Does the TradingView Exchange Need to Match the Broker’s Exchange?
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Matching the exchange on TradingView with your broker’s exchange depends on the asset. For equities, the price difference is minimal due to NBBO regulation, while for crypto and futures, ensuring the exchanges align is crucial due to significant variances.
A common question among traders using TradingView is whether the exchange displayed on the platform needs to match the broker’s exchange. While price discrepancies can arise between different exchanges, the importance of matching them depends on the asset class you’re trading.
Equities: Regulated and Consolidated Pricing
For equities, brokers operate under regulated environments and provide prices based on the National Best Bid and Offer (NBBO). This ensures that the broker consolidates prices from multiple exchanges to give traders the best bid and offer available. Even if TradingView’s data comes from just one exchange, the price difference is usually only a few pennies for large stocks.
For most large-cap stocks, such as those in the S&P 500 or MAG 7, the discrepancy between TradingView’s data and the broker’s price will be minimal. However, for less liquid assets, like OTC or penny stocks, these differences can be more pronounced. In such cases, it is advisable to check the exact exchange data on both platforms .
Futures: Data Providers Vary
Futures trading can be trickier. There are multiple data providers in the futures market, and depending on the data provider used by TradingView and your broker, there could be notable differences in the pricing. Ensuring that your broker and TradingView use similar data sources can help mitigate this variance.
Crypto: Significant Price Swings Across Exchanges
When it comes to crypto, price discrepancies across exchanges can be substantial. Unlike equities, where regulated environments ensure minimal differences, cryptocurrency prices vary widely depending on the exchange. For example, Bitcoin prices may differ significantly between Binance and other exchanges due to market liquidity and platform-specific conditions.
If you’re trading crypto, ensure that TradingView is showing data from the same exchange where your broker operates. TradingView allows you to select specific exchanges for assets like Bitcoin, so if your broker is tied to Binance, for instance, you can ensure TradingView reflects the Binance Bitcoin chart .
Options: Price Variances
In the options market, price variances can also occur, especially due to the wide range of contracts available. Different brokers may use different data providers, which can lead to execution price differences compared to what you see on TradingView. As with futures, aligning your broker’s data provider with TradingView’s can help reduce this variance.
Conclusion
In general, matching TradingView’s exchange with your broker’s exchange is more important for less liquid assets, futures, and crypto. For equities, the price difference is usually minimal due to the NBBO regulation, but it’s still worth keeping an eye on if you’re trading more volatile or niche assets. Aligning data providers between TradingView and your broker is a useful way to minimize any discrepancies in price.