What You Should Expect From Your Internet As a Trader

As traders, we depend on the fastest response times. We expect fast executions without slippage. Your trading software, your computer’s processor, and your internet speed all affect the execution of your trades. Even the most well-designed trading system can hit a bottleneck unless you ensure your network has speed and fluidity.

Obtaining ultra-fast Internet speeds is more than just calling your service provider and plugging in your computer.

There are several key components to ensuring your Internet is working optimally. Your service speed, home network set up, and number of connections are important factors.

Why You Should Take an Internet Speed Test

The efficiency of your DSL or broadband connection is dependent upon the level of Internet speed you are being provided. The first step in evaluating the speed of your Internet is to take a speed test.

You can find a speed test online by accessing your service provider’s website. There are also several free services that will do this for you. The test will evaluate your speeds PING time. This is the amount of time it takes your data to get from your computer to the nearest connected point and then back again

The ideal network connection would consist of ultra-fast broadband Internet access of speeds over 100Mbps with ping times under 1ms. Not all neighborhoods, and even office builds, have this kind of bandwidth.

In reality, most traders only have access to speeds in the 20Mbps to 50Mpbs ranges with ping times that vary within 5ms to 15ms ranges, which is actually not too bad.

How Your Home Network Can Boost Your Speed 

Your method of connection, number of connections, and modem are a few ways that can contribute to speed or the lack of speed.

  • You should always be using a hardwired Ethernet connection – always use a hardwired connection. Wireless Internet connections can have several users, which can cause a reduced speed. Make sure your trader computer has a dedicated internet connection, This should run directly from your trading computer to the router.
  • Make sure your hardware is up to speed – The Ethernet port on your computer should be a gigabit Ethernet port, which has a 100 Gbps throughput. Your router should also be gigabit speed rated. If your modem is several years old, it pays to upgrade to the newest available model to take advantage of newer technologies. The cables used on the entire network should be Cat6 or Cat6a – this includes the patch cable that connects the router to the modem. Cat 6a has an added advantage over basic Cat 6 where in you can have longer cable runs and reduced interference that can cause delays and lost data packets. Loosing data packets causes the computer to resend the information multiple times, which will create further slippage.
  • Establish a Backup Internet Connection – There may also come a time when you need to access your accounts when their primary ISP has failed. In cases such as those, having a backup Internet provider can pay immediate dividends. A backup connection is essential for active traders who cannot afford to lose control of their positions and need constant up time. Consider using a 4G wireless internet connection or installing a backup Ethernet card.