API trading is one of the more advanced elements of experienced traders. Some Forex brokers with trading APIs actively support this method of connection and execution, but any Forex broker with the MT4 platform theoretically allows API trading.
MT4 enables algorithmic trading via Expert Advisors (EAs), the native algorithmic trading scripts or programs on MT4 using its MQL4 coding language. Our review of Forex trading APIs details what they are, who can use them, and how to connect your MT4 API to your Forex brokerage account.
- FXCM, No dealing desk execution + wide range of trading apps.
- Forex.com, Excellent trading conditions + NFA regulation.
- Pepperstone, Great ECN execution on MT4/5, cTader, TradingView and Pepperstone proprietary platform.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- FP Markets, ECN trading with leverage up to 1:500.
Best Trading API's Brokers Comparison
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Regulators | ASIC, CySEC, FCA, FSCA | ASIC, CFTC, CIMA, CySEC, FCA, FSA, IIROC, NFA | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, CMA, CySEC, FSCA |
Year Established | 1999 | 2001 | 2010 | 2006 | 2005 |
Execution Type(s) | Market Maker, No Dealing Desk | Market Maker | No Dealing Desk, NDD | Market Maker | ECN/STP |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.6 pips | 1.1 pips | 1.1 pips | 0.9 pips | 1.2 pips |
Average Trading Cost GBP/USD | 1.0 pips | 1.3 pips | 1.4 pips | 1.5 pips | 1.4 pips |
Average Trading Cost Gold | 0.30 pips | $0.63 | $0.15 | $0.29 | $0.16 |
Trading Platform(s) | Other, MetaTrader 4, Proprietary platform, Web-based+ | MetaTrader 4, MetaTrader 5, Proprietary platform, Trading View | Other, MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Trading View+ | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based |
Islamic Account | |||||
Negative Balance Protection | N/A | N/A | |||
| Visit Website | Visit Website | Get Started Visit Website75-95% of traders on margin lose | Visit Website | Visit Website |
FXCM
In Summary No dealing desk execution + wide range of trading appsFXCM ranks at the top of Forex brokers with trading APIs, as it features various connection methods FIX protocol API, Java API, and ForexConnect API, besides MT4 APIs, which incidentally FXCM does not mention on its website. FXCM has established itself as a leading Forex broker for algorithmic traders, due to its availability of high-quality data, the backbone of any API trading solutions.
Besides the MT4 and Trading Station, which both support algorithmic trading, FXCM added Capitalise AI for code-free algorithmic trading, enabling all traders to automatize their strategies. TradingView Pro is also available, which features algorithmic technical analysis. Six specialty trading platforms complete the excellent choice of trading solutions at FXCM.
Pros & Cons
- Excellent choice of trading platforms with dedicated support for algorithmic trading
- Deep liquidity, transparent order executions, and monthly slippage statistics
- Low-cost commission-based cost structure with a volume-based rebate program
- Quality research and education via FXCM Plus
- Somewhat limited asset selection
Forex.com
In Summary Excellent trading conditions + NFA regulationForex.com offers a REST API, but traders can also connect to any MT4 API, as Forex.com allows EAs, and the MT4 platform supports API connections. The availability of Capitalise AI, which enables traders to engage in algorithmic trading in a code-free environment, allows beginners to level the playing field. Forex.com established itself among the list of competitive Forex brokers with trading APIs due to its large selection of 80+ currency pairs.
API traders also benefit from superior order execution. The FXCM order execution speed averages 0.05 seconds with a fill rate of 99.99%, while the price improvement technology results in price improvements on 52.36% of orders filled.
Pros & Cons
- Lower minimum deposit
- Islamic account available
- Good reputation
- Choice of account types
- Withdrawal fee
Pepperstone
In Summary Great ECN execution on MT4/5, cTader, TradingView and Pepperstone proprietary platformPepperstone notes the availability of the FIX API but requires a minimum monthly turnover of $250 million, which places it out of reach of many traders and smaller firms. The MT4 API, available for free online, allows traders to connect their trading solutions to MT4, as Pepperstone fully supports algorithmic trading via EAs. It also has the cTrader API, connecting custom trading solutions to cTrader.
