What Is a Bloomberg Terminal Functions Costs and Alternatives
A Bloomberg terminal is a computer system that allows investors to access the Bloomberg data service, providing real-time global financial data, news feeds, and messages. It also includes a trading system for financial transactions like stock and options trades. Bloomberg charges an annual subscription fee, with the price for the proprietary electronic trading system at an estimated $27,660 per year as of 2020.
Bloomberg terminals are highly regarded professional investment systems for the financial marketplace. They are mainly used by institutional investors due to their relatively high cost. The system provides news, price quotes, and messaging through a secure network. Bloomberg’s black interface has become a recognizable trait of the service and is carried over to their television station and flagship magazine, Bloomberg Businessweek.
Bloomberg also offers users access to the application online and through mobile devices with its Bloomberg Anywhere service. This allows portfolio managers and brokers to access real-time market information globally. Bloomberg’s instant messaging service is popular among traders for posting quotes, trade updates, and market news. The tools included in the terminal are widely used by finance professionals and analysts. Bloomberg’s data sets are comprehensive and regularly updated to reflect current market activity, with a focus on fixed income data appealing to bond traders.
Thomson Reuters is the largest competitor to Bloomberg’s terminal, offering its own electronic trading platforms. Bloomberg and Thomson Reuters split the market share in 2010, with one-third each. In 2018, Bloomberg’s market share remained at one-third, while Thomson Reuters dropped to 22%. Thomson Reuters sold its financial data and analysis platform to Blackstone Group, which was later sold to the London Stock Exchange (LSE) Group under the name Refinitiv. Bloomberg still maintains a one-third market share as of 2022, with Refinitiv at 19%. Smaller firms like S&P Capital IQ and FactSet provide competitive pressure in the financial data space.
Trading directly from a Bloomberg terminal is possible, as it offers a complete end-to-end trading system for various markets and products. The cost of a Bloomberg terminal subscription is around $27,660 per year, with discounts available for academic licenses.
Alternatives to the Bloomberg terminal include FactSet, Koyfin, Refinitiv Eikon, Symphony, YCharts, and AlphaSense. Each offers different benefits, such as overall performance, a free terminal, financial data and analytics, live chat, data visualization, and market research.
Investing in Bloomberg’s company is not directly possible, as it is privately held.
