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MC Spread on IB . Is MC is getting paid 1 pip by IB?   [ ]
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#1 posted 04 Mar 2012 

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Hello

Broker is IB:

I' m using a special function to display Forex price on Excel while I'm looking at my chart on MC. Both Excel and MC are connected on the same port and received Bid Price on EurUsd

There is a 1 to 2 pip higher difference on MC quote compare to the one I receive on Excel

I'm not using the free version, but the fully paid one. I would not be surprise to see a difference with the free MC version, but not with the fully paid licence

EurUsd:
Excel 1.3203
MC 1.3204

Eur/JPY
Excel 107.735
MC 107.745


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#2 posted 05 Mar 2012 
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I would be surprised to see any differences on any quotes over MC. Are you sure that they are showing the same prices (i.e., both are bids or is one showing the last traded price? Do they update at the same time?) Could it be a decimal setting?



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#3 posted 05 Mar 2012 

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furytrader wrote:
I would be surprised to see any differences on any quotes over MC. Are you sure that they are showing the same prices (i.e., both are bids or is one showing the last traded price? Do they update at the same time?) Could it be a decimal setting?


Hello FuyTrader

Thanks for your input

I'm surprise to. Both are on the Bid. True that they don't update at the same time. I did check last Sunday night when the market was very calm, meaning slow update in the price , no modification for some time and Excel price is always lower for Eur.Usd and for Eur.Jpy

Both system is displaying 5 digits

Quote on Excel do not refresh very rapidly but as mentioned, I did the test and screen capture in a very very low period so Excel had enough time to catch up.

I will try to seek another solution to get quote in Excel. If any of you is getting data from IB in Excel then, could you tell me how or what software you are using

Maybe somebody from MC could comment.

I'm not again MC to have a special arrangement with IB ( "Bien au contraire"). Just that if it is true, then I was not aware of that.

Martin


#4 posted 05 Mar 2012 

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Hello arjfca,

Can it be that one of the quotes is via SMART exchange and the other for example TRXEN exchange or another exchange. There can be minor price differences between different exchanges and SMART.



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#5 posted 05 Mar 2012 

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evdl wrote:
Hello arjfca,

Can it be that one of the quotes is via SMART exchange and the other for example TRXEN exchange or another exchange. There can be minor price differences between different exchanges and SMART.


OK, nice point, I will check that later and report

Martin


#6 posted 06 Mar 2012 

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arjfca wrote:
There is a 1 to 2 pip higher difference on MC quote compare to the one I receive on Excel

I'm not using the free version, but the fully paid one. I would not be surprise to see a difference with the free MC version, but not with the fully paid licence

arjfca wrote:
I'm not again MC to have a special arrangement with IB ( "Bien au contraire"). Just that if it is true, then I was not aware of that.

Let's assume for a moment this alternative hypothesis would be true - so that the IB price in MultiCharts is 1 pip off, so that the extra slippage goes into the pocket of MultiCharts.

If that's true, we must give MultiCharts credit for being very powerful - not only do they have struck an agreement with Interactive Brokers, they've also convinced MB Trading to join them, and even the CME Group has joined their dark side:

Image

As you can see in the screenshot, taken just now (timezone UTC/GMT +1), all instruments had the same bid price. So if the IB price would be off with one pip, the 6E price and the MB Trading price would also have to be 'manipulated'.

Now, what would be a more logical explanation? :)
    a) MultiCharts has struck an super secret agreement with Interactive Brokers, MB Trading, and the CME Group that hasn't been uncovered - until now,
    b) There's a bug in your Excel sheet or in the way that the data get delivered into Excel.


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#7 posted 06 Mar 2012 

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Hello John

Thanks for your input

First I won't say that my assumption is true and there is nothing wrong if it was true. Bucket shop do use this way. Trade price are adjusted automatically, so transparent.

I'm pretty sure that logically, there is an arrangement between MC & IB, other broker that they have listed. There is nothing illegal here. How can I software developer can sustain the road by selling a once in a life time licence fee. They have office, employees and manager to pay on day to day basis.

Based on that, they must get some revenue from somewhere else. You pay a one in a life time licence fee and you get great support and service from them for an extended period of time. That don't make the road for me

I did not check further more the validity of my Excel function. About being write or not is not the point. We made money from the difference that we pay and resell our position. If they or anybody else do profit at the same time, won't change anything from me. They are there for a purpose to deliver a tool that help me to make money.

All i know is I was capturing the bid price of Eur.Usd and Eur.Jpy on Excel and MC at the same time from the same port 7496 to the same data provide: IB. Then I compared them. Why a difference.

Could it be my function ? maybe Could it be the difference that they get? could be. I won't go further. As long as MC do a good job on the software that I use, I'm happy

A good and happy trading day to all

Martin



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#8 posted 06 Mar 2012 

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arjfca wrote:

There is a 1 to 2 pip higher difference on MC quote compare to the one I receive on Excel


Is it always 1 - 2 pips higher on MC or is it sometimes lower?


#9 posted 06 Mar 2012 

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Hello Tresor

When I check, MC was always higher. I removed the Excel function because it was not pertinent to my actual need.

If I could get some spare time, I will look further.

Martin


#10 posted 06 Mar 2012 

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Possibly because IB uses real time data for their DOM, but MC received data every fraction of second. When I use IB data on MC chart, the bars always 1 or 2 ticks short, because MC receives not real time data, and I don't think MC eats your ticks.


#11 posted 07 Mar 2012 
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arjfca wrote:
I'm pretty sure that logically, there is an arrangement between MC & IB, other broker that they have listed. There is nothing illegal here. How can I software developer can sustain the road by selling a once in a life time licence fee. They have office, employees and manager to pay on day to day basis.


There are absolutely no arrangements between MC and any brokers that we support aside from streaming their data (the super-secret agreement bit was funny :) )

To clarify - we do not get reimbursed by any brokers, there are no Introducing Broker agreements with MC, there is no patent fee with DOM, and no other hidden or otherwise non-transparent charges. The prices you see are streamed directly through the APIs.

Whether brokers stream the same price through the API as they show in their platform is an entirely different question. Each one has to be looked at individually, so if you have a particular situation please come to our Live Chat and our techs will analyze it.



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