The current offering of forex-data, from DTN-IQFeed, is useful only to the most naive or casual forex traders/users. Why? Barclays and Tuttle are only two banks, i.e., they are just two of several hundreds of potential 'market-makers'. Since the Forex 'market' is NOT represented by just ONE ECN-type exchange, the typical retail-forex-trader is usually stuck with 'trading' with/against the 'dealing-desk' of ONE of the many 'market-makers' (banks, and non-banks included). Remember, the dealing-desk of a market-maker is taking the other side of your so called forex-trade, and therefore, the liquidity is likely to be only what that one market-maker wants you to see (and not see?).

Much more useful forex-data would be the 'total' aggregate contributions of all (or most) of the market-makers. Such a data-feed is available from the Interactive Data Corporation (IDC), and its subsidiary, ComStock Inc. This data feed has been referred to as the GTIS, and/or the PlusFeed, and it is currently only available at the retail-level through one of IDC's branded businesses known as eSignal. (with its Forex add-on product)... ooops that is one of DTN's competitors, right?

But short of DTN developing their own direct communication connections to all of those data-sources, maybe there is a way for DTN to buy the data from ComStock too? Or another and better idea is to create a whole centrally-cleared, global foreign exchange (FX) platform for the over the counter (OTC) market.

But that is exactly what the "FX Market Place" , a joint venture between CME and Reuters (and the 'new' CME, called the "CME Group" is doing now! See http://www.cmegroup.com/ and then click on link to Strategic Partners, http://www.fxmarketspace.com/ . According to this website, the "FXMarketSpace is the first centrally-cleared, global foreign exchange (FX) platform for the over the counter (OTC) market." As far as I can tell, this FX data is currently being offered only through Reuters 3000 Xtra terminals, but maybe DTN can be involved too?

So, I would encourage DTN's management to either provide the same data forex data service as now provided by eSignal, or provide a data-feed to the FX Market Place (CME) that does not require the institutional-level Reuters services (that are too expensive for the retail forex market).

In lieu of such a real forex CENTRAL-exchange, that replaces the current off-exchange aggregate of many (separate) market makers, there are just a few multi-liquidity-source type of ECNs (with a NON-dealing-desk infrastructure and business model).

The only two that I currently know of are EFX Group and Hotspot FX, and the data-feed for each of those is available via the eSignal-FX data-feed (when separated as just one 'component', apart from the aggregated total, using a special eSignal-symbol format).

The EFX Group offers STP/ECN for the processing of forex-trades: http://www.efxgroup.com/about-STP-ECN-definitions.html . Just like in the stock world with ARCA and ISLD, a EFX Group customer is trading the Forex market via an ECN that allows client orders to see and execute against other customer orders anonymously. In otherwords, there is a 'Level II' access to/by all participants in the ECN.

The Level I and II data from EFX Group's and HotSpot-FX's ECN are available via their platform (but not the history data), while the Level I data is ALSO available via the eSignal-FX subscription, with some history data too.

My suggestion is that DTN IQFeed should include access to both of these two real-time-streaming ECN's, and their HISTORY data, along with all of the other 200 (or more) usual market-makers, including Barclays and Tuttle (in order to get a more complete picture of all Forex-participants)

Any comments on DTN's plans in this area?

We actually were the first retail company to offer the Hotspot Fx feed a few years back. The feed was recently dropped due to the high cost to DTN and the low adoption rate by users (also due to the high cost). We are evaluating additional Forex feed options, and your feedback is appreciated!

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Jay Froscheiser
DTN - Trading Markets

A fantastic post by the initial poster. I agree wholeheartedly. I've been having problems with Barclays and Tullets every now and then and have made the same pleas to DTN management.

I know the original poster wants data from an ECN model (which is great!), but one might want to consider Oanda as well. I know they offer data for a fee. Perhaps their quotes are directly relayed from their providing banks, thus making their own aggregated feed? I don't know for certain. Just an idea. I would strongly welcome a quality feed.

Best regards,
MK

If anybody would like to get some understanding concerning data-sources for Forex trading, then they really should first understand the 'business model' that is implied by *any/all* the agents that are participating in the execution of your Forex trades. Therefore, any choices concerning a 'Forex' data-source, by either DTN or any DTN users, should be based on how best to avoid the fraudlent behavior that is too prevelent among almost all of the Forex brokers and dealers/banks. Relying on using data from a 'dealing-desk' is a very bad idea in the first place.

The bottom line is this: *any* data-source that is NOT based on an ECN type network has a 'conflict of interest' type problem that will likely lead to such things (among others) as 'running your stops'. I.e., very dangereous for your financial health!

Anybody thinking about 'trading' the Forex markets should first read about the broker misdealings, outright fraud, scams, and misconceptions that are prevelent in the Forex markets, e.g., go to Phil Davis's blog at http://nondealingdesk.blogspot.com/ and read the long list of articles there. Plus also go the NDD Forum at http://nondealingdesk.com/ and read the very many entries under "Choosing the Right Broker".

After reading these, you will likely be thinking about Forex-data-sources in a different light. The making of any choices on data-sources is probably irrelevent if those data sources do not provide total 'transparent pricing' among very many market makers, including even other retail-type traders too, as potentially taking the other side of your trade. eSignal's Forex offering is at least neutral, because it includes most all of the possible bid/ask prices that are being 'published', so that is somewhat better than relying on only one Bank or Dealer. But you still don't have a solution available for your trade executions, just based on any of that data, unless one of those eSignal 'components' happen to also be an ECN.

My suggetion to DTN is to drop the Tuttle and Barclays banks as 'Forex' data-sources, because these banks are just another 'dealing-desk', and all of what goes with that kind of business model. A thorough study of the independent references given on this subject will be very instructive about who to avoid, and not (yet) very conclusive about who to use for your trading-data. But one thing is clear to me is the paramount importance of the ECN model, and the fact that there are plenty of 'imposters' out there who pretend to be offering brokerage accounts that are somehow equivalent to an ECN network (just because they 'say' they have a 'non-dealing desk' operation,..... e.g., FXCM comes to mind).

For me, I have decided to go back to trading the emini-futures markets where there is an ECN network giving me access to ALL bid/ask prices and the ability to trade against the 'best prices', instead of just against my 'broker/bank'. Maybe someday we will have the equivalent type of ECN in the Forex markets, and maybe we are close to that with the Oanda, the EFX Group and/or InteractiveBrokers, but I am not yet confortable with these choices either.

Know your (trading) enemy, or deal with the consequences,
Cheers,
denizen2