How important is speed in trading? Does it really matter how fast your order gets to the market? Some of the biggest names in the trading world think so. In fact, they are willing to spend $300 million USD to build a cable under the Atlantic ocean that will save traders 5.2 milliseconds on a round trip trade. For a trader sitting in the UK that is executing US Equities orders, or most all FX orders, the savings in time to market is actually a mere 2.6 milliseconds.
Spending $300 million to save a trader 2.6 milliseconds per order?! Just how long (or short) of a time period is a millisecond? Some examples: 3ms = a housefly’s wing flap. 134ms = time taken by light to travel around the Earth’s equator. 300-400ms = the blink of a human eye. So what is a millisecond worth in the trading world? Is it $115.38 million? Is it some level less than that?
Thankfully retail FX traders do not need to do that math. If your brokerage offers a MetaTrader4 platform from Capital Markets Access Partners, we have you covered. We host our MT4 servers in the Equinix NY4 data center with cross-connections to all the major ECN’s and liquidity providers getting your order from our MT4 servers to market for execution in less than 2 milliseconds! Contact us to learn more.
UPDATE [5/17/2012]: We are now “On Net” with Commercial Network Services for VPS connections to our MT4 server in less than 1 millisecond.