Best Forex Brokers with Trading APIs of 2023

In the ever-evolving world of forex trading, automation has become a key player, allowing traders to execute strategies with precision and efficiency. For both seasoned professionals and those new to the financial markets, the integration of trading APIs (Application Programming Interfaces) has opened up a world of possibilities.

But not all brokers are created equal. The right trading API can be the bridge to success, while the wrong one can lead to frustration and loss. That’s why it’s crucial to choose a broker that offers robust, reliable, and user-friendly API solutions.

In this comprehensive guide, we’ll dive into the world of forex brokers with trading APIs, using our comprehensive database and 11 years of experience in reviewing forex and CFD brokers. Whether you’re a hands-on trader looking to enhance your trading endeavors or a newcomer seeking clarity and valuable insights, this article will help you to find the best broker with API.

List of Top Forex Brokers with Trading APIs

Best brokers for US traders

• OANDA US – Best Overall in the US
  REST v20 API. Globally regulated. Trader loyalty program to earn cash rebates. Proprietary MT4 plug-in. Top trading tools.
• FOREX.com – Best Trading Platform in the US
  Regulated globally. Competitive pricing. Multiple options for algo trading. Incorporates NinjaTrader and Capitalise.ai.

Best brokers for international traders

• FXOpen – Best Overall
  Regulated by FCA, CySEC, and ASIC. Extremely low trading fees for accounts above $25,000. Professional-grade platform. Fast order execution. Free VPS.
• PFD – Best MT4
  Fast order execution speeds of around 40 milliseconds. Low spreads and trading commissions. Low minimum deposit requirement. Free FIX API offering.
• OANDA – Best for Beginners
  Solid educational and research content. Diverse API solutions. Low spreads and commissions. Dedicated account for high-frequency algo trading.
• Orbex – Best for Professional Traders
  FIX API available. Diverse range of trading tools. Extensive research content. Free VPS hosting.

How Did FX Empire Select the Best Forex Brokers with Trading APIs?

• API connections. We checked the variety of API connections offered by a broker, such as FIX, Java, and more, because some protocols are for institutional trading, whereas others are for retail traders.
• API fees. We verified whether the brokers charge any fees for using their API.
• API rate limits. We checked the API rate limits per second to evaluate the suitability of the broker for different trading strategies.
• Regulations. We only considered brokers regulated in different jurisdictions that can ensure safety for algorithmic trading.
• Speed of execution. We measured the average speed of order execution and preferred those brokers with a high execution speed.
• VPS hosting. We checked whether brokers offer VPS (Virtual Private Servers) which enhances the speed and performance of algo trading.
• Trading fees. We measured spreads and commissions and compared them to the industry average selecting the brokers with the most competitive pricing.
• Variety of platforms. We assessed the usability of brokers’ platforms and made sure they are practical and user-friendly. Additionally, we confirmed whether they are integrated for API trading.
• Range of markets. We only considered brokers that offer a decent range of tradable and also checked how many of these instruments can be traded using API.

Our team of experts has identified brokers’ strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.

Now let’s dive into the selected brokers.

Our Methodology

Here at FX Empire, we have pioneered a unique methodology for evaluating Over-the-counter (OTC) derivatives brokers worldwide. Our goal is to provide a comprehensive picture of a broker’s pros and cons so that our readers can make informed decisions. We understand their need to choose the best partner for their particular goals and needs.

Our team of dedicated professionals is working continuously to improve our system and keep it up-to-date with current market trends. We test each broker systematically by employing over 250 variables across nine categories:

• Trust
• Fees
• Account Types
• Tradable Instruments
• Platforms and Tools
• Deposits and Withdrawals
• Customer Support
• Research
• Education

We strive to be as objective as possible, which is why our rigorous examinations are devoid of any personal bias as much as possible. We review the licenses of all the subsidiaries of a broker and check the fine print in the Client Agreement. The reliability of a broker is further determined based on the website’s regulations, fees, and general transparency.

We collect essential information by opening a live account with a broker entity and testing its services in real time. We measure the spreads, swaps, and commissions on its most popular account type and compare our findings to the industry average.

We also test the functionality of the available platforms, the number and types of tradable instruments, the reliability of customer support, and the quality of the research and educational materials.

