Why Stock Traders Need Fast Internet

Imagine this! You have just upgraded your network wiring to the latest Cat6, bought the fanciest tri-band router you could find on Amazon, and you levelled up hardcore with your network switch. With all such high-end gizmos, surely you can experience a seamless day trading adventure without any internet lags, data bursts, or slippage, right?

But then you run the Speedtest and the disaster happens!

You are getting nowhere near the internet speed your fanciest gears can handle and your ping is all over the place. But why did it happen? Is your ISP (Internet Service Provider) responsible for it? Why does a fast internet matter to traders, anyway? And what tweaks can you make to your network settings to enjoy the glory of your internet setup?

Keep reading as we are going to answer all your questions!

Fast Internet Speed Isn’t Just About Having The Highest Bandwidth

Subscribed to a whopping 1Gbps internet plan? Good for streaming Netflix on a dozen devices at once! But would you be surprised to hear that your 1Gbps internet might be “slower” than a 60Mbps internet? In some cases, it can be; because professional stock trading doesn't just require plenty of bandwidth, but it also requires low and stable latency. Many of you may also know it as ping. With this parameter, your ISP and savvy broadband subscribers can define how much time – measured in milliseconds – packages take to reach from data servers to your device.

Don’t know what latency is? No worries! Just read below!

Hey, wait! Even if you know what ping is, don't skip this section. Did you know that "ping" actually stands for Packet Internet Gopher? Now you know! Ping is a method of determining communication delay between two networks. Simply put together, ping measures the amount of time it takes for data packets to travel between two devices or across multiple networks. While ping is a parameter to measure the latency of the internet provided by your ISP, it's also crucial to evaluate the latency on the same network via LAN. The lower your latency, the faster your internet.

Why Fast Internet Is Essential For Stock Trading

Before making the choice on which internet package is the best suited for stock trading, it's essential to understand how both internet bandwidth and ping are tied to trading. Every time you have the price charts open on a browser; thousands of data packets are downloaded every second that carry price changes of individual assets. In this way, your internet must support the continuous stream of data packets. And since prices change multiple times a second, your internet connection must ensure that there's zero packet loss. Else you may miss key information while trading.

Alright, now what is Packet Loss? I’m glad you asked!

When you are accessing the network or any network, small units of data – known as data packets – are transferred across devices to share data. However, if one or more packets fail to reach their destination on a specified network, it is called Packet Loss. On the user end, packet losses incur in the forms of network interruption; whether slow internet, download failure, or even a total loss of connectivity. Any application sending or receiving data from the internet can be disrupted by packet loss as most of the applications rely on real-time data processing; notably stock trading.

Further reading: Best Internet Services For Serious Gamers

If your internet is not fast enough, you may experience lag where certain data may require more time to load and process. However, given that the modern internet has matured so well with better optimization, you are not likely to experience the disruptions caused by packet loss. But that doesn't mean an internet with poor latency is good enough. On the backend, prices of the stocks you are about to buy may increase in a fraction of a second. And if you are an avid trader with high-volume purchases, such negligible delays can quickly add up to a significant amount.

What Are The Minimum Internet Parameters To Consider For Stock Trading

Note that once you can stream price charts in real-time, going any higher with your internet speed will simply fall into the Laws of Diminishing Returns. Most people wouldn’t think twice before subscribing to a fast internet package with the highest bandwidth. However, as much as stock trading requires fast and reliable internet, the mentioned parameters are good enough for any trader. You would be surprised to know that traders may get away with low bandwidth as long as they have rock-bottom latency. This way transactions can be made in real-time without loss.

• Internet Bandwidth: 40 Mbps or higher

• Network Latency: 5 milliseconds or lower

• Packet Loss: 0% (no excuse in this regard)

But, but, but… While it's important to have fast internet, you shouldn't oversee the performance of your computing device. The speed and reliability of your computer also determine how seamless your experience will be when you are subscribed to a high-speed internet package. Therefore, fast internet and a reliable device; both are necessary.

5 Ways You Can Improve Your Existing Internet

Here comes the part you might need the most! Even if you are not quite tech-savvy, learning these niche techniques can help you boost your internet’s performance, which in turn, can improve your trading experience. Now that you know what parameters are the most essential for uninterrupted trading, let’s now learn how you can improve them.

1. Forget WiFi; Level Up With Hardwired Ethernet

   If the internet is fed to your computer over WiFi, it's high time you should plug a hardcore Ethernet cable into it. I know the convenience of not having to deal with any wires, but WiFi increases your latency by a significant factor. Not to forget, the farther you are, network interruptions may add up exponentially. The solution is an inexpensive Ethernet cable that plugs into your computer straight from your router or network switch. That way, no matter how far you are from the router or how many devices are connected to your network, you can get the utmost reliability over wired.

