Your execution speed, platform stack, and latency can cost or make you more than commissions. Learn how NinjaTrader, Rithmic, Tradovate, and data fees affect real profitability.
In prop trading, two traders may pay the same commission, but the one with faster execution and lower latency often wins. The platform you use, data feeds, routing, and latency overhead can significantly influence your edge. Here’s what to consider.
Core Platforms: NinjaTrader, Tradovate, Rithmic
NinjaTrader is a popular front-end that supports multiple data and routing providers. Its users must pay for market data (e.g. CME Level I, Level II) which adds to monthly cost.
Rithmic is known for ultra-low latency & is often the infrastructure behind institutional or prop setups. Its architecture favors direct market access (DMA) and minimal delay.
Tradovate provides a cloud-based, user-friendly interface and simpler setup. It is more accessible but not quite as low-latency as Rithmic. Many prop firms performance.
Data Fees & Commission Overheads
NinjaTrader users pay exchange data subscription fees. For example, CME/CBOT Level I is $12/month for non-professional users; Level II (full depth) is $41/month for the bundle.
Commission structures also vary by broker. NinjaTrader charges per contract routing fees (e.g., $0.25 per contract via Rithmic routing) in addition to base commission.
Latency Realities & Trade Impact
Latency is the round-trip time for your order to hit the exchange and the confirmation to return. Even milliseconds matter in volatile markets. Send orders lag.
When execution is slow, you may get filled at worse prices or lose profit opportunities. For high-frequency or scalping strategies, this can erode your edge faster than commission costs.
Choosing the Right Stack for Your Strategy
If your strategy is order-flow, scalping, or latency-sensitive, pair NinjaTrader with Rithmic as the execution backbone. For more discretionary or swing styles, Tradovate’s simplicity and accessibility may suffice.
Your budget matters. If data and routing costs are too high for your volume, even a premium stack can become unprofitable. Always simulate trade costs and latency slippage when evaluating the stack.
FAQs
Does faster execution always beat lower commission?
Not always, but for many strategies, yes. If your fill quality or slippage suffers, a lower commission offer with worse execution may lose to slightly higher commission with faster fills.
Can I use Tradovate as my front end and Rithmic as the backend?
Yes. Some setups allow using Rithmic data feeds underneath Tradovate or via bridges, combining the precision of Rithmic with the usability of Tradovate.
How can I monitor latency in NinjaTrader?
In NinjaTrader you can inspect connection stats or use performance logs to see delays per tick. Some traders use external ping tools or VPS proximity metrics.
Do all prop firms allow custom platform/data selection?
Many do, but some restrict you to their preferred stack or charge extra for alternate routing/data. Always review which platform and data you will be using before signing up.
