OK, So i’ve been looking to EURUSD 1 MINUTE quotes from 3 different brokers, and this is what I’ve found tonight:
HOTFOREX (big move at the left of the chart)
DARWINEX (gap)
FXCM (smooth controlled move)
So as you can see there is about 10 pips difference betwwen FXCM and the other 2 brokers. In Darwinex there is even this huge gap.
So, of these 3, which is the cleanest broker? Are the other 2 running over stops or something? Honestly finding so different behaviour among brokers, makes it really difficult to choose one. How do we find a honest broker? Do we need to choose between high commisions or gaps and ran stops?
Can we take advantage of this differences?? Like If I have account in all of them, if I program an EA to detect a difference like this, I could buy cheaper in one broker and inmediately sell in another one.
So many questions, but you get the point. I would like to start a discussion about different behaviour on broker quotes and how can this affect trading. How do we find a “clean” retail broker if there is such a thing.
Ok guys… ley me ask other way.
How did your broker quote this moment? EURUSD 1 minute chart yesterday October 8.
Show some balls… post a screenshot if you can and comment on what do you think. Why do you think your broker is the best?
Great question. I asked it myself on Google and got the following response from a trading forum, maybe it answers your question?:
Its a well known fact that some brokers filter their data while others do not or some are slower than others in getting the data from the exchanges…also depends on how many middle man (data servers or whatever its called) is between the exchange and your broker.
Its just one of those flaws in the data exchanges that usually only impacts “retail traders”.
The above is also true for pure data vendors (e.g eSignal, multicharts) that are not in the brokerage business…its very common to see differences in the data but usually not too significant. Yet, if one is consistently seconds behind another broker or seconds behind a pure data vendor…time to switch don’t you think. Just as important, if one has completely different data…you need to do a little investigation as to why because that’s bad for any kind of trading.
Slow data versus Different Data…the latter very problematic and most like due to some kind of “filtering” that’s going on. In case of the latter (different data), it can impact your trading depending upon what kind of trader you’re using.
Its a shame that most traders don’t compare side by side in real-time different data sources. Some naively think that if you don’t use “market orders”…its ok. The problem with that logic is that if you’re using someone that’s filtering their data…you’re making trade decisions based upon incorrect data regardless to the order type you’re using.
Once again, this is more common than most traders think and you can see the issue only when comparing different brokers or different data vendors side by side in real-time.
P.S. If you’re only seeing the differences in very volatile fast moving markets like what we recently had the past week. That’s an unusual volatile price action that’s not normal to see on a regular basis. Only the top brokers are able to keep up with that type of volatility accurately…such as those that mainly deal with institutional clients in comparison to other brokers that mainly deal with retail clients.
