One relatively unknown – but valuable – component of our offering is FIX API trading.
This blog post provides a brief outline of what FIX is, what advantages it might offer to certain traders, and what our FIX package includes. Let us know if you feel any more information belongs in this blog post and we’ll be happy to update!
What is FIX?
FIX (short-hand for financial information exchange) is an open protocol used by financial institutions and independent traders of financial assets worldwide to trade.
The FIX messaging standard is owned, maintained and developed through the collaborative efforts of FIX Trading Community™ member firms, which include many of the world’s leading financial institutions. These firms work together to ensure that the standard continues to meet emerging trading requirements and to promote its increased adoption, which presents huge potential benefits across the financial community.
Drawing an analogy with languages – you can think of FIX as a common language / lingua franca of sorts understood by all market participants when it comes to exchanging trading with each other.
What’s the point for me?
The 2 core benefits of FIX vs. MT4 – depending on your requirements – are flexibility and performance.
Flexibility accrues both on availability of order-types and platform independence. FIX is an order driven protocol – giving you access to the full market-depth (as opposed to just Top of Book) and the breadth of order-types available in the institutional market – many of whom are not supported by a trade-driven platform like MT4.
Flexibility also accrues from platform independence. EAs are MQL4 scripts – written in a specific language, for use with a specific trading platform (MT4). Whilst there’s a large community of developers in MQL, MQL4 algos do not carry over to other trading platforms without re-coding, because scripting language and trading platform are bundled.
By contrast, FIX is a universal standard – allowing you to program your algorithms in any programming environment, and send trades to any FIX compliant destination – which is not a restriction since it’s universal – without the need to recode the core algorithm.
On latency, through FIX you’re tapping into the LPs directly, as opposed to through an additional technology layer (MT4 server): by definition FIX will be quicker by MT4’s internal processing time. Whether this makes a difference or not depends on the strategy: if time is of the essence (HFT, scalping, etc.) this might make a difference.
What does the Darwinex FIX package offer?
We provide a FIX connector through our bridge provider – PrimeXM – based on FIX 4.4 protocol.
Our service package includes the following:
- A choice of Liquidity Providers – trade with either of our Prime Brokers (Saxobank or the LMAX Exchange in London). Each of them aggregate 15+ bank and non-bank Liquidity Providers (LPs)
- A pricing account – with tick level market depth via a dedicated connection for all the symbols you wish to trade
- A trading account – allowing you to trade directly against the liquidity sources
- (Optionally) An MT4 hedge account – allowing you to both trade and monitor your exposure. This can be useful for practical purposes (tax statements) or accessibility (e.g. you could manage your FIX account on mobile).
We offer the package for a one-off fee of USD 500 and a minimum overall deposit of USD 5000 due to the fact that this is a non-standard set-up which incurs additional support costs for us. Furthermore, we reserve the right to evaluate each application on a case by case basis.
If you wish to discuss our FIX offering further, feel free to reach out to firstname.lastname@example.org and we’ll be delighted to assist!