What Are the Benefits of Using FIX API In the Trading Process?

FIX API has enhanced the trading performance by enabling trading infrastructure to pass on crucial trading information in real-time.

Ultra-fast FIX API brings real-time forex rate updates | Image by Kanchanara from Unsplash

The emerging trend of electronic trading has created a strong need for an effective communication platform to access real-time trading information. As electronic trading has been a highly competitive arena, adopting the latest technology to communicate real-time prices of wide-ranging financial assets aids businesses and institution-grade traders to make well-informed trading verdicts.

FIX API has enhanced the trading performance by enabling trading infrastructure to pass on crucial trading information in real-time. This article takes you through the meaning, popularity attributes, benefits and some other technical aspects of FIX protocol.

What is FIX API?

FIX is the acronym for Financial Information Exchange. It is a highly scalable electronic messaging protocol. FIX protocol architecture is designed mainly for B2B communication.

Banks, financial institutions, investment funds, brokers, and institution-grade traders use it as an intermediary messaging format.

FIX protocol facilitates exchange of real-time market information. Companies can directly connect with their clients without any barrier of particular programming languages as FIX is a protocol. Another important technical question is, is FIX protocol an API? Well, the answer is Yes. It is an API popularly used to retrieve real-time financial market data. Let us discuss why FIX has gained enormous popularity.

Reasons for its Popularity

FIX has become a necessary messaging intermediary format for many exchanges and companies that developed their own messaging platforms. It has become an industry standard for advanced messaging formats for hedge funds, prime brokers, traders, institutions, and trading platforms today.

FIX API forex is easy to set up compared to other solutions designed for a similar intent. Additionally, it provides real-time insights on the current market information to make informed trading decisions.

Reputed data vendors provide FIX protocol that users are familiar with. The real-time information accessed through FIX serves as a reference feed. You cannot place trades using such FIX API, however, you don’t need to learn through new documentation or a new way of communication. Thus, FIX protocol has emerged as the industry standard with code that everyone understands.

Benefits of FIX API

Let’s deep-dive into the advantages of FIX API, especially in the trading process:

Easy Real-time Market Data Retrieval

The ability to instantly access real-time market data improves decision-making for traders and investors. You can readily analyse the volume on bid and ask side. It also helps you ‘time’ your trade perfectly by analyzing the possible effects on the price of a financial asset.

Reduced Manual Intervention

FIX API connection helps you automate trading-related communication. Thus, you can experience minimized manual intervention without any need to send emails and use other mobile applications to communicate.

Cost for Connectivity

The most significant technical benefit of FIX API is the ease of integration with various trading-related tools. You can integrate FIX API with your current trading systems as cross reference data to identify trends.

Ease of Multi-channeling

FIX API allows market participants and stakeholders to connect with each other at ease. Multiple stakeholders can interact effectively. Similarly, the framework allows fintech companies to develop different solutions at a reasonable cost.

Reliability

The FIX API provided by recognized data vendors can be used to verify your current trading API for testing purposes. FIX API provides universal connectivity through encrypted communication channels. It is a tried, tested, and widely used protocol. You can rest assured about the reliability of FIX.

Better Service Quality & Performance

A common standard protocol enables businesses and retail traders to easily switch between brokers and trading platforms. This changeability has increased competition among brokers. Ultimately, to attract more clients, brokers and trading platforms emphasize providing great quality of service.

Conclusion

To enjoy the benefits of FIX API, it is crucial to obtain it from the most reputed data vendors. TraderMade is one such good platform that you should try. They provide Ultra-fast real-time prices via FIX protocol, including Bid, Mid, Ask prices with timestamp. Similarly, the SSL encrypted delivery of market data makes the real-time prices for Forex, CFD, and Crypto markets more dependable.

Choose them as your data partners to obtain real-time market data via FIX API to take advantage of the most reliable and accurate real-time market information.