Trading is not easy. The market is constantly changing and regularly makes a challenge for the manager. Some trends get changed by others. Tools that showed the exact figures distort the results, and some do not work at all. In addition to everything, broker companies put the stick into the wheels by worsening trading conditions. In this case, this trend has been observed for more than a hundred years, because even in the days of Livermore, brokerage companies tried to inflate their customers.
However, the principle hasn’t changed, but the mechanism has suffered a lot of reincarnations. Thus, brokerage companies use the following negative trading tools:
1. Failure to fulfill obligations under the treaty, which is often provoked by a non-return of funds after depositing the amount on the deposit;
2. Establishment of margins (spreads) and slippage of trading orders, which takes potential profit by several points and increases the loss by the same value;
3. Prohibition of the use of algorithmic trading.
There are other tricky moments in the work of brokerage companies, but I think these are the three main inconveniences for a fix api trader, which today we will take a closer look at. I’ll tell you how to get around these three prohibitions/negative factors of the brokerage company.
Let’s start with the first option. The contract.
Of course, it is difficult to find an ideal broker, but let’s be realistic: if the broker does not withdraw money, then there are only two reasons: you violated the terms of the official document or contacted a substandard company. And in most cases it is the second option. Therefore, the problem must be eradicated before it begins. View the ratings of brokerage companies, ask the manager or the forum to find out the opinion of current clients, see the types of accounts and methods of order execution. This will make it possible to form a more detailed understanding of which company is before you, because the result of fix api trading will depend on this. If you are still determined in choosing a broker, then ask for a contract and consult with a lawyer who can identify pitfalls.
Spreads and slippage
This moment is hard to bypass for the trader. But nevertheless, there are methods that allow it to be done. With quality fix api forex brokers this point in itself is absent. But there is also room for them. In order to reduce this figure, I recommend trading directly with liquidity providers for a brokerage company. This can be done with the help of trading via fix api – https://en.wikipedia.org/wiki/Financial_Information_eXchange. Trading through this protocol ensures that applications are placed directly on the market, which allows using market spreads, without extra charges from the brokerage company and slippage, since all trading operations will be executed on the side of the market.
Of course, fix api brokerage companies ask for amounts to accommodate much higher than the average statistical standards.
Prohibition of the use of algorithmic trade.
As you know, some brokers earn from the losses of their customers, while there are trading robots that demonstrate a highly profitable and the main risk-free trading. That is why brokers restrict or completely prohibit this type of trade. To avoid this, you should immediately choose a quality broker with access to fix api. That is, those companies that pass by the criteria above. But if you already trade on the account and have positive statistics or no means at all, then there is a tool that allows you to trade the algorithm. This is a manual trading module that delivers bids to the broker’s server in the form of manual transactions. The algorithm specifies the use of tools for manual trading when opening positions. Thus, the brokerage company implies that the deals were opened in a manual mode. An example of such software can be found on the link – http://forexzzz.com/product/manual-trading-add-on/
These prohibitions on the part of brokerage companies only complicate the already complicated process of trading. However, for any inactive measures, there are counter-decisions.