The algorithmic-focused environment places Pepperstone among the best Forex brokers with trading APIs. Pepperstone fills 99.9% of orders with an average execution speed of 0.03 seconds, which is a very competitive trade execution performance.
Pros & Cons
- Excellent choice of trading platforms consisting of MT4/MT5, cTrader, TreadingView and Pepperstone Platform
- Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
- Social trading support via Signal Start, MetaTrader Signals, Copy Trading by Pepperstone, DupliTrade
- Leverage of up to 1:400 depends on jurisdiction and superb trade execution
- Demo accounts have 60-day time limits
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade does not publicly list the availability of API trading but supports EAs on MT4, meaning the free MT4 API is an option for traders wishing to connect their advanced trading solutions to the MT4 trading environment at AvaTrade. AvaTrade belongs to the group of Forex brokers with trading APIs that do not promote them openly while indirectly offering them on MT4.
Capitalise AI, which enables code-free algorithmic trading, is available at AvaTrade, as this commission-free multi-asset broker slowly transitions from its manual and copy trading environment to embrace algorithmic trading solutions, which account for 80%+ of all daily Forex trading volume.
Pros & Cons
- High quality educational offering via AvaAcademy
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
FP Markets
In Summary ECN trading with leverage up to 1:500Like some brokers, FP Markets does not outline API trading but offers MT4, EAs, and traders can use the open-source and free MT4 API to connect their custom trading solutions to the FP Markets MT4 environment. Therefore, FP Markets ranks amongst the Forex brokers with trading APIs that do not offer direct API connections but support API trading indirectly on MT4.
The recent addition of cTrader grants traders another option to connect their custom solutions via FIX API to the FP Markets trading infrastructure. FP Markets offers a unique MT4 plugin, Stealth Orders, which may interest high-frequency API traders.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
What are APIs?
APIs, short for application programming interfaces, allow two devices to communicate and exchange data. APIs are essential for traders and financial firms to connect their proprietary trading solutions, which often execute complex algorithms powered by machine learning and artificial intelligence, to the trading infrastructure of brokers. Therefore, API traders do not require the trading platforms offered by their brokers.
Most Forex brokers with trading APIs list them publicly, but access may require high deposit minimums and/or monthly trading volumes. The MT4 API, available for free, offers a workaround, but requires the MT4 trading platform and no permissions.
What is a Trading API?
A trading API allows traders to connect their custom trading applications, usually advanced algorithmic ones, to the trading infrastructure of their brokers allowing execution of trades by other means. It makes the trading platforms offered by brokers obsolete unless traders use the MT4 API, which requires the MT4 trading platform to function.
Before connecting a custom trading solution to the trading infrastructure of Forex brokers with trading APIs, traders should develop their trading solution and integrate specific commands/actions supported by the trading API. Skilled developers usually complete the integration, testing, and bug-fixing of a trading API with their proprietary trading solution within two weeks and sometimes can involve a conformance test to ensure functionality of the third-party system.
Pros and Cons of Using Trading APIs
Before traders evaluate specific Forex brokers with trading APIs, they should consider the pros and cons of using them, including associated costs.
The pros of using trading APIs include:
- Deployment of advanced proprietary trading solutions.
- Meets demanding trading requirements in a professional environment.
- MT4 or MT5 API is free and does not require permission from brokers.
The cons of using trading APIs include:
- Integration and development costs.
- Brokers may have high minimum deposit requirements or monthly volume conditions for access to well-known APIs.
- API trading requires ongoing maintenance and potential upgrades to keep custom trading solutions up to date.
Which Forex Brokers have APIs?
Forex brokers with trading APIs continue to grow in number, as algorithmic trading accounts for 80%+ of daily Forex trading volumes, but a complete list is unavailable.
