Finding the Right FIX API Broker
Introduction to FIX API Trading
FIX API is a well-known messaging protocol which is utilized across the capital markets sector. The protocol is used for trading products like CFDs and deliverables. The messaging library is diverse, which means that it can be applied to many different asset classes. This protocol has been used since 1992 and is widely adopted. The largest banks, stock exchanges and investment firms rely on FIX API for sending messages to each other. Just because the largest players in finance use FIX API is not a symbol of exclusivity, FIX API is widespread and accessible to almost any investor. The reason this system works well is that it’s easy to understand, reliable and robust. Despite being nearly 30 years old, no significantly better alternatives have arrived to challenge FIX API. Cryptocurrency trading is pretty much the only asset class which has not adopted the FIX protocol standard.
Using FIX API to Trade Forex
Many forex brokers offer a facility to trade via FIX API. While the language is highly consistent, the conditions are not. Just like when a broker completes a know-your-client check on you, as a trader, you should do the same on brokers. Some things to consider when doing your own know-your-broker check for selecting the right FIX API trading partner should relate to both business conditions set by the broker and technology conditions inherited from the underlying systems the broker is running.
FIX API Trading Brokers
For many forex brokers, while they have the technical ability to offer FIX API trading services, they may not have the expertise to support clients. Most retail traders use platforms such as MetaTrader 4, cTrader and others to trade. These platforms are easily accessible and how they work is well documented. Whereas FIX API trading would be considered a niche. For most forex brokers, it’s likely very few clients if any at all are using this method to trade. Therefore, front-line customer support agents would not be equipped to answer questions related to FIX API, which means getting incomplete answers or waiting longer for responses.
Because of the extra support overhead, many brokers impose requirements to gain access to trade via FIX protocol. Some brokers require you to trade a minimum amount each month or they charge a fixed maintenance fee for providing support. If you are paying for support, make sure it’s up to scratch.
However, the idea of paying to gain access to FIX API trading is barmy, especially when cTrader provides FIX credentials with every trading account, for free, with any broker. When it comes to seeking support, the cTrader community is one of the best-equipped resources for advanced traders to seek help from the platform developers and other experienced members.
Many FX brokers concentrate on providing their trading services to the masses and configure how they do business to match this strategy. This approach may not align well with traders who have more advanced needs. Other FX brokers focus on offering high-touch solutions for more demanding clients, such as those wanting to trade via a FIX interface. A good example is Scandinavian Capital Markets, which specializes in catering to a mature audience and boasts a customer relationship management team with competencies in a variety of areas that many brokers would consider a novelty.