Since launching its Brokerage API for trading US stocks and options, Tradier has shown that there is strong demand from developers and content providers for a simplified way to add trading within their apps and websites. Having integrated with developers such as ChartIQ, QuantConnect, OptionSamuarai and Apex, Tradier has breached and quickly surpassed the 100th integration milestone with Mobile Interactive.
Unlike other brokers that provide API services for third parties to connect accounts for trading, Tradier believes that creating its platform from the ground up to be focused on integrations differentiates it from its rivals. As such, the basic platform that it offers to account holders competes very little with its developer community. This contrasts with other brokers who offer extensive trading platforms for their customers and to whom third party integrations are a small portion of their business.
However, while gaining a head start on the competition, the brokerage API space is becoming more crowded. Recent entrants include Tradable which launched Tradable Embed to allow developers and website operators to add trading to their products. In addition, Robinhood recently unveiled the first group of third party integrations that will offer the broker’s commission free trading accounts. These firms are in addition to traditional brokers that provide API services as well as recent startups such as Third Party Trade Group that have launched simple solutions for third parties to offer trading.
Despite the competition, Tradier believes that the addition of more API participants is beneficial to all involved. Dan Raju, CEO and Founder of Tradier, stated: “Our mission has always been to accelerate innovation in the brokerage industry, to level the playing field and tear down barriers”. As such, he said: “We are thrilled to see that others are finally starting to enter this space and believe that it will only drive further innovation and choice.”
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Built by developers, for developers
In terms of distinguishing themselves from the expanding field, Tradier is counting on their developer friendly structure. Raju explained that Tradier is “built by developers, for developers ,our technology is function-rich and easy to implement”, and that “companies that work with us consistently tell us that our technology is easy to integrate, that they love working with our service team and that because of Tradier they are able to offer their customers a world-class trading and investing experience”.
The entrance of Robinhood as a commission free broker has led to industry questions of how its business model will affect other brokers. Until the addition of third party apps, Robinhood accounts were limited to their mobile trading platform which limited their potential appeal to a wider audience. However, with Quantopian having integrated with Robinhood, commission free trading has hit algorithmic trading.
Discussing the future of commissions, Raju stated: “Pricing models are constantly evolving and while we can’t predict the future we can be certain that investors will continue to choose to work with companies that understand their needs and give them the tools and experience that allows them to make better decisions when it comes to their financial future.” He added: “While commissions are important they are not the primary driver of choice”.