Finding Broker that Shows True Midprice

[equus]

Kim,

 

You've alluded several times to the fact that IB doesn't show the true midprice. You've suggested ToS as a broker that does show the true midprice, so i'm considering opening a ToS account. 

 

Before i do that however, i wanted to check if my other existing broker is showing the true midprice or not. What would be a simple way to check this for oneself? (I'm wondering if it would be enough to look at the midprice of a spread and compare that to the two midprices of the two component legs).

[Kim]

Yes, that would be the best thing to do.

 

TOS lets you to have a paper account with a full functionality. The only caveat is that you need to change the username every 2 months.

[equus]

Useful information, thanks!

[Mikael]

ToS paper doesn't give live quotes though. So it's better just to open a live account for a small deposit and get the live quotes.

[PaulCao]

Depends on your definition of small, I called them; need to deposit 3K USD to get real-time data. 

 

Best,

PC

[equus]

Depends on your definition of small, I called them; need to deposit 3K USD to get real-time data. 

 

Best,

PC

Do you know if you need to maintain that amount, or could you move most of it out after opening?

[PaulCao]

Hi, 

 

I'm not sure. You can give them a call, sounded like they get the question a lot. I might open an IRA account or do roll-over to satisfy the requirement, 

 

Best,

PC

[Gary]

I don't think there is a maintenance minimum for a ToS account... just the opening minimum. I have $500 in mine and it works fine.

[equus]

Called ToS and they told me that one can open a papertrading account (quotes delayed 20 minutes) or a live account (realtime quotes).

 

No minimum opening balance is required, but they confirmed that you do need to keep $500 in the account to get the live quotes.

[Kim]

I have a paper account with TOS and the quotes I see are identical to IB live quotes.

[equus]

Interesting. Well, i'll start with a paper account and see how that goes

[equus]

Kim, before i start on the paperwork for ToS, can i check this understanding is correct:  Aside from the overall quality of the analysis tools, is it true that one of the advantages of ToS is that you can see multiple midprices of spreads simultaneously (as in the PCLN screenshot you posted in a recent thread)?

 

In other words you don't need to be constantly opening an order ticket for a spread just to see the current midprice, then closing it, then opening another order ticket for a spread at a slightly different strike etc -- is that correct?

 

Edited August 14, 2013 by equus

[Kim]

Correct. Besides of the fact that TOS shows you real mid prices (based on mid prices of the individual legs), the interface is much more convenient. For example, like you mentioned, you can display few spreads and then dynamically change the parameters like strike and expiration. At IB, you need to open a new spread. 

[Mikael]

Kim you are just adding each spread to the simulated trade section under the analyze tab right?

[Kim]

Yes.