Forex Broker Data Verification

Discussion in 'Data Sets and Feeds' started by butterflykondor, Jun 8, 2009.

  1. Hi all,

    I'm new to exploring forex and have never actually traded it yet (unless you count changing money when I go to new countries :)...)but it seems pretty interesting.

    Quick question though. Are there any sites or services that verify that every client of a particular forex broker is being quoted the same price at any given point in time? It seems to me that with no central market a little bit of dishonesty on the broker's part would go a long way towards increasing profit margins.

    Very sorry if this is a silly question, I'm currently in my learning phase (and plan to be for the rest of my life).
  2. Pippi436


    Its a good idea to get a third party data-source in addition to your broker, just to see who is quoting what. For example, eSignal publishes quotes from 100+ brokers/institutions from the f/x-universe.
  3. sjfan


    The dealer (which is what your fx broker is) is free to quote you any price he wants. He can quote you something that's 10x wider than the market if he prefers (that's what banks do, if you think about it for a second). Your only decent bet is to open a few accounts with different dealers and pick best execution.

    Welcome to the world of non-exchange-listed trading; it's a bitch.

  4. actually, the majority of forex dealers will tell you that they DON'T offer the same price to all of their clients at any given time. Read the "NFA disclosure" that they are all required to include in their account applications.
  5. Wow, sounds a bit like the wild west. Thanks for the tips!