Interactive Brokers, a North American online trading giants reported to be the he largest US online brokerage firm by number of daily average revenue trades according to Wikipedia. The company is highly dedicated to innovation as it employs computer programmers and IT workers at a ratio of 5-to-1 to other employees.
Its latest development is the "Transaction Cost Analysis report tool" which enables traders to track how every trade performed, compared to a certain market benchmark. Basically, if the reading produced by the TCA is positive, the trade worked in trader’s favor and vice versa. It works such that a trader can check how the actual transaction price achieved by the broker compared to the Best Bid & Offer in the general market which the TCA then takes into consideration and produces a positive reading meaning the broker offers price improvement, while a negative meaning that the national best transaction price is better.
Transaction Cost Analysis applies to trades with any financial instrument, available after ten minutes of trade execution which helps give traders an insight into whether their choice of a broker was a good one or not. It also helps traders track execution performance and adjust execution strategies. Each executed trade in the period of the analysis is marked to a series of performance benchmarks with the results displayed in multiple interactive tables
