Home > Rates Forex > Bank Forex Rates – Any Good?

Bank Forex Rates – Any Good?

Bank forex rates, are they accurate? do they give us the fundamental second by second reporting we need? are they completely off the mark in comparison with other banks? or do they simply work?

Test all forex rates banks give before deciding!

I am dependent on accurate and real time reporting in my rates system. If I don’t get live forex rates then my system is worthless. That’s why I challenge myself this week to test out and see which bank forex rates are the most accurate.

My testing is going to be based on these criteria:

  • Comparing refresh rate of streaming forex rates and currencies offered
  • Comparing trade price of currency traded
  • Comparing accuracy of price change

It’s not going to be easy, but this research is absolutely necessary.

I’m afraid that I’m going to discover some serious changes. My hope is that shifts will never be over 1 pip between the major banks. In this way I can know that the spreads each bank takes as a commission will not affect me too much.

Forex Rates Bank Testing Breadth

I intend to test out at least 70 banks. Forex rates bank output is critical to my success so I’m not taking it lightly. I heard that there is an organization that is in charge of calculating the exchange rate according to the trades the banks make. This organization has a system that samples all the trades of the major 70 banks and calculates the currency rate according to some averages it determined. I also heard there’s more than one organization for doing this.

And because these organizations test out 70 banks, then I’m going to do just the same.

Can a bank give live forex rates?

I guess the answer to that is Yes. Because the averages of the banks trades are sampled like 5 times every second and that information is sent back to the banks who show their live forex rates charts.

People, this is going to take a while, but stay tuned. I started trading already, not based on bank forex rates yet, and will keep you all updated on my first success story!!!

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  1. Trevor
    January 23, 2011 at 1:53 pm

    Nice Idea, although I’m doubtful that you’ll get to review all 70 banks that you want.

    Give it a go though, and dude, be careful with your money!

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