All:
Several of you have mentioned or referred to Real-Time Quotes in various posts on this thread, so I thought I'd take this opportunity to respond.
Many of you may know this already (but for those who don't), the exchanges (NYSE, AMEX, NASDAQ) all charge exchange fees for real-time quote distribution. Exchange fees can be paid in one of two ways. Option 1: Non-professional, unlimited real-time quotes. Under this method, the non-pro exchange fees for all U.S. exchanges total somewhere between $12 - $14 per month per user (NOTE: Those are just the fees that must be paid to the exchanges, and does not include any type of admin costs.)
Option 2: Per tick method. Under this model, the exchanges charge $0.01 to $0.03 per quote, depending on the exchange. Again, these are exchange fees only.
The sites that currently offer Free RTQ are doing so under the Per Tick method, which means they are paying the exchanges $0.01 to $0.03 everytime a user gets a quote - which is why they only let you get one at a time, and some sites only let you get a fixed number per day or per month. These sites sell advertising on the pages, and as long as they generate more than the Per Tick charges, then they make out okay. In fact, most of these sites are losing money big-time.
The good news is that there is a lot of general pressure on the exchanges to adjust their exchange fee structures. I believe that there will be some significant changes soon, and this whole issue will become much simpler.
Meanwhile, we will look at different ways that we can incorporate RTQ into SI. At this point, however, that probably means a subscription service that included unlimited quotes, or one quote at a time on pages with ad banners. Any preferences?
...Bryan |
