Comparing Trading API from 6 Online Forex Brokerages

Choosing a discount broker for forex trading is time consuming. As the forex market is not centralized, choosing a discount broker is sort of like picking a stall in a farmer's market. They all offer the same product, but prices, features, quality, and services can vary considerably between fx brokerages. One criteria that I consider seriously is the Application Programming Interface (API) offered by the broker. Most people couldn't care less about API because they never intend to develop their own automated trading program. However, if this is something that interests you, then I'd like to save you some time here with the following table.

[caption id="" align="aligncenter" width="570" caption="Forex brokers API table"][][][/caption] All the dollar values are in U.S. dollar. I highlighted the important limitation of each API. I have different level of experience with each of these six APIs. As of this writing, I am using JForex from Dukascopy for various personal reasons.

Posted 14 April 2010 in forex.

Why I am staying with Oanda a while longer before moving to Dukascopy

I just sent in my paper work to Oanda to open a live forex account with them last week. Then I heard from @InEgoVeritas the news about Dukascopy (get 35% discount on commission with that link) reducing their minimum lot size to micro-lots. After doing more research comparing Oanda and Dukascopy in the last 24 hours, I think I will go with Dukascopy in the long term. But I won't make the switch just yet. Here are my reasons why. Before getting to that, I need to describe my situation. Choosing a forex broker is like buying a car, we are all unique and what fits me might not be right for you. Long story short though. My goal all along is to split my funds 50/50 between interactive trading and automated trading. Since Oanda's API access cost \$600 per month, I was to open an additional account with MB Trading for automated trading once I have developed something consistent. In addition to this latest news from Dukascopy, they also lowered their minimal opening balance down to \$5,000, and began beta testing for Metatrader 4 recently (Update: Dukascopy abandoned MT4)! Both Oanda and Dukascopy are very reputable forex brokers. But Dukascopy has the huge advantage of providing a free API access. That is one big motivation for me to go trade with them. Then I can just do everything in one account! But as I said, I will proceed with live trading with Oanda as planned soon (once I am out of this drawdown from being too early in shorting Aussie and other pairs). The reason is that Dukascopy has always been catered towards institutional or big pocket forex traders. This aggressive move to welcome retail traders and small timers could be good and bad. The good part is more business and more buzz for their service, obviously. The bad part though, is that widening the door to a new market can turn out stinking the entire operation. It would be analogous to Mercedes suddenly decided to compete in the budget cars market... oh wait, they did that! (Mercedes B-class, enough said) More specifically regarding Dukascopy, I am most concerned of the impact on the quality and speed of their trading service. As well as their customer service. Let's face it, we know that new forex traders (such as myself) whine a lot and expect a lot for little to nothing. Since I have my paper work done with Oanda already, it can't hurt to just wait a few more months to see how the changes go. Nevertheless, I am thrilled of the new changes with Dukascopy! In the mean time, I will continue to work on my risk management, trading psychology, and trading strategy (great plug, isn't it?). Update December 2010: I moved my account over to Dukascopy and have been with them for a few months. So far so good. My automated trading development with JForex has been going well too.

Posted 10 January 2010 in forex.