IB: About market data fees for non-US stock market

Discussion in 'Data Sets and Feeds' started by Benign, Sep 17, 2007.

  1. Benign


    I read a bit about IB market data fees in non-US stock market. And I would like to take this opportunity to comment about it.

    There is no stock market data which is free (except US stock market but free only if you meet the commission requirement).

    The majority of the stock market costs more than 10 USD. These are the stock market which costs more than 10 USD (the dearest being ~32 USD or 320% difference):
    Australian Stock Exchange AUD 37.50
    Hong Kong Stock Exchange HKD 200.00
    Osaka Stock Exchange (GL) YEN 1200.00
    Tokyo Stock Exchange (GL) YEN 2400.00
    German Stock Bundle (excl. SWB) Level I EUR 15.00
    German Stock Bundle (excl. SWB) Level II EUR 20.00
    Euronext Data Bundle- Level II EUR 30.00
    Venture Market by Price Level II CAD 12.00
    Canadian Stock Bundle Level I (Non Canadian Residents Only) CAD 13.50

    I don't know much in the US. But 10 USD is rather expensive according to my country living standard (comprises 10% of the salary of the low income groups). The deal in US stock market is competitive in my opinion. You can save that cost if you meet certain commission which is another big plus. However it sucks like hell in most stock markets. No exemption. Damn expensive especially the Australian Stock Exchange which cost as high as 32 USD.

    I can get at least 50% cheaper, getting much deeper discount if I subscribe multiple market data. When you subscribe to multiple market data, the cost does add up.

    Seeing the price of other competitors (data providers), they should be able to earn some good money even after offering a competitive price, don't they? I believe IB earns some handsome profits on data subscription too.

    I think it makes some sense to subscribe to third party datafeed.

    However the bad thing is IB forces you to subscribe expensive market data if you still want to trade on that market via IB. I say " IB forces you" because it pops up a warning every time you place or change an order, telling you to subscribe market data first before you should trade. The popup annoyance will make you impossible to trade. That's why I said "IB forces you to subscribe its expensive market data", probably to their own benefits.
  2. Bob111


    if $10 for data(free, if you male over $30 in commissions) is too expensive for you-you in wrong business.

    don't forget-if you want data from certain ECN's(such as ARCA for example)-you have to pay extra $10....now-go head and check the prices for good quality third party providers and compare them with IB. good luck :)
  3. plodder


    What IB should do -- would help everyone with a separate data feed and doesn\'t need IB feed -- is have a checkbox on the warning. First time it pops up, a box could be checked to refrain from generating the warning in the future. They know how to do such things.
  4. cvds16


    You don't know what you are talking about: IB doesn't make money from the subscriptions. It's the exchanges that charge these fees.
  5. Benign


    I suggest you reading again.

    If it is not clear enough, I said the deal about US market data is competitive. Fee being exempted if I made more than certain commission is another plus.

    What is not competitive is the datafeed fee of non-US markets. The charge can be much higher (320% difference). No fee exemption.

    Is this a way a company who charges expensively protects itself by calling people you are in the wrong business, or the cost won't kill you so you should accept it, and so on?

    As a trader, although controlling trading costs doesn't make you success, it helps to facilitate success. Reducing costs is especially helpful in the days you are losing. It appears no one understands the importance of controlling one's trading costs. Do I get a wrong impression that people in ET generally do not concern trading costs at all?

    If a competitor can offer a much cheaper data plan with acceptable quality, it is expensive. Why do I need to accept a dear plan if I can find a much cheaper one. You like to pay more and enjoy less profits. o_O
  6. Benign


    This would be great for both parties. For people who care nothing about the costs of market datafeed or don't mind the quality of its datafeed, they can simply subscribe to it.

    For people who got their own datafeed and don't want to use IB datafeed, IB should respect them and let them choose any datafeed they like.
  7. Bruce ZX

    Bruce ZX

    It is simple. If you don't like the charges of other markets, then focus on US markets. BTW, there are a few exchanges that don't charge you data fees, like SGX.
  8. Benign


    I don't think so. Exchange charges for market data, but it doesn't mean the price quoted by IB is exactly the price they pay to the exchange internally.

    Provided that there are cheaper alternatives elsewhere, are you telling me the data supplier gives data to me at a loss?

    It is hard to believe if IB doesn't make any money on data subscriptions.
  9. Anyone who passes the minimun net worth/income requirements to open an IB account can easily afford $10 a month, no problem.

    You therefore have enough to afford it, or you lied when opening your account.

    Which is it?

    On a more positive note, which country are in, i maybe able to reccommend a more suitable 'broker' for smaller accounts.
  10. Benign


    There is no stock market which is free, that is the focus of this thread.

    Trading on a market which is not familiar with is suicidal.
    #10     Sep 17, 2007