Professional vs Non-Professional Market Data

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Professional vs. Non-Professional Market Data Subscribers

If you’ve ever subscribed to real-time U.S. stock market data, you may have been asked whether you are a Professional or Non-Professional Subscriber.

Many traders are surprised by this question and assume it is a trader2B^® requirement.

It is not.

The classification is established by the U.S. stock exchanges and applies to firms that distribute licensed market data.

Understanding the difference can help you understand why subscriber agreements exist and why different fees may apply.

Who Determines My Subscriber Status?

Your subscriber status is determined according to the rules established by the exchanges that own and license the market data.

Major U.S. exchanges include:

New York Stock Exchange (NYSE)
Nasdaq
Cboe Global Markets
IEX Exchange

These exchanges publish their own subscriber agreements, policies, and licensing requirements.

trader2B^® does not create these classifications.

What Is a Non-Professional Subscriber?

A Non-Professional Subscriber is generally an individual who receives market data solely for personal use.

Although each exchange has its own legal definition, a Non-Professional Subscriber is typically someone who:

Uses market data only for personal trading.
Is not registered with the SEC, FINRA, CFTC, IIROC, or another securities regulator.
Is not acting as a broker, dealer, investment advisor, or financial institution.
Is not using the data on behalf of an employer or business.
Does not redistribute market data to other individuals or organizations.

Because Non-Professional Subscribers use market data for personal investing or trading, exchanges generally charge lower fees than they do for commercial users.

Important: Each exchange has its own official definition. trader2B^® relies on the exchange rules and may require subscribers to certify their status through exchange-provided agreements.

What Is a Professional Subscriber?

A Professional Subscriber is generally an individual or organization using market data as part of a business or professional activity.

Examples may include:

Registered investment advisors
Broker-dealers
Banks
Hedge funds
Asset managers
Financial institutions
Proprietary trading firms and funded traders
Businesses providing employees with market data
Organizations redistributing market data

Professional Subscribers are generally subject to higher exchange licensing fees because the data is being used in a commercial or professional capacity.

Why Do Exchanges Make This Distinction?

Real-time market data is valuable intellectual property.

The exchanges use subscriber classifications to ensure that market data is licensed appropriately based on how it is being used.

This helps support:

Market infrastructure
Trading technology
Exchange operations
Cybersecurity
Regulatory compliance
Ongoing market innovation

The classification is an exchange requirement and is not unique to trader2B^®.

Why Does trader2B^® Ask About Subscriber Status?

When required by the exchanges or our market data providers, trader2B^® must collect subscriber information and maintain records demonstrating compliance with exchange licensing requirements.

Depending on your account type, you may be asked to:

Complete a subscriber agreement.
Confirm your Professional or Non-Professional status.
Certify your intended use of market data.
Accept the exchange’s market data terms.

These requirements are established by the exchanges and apply to many brokers, trading platforms, and financial service providers.

Does This Affect My Free ToroChallenge^®?

No.

Every Free ToroChallenge^® account includes complimentary market data for educational and evaluation purposes.

You are not required to purchase Dedicated Market Data to participate in the evaluation.

If you choose to upgrade to trader2B^® Dedicated Market Data service, your evaluation rules remain exactly the same.

Upgrading does not:

Increase your Consistency Score.
Improve your chances of passing.
Change your buying power.
Modify the evaluation rules.
Affect your profit target.

It simply provides a more stable and lower-latency market data experience.

What About Live Funded Traders?

After successfully completing the Free ToroChallenge^® and receiving approval for a live funded account, additional exchange requirements may apply.

Because live funded traders access professional real-time market data, exchanges may require:

Completion of subscriber agreements.
Subscriber classification (Professional or Non-Professional).
Acceptance of exchange market data policies.
Payment of applicable exchange market data fees, where required.

These requirements are imposed by the exchanges—not by trader2B^®.

trader2B^® works with traders on a best-efforts basis to make these fees as manageable as possible. Depending on the situation, eligible fees may be deducted from future trading profits rather than requiring an upfront payment.