I have previously covered the topic of forex robots and their nature. Let me remind you a few key points of forex robots. First, the appearance of robots allowed for faster trading and thus for the forex market growth. They also let traders have more time and resources to analyze the market and make decisions. Robots created new types of trading that were not possible before – like scalping or arbitrage trading. In a word, forex robots are extremely important tools for any trader.

However, most of the forex robots, free or paid have been designed and built on standard algorithms and so are limited in their functionality. What makes a robot successful? Mostly, it is the speed of the operations performed. In this case, we understand, that a robot should in fact monitor the current market situation and analyze it live.It means it must have an actual live access to the market.

So, FIX protocol came to rescue. FIX is a financial protocol that lets your software access actual market data.

The core of FIX protocol is the instantaneous data exchange. For us, traders, it is crucial to know the cost/price of an asset and the faster we know it the faster our forex robot analyzes and reacts.

The problem here is that most of the software (forex robots) are built to perform trades on brokers’ serversand not via FIX protocol. Such robots can be under pressure from the broker’s side – increased slippage, delayed order time, etc.

The advantages of a FIX protocol are clear:

  1. Trades with no spreads and slippage
  2. Orders are not delayed
  3. Complex asset analysis is available
  4. Opportunity for effective Arbitrage trading (FIX API Latency Arbitrage, FIX API 2-LEG Latency Arbitrage)

The major thing about a forex robot working through FIX API protocol is that it takes its data directly from the quote or liquidity provider avoiding broker server delays. Software wise the difference between FIX API forex robot and a normal one is minimal but the results of trading are astonishing. Surely your forex robot must have FIX API through your broker server to be able to work properly.

One of the most important things is to find a good FIX API forex robot. How do you do that? There are a few forex robot review sites and that would be your starting point. Analyze the reviews, pay attention to a software developer – who it is, what products have been created before, if there is any trading experience behind the algorithms, what kind of support is provided after the purchase. All these things are important.

It goes without saying that a product you are considering to buy or get free should have positive reviews and its performance data available. Some of the useful information can be found at different forex social network sites where you can register and follow successful traders. Some of the developers offer free webinars to get you acquainted with the product or/and peculiarities of FIX API trading, Latency Arbitrage trading, etc. It will not do any harm to watch those webinars and get as much information as you can.

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