2. Update The Firmware Of Your Router & Network Switch

   Let's now come to more tech-savvy troubleshooting methods. Modern internet routers are network switches that have made customization much easy, thanks to an easy-to-understand interface. And just like your computer or phone, manufacturers are always improving the efficiency and reliability of your existing gears through firmware updates. And it's as simple as clicking "Firmware Update" on the admin dashboard. In older models, you may need to manually download and install a package. While the latter process is prone to errors, it's always recommended.

3. Updating The Firmware Didn’t Work? Time To Upgrade!

   Maybe your router can no more live up to modern expectations and it’s time to call it an ancient relic! However, to benefit from the best internet connections, especially from our curated packages like ACT Storm and ACT Incredible, it’s better to have the latest router in the market. Backdated networking gears not only perform marginally worse than modern options, but it also leaves your network vulnerable to security risks. If you are looking for something new, be sure to check out our recent article on 5 Popular Routers Compared To Keep Your Work Frustration-Free.

4. Check Whether Your Devices Support The Latest Standards

   You have not just updated the firmware, but also upgraded the router as well. Still couldn’t see an improvement? While the modems in your phones and tablets are soldered right onto the motherboard, that might not be the case with the NIC (Network Interface Card) inside your desktop. If either your motherboard or the network card is outdated, you can simply swap it and install a new one. And that’s it! Now every gear – from your router to your Network Interface Card – is the latest in the business, letting you enjoy an uninterrupted stock trading experience.

5. If Nothing Works, Contact Your Internet Service Provider

   Last but not least, if the last 4 methods didn't solve your problems with an awful internet experience, the 5th and final method is to call your ISP. With specialized testing equipment, they may send technicians to your home and pinpoint any overlooked issues that might be bottlenecking your connection. Maybe your Ethernet cables are faulty, or maybe the fibre is broken, bent, or kinked somewhere, or maybe your ONU (Optical Network Unit) needs to be upgraded. Whatever it is, leave it up to them. It's certainly the safest way to get your internet from wrecked to fixed.

Should You Rely Only On Your WiFi? Or Should You Be Hardwired To Ethernet?

The quick and dirty answer is Hardwired To Ethernet! In every way, WiFi is going to be slower – with higher latency – than wired Ethernet. Here's why! When you use an Ethernet cable – which is also known as a network cable or a patch cable – the signal is transmitted through pairs of copper wires. Further inside every Ethernet cable, the copper wires are wrapped to protect them from any form of interference. Do you know how long can an Ethernet cable be before it starts losing the signal? It's up to 300 feet! And it channels straight from your router to your computer.

Further reading: Simple Ways To Boost Your WiFi Signal And Improve Your Internet Speed

However, in the case of WiFi – or any wireless signal for that matter – is channelled in all directions, bouncing off metal objects and penetrating through concrete walls. Such interference reduces the quality of your internet and causes occasional hiccups and packet losses. The next reason WiFi bottlenecks your high-speed internet is because of something called Spectrum Competition. In other words, s WiFi signals from your router may interfere with other networks such as cellular, Bluetooth, and even WiFi signals of your neighbours' router, causing sudden slowdowns.

Here’s How ACT Fibernet Can Level Up Your Trading Game

It's 2022 – the era of Metaverse, VR, OTT entertainment, and, of course, gaming. And all of this can be enjoyed right from your living room if you have high-speed internet hooked up to your home. That's exactly when you need ACT Fibernet. The Atria Convergence Technologies Ltd – or ACT – was born out of a vision to become the most admired in-the-home entertainment, education, and interactive services company that creates radical social transformation, and delights and empowers users. How? By providing the best internet connections at the most affordable rates.

Choose from ACT Fibernet’s Best Internet Connections

We offer broadband on optic fibre and our Fiber-To-The-Home technology can carry vast amounts of information at speeds up to 1 Gbps. We are currently the largest fibre broadband services provider in the broadband category, and the largest non-telco ISP in the country. We've always believed in giving our customers the very best, and our vision is for every Indian home to have access to world-class internet services. And if you too want to be a part of it, there is nothing better than subscribing to high-speed internet plans from ACT Fibernet starting from Rs 470/month.

Run The Speedtest; One Last Time

Remember when I told you to run a Speedtest before tweaking your network? Time to run it one more time. Noticed an improvement? If yes, then don't forget to share this blog and assist your stock trading buddies if they are having the same issue with their internet. An unwavering, high-speed internet connection that never loses a packet is the key to a seamless stock trading experience. Trudging through awful internet experiences isn't something many of us can live with. Now you know how to significantly improve your home internet experience in a matter of minutes.

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