For a wide range of traders, utilizing FIX API protocol has become an increasingly popular avenue, due in large part to a widespread dissatisfaction of spreads, conditions, and other trading terms seen across traditional trading platforms – for many however, a FIX API account represents too steep a barrier of entry for many to overcome.
Indeed, traders have myriad options of platforms, brokers, and other mediums by which to trade. One of the faster growing channels has been a FIX API account, though individuals are continually confronted with the reality of massive minimum account deposits that many emergent or lay traders cannot come to terms with – this includes a minimum deposit of $10,000 to open such an account.
Barriers of Entry
While this level may seen unnecessarily high it is important to consider the structure of FIX API accounts and exactly what the logistics are in offering such accounts to traders. Brokers, like any other business, are in operation to make money and not incur gaps of liquidity. In order to open a FIX API account, the broker needs to set up a separate FIX API account, and utilize the sovereign FIX API account with a liquidity provider.
Logistically, this presents additional problems for brokers as it is different from a traditional clearing account, and on the other side of the equation, liquidity providers will only opt to open a FIX API account if traders have at their disposal an excess of $50,000 in trading capital in the account.
Such was the status quo for the industry, however these barriers may appear to be softening, much to the satisfaction of more casual traders. By and large, the problem of utilizing large minimum deposits was the most problematic factor preventing the use of these accounts. However, FXMars has recently introduced a new way to circumvent these issues with in the launch of 4FXBrokers FIX API Splitter.
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4FXBrokers FIX API Splitter allows traders to open FIX API accounts without having to incur such staunch minimum deposits or commissions, in essence bridging the gap that has existed for prospective API account users.
More specifically, this is accomplished by brokers opening accounts with their liquidity providers, which can act as a master account – in turn, these accounts can integrate directly into the FIX API Splitter. FIX API Splitter operates as a part of 4FXBrokers FIX API Bridge.
By utilizing the FIX API Bridge manager, brokers are no longer bound to specific accounts for specific users, rather they are also able to create an unlimited number of FIX API accounts and assign them to their client base.
Furthermore, the 4FXBrokers FIX API protocol for client accounts also grants users the ability to harness market GTC (good-till-canceled) orders as well as limit FOK (fill or kill), IOC (immediate or cancel), and stop orders, among other functions. Such efforts are instrumental in creating one’s own trading strategy without encumbrance.
$100 Minimum Deposits
The master account also contains quotes that can be disseminated or transferred via the master FIX API protocol to 4FXBrokers FIX API Splitter and back through the 4FXBrokers FIX API protocol to numerous client accounts. This also allows for orders from client accounts to be sent through 4FXBrokers FIX API to 4FXBrokers FIX API Splitter and then through master FIX API to the master account at high speeds.
Presently, the 4FXBrokers FIX API Splitter is only being used by a small number of brokers, though this is expected to rise. The main reason for this is that traders are able to utilize fully functional FIX API accounts with deposits as low as $100, which dramatically erodes previous constraints.