Interactive Brokers question - I understand that IB is a popular broker to use when trading penny stocks but am a bit confused regarding commissions. For fixed pricing the cost is $0.005/share with a maximum fee of 0.5% of the trade value
Earlier this week I placed 2 limit orders to buy 30,000 shares @ $0.23 and 20,000 shares @ $0.21. Both orders executed at exactly the limit price --- 30,000 shares for $0.23/share and 20,000 shares for $0.21/share with commission fees of $34.50 and $21 respectively.
When I make similar trades using Fidelity, often times I will be able to get some shares at less than the limit price. For example a limit order of 30,000 shares at $0.23 may execute as 20,000 shares for $0.228 and 10,000 shares for $0.23. That $0.0002 * 20,000 shares saves me $40 and on top of that the commission is a flat $4.95 per trade
I heard that IB has very fast till times, but if limit orders execute at the exact limit price, what's the point? Is there a setting I need to change to be able to buy shares at less than limit price? I understand Interactive Brokers is great for short selling because of their availability of shares to short but are there any benefits to use them when buying penny stocks in large volume?
