What is FIX API? – The Basics

FIX API, of Financial Information Exchange API, is a set of defined rules and methods designed for the electronic transfer of financial data. It is an electronic communications protocol for real-time financial transactions and information. In other words, financial data, transactions, and information are transferred from one place to another via a FIX protocol system.

What is FIX API used for?

It is mostly used in trading platforms, as trades pass through from one system to another via a FIX API and the FIX systems. Most of the communications between liquidity providers such as banks, brokers, and other financial firms are transmitted via FIX protocol.

• 1. Pre-trade
• 2. Trade
• 3. Post-trade

The FIX protocol was originally created in 1992 by Robert Lamoureux and Chris Morstatt and that is to enable communications of trading.

FIX started sharing information electronically, at a time when these communications were discussed over the phone or even fax. It literally revolutionized our industry.

This technology eliminated many errors that were happening on daily basis, such as communicating trading data with the wrong client, or the wrong institution and FIX came in to replace all these communications to be replaced with systems and machines.

FIX has become the standard in how financial institutions such as banks and brokerage houses communicate their trading data. It is not only efficient in a way that the data is accurate, but it is also incredibly fast.

FIX API provides:

• 1. Low latency ;
• 2. Connecting to multiple brokers;
• 3. Flexibility; and
• 4. Privacy

FIX API has many advantages, but it also has some challenges:

• There are many versions, and you must stay up to date when upgrading is required.
• It is not as easy as it sounds, there are complexities in such systems. These systems are incredibly accurate, and with accuracy comes many complexities
• It is cheaper to trade on a FIX API environment, but it is not cheaper to set up.

• The minimum account size for a FIX trading account is 100k
• There are monthly minimum commission if certain volumes are not met.

How can ACY Partners help you?

At ACY Partners, one of our core offerings is getting active traders and brokers onto our FIX trading systems.

We can provide you with a bespoke aggregation to suit your trading needs, so you can be confident about the price feeds you are receiving.

If you are a broker, we can help provide liquidity using the same FIX API via our trading platforms.

If you are looking to set up a new FIX API connection or would like to know how we can help you, then let’s open tee conversation and find out more about your business and goals.