Trade on real Forex via FIX API
Do you know that liquidity provider has information about limit orders and volumes for each level of orders book.
It looks like
Price on the top of image – top of the book price. On our picture from FIX API Trader Bid price 1.12448 and available volume 294.1 standard lots (29,410,000 ) Ask price 1.12453 and available volume 20 standard lots (2,000,000 ).
Your MT4 broker get top of the book quotes from Liquidity provider via bridge and add to this quotes markup and commissions. A markup is the difference between an investment's lowest current offering price among dealers and the higher price a dealer charges a customer.
Slippage Kills your profit
When you press buy or sell button on MT4 terminal or your MT4 EA initiates buy or sell, your order can be executed buy the requested price or better price or worse price.
For example we send market order buy eurusd when price top of book 1.12453
Situation #1 (No Slippage)
The order is submitted and the best available buy price being offered is 1.12453, like in our orders book example (exactly what we requested), the order is then filled at 1.12453
Situation #2 (Positive Slippage)
The order is submitted and the best available buy price being offered suddenly changes to 1.12451 (2 points below our requested price) while our order is executing, the order is then filled at this better price of 1.12451.
Situation #3 (Negative Slippage)
The order is submitted and the best available buy price being offered suddenly changes to 1.12455 (2 points above our requested price)while our order is executing, the order is then filled at this price of 1.12455.
We get quotes to MT4 from liquidity provider via bridge and MT4 server with filters, for this reason we receive about 1-3 ticks per second. If we trade for example on LMAX FIX API we can get up to 1000 updates per sec.
It means that if you are a news trader or use scalping strategy you will know about current price on several (up to 200-300)ms slower. That when you send order, it will be executed for 15ms (best scenario) – several seconds (worst scenario) slower. If we trade for example on LMAX FIX API our execution time will be around 4ms.
The another important factor is available volume. If top of book available 2 lots and somebody else sent order 2 lots faster then you, your order will be filled with negative slippage.
In this case you will always have negative slippage which can destroy any profitable strategy.
If you trade via FIX API, a few links in the chain (MT4 server with filters and bridge) slowing down the execution time and the speed of receiving quotations will be excluded.
Our software FIX API Trader allows you to get quotes from FIX API broker and generate charts in MT4 based on these quotes.
You can use your MT4 EA and trade on FIX API account via FIX API Trader and we also provide our several expert advisor and you can use them on fix api account.
How difficult to open FIX API Account
Currently, each self-respecting broker provides the client with a choice of several trading platforms like cTrader, MT4, MT5 and also with FIX API. You have 2 ways:
- Open cTrader platform and get automatically FIX API credentials. Learn more...
- Open FIX API Account
We recommend to open independent FIX API account, because cTrader FIX API has some limitations for limit orders. Usually brokers require for FIX API account higher initial deposit than for MT4 or MT5 accounts, but more and more brokers are offering FIX API from 500 -1000 usd initial deposit.
Several our products work on fix api accounts without any additional software: