Market Data feeds - SIP, Direct Edge, etc vs Nanex/IQFeed | Reviews of Brokers and Data Feeds - futures trading strategies, market news, trading charts and platforms

Reviews of Brokers and Data Feeds

Review and discuss futures brokers, their requirements and features, or ask questions about brokers and data feeds


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.

Reply With Quote