The trader should be able to cope with all difficulties related to the financial market. These can be illogical assets’ movements, taking positions off the market due to the release of fundamental news or a change in monetary policy. In addition, the fix api forex brokerage company is setting additional spreads and markups for its customers. In order to decrease the pressure of these factors, each trader should know which broker to work with and which one should be avoided.
Today I am going to investigate this issue and identify how to choose the optimal broker for your fix api trading. Moreover, you would be able to find out if your current trading conditions supplier is a reliable partner for working in the financial market.
So, let me distinguish several key features, which the quality brokerage companies should have:
- The market spreads;
- The ability to select multiple trading terminals;
- The possibility of algorithmic trading;
- The access to fix api;
- The open information on the company’s website.
Let’s look at each of the types in more details.
The market spreads
This parameter indicates that the broker takes quotes from the market or a reliable liquidity provider. If you see a fixed percentage, it means that the broker takes a fixed percentage of your trade. If the spreads are the market ones, then at the time of the strong news, your positions will be opened at a fixed price or at least close to it. Or if there are already open positions, they will not be closed with greater risk than you asked. This indicator directly affects the financial result of the trade and the trader himself is not able to solve it (only using fix api).
The possibility to select several trading terminals
We are accustomed to the fact that if there is one broker, then there should be one terminal. However, this is far from true. You should have a choice of the most optimal software for fix api trading. The best option will be if the terminal is able to receive information from the market. It will be a significant advantage for the brokerage company. The fix api MT4 might suffice for somebody, but I reckon, that it is necessary to have the other options as well.
The possibility of the algorithmic trading
It is a well-known fact, that the robots are capable of trading stably with the minimum risk parameters and a large indicator of profitability (ссылка). If the broker prohibits this approach, then, firstly, it means that he is not able to pay the trader his profit, and secondly, the transactions do not overlap the market and are traded on the server of the brokerage company (the Dealing Desk system). This will immediately tell you that the broker is not reliable and it is better not to place the funds in such a company.
The access to fix api
If the brokerage company doesn’t give an asset to the fix protocol, it guarantees the quality of the company. On the other hand, if you are in doubt then you can independently trade via fix api on the side of the liquidity supplier. You can the trading robots for that. This solves several issues simultaneously.
The open information on the company’s website
The information such as: “our liquidity providers” or “our diplomas” does not tell the trader anything. Therefore, it is better if there is the information on legislation the broker relies on and where it is registered. This will tell you much more about the broker.
You can analyze your broker even now according to the list above. It is a good filter, which is worth using before placing the investment capital for the trading.