What is an API? Why do brokers need API?
Application Programming Interface (or API) is a specific tool that allows communication between two platforms. In general, API helps users extend the abilities of their environment.
In the trading industry, APIs are used in various ways: for third-party solution development, custom development, or data exchange. Let’s closely look at what API brokers may use with the MetaTrader platform.
Is there a MetaTrader API for traders?
The first type of APIs worth mentioning is the native programming languages MQL4/MQL5, which are used to develop EAs by traders. Despite MQL5 being released much later than MQL4 and its evolved version, MQL4 and MQL5 are still widely used. Traders can use these languages without requiring specific tools to operate.
When do brokers need a MetaTrader REST API?
REST API is a type of API that brokers use to integrate MT4/MT5 manager and administrator functionality into their websites or web applications. For example, with the REST API, a broker may integrate a CRM system with the trading platform to allow clients to register on the system via the web interface.
To use REST API, brokers may need a third-party solution like Brokeree Web API. With this tool, brokers can integrate trading platform functions into their web-based portals with a well-documented REST API.
All the functions that are available in the MetaTrader Manager terminal are supported by Brokeree’s REST API and MT4/MT5 Web API solution, which include:
- Registration;
- Balance/credit deposit;
- User info modification;
- Trading, etc.
How do brokers use MetaTrader FIX API?
Generally, Financial Information Exchange (FIX) may be considered a specific method to transfer financial data. As with REST API, brokers use specified tools, like Brokeree’s FIX API, which allows trading via the FIX 4.4 protocol to be executed at MetaTrader 5 servers. This ultimately allows multi-asset brokers to act as liquidity providers.
After the solution accepts, parses, and translates FIX requests, it sends them to the trading platform in a standardized format. This way, brokers can create FIX sessions, which clients may use during their trading activities.
What about MetaTrader Server and MetaTrader Manager API?
Full-licensed MetaTrader 4 and 5 brokers have access to Server and Manager API. These are natively designed by the MetaQuotes team to allow server owners to develop additional features for MT4 and 5 platforms.
MetaTrader Server API may be used for plugin development or operations with symbols, gateways, and MetaTrader clusters. As for Manager API, its key function is to provide users with access and functionality similar to the MetaTrader managers.
How do MetaTrader APIs compare to other brokerage APIs?
MetaTrader APIs, including the Manager and Server APIs, are core to MT4 and MT5. It enables brokers to create custom tools, manage accounts, and integrate new features. They are ideal for brokers looking to enhance MetaTrader with specialized functionalities.
In contrast, other brokerage APIs support a wider range of financial instruments and various programming languages like Python, Java, and C++. These APIs allow developers to automate trading, retrieve market data, and manage accounts. They offer greater flexibility for multi-asset trading strategies. The choice between the two ultimately depends on your customization needs, asset coverage, and trading strategy.
Which API should I use if I need custom development?
The type of API will be determined by the functionality you expect to get from the software. You can ask us questions or request a turn-key custom development via [email protected] or by filling out the form below.
