Trading by Satellite Internet -- will this really work?!?

[w.trader]

I live in a very rural area of Europe and trade over a landline broadband internet connection. The connection is by current standards rather slow with a speed of 2.5 Mbit. Although the connection is usually reliable, there are times when it will go down for half an hour at a time. As I am mostly an end-of-day trader, the lack of speed doesn't really affect my trading style, but I would like to have a more reliable connection.

I am considering satellite internet. Such a connection will have a much higher latency rate and I've read numerous sources that point out that satellite internet is not practical for "real time" applications. While this would definitely be an issue for certain online games, and perhaps even for scalpers, I am not sure if latency would be a substantial problem for an end-of-day trader.

The Wikipedia article on satellite internet mentions that the latency of satellite connections can impact the initial connection to a secure server. I am wondering if there are other "real world" problems with satellite internet that would rule out its use for trading.

If there are any forum members who have used a satellite connection for trading, could you share some of your experiences, insights, or feedback on this topic.

As an alternative to satellite internet, I am considering a 3G mobile internet connection via USB internet stick. With a special antenna, I have been able to establish a 1.8Mbit connection with a 3G base station that is 10km distant. However, it remains to be seen whether this connection would be stable.

 

[BeginnerJoe]

I am wondering if there are other "real world" problems with satellite internet that would rule out its use for trading.

Cost could be one. I never used it. But seems likely to be expensive.

For non-real time trading, even a land line dial up should be adequate. I once chatted to a woman who used mobile phone internet connection. She had frequent connection drops. Not sure if technology has progressed.

In a highly volatile environment where nothing is predictable, having multiple simultaneous means of action will attain the best average outcome. This even makes for a brilliant trading strategy. So getting dial up, getting broadband, getting mobile, getting satellite will all contribute to a perfect internet connection.

 

[new_trader]

As an alternative to satellite internet, I am considering a 3G mobile internet connection via USB internet stick. With a special antenna, I have been able to establish a 1.8Mbit connection with a 3G base station that is 10km distant. However, it remains to be seen whether this connection would be stable.

You don't need much bandwidth for trading. A 3G mobile connection is perfectly adequate, I use one as a back-up for the rare occasions my landline broadband goes down.

IMO the cheapest option would be to do the same thing for now. Keep your dial-up and have a pay as you go mobile broadband as a back-up.

Latency is the only real problem I see with internet satellite (If you aren't counting cost). Although, I am not sure if web requests are sent over satellite or landline...if it is over landline you still have the issue of landline problems with satellite internet.

 

[new_trader]

I should also add, another important factor with satellite internet is weather! This could be a factor if you live in a part of Europe that gets a lot of rain. Because of the frequencies involved, you will lose your signal during heavy rain and/or heavy cloud cover.

 

[Pferd]

I have used it....SkyDSL with 20MB down and 6 Up. It cost in Germany around 60,- EUR a month. I believe this is the most expensive package for private users.

1.- Latency is indeed a problem although not a real one. Things take a bit longer but is not that much and you get used to it. Sometimes the online banking servers don't like it. But always works at the second try.

2.- Weather is a big problem, probably the main one. It has to rain really hard, but when it happens you lose the connection completely.

3.- In answer to another question: Yes, nowadays both streams (up and down) are done via satellite. They are independent also.

There is only one "real" problem I see with this technology: They use something called "pooling", meaning that according to your use volume they will put you in a pool with likewise users. So if you are a heavy traffic user you will end in a pool with other heavy traffic users.

In "private/non commercial" users the pools are of 50 connections, meaning that this bandwith of 20MB/6MB you have to share with another 49 connections. I am not 100% sure about this but I think every computer/device in your house counts as one connection, so it does not mean 50 users/clients but 50 connections. This make the system terrible slow between let's say 17:00 and 23:00 hours CET. After that and earlier in the morning (until 10:00 CET) is really, really fast.

For "business/commercial" connections the pools are of 20 connections. But the same package costs around 250,- EUR a month. I have not tried this one to see if there is really a difference.

3G or even LTE should be enough for what you are looking. Just bear in mind that in some countries the speed goes down after you have gone over a certain volume. For example, in Germany with the fastest LTE package (150 MB down) you get down to some 0.4 MB once your traffic has exceeded 30 GB in a calendar month.

Hope this helps!

 

[MackenzieL]

It's too complicated and not every public can apply for a sat connection.