16 ms·
IB has multiple tiers (and "Smart routing" vs. "Direct routing" IIRC) -- with very different cost structures; I always assumed that selling the order flow is wh
by beagle3 6y ago
IB has multiple tiers (and "Smart routing" vs. "Direct routing" IIRC) -- with very different cost structures; I always assumed that selling the order flow is what makes the cheaper ones cheaper. Does anyone know for sure?
Is the most expensive one NOT being sold?
- Scoundreller 6y agoIB claims to only take payment for order flow on options, not on stocks: https://www1.interactivebrokers.com/en/index.php?f=44074#section-pfof-drop https://www1.interactivebrokers.com/en/index.php?f=44074#sec... "3. This revenue is from Options exchanges only, where the payment isn’t tied to specific orders." IB says 'smart routing' gets a 47cent/100share price improvement, or about half a cent per share. Unsure how that gets weighted. https://www1.interactivebrokers.com/en/index.php?f=1685 https://www1.interactivebrokers.com/en/index.php?f=1685