Market Data feeds - SIP, Direct Edge, etc vs Nanex/IQFeed | Reviews of Brokers and Data Feeds


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Market Data feeds - SIP, Direct Edge, etc vs Nanex/IQFeed

  #6 (permalink)

New York, NY
 
Trading Experience: Beginner
Platform: Vanguard 401k
Broker/Data: Yahoo Finance
Favorite Futures: Mutual funds
 
Posts: 1,046 since Jul 2012
Thanks: 718 given, 2,145 received

By the way Mike, another common way around this is to enter a trading arrangement with a prop shop and post your trading capital as first loss capital. Because a prop shop is a single entity, you won't need to pay exchange license fees for receiving the direct feeds because it's generally considered "internal distribution" if you receive it, and the per user/terminal fee for most market data vendors is trivial. Of course, the prop shop may treat it as a billable or cost allocation, but it's usually cheap.

They may take a cut of your PnL, but if you do the cost-benefit analysis: perhaps the improved data + cost savings exceed the PnL share + counterparty risk.

By the way, by "prop shop" I don't mean those trading arcades that call themselves a "prop shop" but charge ridiculous amounts for "training" and put you with a whole bunch of part-time, daytrading click traders. A good firm that I know in this area has a $250,000 account minimum balance and they allow you to use SR Labs's market data and order execution product - which is excellent.

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