After we published a video about the FIX API Splitter, we received many emails asking us to disclose the details of why we a trader would need the FIX API splitter.
Video about FIX API Splitter>
A trader needs the splitter when they are trading on a FIX API account. A FIX API account allows a trader to trade quicker, the execution time of an order is much quicker than on the mt4 server, and this also reduces the chance of a broker interfering with trading as FIX API accounts are usually directly created with the assistance of a liquidity provider.
Obviously, there are downsides to the FIX API account, the main one being that many brokers request a minimum deposit of 10 thousand dollars for account activation. There are exceptions, as some brokers do allow you to open an account with less capital, for example, 500 or one thousand dollars. So what are the benefits? Speed, execution time, and less slippage. Other benefits include the fact that the FIX API protocol and brokers which utilize it, support limit IOC and limit FOK orders. These orders are called limits, but they are executed instantly. They have an advantage over regular market orders as you can control the slippage, the order will be executed based on your slippage or for a better price, but never for a worse price.
This means you can fully control the slippage, this is a large advantage. Likewise, the limitations of the protocol include the fact that you can use a FIX API in only one program. If you have an account for example, and you want to use it for an arbitrage program, like the ones we offer on our website, you will only be able to use this account with one of our programs. To avoid this limitation, we have created the FIX API Splitter. This program allows you to use one account for multiple, even infinite, number of programs.
Say you open an account with a broker, and install FIX API splitter. This account becomes your master account. The splitter then allows you to create many internal accounts under one master account, which allows you to set your credentials to each account for each program. You may ask “ why would I want to have this feature?” The answer is simple, let’s say you have a profitable arbitrage program, and you are using a FIX API account, and you think you do not need another program since this one is profitable.
However, this is the wrong way of thinking. The broker will eventually realize that you are bringing in solely toxic trades, using the arbitrage strategy, trades that have an entry on latency. This is why professional traders mix their arbitrage strategies with other strategies, creating an illusion of manual trading, as there will be both toxic and non-toxic trades. This allows the trader to use a FIX API account for longer before the broker decides to disallow this trader from trading. If the broker sees a solely toxic volume, he may directly decline trading to the trader, or create unbearable trading conditions, leading to no completed trades.
This is why it is important to create a structure in which the trader will be able to mix toxic and non-toxic orders. The FIX API splitter allows the trader to create that. The trader creates a master account, with many internal accounts, one of these accounts will be in an arbitrage program, your base profitable program. The next could be our FIX API trader which allows you to trade on many accounts using mt4 advisors. So the FIX API trader could work in many modes, in an adapted advisor, or with a non-adapted advisor, for example, if you don’t have source code for your advisor. Now you already need three accounts, one for arbitrage and two for installation of FIX API trader, one for adapted, and one for non-adapted advisors. Now you have already created a non-toxic trade volume, due to the FIX API trader.
In this way, you have a mix of programs that create the illusion that your one master FIX API account is an account that is not utilizing solely arbitrage. Likewise, you can create another account, and add a FIX API trader for manual trading where you will trade manually based on news or any other manual strategy. You can also add a copier that will copy orders which appear on an mt4 account, from signals that you have purchased. These manipulations through the FIX API accounts allow for this account to be live for longer, and create a more optimal trading experience, for this reason, the FIX API Splitter is a program that will help make trading easier.