API Trading Platforms are buzzing these days. If you’re getting into Algorithmic Trading and want to test your trading strategies with automation or just want to build investment services, having a good API broker is the key to building an excellent system.
In this article, we’ll review a few API Brokers based on their features and reliability.
Best API brokers for 2024
- Alpaca Trading
Commission-free broker focused on its API capabilities. Best for algorithmic trading. - Interactive Brokers
One of the world’s leading brokers. Best for non-US investors. - Tradier
API-based cloud brokerage platform that enables trading of securities. Best for developers and self-directed investors.
What is a broker API?
Application Programming Interface (API) is a software application that connects coded algorithms with a broker’s platform. It basically links an investor or trader’s front-end system with a broker’s back-end system. Trading Broker API builds custom trading applications. Coded algorithms have become very popular in the past decade, especially in the Forex Market. The algorithmic trading market is expected to continue to grow as new deep-pocket players enter this niche with their strategies.
Best API brokers compared
| Broker API | Has Official API | Commission fees | Countries Available | Instruments Covered |
| Alpaca | Yes | Free | Australia, Germany, Hong Kong, India, Ireland, Japan, Malaysia, Netherlands, Singapore, South Africa, UAE, UK, USA. | Stocks, ETFs, Crypto. |
| Interactive Brokers | Yes | $0 on stocks/ETFs (US residents only); from $0.60 per option contract | Worldwide. | Stocks, Options, Futures, ETFs, Currencies, Commodities, Currencies, Fixed Income, Crypto. |
| Tradier | Yes | Free | 120+ Countries | Stocks, Options. |
1. Alpaca
With Alpaca’s API, you can paper trade in the sandbox environment before deployment.
The platform provides websocket streaming to its clients, which does not require any applications and can be accessed through a web browser.
The platform offers FastAPI from which you can expect low latency recall times, providing end users with minimal lag from the time of the request to response.
Detailed documentation can be found here.
2. Interactive Brokers
The platform offers 3 types of API by features: TWS API, Client Portal Web API, and FIX CTCI, of which The Trader Workstation (TWS) API is the most popular.
TWS API is simple but powerful, using which you can build your own trading application or connect your front-end applications.
Also with IBKR’s proprietary, open source API you can place orders, view trades and positions, access market data, news and account data.
Detailed documentation can be found here.
3. Tradier
Tradier’s broker API uses OAuth 2.0 authentication which makes it easy to integrate into any application or development workflow.
In the event of an expected error, the platform’s API returns a JSON error payload, where it tells us which field was missed. The platform keeps these errors simple and easy to understand.
Detailed documentation can be found here.
Bottom Line
To sum this up, here are our picks:
FAQs
How to choose the best Broker API?
There’s no One Size fits All. Depending on which application you use, API matters a lot. For example, if you’re an intraday trader who wants to play volatility, it’s best to choose the Broker API which has fast and seamless executions.
What are other applications of Broker API besides trading?
One can build investment services like portfolio analytics, charting or financial data offerings using API. Broker API can be useful for front-end and existing applications.
What are advantages and disadvantages of API trading?
Advantages:
- Faster Execution time: Trades can be executed faster than normal order placement. In this way you can capture small market moves quickly.
- Strict Risk Management: As per need, strategies can be coded, which means your position size, entry price, and stop loss will be in sync. This reduces human emotions that are usually involved.
Disadvantages:
- Need to have coding background: API trading needs at least a little coding background and it takes effort to read and understand API documentation.
- Carries higher initial setup costs: Not all APIs are free, so your algorithm integration with a broker API carries costs like setting up virtual machines. So basically your investment is brokerage (if it’s not zero) plus the technology you’re paying for, before you start making any profits.
Does Webull have an API?
No, Webull does not offer an official API.
Does DEGIRO have an API?
No, DEGIRO also does not have an official API.
Does Trading 212 have an API?
No, Trading 212 does not have an official API – unofficial APIs exist, though.
Does Plus500 have an API?
No, Plus500 does not offer an API.
