Interactive Brokers uses a Smart Order Router (SOR) to get the best possible price for a client’s marketable order. The SOR will analyze all market data available to it, including quotation data from “lit” venues (such as public exchanges), indications of interest from “unlit” venues such as dark pools, and quote data received from internalizers (whether affiliated with IBKR or operated by unaffiliated third parties), where available, to seek the best available price for the customer.
The SOR compares those price indications (including the quote from the IBKR-affiliated entity acting as an internalizer) and will only execute some or all of the customer’s order with the IBKR-affiliated entity to the extent that that represents the best available execution for that portion of the client’s order at that time.
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