Over 1 million in capital to trade with???

Quote from Occam:

That's a bit of a non sequitur. So you're changing your tune to "IB's internalization isn't as bad as the other guys'? Not only am I inclined to agree with this, but that was what I said in the first post to which you replied with vehement denials.

Whether "internalization" or "less-bad internalization", in my opinion it's still bad, and indeed you can find dozens of treatises to this very effect dating back over a decade written by none other than IB itself and its founder.

Inherently, there is a potential for conflict of interest in firms that may trade against their own clients at their own discretion, whether you want to call it internalization, "price improvement", or "stardust from the securities fairy". I favor using firms that don't, of which there are a significant number for $1M, high-volume clients, possibly such as the OP of this thread.

def, I admire your loyalty to your employer and, as I said before, I sincerely respect IB and its founder. But I won't be using IB until they either split off the Timber Hill unit under separate ownership or close it down, which isn't really so unthinkable considering how much more competitive the market making space has become in recent months.
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No i'm not changing my tune and the orders are not internalized as you state. The quality of the executions speak for themselves and as stated many times before, the independent audits on execution quality back this up. TH's pricing is independent of anything on the IB side and If you don't want to believe that, it's not worth arguing with you any further.
 
Quote from brandonr008:

I know people that have a net worth over 3 million and they still tell me cash is King.. HA HA HA.. What fools they will be.. One day one will wake up and see a 20%-25% devaluation of the USD...

Sorry for getting off topic.. Still would like some more answers who I should trade with ... Thanks

Brandon
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Actually, it is you who are the FOOL thinking that anyone here actually believes a single word that you have written.
 
Quote from Landis82:

Actually, it is you who are the FOOL thinking that anyone here actually believes a single word that you have written.
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Why is he the fool? Millions have millions and know nothing of the markets.
 
Quote from def:

TH's pricing is independent of anything on the IB side and If you don't want to believe that, it's not worth arguing with you any further.
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Here's something I believe:

Timber Hill provides an automatic execution service for certain eligible IB customer orders in certain Nasdaq stocks and NYSE and other exchange listed stocks. When IB's Smart Routing system searches the available market centers for your order, if Timber Hill is willing to provide an execution at the best available national price or better for that stock, IB may send your order to Timber Hill for an immediate automatic execution.
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That's internalization in what is perhaps its purest possible form -- even more so than payment-for-order-flow. And without any guarantee of "price improvement".

Such internalization does worsen prices across the market, as argued not only by the academic literature but also your own firm in its pre-"price improvement" days.

"Independent audits" are based around some reference price; if you worsen the reference point (which internalization clearly DOES, as argued by the academic literature, as well as the aforementioned IB documents), there's no truly valid reference point from which to audit.
 
Quote from Occam:

if Timber Hill is willing to provide an execution at the best available national price or better for that stock, IB may send your order to Timber Hill for an immediate automatic execution.
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may
[mey]
–auxiliary verb, present singular 1st person may, 2nd may or ( Archaic ) may·est or mayst, 3rd may; present plural may; past might.

1.(used to express possibility): It may rain.
 
Quote from def:

may
[mey]
–auxiliary verb, present singular 1st person may, 2nd may or ( Archaic ) may·est or mayst, 3rd may; present plural may; past might.

1.(used to express possibility): It may rain.
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2.(used to express possibility): IB may execute your stop.
 
I am not an IB shill, but wtf cares whether Timber trades against me? If I post a limit I should be happy with the resulting fill, whether it's Timber who lifts my offer or someone else. I trade options there for this very possibility.
 
Quote from atticus:

I am not an IB shill, but wtf cares whether Timber trades against me? If I post a limit I should be happy with the resulting fill, whether it's Timber who lifts my offer or someone else. I trade options there for this very possibility.
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Because it's a conflict of interest. It's like saying wtf cares whether your real estate agent trades against you. You have a house for sale. Your agent attempts to convince you to sell it for less so she can buy it lower for her account and sell it to someone else for more.
 
Quote from Roark:

Because it's a conflict of interest. It's like saying wtf cares whether your real estate agent trades against you. You have a house for sale. Your agent attempts to convince you to sell it for less so she can buy it lower for her account and sell it to someone else for more.
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Wrong again. The TH bid/ask for shares could be considered a dark pool for stocks which becomes part of the internal NBBO. The smart router will send the order to the venue where it believes it can contain the best execution. TH does see client flow, if anything it is the other way around as it just provides an additional source of liquidity. In addition, clients would know that trades where TH is on the other side are noted in the execution reports and the percentage of them is quite low.

As for my real estate agent, I'd welcome the additional liquidity. I could care less if she trades against me as long as I know that her offer is at the best available price that I could obtain in the market.
 
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