sam028 

While some brokers can be faster than others their processing delay is negligible compared to the network latency (not sure for some FX rogue brokers BTW). If you have a VPS in UK with a broker hosting his market gateways in Australia you'll receive the tick data with a 300 ms delay and your orders will be received with the same 300 ms delay.

Sam, one thing I've always wondered... what's the role that brokers play with DMA markets?

My case... I have a CQG native platform... so my orders are routed through CQG infrastructure.... at what point does my broker 'get involved'? Are there simple diagrams that show the flow of the orders?

xplorer 

Sam, one thing I've always wondered... what's the role that brokers play with DMA markets? My case... I have a CQG native platform... so my orders are routed through CQG infrastructure.... at what point does my broker 'get involved'? Are there simple diagrams that show the flow of the orders?

It's not very detailed but you can check this doc: https://help.cqg.com/fcm/default.htm .

sam028 

While some brokers can be faster than others their processing delay is negligible compared to the network latency (not sure for some FX rogue brokers BTW). If you have a VPS in UK with a broker hosting his market gateways in Australia you'll receive the tick data with a 300 ms delay and your orders will be received with the same 300 ms delay.

Is the reason that i say i used to be News Trader and had different VPS location depending the Broker Server Location of my MT4 Account...

And then u can have a very very fast 5ms connection between ur VPS and the Broker Server.. and in the News Event Time, you can send an order and the broker can delay ur order plus ur order can be slippage very easy.

I use to trade the news event with EAs, and sometimes with about 20 brokers different at the same time.

But in Long Term that doesnt work.

sam028 

It's not very detailed but you can check this doc: https://help.cqg.com/fcm/default.htm .

Great, thanks Sam.

I'd be grateful for any feedback on a my situation.

Am developing a discretionary trading approach on 6E scalping approx 6 - 10 trades a day 6 - 12 ticks each contract.
Testing in SIM, not gone Live on this yet, so no idea on slippage + fills (trading 4 -6 contracts at a time. all in and all out).

Very happy to invest in a VPS, but would a Chicago based VPS be worth it, given my situation ?
Based in regional Australia
Internet speed 20 - 25 Mbps (no speed increase possible in my area)
Entering off Market orders mostly and Stop Limit (sometimes).
Using NT8 and Rithmic
Am really green when it comes to data feeds, so if Rithmic is a factor which may play into the above, please advise

Thanks !!!

sienna 

I'd be grateful for any feedback on a my situation. Am developing a discretionary trading approach on 6E scalping approx 6 - 10 trades a day 6 - 12 ticks each contract. Testing in SIM, not gone Live on this yet, so no idea on slippage + fills (trading 4 -6 contracts at a time. all in and all out). Very happy to invest in a VPS, but would a Chicago based VPS be worth it, given my situation ? Based in regional Australia Internet speed 20 - 25 Mbps (no speed increase possible in my area) Entering off Market orders mostly and Stop Limit (sometimes). Using NT8 and Rithmic Am really green when it comes to data feeds, so if Rithmic is a factor which may play into the above, please advise Thanks !!!

No, not in your case.
You'll have around 250 ms latency to Chicago so your incoming price data will arrive on your machine at least 250 ms later, and your order will take at least 250 ms to be insert in the order book.
With a VPS you mouse click for "buy market" order will also takes this kind of time.

Many thanks Sam, just the information I needed !