Almost every trader has been a victim of MT4 arbitrary updates and terrible business practices, but still using this platform for several reasons. The most important reasons for this – the habit and traders' inertia. The trader does not want to change anything if his trade is successful, but the most interesting is that not even a successful trader is afraid of change. Also, one of the important reasons is that many traders have accumulated the portfolio of indicators and expert advisors (robots) developed for the MT4 platform, which should be noted has a fairly convenient development environment (MQL4) and can not be applied to other platforms. This idea is the basis for the MT4 platform: provide traders with a free platform with a convenient development environment but provide brokers an expensive server ($120,000 and $1,700/month support fee) with the ability to do everything with a trader's account. And this business model gave its results. Trader lose money brokers earn them.
At present, more and more traders are refusing from MT4 in favor of other platforms, and the most virulent decision will be to change from MT4 to FIX API. FIX API protocol was developed for financial organizations and has a lot of benefits not only for institutional clients like forex brokers and money managers, but for retail forex traders as well. And if several years ago in order to open an account with the possibility of trading through the FIX API protocol, you need to deposit $20,000-$50,000, now many brokers have lowered this barrier to $500.
FIX API Protocol the most important benefits: lower execution time, multi-channelling, flexibility, privacy. If you compare execution time on MT4 with FIX API broker, you will find big difference. For example, execution time via FIX API PrimeXM bridge will be around 40ms, via LMAX 4ms, but MT4 brokers will execute your order for 150-800ms. For this time price can be changed several times. FIX API broker unlike MT4 broker practically does not have the ability to harm your trading strategy. Via FIX API protocol you get price update several times often then via MT4 protocol. For example, LMAX can provide you with unthrottled feed with 1000 updates per sec., if your VPS is cross connected to LMAX engine. FIX API presume two different sessions (connections) for quotes (market data) and for orders. User requests quotes only for required trading instruments, thus not overloading the server and trading software getting all available instruments like MT4.
The only several drawbacks that I see using FIX API protocol is the need to possess certain skills of the programmer to write your trading strategy on FIX API, and FIX API connector for one broker can be differ (and need to be adjusted) than FIX API connector for another one. And here you can go a few ways:
- Hire programmer to recode, or code from scratch your trading strategy for FIX API protocol (feel free to contact us and we will help: https://iticsoftware.com/en/contacts);
- Use ready to use software with building FIX API Connectors like: Latency Arbitrage, Hedge Arbitrage, Locking Arbitrage have already connectors: ADSS, ALPHA, BBO, BJF, CFH, CMC, CQG, CTRADER, CIRCLE MARKETS, CURRENEX, DUKASCOPY, EXANTE, FIRSTDERIVATIVES, FOREXWARE, FORTEX, FORTRESS, FXBA, FXCM, FXPIG, GAIN GTX, HOTSPOT, ICM, INTEGRAL, INTERTRADER, INVAST, LCG, LMAX, MATCHTRADE, MGM, NEXUS PRIME, OLFATRADE, ONETRADE,ONEZERO, PFD, PRIMEXM, PROTRADER, QTX, SAXO, SMARTTRADE, SPOTEX, SQUARED FINANCIAL, SWISSQUOTE, TRADAIR, THINKFOREX, TT, VISUALTRADING, XENFIN, XOPENHUB, i-Gold.
- Use FIX API Trader software. FIX API Trader allows you to trade on MT4 terminal with your favorite MT4 expert advisors and indicators but execute trades via FIX API protocol (FIX API account is required).
The cheapest solutions for you – 2 or 3 because usually coding for FIX api is very expensive and only FIX API connector can cost you around 5000 usd, but if you use FIX API Trader -all connectors are included in price.