eToro – Forex Trading Forum

[yongwei92]

i mean,is this like,real market? or is it just generated by you guys,and when we invest,we somehow lose money,and the number is not the same as market.

how can i be assured that this is real market details in real time?

[BlueinGreen]

well, the thing about Forex is that it is an over the counter market. that is, there is no one specific and physical place where they trade currencies, unlike the New-York stock exchange for example.
The forex price is decided every second by a network between financial institution quoting their price.
In reality there is no one true price for any pair like EURUSD on a specific time, but rather an average of quotations.

This is the reason why no Forex brokerage in the world would guarantee you a true price for any pair.
Stock brokers may do that because a stock can have only one real price every second it is trading. If Apple is trading at ten in the morning for the price of $150.51 this is the quote you are going to see in all stock brokerages.

However, if its ten in the morning and EURUSD is trading at etoro for 1.5501 bid, it can trade in another brokerage at the same time for 1.5503 bid or 1.5499. This doesn't mean one of them is not giving you the right quote.

The quote difference can happened because as i said there in no one true price every second and also because of spread differences among various brokers.

but you can check if your broker is ok very easily since the quote differences are usually small ( mostly 1 to 3 pips, but at news time it can also be higher)

So all you have to do is watch an additional quoter to see if you get the market price.
like here for example

http://www.forexdirectory.net/quotesfx.html

[etoboy]

Well that's good to know, especially for newbs like me.