What is FIX API?

The Financial Information eXchange (FIX) protocol is an international communications protocol for electronic trading. It has been developed in order to improve communication between market participants.

If you have a trading system or a robot that requires fast order execution (e.g., a scalping robot or a robot for trading the news), FIX API is the way to go. FIX API gives the trader access to real-time quotes and market depth as well as the ability to submit market and limit orders via protected communication channels.

The advantages of FIX API

• A high-speed connection and exceptionally small delays

For example, the execution of an order can be between 150 milliseconds and several seconds, but FIX API can bring that number down to as low as 4 milliseconds. We recommend that you install your trading systems on a VPS that is located in the same data center as that of the FIX API in order to minimize order execution delays.

• Direct access to deep liquidity and competitive pricing
• The ability to trade currencies, commodities and index funds

Be sure to request a complete symbol list from your broker before opening an account.

• FIX API can be integrated with practically any trading platform

Who can use FIX API to their advantage?

• Financial institutions that want to provide competitive pricing to their forex clients
• Brokers and companies that are interested in automating their forex exchange transactions and in foreign exchange hedging
• Hedge funds and investment managers looking for efficient order execution on the forex market

FIX API is also for:

• Traders with individual platforms and/or a need for an optimal communication environment. In our view, a switch to FIX trading will help the trader significantly improve trading results.

Using FIX API effectively

A considerable advantage of FIX API is the ability to use FOK or IOC orders, which allow the trader to be in complete control of slippage.

When choosing a FIX API broker, you need to evaluate the pros and cons of the broker with reference to the strategy that you’d like to use. For example, if order execution speed and an absence of rejects are essential to your strategy, you’d want to limit your search to brokers that do not have last look. Clients of such brokers trade on the forex market instantly via live streaming and receive the best execution prices with an immediate confirmation - in other words, trades are final and are confirmed as soon as they have been processed. As there are no dealing desks in the way, there are no re-quotes. However, it should be pointed out that brokers with no last look also have higher spreads, particularly when news comes out.