Price differences between brokers during fast markets

[Amanhasnoname]

In calm conditions, two brokers quote nearly the same price. In fast markets, differences of half a pip or more can open up, and the gap can last a second or two.

Reasons include different liquidity providers, different aggregation methods and different update speeds. One feed may lag behind another or smooth out spikes.

For scalpers, this has practical effects. A stop-loss on one broker may trigger while the other shows price still above it. An entry that filled well on a demo or comparison platform may fill badly on the live account.

It also affects any analysis based on a different feed. Signals from a charting service with its own data source can fire at prices that aren't available on the broker.

The safest approach is to take signals and prices from the broker's own feed, and to verify any external data source against it.

Comparing two feeds side by side during a news event is an eye-opening exercise.

Have you ever run two brokers' feeds together during volatility, and what did you notice?