Forex: Why are there significant variations among FX data providers?
Forex: Why are there significant variations among FX data providers?
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noplace · External communityPost link
External question — Personal Finance Stack Exchange
Author: noplace
Original post: https://money.stackexchange.com/questions/169088
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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I recently started looking into forex trading and noticed significant differences in the price data provided by various FX data sources. I was wondering whether this behavior is considered normal.
Using TradingView, I compared several providers that are generally regarded as reliable — FXCM, OANDA, FOREX.com, Tickmill, Pepperstone, CMC Markets, Capital.com, and ICE. What surprised me is that even on the 1-hour timeframe, the discrepancies can be quite pronounced in candle highs/lows and wick structure.
In particular, the ICE feed, which I understand aggregates data from multiple sources, appears to show the most extreme behavior, with very pronounced — and at times seemingly unrealistic — spikes that do not appear on other feeds.
Is this simply a consequence of FX being a decentralized OTC market, or are certain data providers more suitable than others for technical analysis? How do experienced traders typically select or normalize their FX data source?
I also wonder how technical indicators can be considered reliable when the underlying price data itself varies so significantly between providers.
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João · External communityPost link
External answer — Personal Finance Stack Exchange
Author: João
Original post: https://money.stackexchange.com/a/169094
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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FXCM
seems to me it's the spot rate (although I don't have an account there and this could be easily seen as CFD).
YF
spot rate ->
EUR/USD=X
ICE
they are derivatives quotes mainly Futures and Options
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: noplace Source score (net votes, not local likes): 1 Original post: https://money.stackexchange.com/questions/169088 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I recently started looking into forex trading and noticed significant differences in the price data provided by various FX data sources. I was wondering whether this behavior is considered normal. Using TradingView, I compared several providers that are generally regarded as reliable — FXCM, OANDA, FOREX.com, Tickmill, Pepperstone, CMC Markets, Capital.com, and ICE. What surprised me is that even on the 1-hour timeframe, the discrepancies can be quite pronounced in candle highs/lows and wick structure. In particular, the ICE feed, which I understand aggregates data from multiple sources, appears to show the most extreme behavior, with very pronounced — and at times seemingly unrealistic — spikes that do not appear on other feeds. Is this simply a consequence of FX being a decentralized OTC market, or are certain data providers more suitable than others for technical analysis? How do experienced traders typically select or normalize their FX data source? I also wonder how technical indicators can be considered reliable when the underlying price data itself varies so significantly between providers.
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