Level 2 Das and Diff Routes Advantages?

[RealEstateDayTrader 9]

Howdy friends and thank you for looking at my question.

I am on IB now and find they have the most Routes I have ever seen available in Das.  I understand they are the different exchanges that trades are routed through, however I have heard better traders than myself mention that they prefer to send their trades to specific routes.  

Thoughts?

Thanks friends.

MRod

 

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[Bailey Nevener 83]

I have looked into this a little bit.

The most common assumption as to why someone would use a specific route is because there could be an increase of execution speed on a trade.

However, unless you are trading low volume OTC stocks or something like that, I am not sure that a custom selected route would outpace the SMRTL algorithm provided by IBKR.

 

There is definitely a benefit in regards to share volume though!

Here Interactive Brokers has made links to all of the major exchange rates for adding and removing liquidity.

If you scroll down to the "US Exchanges" heading and click on the ARCA link for example, it will open up a window that looks like this:

If you add liquidity (by placing a limit order that isn't automatically executed) you will be compensated monetarily via rebates from the exchange you are executed on.

In this case, if you were trading stocks that are normally traded on BBT, you would be compensated $2 per 1000 shares of liquidity you add on both NASDAQ, NYSE, and AMEX stocks.

 

Here's the one for the AMEX route:

As you can see, AMEX will pay an extra $0.40 per thousand shares over what ARCA will pay for adding liquidity.

Unfortunately this is one of the easiest comparisons of exchanges of the bunch listed, but you get the idea. 

 

DAS has a short manual on how to add a particular route to your montage here.

It is worth noting that this was only written in regards to the tiered commission structure, I don't know how being on the fixed commission structure affects it.

 

Let me know what route you ended up choosing for the maximum rebate because I may just change my "Sell on Ask" / "Cover on Bid" hotkeys to it!

And could you like my post so my reputation points can stop being 69?  Lol.

Enjoy! 

 

 

 

Edited January 13, 2022 by Bailey Nevener

[RealEstateDayTrader 9]

Howdy @Bailey Nevener

We texted earlier this year about your extreme risk control measures, which I did not adhere to when we spoke, but do now (my daughter holds the passwords to IBKR and DasTrader risk control email changes, and DT app).  And it's working excellently.

First off, how are you doing man?  Please do tell I really want to know.

Secondly,  what do you know, I am trying to reduce my IBKR commissions, search BBT forum and what do you know.  A convo of you explaining to me adding liquidity pops up. 

I obviously didn't understand your explanation (all me) earlier this year.  Well after examining the IBKR commission report I know understand Marketable vs Non-Marketable means..  And with your response above I understand that I probably need to direct my trades to specific ROUTES and change my hot keys " "Sell on Ask" / "Cover on Bid" 

I'll be searching on BBT more on how to do the  "Sell on Ask" / "Cover on Bid" changes effectively.

Thanks again man!

MRod