4:1 intraday). 2:1 overnight. I give it a few months top. Get out people (when you can).
 
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