Optimal IB BUY settings

Each time i go to IB and turn my recent savings into ETF shares, I ask myself: what’s the optimal way to do it?
Options I see are

  • simply market price vs. limit (the only one i actually know what they do)
  • Destination SMART vs. IBALGO vs.others
  • midprice-feature
  • adaptive-feature: urgent/ normal/ patient
  • any possible combination of the above

considering a purchase of abount $1k in an integer number of ETF shares, which way gives me the the least expenses for the same amount of shares? I think i consider both share price and commissions, as well as liquidity-fill-bonus and whatever else adds to the bill.

Bonus question: quantify the advantage over buying at market price :wink: you may assume anything, put point it out

[Edit: yes, solely US Vanguard funds. with market order paying mostly between 30 and 40 $cents per trade]

1 Like

Are you buying ETF on US market? Usually they have very high liquidity (with popular ETF), so:

  • spread is likely to be 0.01,
  • market is not going to wait for you.

So anything you do is as good as market order. Probably changing commision model to tiered will make a bigger impact for you.