Difference between exchange data feed vs. IB TWS data feed?

[qlai]

So I take it the Nasdaq Total View subscription I have w/ IB is nowhere near that same named subscription direct from Nasdaq

I think the source of data is the same but it will be delivered in a more convenient way for you.
I think one thing you need to keep in mind is that the value of direct feeds, and Level2 in general, is low latency. The more delay is added (by vendor or location), the less valuable/usable it is.

I haven't try this before (ie without subscribing to IB data feed) but I believe you can still execute the trade.

If you trade manually, there's a warning/confirm window pops up saying that you don't have market data. You will not be able to use hot keys. Also, you will not be able to to use Book Trader. If you trade via API, no data subscription is needed.

Don't try getting better data feed prior to confirming that IB execution is satisfactory to your needs, imho.

 

[Love2Trade$]

If you trade manually, there's a warning/confirm window pops up saying that you don't have market data. You will not be able to use hot keys. Also, you will not be able to to use Book Trader. If you trade via API, no data subscription is needed.

Don't try getting better data feed prior to confirming that IB execution is satisfactory to your needs, imho.

So if I have NinjaTrader / Sierra Charts, use Kinetic, etc data feed, submit or automate the trade through NT/SC, and have it executed via IB - is that considered trading via API (where no IB data subscription is needed)?

 

[Love2Trade$]

@maxinger - Thanks for point this out, I completely didn't even think of this! I want to ensure I'm understanding you correctly. Pretend I have NinjaTrader / Sierra-Charts for charting / automation and Interactive Brokers for trade execution. So I have to get a data feed (Kinetic, IQ Feed, etc) for the NT/SC platform AND subscribe to IB's L2 market data to execute the trades?

response : correct


- If I just get the data feed for the NT/SC platform, wouldn't that be sufficient since IB will execute the trade regardless of whether or not a customer has market data (and I can rely on those trades being at my desired price points b/c they're based off my data via NT/SC which is accurate right)?

response : IB provides delayed data when you don't subscribe to IB data feed.
I haven't try this before (ie without subscribing to IB data feed) but I believe you can still execute the trade.


another question is
Can yon channel data from IB to your charting software?
I tried before. It wouldn't work.

Understood everything you said, makes sense, thanks a lot for clarifying!

 

[qlai]

So if I have NinjaTrader / Sierra Charts, use Kinetic, etc data feed, submit or automate the trade through NT/SC, and have it executed via IB - is that considered trading via API (where no IB data subscription is needed)?

I don't know, but I'm pretty sure such set up will be considered as regular manual set up.

 

[MattZ]

@MattZ - Thanks for expanding on what Maxinger said, and for the lengthy clarification on execution vs. quote data! It helped me understand this on a deeper level. What would be your thoughts on the follow-up q's I asked Maxinger above?

We could hook you up via ONE data feed for all your trading needs. You could see your account across multiple platforms. Please PM so we can exchange details if you wish to talk and explain this setup.

 

[maxinger]

I think the source of data is the same but it will be delivered in a more convenient way for you.
I think one thing you need to keep in mind is that the value of direct feeds, and Level2 in general, is low latency. The more delay is added (by vendor or location), the less valuable/usable it is.


If you trade manually, there's a warning/confirm window pops up saying that you don't have market data. You will not be able to use hot keys. Also, you will not be able to to use Book Trader. If you trade via API, no data subscription is needed.

Don't try getting better data feed prior to confirming that IB execution is satisfactory to your needs, imho.

I doubt you are doing day trading, heavy scalping or high frequency algo trading.
Quality data feed is extremely extremely important.
A 0.1 sec delay in data feed could be disastrous.

 

[qlai]

I doubt you are doing day trading, heavy scalping or high frequency algo trading.
Quality data feed is extremely extremely important.
A 0.1 sec delay in data feed could be disastrous.

When did I say it's not important!? What I meant is - You can spend lot of money on good/better feed, but if your broker is slow it will be useless.

 

[ETJ]

Some of the many fees.

 

[maxinger]

When did I say it's not important!? What I meant is - You can spend lot of money on good/better feed, but if your broker is slow it will be useless.

right mister. Quality of broker's trading platform / system .... is important.

 

[Robert Morse]

right mister. Quality of broker's trading platform / system .... is important.

I agree. We offer a choice of 5 different stand-alone trading platforms (for equities/options-more for futures), 4 with APIs plus a hosted gateway for institutional players, I also believe that the platform is important. There is not one that is best, but what is best for you. We provide market data for each platform but if you are automated, some require a third party to feed your server.
https://www.lightspeed.com/platform-comparison/