Any Forex broker offering MT4 allows API trading indirectly via the MT4 plugin. The MT4 trading platform is the most versatile and supports algorithmic trading via EAs, which developers must code using the proprietary MQL4 language.
The MT4 API, available for free, allows connections to MT4 in a similar manner to EAs, which run directly on MT4. Therefore, traders can develop custom solutions in their preferred coding language and integrate their proprietary system via MT4 plugins.
Who Can Use APIs for Trading?
Any trader using the MT4 trading platform with a broker allowing algorithmic trading (with a few exceptions, this applies to most MT4 brokers), can use the MT4 API to connect custom trading solutions to the MT4 trading environment. The drawback is that the MT4 API requires the MT4 trading platform, either the desktop client or the lightweight web-based alternative.
Traders who wish to bypass existing trading platforms require Forex brokers with their own proprietary trading APIs, using common standards like FIX protocol, REST, or WebSocket. They should consider the minimum requirements brokers sometimes have in place for access to API trading, which may disqualify them such as deposit minimums or volume thresholds.
How Do I Connect a Forex API to a Broker?
Connecting proprietary trading solutions via a trading API to brokers requires integration via coding and depends on the API.
Here is an overview of how to connect to Forex brokers with trading APIs:
1. Develop a proprietary trading solution in your preferred coding language.
2. Acquire the trading API from your broker (ensure compatibility with your trading solution).
3. Integrate the trading API into your trading solution.
4. Test it in a demo account platform or UAT (user acceptance test) and bug-fix it if necessary.
5. Prior to live trading some brokers require the trader to pass a conformance test.
Here is how to connect the MT4 API to your MT4 trading platform:
1. Download the MT4 API.
2. Upload your script to the MT4 EA library.
3. Click “Tools” and navigate to “Options.”
4. Select the “Expert Advisors” tab and check “Allow DLL imports.”
5. Click the “Auto Trading” button and apply the template of your custom trading solution to each asset you wish to trade (maximum of 100).
Why Do Brokers Use APIs?
Forex brokers with trading APIs have several reasons why they offer them to traders and firms. Some firms will use them for executing their strategies using their own methodologies managed within internal proprietary setups, decision making, and risk management all handled on the client’s side rather than manually on the brokers platform.
MT4 traders should know that they can obtain the MT4 API for free and connect their custom trading solutions to the MT4 trading environment at brokers without requesting permission or fulfilling access criteria. The reason being MT4 supports algorithmic trading via EAs, and the way the infrastructure functions, allows third-party DLLs to connect similarly to EAs running on MT4.
Some of the reasons why brokers use APIs are:
- Some brokers maintain proprietary trading desks, often as independent subsidiaries, which run custom trading solutions.
- Brokers who get reimbursed for adding liquidity by third-party liquidity providers want to cater to demanding traders with high trading volumes, which usually require APIs.
- 80%+ of Forex trading volumes are algorithmic, and brokers compete for high-end clients
Who Would Benefit from API Trading?
The number of Forex brokers with trading APIs continues to grow, and any committed trader will benefit from API trading, but few use them. It requires coding knowledge or capital investments for a team of seasoned developers to integrate APIs into custom trading solutions and constant refinement, which often incurs ongoing investment into development time and costs associated with this.
Since 80%+ of daily Forex trading volumes are algorithmic, manual traders, usually retail traders, and beginners trade with an extreme disadvantage in certain situations. Many lack the capital to create the necessary trading infrastructure that requires APIs, and most fail to develop a manual trading strategy worth coding.
Bottom Line
Most traders struggle to trade profitably. The main obstacles are trading psychology and manual trading. Many traders avoid discussing manual trading because it puts them at a disadvantage compared to algorithmic trading, which accounts for over 80% of daily Forex trading volumes.
Forex brokers with trading APIs allow traders to connect custom trading solutions to their trading infrastructure, bypassing trading platforms, but bandwidth restrictions may exist. Access restrictions apply, except for the MT4 API, which some brokers do not advertise, but it is available for free and requires no special permission, as it connects similarly to EAs.
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