Why is market data so expensive?

[th0masq]

I would like to know if anyone out there knows a better way to cut cost on market data.

I've been trading ES minis and using S5 trader platform. (I think S5 is one of the best trading platforms for trading ES. I used to trade with Ninjatrader and S5 is much more superior). Anyway, aside from using all the indicators and technical analysis when I trade, I heavily rely on $TICK for my entry and exit. With that said, I use Esignal for the $Tick and that is all I need from Esignal really. I pay over $190 for Esignal (145 monthly fee + 51 CME minis).

Does anyone know who I can get realtime $TICK data without having to pay so much?

Thanks in advance.

 

[rmorse]

CME MD fees are new. Everyone pays if you want live data. Profit center for exchange. If they did not charge for it, they would just charge higher clearing fees. Cost of doing business. Many exchanges charge a lot more like NYSE and Nasdaq.

 

[Scataphagos]

I use Esignal for the $Tick and that is all I need from Esignal really. I pay over $190 for Esignal (145 monthly fee + 51 CME minis).

That's about right. They know "you can't trade without data" and try to maximize their profits on your (our) back. "Gotta pay if you wanna play", apparently.

RealTime data fees have escalated dramatically over the years. Unfortunately, there appear to be no other cost effective alternatives.

Seems a few years back, I was paying <$900/yr for my eSignal package. I recently renewed my annual subscription with eSignal for ~$1,800... not that there's any inflation or anything... and Reuter's data would have been even more.

 

[th0masq]

Thanks for the info.

I understand "gotta pay to play" concept and looks like I have to go with it.

Another question I have is I'm trading in the NY area now but looking to move to SE asia to trade. I've traded there for quite some time 6 years ago. Somehow, market data providers like Esignal is so slow. There's a lag of about 30sec - 1min versus the other trading platform I used such as Lightspeed and NinjaTrader.

Anyone who trades overseas recommend any trading platform for trading abroad?
I understand it's the internet connections and so worth but just saying if all things are equal...

 

[th0masq]

I contacted S5 and they told me I can use DTNIQ to get the data I needed. Through their partnership I can get the data I need for half the cost of Esignal. Which is pretty good. I will look into DTNIQ and update you guys on my progress.

Thanks again everyone for commenting.

 

[Q3D]

CME MD fees are new. Everyone pays if you want live data. Profit center for exchange. If they did not charge for it, they would just charge higher clearing fees. Cost of doing business. Many exchanges charge a lot more like NYSE and Nasdaq.

BS. It's not the "cost of doing business" for the data provider, they set the price because they have a monopoly.

 

[Scataphagos]

BS. It's not the "cost of doing business" for the data provider, they set the price because they have a monopoly.

"The worst thing is a monopoly... unless you're the one with it."

 

[debitspread]

because they have a monopoly.

CME is a monopoly? Have you heard of ICE?

If you were more plugged in, you'd know the exchanges fight each other tooth & nail for volume.

 

[onemoreshot]

There's a lag of about 30sec - 1min

There might be a 100 or even 200 MS latency delay between NY and SE Asia but 30sec - 1min delay seems crazy.

 

[wrbtrader]

BS. It's not the "cost of doing business" for the data provider, they set the price because they have a monopoly.

Rmorse is correct about data vendors.

Also, there's no monopoly. The exchanges compete with each other for partners, sponsors and many other different types of products. Even markets in other countries are competing against markets in a different countries...

All of which is getting more expensive for the small fry (typical ET member). In fact, I've seen more message posts this year across the net about how to cut data costs than ever before. Could be early signs that day trading is no longer affordable for the typical retail trader...something I predicted a few years ago here at ET would happen very soon due to world economic problems. In addition, its a reason of a few of why more small account day traders are navigating from futures and stocks into forex currency day trading.

Yeah, sure you can find someone that gives it to you for free or greatly reduce price after you've been an active trader via a certain number of trades or you go into the distribution business for the exchange (not likely).

You can always protest to how these vendors are doing business via using free resources that only offer charts but no exporting of data or you can change your trading style to something that doesn't need real-time data...

Most traders that can't afford real-time data or thinks its ridiculous to cough up money to these vendors for those monthly subscriptions to their data actually do change their trading style to swing trading or position trading because such doesn't require streaming real-time data.