Unless you are doing market delta studies, the IB feed is good enough for price. IIRC, the 5 second bars sent from IB have the accurate volume also but no bid-ask split. I am not sure how your charting software will use that information though, but if you are writing your own code you can use the 5 second bars to get accurate volume.
The one HUGE advantage of the IB feed is that it is sampled so you get the latest price every 50-100 ms even during periods of high volatility. Many tick-true feeds choke up during periods of high volatility. Or even if the feed can keep up with the pace of the tape, your software may choke because it has to process too many ticks in a very short period of time. This is especially true if you have code which recalculates on every incoming tick.
The following user says Thank You to aviat72 for this post:
Hello, that only happens during high-impact news once in a while, and that advantage is useless for me and it should be useless for most traders since I don't trade 10 minutes before news and 15 minutes after news.
If the markets are jumping during news very heavily, you know what I mean, why in the hell do you want to trade that ? It's un-tradable. Trading that is suicide and I need to meet the first trader who can trade heavy jumping market under very heavy news conditions.
The following user says Thank You to MetalTrade for this post:
I can't imagine how a 50ms snapshot of the market can make a difference to me using IB, when it takes me 15 seconds to make a decision on a trade, and another 2.5 seconds to reach for the mouse. And I trade more then everyone on this forum. I will normally take 15 to 30 trades per day. To be fair, I don't use bid/ask, and I don't use volume in my trading, and I also trade ETF's as well as Futures. Do any of the other feeds offer equities? that is the main determinant for me to consider a new feed?
Thanks, this was very helpful. I am trading the EUR/USD using an automated strategy and wasn't sure if it made a difference. I've signed up and I will give it a try for a month or so to see how it works.
I would like to ask you something. I know that comparing IB tick data versus IQ feed for example is like compare Mercedes S versus Vauxhall Astra.... But I have noticed a strange thing.
I am on IB datafeed for TF (rusell 2000). I have MultiCharts 7 on one computer and Multicharts DT on another PC. One of them is connected to my live account with IB and second one is connected to my paper trading account with IB. So here is the summary:
1. PC: MultiCharts 7 Beta; IB live datafeed; TFM1 (rusell 2000); 6 point range
2. PC: MultiCharts 7 DT; IB paper datafeed; TFM1 (rusell 2000); 6 point range
And the problem is both of them are on IB and should take the same data but there is huge difference between data even when there is exactly the same settings on both PC's. So I know tick data from IB are far from reality but I don't understand the difference between two exactly same datafeeds at the same time...
But I wouldn't spend much time on this, IB tick data is not worth spending time on...
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