Yes, if you only have one Tradier account. If you have more than one, you’d need to pay $10 a month. You will be charged $10 a month for your first account after three months, but that will be deducted from your membership fee.
I assume that, like RobinHood and Webull, they get payment for order flow and interest on cash balances. They also offer margin accounts, which make money.
I can’t answer that one, but I can’t imagine they would. More and more brokers are going this route.
Yes. They use the same middlemen.
If you’re willing to input the transactions from your screen into the interface, certainly. That’s exactly what I do myself.
Currently strategies in the new Invest section can be summed up as either manual or following a “model”. The “model” could be many things: your own strategies in Research, a P123 model, a Designer Model. Allowing a strategy to follow a screen is planned. The way it would work is pretty intuitive. It will generate sells for positions that no longer pass and buys for new positions. Sizing the positions will be up to you of course. THen with one click you would submit all the transactions to the broker. Is this how you use a screen?
[quote]
Since March I have been placing orders for the same stocks using IB’s relative NBBO peg algorithm so that I can compare the two approaches.
I have found that my limit order placement technique beats IB’s algorithm 55% to 60% of the time. The average difference is about 20 basis points.
[/quote]Yuval, did you use your limit order method at IB too, or was it a different brokerage?
What’s the point of a sweep account that typically pays less than 1% or has many requirements like with IB? With commission free orders just park you cash in MINT at the end of the day . MINT yields 2.68% today.
Commission free orders open up many possibilities (Tradier is also planning fractional shares by end of this year). Things like monthly contributions can be efficiently deployed to any number of positions. High turnover strategies and daily rebalances are all possible. Parking cash in MINT (or whatever you choose) could be automated by us one day.
My experience with broker transaction exports has always been unsatisfactory. Making transaction export (and import) work properly will be a priority for us. It has to since P123 wants to seat between you and your broker.
By MINT, do you mean the PIMCO Enhanced Short Maturity Active ETF?
Because if yes, it is not comparable to cash (it is higher risk) or am I missing something?
Regarding Turbo Tax importing: I have had no problems with my Fidelity account. Do you think Tradier will have this access by tax time 2020–I definitely don’t want to input hundreds of transactions individually. Thanks
Doug, You can download the transactions from P123 as a comma delimited files without all the difficulties I’ve seen from brokers (like Fidelity and IB) . I have never used TT, but surely there must be a way to import comma delimited transactions. Also, the clearing firm for Tradier is Apex Clearing . Apex is one of the TT partners https://www.partner.turbotax.com/top_partner_list.html. In other words whether it gets into TT from a P123 download, or Tradier, or Apex, I don’t anticipate an issue.
Jerome, We periodically review the allocation for Ultra Safe Fixed Income and MINT currently makes up 100% of the holdings . I have used it for parking cash in my IB accounts (soon to be Tradier) and parking cash for even a few days more than compensated for the slippage and transaction costs.
How quickly should submitted and executed transactions appear in the Invest accounts? I use IRAs for trading, so I wait until after sells are executed before submitting buys using the actual cash total available. Are the actual sells immediately/quickly reflected in P123’s Invest data, or would I need to monitor those through Tradier before adjusting and submitting buys?
Even if there is a delay and I would have to use Tradier, the total effort would likely be less than what I experience today.
No, I used my limit order method with Fidelity. The actual precise results: over 128 trades, Fidelity beat IB’s algorithm 60% of the time with an average advantage of 22 basis points and a median advantage of 18 basis points.
Bob, fills are updated almost immediately. Few seconds at most I believe due to the Tradier API.
One of the goals of broker integration is to simplify the rebalance process down to a few clicks regardless of how many positions are traded. THerefore automating when buys are placed is one of the areas we will focus on. Should be pretty straight forward automation. All we have to do is delay your buy orders until there’s enough cash .
So is P123 still going to trade with IB’s API? Will we have a choice of Tradier or IB? How about Canadian customers and trades? When do the changes take effect?
yes IB will go on. and others too. IB is still great bc of the global reach and our plans to expand to other regions. We’ll revisit the IB linkup soon to cleanup some things and add Canada. I doubt we’ll be able to offer much more on IB like more IB trading algos. IB technology is also a bit outdated. For example to get real time prices with bid/ask on IB requires a connection to a running instance of Trader Workstation which is know to hung up under heavy loads.
Marco,
When you connect the TRADE tool to Canada, please include the option to round the share count to an even lot size.
IB rejects VWAP orders when the share count is not in even hundreds.
I think the lot size for penny stocks in 500, but I don’t trade them.
No, I used my limit order method with Fidelity. The actual precise results: over 128 trades, Fidelity beat IB’s algorithm 60% of the time with an average advantage of 22 basis points and a median advantage of 18 basis points.
[/quote]It’s difficult to draw a definite conclusion from this.
Is it the Broker (maybe Fidelity has better executions than IB) or is it the algo.
This is excellent for Yuval. It tells him what he wants to know: stick with what he is doing or move to what he was considering at IB.
But he also has a “technique” that may play a part. Yuval is very thorough and he may be considering what happens if he has to change his order and has to buy at a new price: again good for what he is considering.
As far as the algo, this is one that could be manipulated on IB if one is not careful.
Tradier ( and Fidelity) will be less transparent for manipulation as the order shows up on the book when you (or P123) place it and it does not move which is a signal and what can be manipulated with the algo that Yuval describes.
Also, one can ask whether Fidelity has better execution (as Chaim mentions). But IB has never had good executions: well, you can pay to get access to the dark pools etc. You can pay for order price improvement. But IB does not give good executions routinely. You have to ask for the exchanges that have dark pools and you may even pay extra to access the dark pools.
Bottom line (IMHO) IB will not give good executions, you will pay commissions and it is your algo against the other algos and dedicated traders sitting at monitors all day. Your algo will lose if you are not very sophisticated.
The commissions are VERY EXPENSIVE for stocks under $5. I do not know much about Tradier (other than the lack of commissions) but IB should be your last choice—unless you get the higher volume commission discounts and you really know what you are doing.
The ONLY advantage for IB (for most of us) is that you do not pay full commission for a partial fill of a limit order: you pay a commission only on the shares filled. But no commission (full or partial-fill orders) is even better.
Fidelity claims to have better execution than IB, but I doubt it. Also, whenever they fill at a better price than my limit, they tell me, and that’s not that common. Almost all of the trades in my comparison were executed by Fidelity at my limit order, not better than it. I think the lesson is that manually set limit orders placed before the open are in general very slightly more effective at eliminating some of the spread costs for low-volume stocks than IB’s fancier orders. IB, keep in mind, is not the broker of choice for low-priced stocks since they charge a commission per share. Some of the buys of under-$2-a-share stocks I do for $3.95 at Fidelity or for free at Tradier would cost me $30 to execute at IB. I think IB’s algorithms are designed for more liquid stocks with low spreads, and they may well work better than manual limit orders for those kinds of stocks.