Who are the suppliers of quotes and what the trader needs to know about them

Ted Capwell

Among the currently existing methods of making a profit using the Internet, online trading is considered one of the most interesting and promising. Many users who do not have the appropriate education and experience, after superficially studying the fundamentals of trading in financial assets, consider themselves to be great specialists who can earn tens of thousands of dollars every day. In most cases, such an attitude to online trading ends with the novice losing the money allocated for these purposes and forever rejecting the idea of ​​making money in the global financial market.

In order for the line of business in question to bring a steady income, it is necessary to study the maximum information about it, including even the seemingly insignificant moments. This review will help you understand how the formation of quotations of financial assets is carried out, what factors influence this process, why a trader should compare data obtained from different sources, etc.


quotation providers


Quotation of securities

The basis for the formation of the value of securities are the main “engines” of the market economy – the supply and demand for stocks, bonds and other securities. This process includes the following elements:

    • Pre-contractual price of assets.

    • The cost of the seller (it is called by the owner of the Central Bank).

    • The cost of the buyer (the price at which he is ready to buy an asset).

    • Actual price / quote value of securities.

Traders who earn on securities transactions constantly monitor the quotes of their assets. Even a small change in the value of the Central Bank allows market users to earn good sums of money.

Quotes of other financial assets

In the case of the main types of securities, the formation of their value is carried out on the stock exchange. She is the supplier of quotations for brokers who, through their trading platforms, transmit information to clients. Quickly, conveniently, everything is honest and transparent (quotes of your broker can always be checked on specialized web resources). Well, what about other financial assets?

To answer the above question, let’s analyze the process of asset value formation, using, as an example, the well-known Forex currency market.

Formation of quotations for currency pairs is carried out on the international interbank market. Its participants – large financial companies or Market makers are the first link in the formation of quotations of the assets under consideration. This process can be carried out using the requests of other participants (Market users) or in an indicative (streaming) mode when a “reference” course is applied. The latter is considered the basis / foundation for the formation of the value of currencies for the subjects of the interbank market.

The obtained data, including indicative quotes, are processed by special programs and acquired by large suppliers of quotations (Leverate, EBS, Currenex, Thomson Reuters, etc.). The next link in the chain under consideration is brokerage companies, which are suppliers of quotations for traders.

The more counterparties your broker has (providing information on the situation in the international interbank market), the more accurate his quotes will be. In this case, the administration of the service has the opportunity to reduce the size of the spread, which has a positive effect on the company’s image and the profits of its customers.

Recommendations from experienced traders

The presented review will be incomplete if you do not pay attention to the useful advice of experienced online trading participants that are related to this topic.

   • Having a license from reputable regulators ensures that the broker provides true information to its clients (including asset quotes).

   • If you have doubts about the accuracy of the quotes on your broker’s website, use specialized services (open sources) where you can check out questionable information.

    • The difference between the data on your trading platform and on the websites of other brokerage companies is often due to the spread (maybe it’s time to think about changing the broker?).

    • Do not forget to ask the representatives of the brokerage company about who provides them with quotes (it is desirable that you provide a copy of the contract with suppliers).

    • Fixed Spread is a serious “bell” for traders, signaling that their broker may be a fraud.

    • Any evidence of artificial interference in the formation of quotations is a reason for contacting the regulator.

   • Finding options when asset quotes on different trading floors were very different from each other (allowing you to buy currency and immediately sell it, earning decent money) is a meaningless exercise. You will only lose time.

The information provided will help both novice and experienced traders to see some of the nuances of online trading, which can significantly improve the security of financial transactions and increase the effectiveness of their activities.


“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”