FIX (Financial Information Exchange) API (application programming interface) is an electronic communications protocol for financial information exchange. In our case, we use it to allow communication between a client, trader, investment fund, or broker and a liquidity provider.
FIX API is a universal standard. It’s used by numerous banks, prime brokers, and hedge funds. The origins of FIX API date back to the early 1990s, when several volunteer programmers were seeking opportunities for communication support when trading stocks . In 1998, this team of programmers started a non-profit company called FIX Protocol Limited (FPL), which focused on expanding, developing and supporting the protocol.
Reasons for a client to start using FIX API
Requirements to create a FIX API connection
o Standard Header MsgType = b 131 QuoteReqID String. Unique identifier in response to Quote Request (35=R) Example: 131=RequestQuote1
Ideally, our recommendation is to use a cross-connect with the liquidity provider, which is a physical connection between the control panels using patch code. Beginners may use a socket adapte. Boston Technologies provides cross-connects in NY4, LD4 and TY3 datacenters.
There are many benefits of using FIX API. You will have total control over the process of transferring and receiving data without any kind of intermediary or middleware software. Contrast this with the MetaTrader 4 (MT4) execution chain:
Client Terminal => MT4 Trade Server => MT4 Bridge => Aggregator => Liquidity Provider
A properly configured infrastructure will deliver:
However, there are some disadvantages:
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