IB good or not?

[mythseason]

Hi, I am an algo trader from HK trades HSI Future, is IB ok for doing algo trades? Is it's API good and easy to develop? Is it's slippage large if I place market order? Is it's system steady if I just turn on my PC for a month without resetting it and re-open it's TWS?

So many questions regarding IB. Thanks for your help.

 

[clockwork71]

IB's platform is pretty third-rate to be honest. I don't like it at all, the charting is a joke. However - I know very little about developing API for it, just that a lot of people seem to have issue with it.

 

[dcraig1]

IB is one of the best if not the best. Charts are not very good but in all other respects it is hard to find a better broker in terms of low commissions, range of markets, stability of platform etc etc. There are plenty of good low cost (or even free) charting packages that work with IB. To describe IB's platform as "third rate" is ridiculous.

The API is fairly easy to use and reliable. IMHO some things in the API could be done better, but it will get the job done. There is also FIX support available for higher volume traders. There is support for many different order types including OCA orders. It will probably meet your needs, but it's hard to be sure without knowing more about what you want to do.

IB is DMA so any slippage is what happens at the exchange - IB has nothing to do with slippage. Executions are fast. If you throw market orders at the HSI you will get slippage (sometimes a fair bit) regardless of which broker you use. HSI is a volatile and thin market.

IB's TWS runs on Windows, Linux and MAC.

 

[nine]

Agreed with dc. IBs platform is first rate although the java charts are not something I would choose to use (I use Sierra Chart).

Use limit orders for entry in HSI. Even if its a generous limit ... use a limit or you might receive frequent unpleasant surprises.

 

[mythseason]

IB is one of the best if not the best. Charts are not very good but in all other respects it is hard to find a better broker in terms of low commissions, range of markets, stability of platform etc etc. There are plenty of good low cost (or even free) charting packages that work with IB. To describe IB's platform as "third rate" is ridiculous.

The API is fairly easy to use and reliable. IMHO some things in the API could be done better, but it will get the job done. There is also FIX support available for higher volume traders. There is support for many different order types including OCA orders. It will probably meet your needs, but it's hard to be sure without knowing more about what you want to do.

IB is DMA so any slippage is what happens at the exchange - IB has nothing to do with slippage. Executions are fast. If you throw market orders at the HSI you will get slippage (sometimes a fair bit) regardless of which broker you use. HSI is a volatile and thin market.

IB's TWS runs on Windows, Linux and MAC.

Thx dc, seems IB is good for me to start, but I found someone said on the net that IB C++ API doesn't have many support, unlike excel VBA, so if I am going to develop the C++ API program, is it easy to do?

 

[mythseason]

Agreed with dc. IBs platform is first rate although the java charts are not something I would choose to use (I use Sierra Chart).

Use limit orders for entry in HSI. Even if its a generous limit ... use a limit or you might receive frequent unpleasant surprises.

Thx nine, chart is OK for me since I don't use it much. What my concern is slippage. You said using limit order, but how? I don't know about limit order, since I always use market order now, and sometimes I found that the slippage can be as high as 20 pts. This is very large for I am in HK, I know the volitility of HSI is very high, with that high volitility, how to put limit orders, since I would like to have my order execute with 100% sure.

 

[dcraig1]

Thx dc, seems IB is good for me to start, but I found someone said on the net that IB C++ API doesn't have many support, unlike excel VBA, so if I am going to develop the C++ API program, is it easy to do?

I've used the Java API, so no direct experience with C++ API. But I doubt if there would be any problem that can't be fixed. Source code is supplied with the API, and you can always have a look at the Java code if needed. The API<->TWS protocol is quite simple.

 

[mythseason]

I've used the Java API, so no direct experience with C++ API. But I doubt if there would be any problem that can't be fixed. Source code is supplied with the API, and you can always have a look at the Java code if needed. The API<->TWS protocol is quite simple.

OK, then is the execution speed good if using API? I mean, normally how long will it take after the order was placed.

 

[AnEdge]

IB is pretty good for automated and algo trading. They give you access to a really wide range of markets. I would not call them a really low latency execution brokerage. It depends on the type of trading you are doing...if want you really need is low cost, fast execution and you have the technical savvy to interact with IB via their FIX CTCI, they are solid. Like all BDs, they have issues and have 10,000s of small clients so you are just a number.

On the other hand if you need ultra low latency execution, you would want to go to a more specialised brokerage firm.

 

[mythseason]

IB is pretty good for automated and algo trading. They give you access to a really wide range of markets. I would not call them a really low latency execution brokerage. It depends on the type of trading you are doing...if want you really need is low cost, fast execution and you have the technical savvy to interact with IB via their FIX CTCI, they are solid. Like all BDs, they have issues and have 10,000s of small clients so you are just a number.

On the other hand if you need ultra low latency execution, you would want to go to a more specialised brokerage firm.

Thx, I wonder did they have direct connection with HKEX such that they don't need to route back to US and then back again to HK for execution.

 

[dcraig1]

Thx, I wonder did they have direct connection with HKEX such that they don't need to route back to US and then back again to HK for execution.

I believe they have direct connection to HKEX from IB's HK servers (you can find details of IB's connectivity to all exchanges on their web site). You can elect to connect to IB's HK servers by just asking. You will probably get that by default if you open an account from an asian country.

IB have three data centres - US, HK and Switzerland.

 

[nine]

Its direct.

 

[mythseason]

Its direct.

OK, thx, then next question is, I know that i have to transfer 10k USD into IB, can I transfer out right after the a/c is openned? since I don't need to do transactions before my api is developed.

 

[nine]

No.

 

[mythseason]

No.

you mean I need to keep 10k USD in there even if I don't do any transactions?

 

[nine]

A reasonable portion of it (1/4 maybe). You will also be charged for data if you do no transactions.

 

[mythseason]

In IB data feed, what is the frequency of the feed per second? For my recently using DDE data feed, the max tick per second is 7, but normally, it is arround 3, it seems a bit slow for execution and the resolution will be not high enough.

 

[wirechild]

I believe IB to be 5-10 per second.