More than any other type of trading activity, your success in forex trading depends upon receiving accurate and timely price data. That’s because the forex market moves so rapidly and small changes can mean big gains or losses.
There are any number of brokerage houses that provide real-time forex quotations. You can also use our free forex data and charts (which is historical and not updated daily for testing your system). But it takes more than just quotes to maintain an edge. You need to be able to use the data to determine how you will trade next.
That’s why so many successful forex traders invest their money in obtaining price data that can be fed into their software trading platform to produce real-time charts.
The costs of obtaining price data can range from free to hundreds of dollars per month. The price is dependant upon the number of currency pairs reported, the number of data contributors and how frequently the price data is updated.Of all those price-sensitive variables, the one that bears the most consideration is frequency of update. Pricing data is available in tick, 5-minute, 15-minute, hourly, daily, weekly, monthly and longer historical intervals. The best choice for you depends upon how you are going to use that data.
Anything other than real-time pricing (intraday) data is generally used for historical technical analysis. There are only two issues scrutinized during technical analysis:
- The currency’s current price
- The history of that currency’s price movement.