Question on Interactive Brokers

[m_c_a98]

If Someone could clarify order routing I'd appreciate it. If I place a limit order to buy a stock at the inside offer using "Best Execution", Will I automatically hit an ECN and if an ECN is not available will it then SOES a market maker? If still no execution(fast market), will my buy order then sit as a bid on an ECN(island) book until I cancel it?

Also, If I place a limit order outside the inside market using "Best Execution", will the order just automatically be placed on an ECN(island) book until I cancel it or it is executed? If so, isn't "best execution" limit order the same as placing an Island limit order outside the current market?

Finally, if the above is true, what's the disadvantage of using "best execution", if there is one?

thanks
matt

 

[hsanson]

The problem with IB's "Best Execution" is that you never know where it routes your order. Also, if an execution route is down and Best Execution sends your order there, your order will hang and get stuck. If this happens in a fast market going against you, it can hurt you tremendously. Also, when you try to call IB's Help, they will inform you that there is NO way they can get you out because they can't track where Best Execution sent your order. So to save myself some unnecessary order routing *griefs*, I never use Best Execution. I just use ISLD because it is quick to go green and cancel. IB's ARCA, INSTINET and several other routes take more than 6 seconds to reach the exchange, 6 more seconds to cancel. For example, INSTINET ALWAYS take more than 10 seconds to reach the exchange, this makes INSTINET useless for daytrading purposes.
I don't know what is in IB's head, but they have never been able to solve these routing problems. Also, they are constantly taking down certain exchanges such as REDI, Instinet, etc during the trading day. This is unacceptable. If there is a broker that charges 100% more in commissions than what IB charges, but offers a better customer service & trading platform reliability, I will gladly switch to that other broker.
I have been daytrading with Interactive Brokers for nearly 6 months and this is only my opinion regarding Best Execution and trading platform reliability