What's up everyone? Alright, so since I uploaded my videos on E Trade and Ameritrade Fidelity and Charles Schwab a bunch you guys have asked in the comments for us. what about Interactive Brokers when she set up an account with Interactive Brokers and test that out? Well, I'm not gonna do that I trade with Interactive Brokers last year it was a terrible experience and I will never trade there again and that's we're gonna talk about in this video. Okay, so last year when I traded at Interactive Brokers I had the same exact problem that I had last week in each trade with orders routinely taking 20 30 seconds plus to execute and the final nail in the coffin for me with my Interactive Brokers account was on April 26 when I had a trade on MTS L that took over one minute to execute, it was a marketable limit order put at 2 dollars and 50 cents. The current time the stock was trading at about a dollar 38 and it took over a minute to execute, finally filling shares up at the top at 250.

Now I wanted to get in I Believe the stock had the potential to make a move up towards 3 so you know I was I was like, well you know I'll still take a fill even if it's a little higher but it was. It was very, very frustrating and that was just my final. It was the final straw and after that I started looking for a new place to trade. Now the only reason I was using interactive brokers was because they offered settlement margin on a retirement account and I was trading in a retirement account at that time.

I've since moved that account to Lightspeed and grew it from 25,000 to just about 200 grand and well I guess about 18 months Wow I have Interactive Brokers It took me four months to grow it from 6 grand of 25 and part of that was because this issue I was having with executions. So what I want to do is I want to log into the Interactive Brokers account and kind of show you the trade and then what I'm going to do is I'm going to show you like five minutes of my recap from April 26 2018 and which is like a little bit of a flashback because it's back in my old office. but and I think you guys will enjoy it and you'll know why I don't use Interactive Brokers and I don't plan to go back now. One thing I'll give Interactive Brokers credit for is that they have a very secure login process.

So I'm gonna type my login credentials here and then as soon as I press enter I'm gonna get an alert on my phone right here that have to tap this message to authenticate the login and I have to do it with my face. So until I've authenticated it will not let me login. So you always have to have your phone on you when you're logging into your Interactive Brokers account. whereas with TD Ameritrade and Etrade, they'll give you that 2-step authentication trigger if you're logging in from a unfamiliar device right or a different location.

but it's not every single time. So I would say Interactive Brokers in that way is maybe a little more secure by default? I'm not sure if with TD or with E trade you can increase the security to make it to step as a default, but just something to know. So what I'm going to do? even though the account is closed, I can still go in and see my reports and statement. so I'm gonna go to reports I'm gonna go to let's see trade confirmations and then I'm gonna run reports here and I'm just gonna go right into the date that I know was the straw that broke the camel's back which is back here on April 26.

Now the nice thing about having done a recap every single day during my $583 challenge 583 - a million bucks is I can go back to this day on YouTube and go see. well. Well what happened that day because when everyone was posting these comments I was like yeah, so what trade was that and I should make a video on it cuz you know people like you know maybe didn't see that video from last year or whatever and just like that I was able to jump in on my reports I'm gonna go ahead and view this report and then I was able to find the video and now take a clip of it and I'll show you that clip in a second. So what? I'm going to show you just here.

First on my screen is just the two trades on: MTS sell a buy order at 2:41 the sell order at 266, a net profit of I don't know, it's like eight eleven hundred dollars. but I lost over 700 and slippage because let's look at the buy order the buy order I initiated at nine forty and twenty four seconds and it took over one minute. It took in fact a minute and four seconds until the order filled in its entirety. And that was because for whatever reason, it just went extremely slowly when I turned around to sell the shares right here and I'll show you this in the recap as well.

It also took about twenty seconds to sell the position, which is terrible. I'm better off calling my phone, putting my broker on speed dial and you know being able to trade like that now. I did reach out to interact a broker so after this because I was incredibly frustrated I was angry I was just I was livid and I ended up on that day losing money in my main account. in part of it was because I was so frazzled over this issue in my retirement account and they said, well, here's the deal: MT SL because it has low average daily volume we essentially and this is very similar to eat trade.

they they limit your ability to buy shares and it sounded like there was a cap of the number of shares you could buy relative to the previous day's volume or something like that, some algorithm and this stock you know which was a small cap gap and go set up gapping up moving higher. You know because the previous day's volume was low. it made it. So buying forty eight hundred shares took over a minute.

and in my opinion, if I want to buy 48 hundred shares of a stock, this is my money. If I want to buy it I wanna? But if I want to buy a hundred fifty thousand shares of this company because I believe they're gonna go up and they've got something really great coming you know coming out I should be able to do that. What if Warren Buffett wants to come in here and you know take a position. I mean if you want to buy, let us buy that.

