Question about IB please?

Robert Morse said:
No and we do not want to. We are in comparison to these online brokers a small introducing broker and Wedbush is a family owned clearing firm with about $200mm in net capital. We only focus on US listed Equities, Options and Futures with choice of software. I find that when a broker tries to do "everything" they excel at nothing, We provide a variety of solutions for small and medium-sized Hedge Funds, Trading Groups and Active Traders. We try and do just that the best we can.

Bob
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Hi bob,

Roughly what AUM does Lightspeed have?
 
destriero said:
a) You'll route SMART until you realize that everything goes to PHLX if it's listed there. Then you'll route to CBOE, etc. to actually fill.
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I have noticed that IB sends an inordinate amount of my SMART U.S. equity option trades to PHLX. I take it PHLX gives some kind of advantageous commission structure to IB?

I tend to trade less liquid options in swing or longer-time frame options, and so I simply walk up my offer over a random time period, but I always count myself lucky if I can get even anywhere near the mid or a model price.

Is it possible that, at a given price, other market makers are passing on filling my PHLX-listed orders because pricing is so disadvantageous to them? What is the big benefit of routing to CBOE?

I guess I just always assumed that commission difference on a 200 or 1000 contract option trade were minor enough that pricing would dictate fills, not exchange. Sounds like I might be wrong!
 
Generally depending on the size and name the preference for the PHLX could be driven by fee caps. The benefit of biasing one exchange is hitting the fee caps earlier. Unless there is something funky about your order you are price protected no matter where you route.
Lot's of other possible variables and you need to provide more specifics, but I'd bet it relates to fee caps.
 
Robert Morse said:
If you are asking how much in customer assets we as an introducing broker have in customer accounts, I do not know that. I know what my clients total, but I can't share that.
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The broker. Not your clients specifically. t Just was wondering if the firm is a 100 million AUM type firm, 10 AUM billion, or 100 AUM billion type. . . If you can't ballpark it then it's all good.
 
@Fain All b/ds file an annual report. SEC.gov and do a bit of hunting - it's a very cumbersome sight. Finra BrokerCheck also shows all the detail licensing info and who owns what pieces. You can also call the firm and request their most recent annual report.
 
jkoak said:
I have noticed that IB sends an inordinate amount of my SMART U.S. equity option trades to PHLX. I take it PHLX gives some kind of advantageous commission structure to IB?

I tend to trade less liquid options in swing or longer-time frame options, and so I simply walk up my offer over a random time period, but I always count myself lucky if I can get even anywhere near the mid or a model price.

Is it possible that, at a given price, other market makers are passing on filling my PHLX-listed orders because pricing is so disadvantageous to them? What is the big benefit of routing to CBOE?

I guess I just always assumed that commission difference on a 200 or 1000 contract option trade were minor enough that pricing would dictate fills, not exchange. Sounds like I might be wrong!
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IMO, Philly is an option exchange that get a large number of customer orders because of fee caps an generally no maker/taker fees on customer orders. (They charge for taking liquidity on SPY orders) I would say CBOE and Philly get the most.
 
ETJ said:
@Fain All b/ds file an annual report. SEC.gov and do a bit of hunting - it's a very cumbersome sight. Finra BrokerCheck also shows all the detail licensing info and who owns what pieces. You can also call the firm and request their most recent annual report.
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I could but I was more just curious. I wouldn't be able to get approval from my compliance department for Lightspeed in any case. . . In my experience, Assets under Management (AUM) is either a badge of honour or a mark of shame. If the information isn't readily available on their website or transparent then its a red flag.
 
Fain said:
I could but I was more just curious. I wouldn't be able to get approval from my compliance department for Lightspeed in any case. . . In my experience, Assets under Management (AUM) is either a badge of honour or a mark of shame. If the information isn't readily available on their website or transparent then its a red flag.
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What introducing broker provides their total AUM of their clients? We do not custody. And, we don’t take Canadian clients.
 
Tiger Brokers, Zions direct, Questrade . . . The more AUM and transparent the broker is, then the more comforting for my mindset. . . You say you don't know the AUM of the firm you work at. Do clients not ask this ever? . . . In my experience., "How big is your firm" is in the top 5 of Questions I get from new or prospective clients.
 
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