For those who know me, you know how much I Love the markets and Choosing the Right Broker is most likely one of the most important as well as overwhelming decision you will have to make. If you are investing for the long haul and you are buying and holding stocks it might not be the most vital decision, even the most expensive execution platforms are much cheaper than paying a broker 2% a year, however if you are a high frequency trader, day trader or even swing trader the cost of doing business from one broker to another can mean 1,000s of dollars more a month from one broker to the next.
In Addition day trading stocks requires you to have a 25,000 Minimum balance at ALL times which might make allocating capital for different assets a little more difficult, Options on futures Etc. obviously day trader stocks is the most expensive asset class to trade if you know how to trade futures, forex or options you may not trade stocks but for those who do IB is the best way to do so as IB is one of few platforms that Allows you to trade ALL Asset Classes with one principal Balance! yeah, with 25,000 in one IB account you can trade Options, Futures, Forex, Stocks, Bonds Etc. and they Also have the LOWEST Data fee’s in the market I’ve seen!
However Many argue that IB is a Difficult Platform, Not User Friendly, for Professionals only, Costumer service etc… but guess what guys, if you are looking to become a day trader Easy IS NOT THE NAME OF THE GAME, and if you are in the hopes to becoming a professional and Live the American Dream Day trading can certainly do that for you but you need the right research and education much of which I provide for you on this website so why not take the extra new hours to learn the best platform with the best commissions that will save you Thousands a year and hopefully millions in your trading career. We know that most of us don’t have the capital to move the price of a stock or the Nasdaq so we ride the wave with the big boys, Guess what IB’s Bulk Clients are professional traders and institutions so there must be something to them! 😀
Best Price Execution – IB’s SmartRouting Advantage
Delivering Best Price Execution for Eight Straight Years 5
IB SmartRoutingSM searches for the best firm stock, option, and combination prices available
at the time of your order, and seeks to immediately execute your order electronically.
|Execution Price Improvement Comparison*|
(per 100 shares)
(per 100 shares)
Net Dollar Price Improvement vs. National Best Bid/Offer 6
*Based on independent measurements, the Transaction Auditing Group, Inc., (TAG), a third-party provider of transaction analysis, has determined that Interactive Brokers’ US stock and options price executions were significantly better than the industry’s during the second half of 2015. 7
What other brokers conveniently leave out
Our results are even more impressive when you consider that other industry-touted statistics don’t give you the whole picture. They only discuss the percentage of orders that saw price improvement, and conveniently ignore the percentage of their orders that were dis-improved or had no improvement. In contrast, our statistics are netted, showing the true bottom-line price improvement including, all improved, dis-improved and unimproved amounts.
- Unlike other smart routers, IB SmartRouting never routes and forgets about your order. It continuously evaluates fast changing market conditions and dynamically re-routes all or parts of your order seeking to achieve optimal execution and maximize your rebate.
- IB SmartRouting represents each leg of a spread order independently and submits each leg at the best possible venue.
- IB SmartRouting AutorecoverySM re-routes your US options order in the case of an exchange malfunction, with IB undertaking the risk of double executions.
- To help provide price improvement on large volume and block orders and take advantage of hidden institutional order flows that may not be available at exchanges, IB includes eight dark pools in its SmartRouting logic.
Our smart router takes into account transaction costs along with the fee or rebate for taking/adding liquidity when determining where to route your marketable order when the inside market is shared by multiple exchanges. For clients who want even more control of their orders, TWS clients can specify stock and options smart routing strategies for non-marketable orders. 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.
For options, clients can choose to send their non-marketable Smart routed orders to the exchange offering the highest rebate. These routing directives can be set on a per-order basis from the “Misc” tab of the Order Ticket, or as a global default setting from the Smart Routing configuration page.
- IB executions have outperformed the industry as a whole Nine Straight Years – 2007 through 2015 based on independent measurements by the Transaction Auditing Group, Inc., (TAG), a third-party provider of transaction analysis. Price Improvement for each period is as follows:
Equities cents per 100 shares Options cents per contract 2nd half 2007 35 57 1st half 2008 47 53 2nd half 2008 42 60 1st half 2009 53 22 2nd half 2009 42 60 1st half 2010 28 53 2nd half 2010 30 21 1st half 2011 38 20 2nd half 2011 30 21 1st half 2012 33 19 2nd half 2012 41 24 1st half 2013 20 21 2nd half 2013 23 20 1st half 2014 14 17 2nd half 2014 8 50 1st half 2015 9 38 2nd half 2015 10 27
- Net $ Improvement per Share Definition:
((# of Price Improved Shares * Price Improvement Amount) – (# of Price Disimproved Shares * Price Disimprovement Amount)) / Total Number of Executed Shares
- The Transaction Auditing Group (TAG). Industry as a whole for the referenced periods according to TAG. The TAG analysis for US stocks included all market orders of 100 shares or more up to 10,000 shares. The analysis for US options included all market order sizes in US options and includes exchange rebates received by clients under IB’s cost-plus pricing structure. The TAG analysis of orders routed to exchanges in Europe included all orders routed for execution during regular trading hours including all market and marketable limit orders and orders near the market (orders having a limit price within one-tenth of a Euro from the quote price at time of order receipt) on stocks listed on the included exchanges, weighted by the volume executed on each exchange. The exchanges for European stocks are XETRA, EURONEXT,
- CHI-X, WIENER BORSE, TURQUOISE, LONDON and NASDAQ OMX.
Rated Low Cost Broker 15 years in a row1
& Lowest Margin Fees2 by Barrons
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|$25K||$200K||$1.5M||$3.5M||100 Shares||1 Stock
|1 E-mini S&P 500 Future|
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