In Forex trading, time is money. A powerful data feed is an essential component to any successful Forex brokerage, because even the smallest of delays in the fast-paced Forex market can break the bank. 

However, sometimes brokers have difficulty picking out the data feed that works best for them. Let’s set the record straight on what features are most important when choosing your Forex brokerage’s data feed.

The Importance of a Data Feed

The Forex market is fast-paced, and a currency’s value can shift in a second. A data feed is fundamentally the core of any Forex brokerage, because it affects so many aspects of the company, from risk management systems to the preferred trading platform. Arbitragers and scalpers can cut into a broker’s profits, delays can limit a brokers’ success and hurt your credibility.

Forex Trading Data Feed: What Brokers Need

As the backbone of your Forex brokerage’s central operation, a data feed must include a variety of features in order for it to truly deliver the results you need.

  • Integration with other Forex technologies. Smooth integration between a broker’s data feed, Forex trading platform like the MT4 server and a risk management system is an important attribute of any legitimate data feed. Brokers should be able to control the data feed so MT4 can receive a customized feed. This can assist brokerages with setting Forex trading terms, the spread, variables, commission, etc. And, a data feed needs a spike filter to back up the feed before it is sent to the MT4 trading platform. Spikes are an inherent part of Forex trading, and it’s important to be prepared to deal with them properly.
  • The Most Current Forex Rates. Data feeds have a need for speed. This can’t be emphasized enough. Currency prices can change rapidly on any given trading day, which is why a data feed must be capable of citing the most recent, accurate rate possible for a Forex currency pair.
  • Compliments Risk Management Server. A reliable data feed is also extremely critical to a powerful risk management system, as the two are rather interchangeable. Essential information, like Profit and Loss, is affected by the data feed, and only through a reliable data feed can a broker really reduce arbitrages and scalping. If you choose to invest in a strong risk management server, you should devote equal attention to your data feed first