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IB vs Robinhood

Which broker do you all prefer to use and why?
For the Robinhood users out there. Robinhood seems to disconnect frequently for me does this occur for you often as well?
For the IB users out there. How often does IB disconnect from your algorithms?

6 responses

IB disconnects about once a month. It is pain to reconnect it - it takes something like 20 retries on average.

Hi Nick,
Another thing to consider is positioning: Robinhood only lets you go long on stocks, not short. This can be seriously debilitating for those who want to run market neutral trading strategies. Keep this in mind when constructing your trading strategy.

If you want to research broker options more, look at the documentation under "Live Trading": https://www.quantopian.com/help#overview-livetrading.
Thanks!

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Robinhood disconnects me every weekend like clockwork and once in a while during a weekday so I have to check every morning. It's sad to know that IB isn't much better

What are people's experiences live trading their algos? Are Robinhood or IB giving similar results as the back tester?

I just started live trading with Robinhood, but I have a bunch of longs not related to my algo mucking up the stats, so I don't have a clear sense of whether its performing or not.

So far it has disconected once. Would be nice to get a notification when that happens.

What's the best way of keeping track of how an algo is performing (taking into account the actual prices orders are executed at)?

What are the legal implications of creating multiple brokerage accounts?

My experience manually placing trades with RH is that "market orders" will often fill significantly off from the displayed price, and so limit orders are pretty crucial. Has anybody conducted any tests to confirm that suspicion?

@atiredmachine
I believe that robinhood market orders are actually placed as limit orders with 105% of the current price as the limit

@James W
It's true. But is there any reason why a limit order with a 5% margin should perform worse than a market order?

My experience with limit orders in the back tester is that often they cause orders for stocks with a lot of upward momentum to not fill, leading to diminished returns. But anecdotal advice I've heard is that you should use agressive limit orders with Robinhood since otherwise RH appears to routinely fill orders at significantly worse than market price. I was wondering if there was any confirmed truth to that.

Maybe somebody live trading an algo can run a backtest for the same period and share with us how the results compare, and whether orders are filling around the same price as in the simulation.