Newbie asks: IB -vs- TS6

T

toad57

candletrader, in another post said:

I am not stressing a comparison with IB, since IB executions are not integrated with analytics and IB executions for scalping are not viable... IB is great for swingtrading, and the commissions are difficult to beat (for retail); for scalping, the only valid comparison is with an integrated platform (scalping with IB is done at your own peril!), such as MB Trading and Cybertrader... when compared with these hardcore scalping platforms, Tradestation's cost and analytics package seems to be a quantum leap forward... what matters for scalping is an appropriate trade-off between cost, execution and analytics, so a direct comparison with IB is not warranted for this form of trading (since IB cannot be used for scalping, as IB order entry doesn't cut it)...
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I've been going over some of the advanced order features of TS6 and they sound interesting, but it appears unless you have a high volume (+150K shares/mo) with TS you have to pay a base data fee of $99.95 per month, right?

For newbie me (1 to 4 trades per day, round-trip duration 2 to 15 minutes, 100-200 shares per trade) how is this a better deal than IB?

Considering my typical 'round trip duration', is IB really that bad for execution (using BEST order routing)? 2 minutes isn't exactly a scalp, or is it?

I am trying to balance my current desire to keep fees low against the 'advanced order features' that TS6 is touting. Obviously, down the road when I'm trading 3K shares at a time such advanced features may become more important.

Comments from the pros out there?

Mr Toad
 
I've been going over some of the advanced order features of TS6 and they sound interesting, but it appears unless you have a high volume (+150K shares/mo) with TS you have to pay a base data fee of $99.95 per month, right?

For newbie me (1 to 4 trades per day, round-trip duration 2 to 15 minutes, 100-200 shares per trade) how is this a better deal than IB?

Considering my typical 'round trip duration', is IB really that bad for execution (using BEST order routing)? 2 minutes isn't exactly a scalp, or is it?

I am trying to balance my current desire to keep fees low against the 'advanced order features' that TS6 is touting. Obviously, down the road when I'm trading 3K shares at a time such advanced features may become more important.

Comments from the pros out there?

Mr Toad
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Toad, sorry, it's Mr. Toad to me,

I use both TS6 and IB. First off, TS6 is $99/Month, but IB is $10/Month, not $0.

As you may be aware, IB has no realtime charting capabilities, so if you are into that, you will need a secondary charting program, which is not free. In addition, IB's realtime quotes _SUCK_BIG_, so add that to your list (most charting programs come with the realtime feed, but again, you now incur more fees.)

In addition, I do not agree with the poster above that IB is bad for scalping. IB's quote _SUCK_BIG_, so you _MUST_ use a secondary provider of realtime quotes. As far as execution goes, if you are trading NASDAQ, and you whack the bid or take out the offer (which is what (momentum) scalpers do) you will be executed before you can lift your finger off the keyboard. For listed stocks, the isssue is more complicated, but it is not so much because of IB, but because the specialist is king of his domain.

A trade that is on for two minutes may or may not be a scalp (by my definition anyway) The important thing about a scalp is your mindset going into the trade. Although, two minutes, in my book, almost certainly qualifies it for a scalp. _HOWEVER_ you say you are going to trade 1-4 times a day, with 100-200 shares? Are you just trying to get your feet wet?

IMHO, the best way to figure out if trading is for you is to go to a prop firm like Bright/Echo/Worldco ansd get training. Then start trading the way you say, but full time. IMHO, part time trading is ok if it is a hobby, but I am not sure you will "get it" with this "one toe in" approach.

To answer your question, TS6 is a full platform for trading. IB is just an order execution platform. If you had asked the question two days ago, I would have unconditionally suggested IB _WITH_SOMETHING_ELSE_FOR_YOUR_QUOTES. Now, TS6 or Pointdirex are strong contenders.

nitro
 
I guess I should have been more clear:

  • Yes, I'm a beginner
  • I already have separate quotes and charting- I am only looking for a good order entry system

Thank you for your informed opinion.

Mr. Toad
 
Originally posted by toad57
I guess I should have been more clear:

  • Yes, I'm a beginner
  • I already have separate quotes and charting- I am only looking for a good order entry system

Thank you for your informed opinion.

Mr. Toad
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What sorts of "advanced" order entry capabilities are you referring to/interested in that TS6 has over IB?
 
the globex futures data on the TS order entry screen should be different to the futures data on the charting setup since globex supply two different feeds - one for trading platforms and one for charting and data delivery - does anyone know what TS use the their order entry?
 
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