Htf trading bot

[pietrofinance]

Hi everyone. Is there any broker that accept HTF/arbitrage bot for Forex or index?

 

[OffshoreMonero]

I think you mean HFT. High Frequency Trading?

 

[pietrofinance]

Yes

 

[OffshoreMonero]

When you say forex you are referring to national currencies only, correct?

 

[algotrader]

Why should they not accept it? In general, they are earning their money with commissions or bid/ask spreads. The more you trade with them the better for them. But there's an exception if it comes to CFD brokers which act as a counterparty to you (if they don't hedge their trades with you properly and take the risk). In that case they want you to lose your money with them (like a betting bookmaker) and might find a reason to close your account if you are consistently beating them.

So, you will need to choose a proper broker that offers exchange traded index/currency futures or large forex brokers with commissions/spreads where you trade against other clients. And they should provide an API for your bots. But I don't think you will be able to compete index and forex trading in liquid markets with large investment banks and hedge funds if it comes to low latency HFT and simple arbitrage.

The largest brokers with API are Interactive Brokers and Saxo. For forex you'll rankings on the web. Avoid brokers that are regulated in dodgy jurisdictions such as the Caribbean. Always look at the fineprint at the bottom of the brokers website.

 

[pietrofinance]

As much as i know all the broker won't accept htf trading cause it make to much money. I know there is someone that accept it but still can't understand. So I will have to look for broker makes money in spread and let trade people against them?

 

[FinTech Avenger]

As much as i know all the broker won't accept htf trading cause it make to much money. I know there is someone that accept it but still can't understand. So I will have to look for broker makes money in spread and let trade people against them?

I suppose you trade against broker mainly when the brokerage itself is a St. Vincent-based "B book" boiler room. In most other cases, and especially with brokers like IBKR, Saxo, Swissquote etc. high frequency trading is what large portion of their institutional clients does every millisecond when markets are open

 

[denniz07]

I think you mean HFT. High Frequency Trading?

I think you need DMA for real HFT. So if there is really competition on the orderbook level, guess you don't have any Chance going through the broker.

 

[alistera]

HFT does not work with most brokers, if they find you doing it the accounts will be blocked, and it depends on the type of trading you are doing, I installed a Crypto arbitrage bot for someone a few years back using in-memory architecture (mainly cross exchange stat arbitrage and converted from the Forex architecture), it could out trade Binance but cost $15k-20k plus install fees, the problem was they didn't have the capital to make it work as they wanted to use primary assets like BTC and ETH, not altcoins.

Forex and indexes are even more difficult, in Crypto there are still inefficiencies, in the primary markets such as Forex there are none and the spreads make it impossible unless you are on-exchange with servers at Equinix hubs, which they charge $10,000s for, it is possible to use millisecond datasets to identify mean reversion with cross exchange but the amounts are so fractional that the probability of making profit in Forex is zero, the fintech cost along could never justify it.