it's our money, it's our account. So after that happen with MT SL I was furious and let's jump in here. why don't Why don't you guys watch the recap. Just I'll just like four-minute section of the recap from April 26 2018 and then I'll come back at you Now this is the trade I took in my IRA so I send the order to try to buy 9 thousand shares at 2:24 It gets rejected because I don't have enough buying power.

so I quickly type in 7500 shares at 250. I type the order just like this MT SL 250 just like this. 7500 shares using smart routing and I press buy I press the Buy button at 9 I guess 924. All right and I fill 12 shares at 28 and then 100 shares of 28 and then 13 shares at 28.

and then 6 seconds later I fill another 475 shares at 43 and I'm asking myself what is going on This is crazy. Why am I not filling my order? Mike The stock of my order was for 250 I should have filled the whole thing. so six seconds later, you know whatever. 7 seconds later, 10 seconds later I fell another 200 shares at 36, another 400 shares at 36.

Let's just drag this down. In total, it took. Let's see, it took a minute. It took one whole minute for me to fill my order and I only filled a partial order I only filled 4800 shares of my 7500 share order.

It took one whole minute to fill 4,800 shares. Alright, so that is what it is. It pops up you know and I'm like alright I just got a sell and I don't know how long it'll take to sell. So I pressed the sell button I pressed the sell button at 9:43 and 49 seconds and it takes here as you can see, 30 seconds for my order to fill.

It slowly fills. I Guess twenty five seconds at seventy at Sixty to sixty Seven, sixty Six, sixty Four, and Sixty three. So you know this is incredibly frustrating because it's there's nothing that I can do about it. you know I'm really powerless I can complain, but you know nobody cares.

So my recommendation is not to trade with the software not to know it's not the software not to trade with. Interactive Brokers If you're trying to be a scalp trader, if you're trying to get in and get out fast, this is not gonna work for you. Look I mean here it is. Here's the proof.

This took a minute for my order to fill a whole minute. Come on. This is crazy I wanted to buy seventy five hundred shares. look in in one minute.

it went from two twenty eight all the way up to two fifty. I Mean that's just lost profit. That's what it is. I should have filled the full seventy five hundred shares right down here in the 30s.

and then when I had sold it up here in the seventies, the sixties, it would have been a really nice winner. It's just pathetic. It really is Absolutely. But in this day in this day and age.

but it is what it is, so you know. The good news is it's still a six percent winner And so that's that's great. And I just need to get my IRA above twenty five thousand. You know that's really my goal.

Get it above twenty five thousand dollars. You know, as soon as Lightspeed offer settlement margin, I'm gonna switch over to them and I'm at a point now where I might switch over to Lightspeed even though I won't have settlement margin at least if I could take one trade a week and have because this this think about how much this cost me, you know, cost me two thousand shares times thirty cents per share. So this one right here cost me like six hundred bucks 700 bucks and so you know that's this. happens almost every time I trade in this account.

So a total of fifteen trades, you're talking about seven thousand dollars in losses. If I had been trading this account with Lightspeed even though I don't have settlement margin, it actually would have been in a much better shape. So I'll probably gonna have to do that. I'm probably going to transfer this to Lightspeed and deal with no settlement margin until they offer it.

So this today I was using Smart routing I had I was given a suggestion from a student that Smart Routing was faster so I was like alright I'll try it out but you know it was just as slow as it is with ARCA and anything else. So and you know and maybe it's this particular route that they rerouted it to is LA I Have no idea, but this is a standard that is so low you know I better off trading on my on my phone you know and or at a certain point I'd almost be better off calling the broker and telling them to place the order. it's just really, really slow. Okay, so you know obviously I was a little frustrated I was disappointed and annoyed and I was trying to use a smart routing because when I had used ARCA Nasdaq those were just as bad.

they were slow and so I was like wow, You know some students say hey, smart routing is faster I gave it a shot. it also failed and that's when I Finally, you know pulled the plug I closed my Interactive Brokers account I moved the funds over to Lightspeed which allowed me to trade on margin settlement margin with my retirement account and you know I really I really haven't looked back so I have no intention of going back to Interactive Brokers I know some of you guys use them and love them and I give you a lot of credit for for that. I mean it's It's most likely that your strategy is different from mine in that if you're trading large cap stocks, there's no none of this sort of throttling orders issue. It's the stocks that randomly go from zero.

you know, from $1 to $7 in one day and the previous day's volume is like 50,000 shares. Those are the ones that probably trigger this issue, but those are the ones that you want to trade if you're trying to grow a small account and that's what I'm all about growing small accounts. Alright, so I hope this video has been helpful. Leave me your comments below what you think of Interactive Brokers and I'll see you as always back in.

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