For this guide, we only considered brokers that offer algorithmic trading via APIs to retail and professional traders. We took into consideration the types of APIs offered by brokers and evaluated their costs, availability, and simplicity of implementation. Additionally, we verified if the brokers provide a high execution speed and VPS hosting for enhancing the speed and performance of algo trading.

We scrutinized each broker’s regulatory adherence and safety measures for maximum client protection. We measured spreads and commissions, comparing them to the industry average and selecting the brokers with the most competitive pricing. Also, we assessed the usability of brokers’ platforms and confirmed whether they are integrated for API trading. Finally, we chose brokers with a decent range of tradable instruments and checked how many of them can be traded using API.

We abide by our strict guidelines for editorial integrity based on the objective standards we have set for our reviews. You can read more about our review process here.

Meet Our Writers

The team of forex and CFD analysts and editors at FXEmpire is composed of trading industry professionals and seasoned financial journalists. Our experts have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.

How to Choose a Broker With Trading APIs?

Now that I have covered our top picks for each category, it is time to outline the specific considerations traders need to make when looking for a trustworthy partner.

What types of trading APIs do brokers offer?

Brokers typically offer various types of trading APIs to cater to different trading needs and technological preferences. Here’s an overview of the common types:

• FIX (Financial Information eXchange) API – Industry-standard protocol used for real-time communication in financial markets, ideal for institutional and professional traders due to its speed and efficiency.
• REST (Representational State Transfer) API – Utilizes standard HTTP methods, making it accessible and easy to use, suitable for accessing market data, managing accounts, and placing trades.
• WebSocket API – Provides real-time, full-duplex communication channels over a single TCP connection, often used for streaming live market data and executing trades with low latency.
• Java API – Designed specifically for applications written in Java, offering seamless integration, and allowing for customization and automation of trading strategies.
• .NET API – Tailored for development in Microsoft’s .NET framework, enabling traders to build custom trading applications and tools.
• SOAP (Simple Object Access Protocol) API – A protocol that defines rules for structuring messages and relies on XML-based messaging, used for secure communication and transaction management.
• Streaming API – Allows continuous access to real-time market data and updates, essential for strategies that require immediate reaction to market changes.
• Custom Broker-Specific APIs – Some brokers may offer their proprietary APIs designed to work exclusively with their platforms, providing unique features or integrations specific to the broker’s services.
• Third-Party Platform APIs (e.g., MetaTrader) – APIs provided by popular trading platforms that can be used with various brokers, offering standardized interfaces and tools, often catering to a broader range of traders.

The choice of API depends on the trader’s specific needs, technical expertise, and trading strategy. Whether focusing on high-frequency trading, algorithmic strategies, or simply automating specific tasks, different APIs offer varying levels of complexity, functionality, and performance. Understanding these options helps traders select the most suitable API for their trading endeavors.

How to choose a safe broker?

In order to make sure you are dealing with a trustworthy broker, you need to make sure that the entity you choose is tightly regulated and complies with all industry safety requirements.

I have broken down the most important safety mechanisms to look for in a broker below:

• Segregation of client funds. Brokers must keep their clients’ funds in separate bank accounts from the ones used for their corporate capital. This is crucial for mitigating the risk of accounting errors.
• Negative balance protection. Negative balance protection means that a trader’s losses cannot exceed their account balance. This protection is indispensable when trading high-risk instruments, such as Contracts for Difference (CFDs).
• Limited market exposure. Beginners are especially susceptible to the risk of adverse price fluctuations, which is why the maximum leverage for retail traders is recommended to be at 1:30. Anything beyond that can be too risky for inexperienced traders.
• Compensation scheme. Depending on the jurisdiction where a broker is situated, a compensation scheme may also protect its clients against the company’s credit risk and liabilities. For instance, brokers regulated by the Cyprus Securities and Exchange Commission (CySEC) participate in the Investor Compensation Fund (ICF). In the unlikely event of the company becoming insolvent, traders can be compensated by up to 20,000 EUR. The Financial Services Compensation Scheme (FSCS) – under The Financial Conduct Authority (FCA) in the United Kingdom – protects traders by up to 85,000 GBP.

Read more about Best regulated forex brokers.

How to verify if a broker is regulated?

• Check the Broker’s Website: Legitimate, regulated brokers typically display their license number and the name of their regulator on their website, often in the footer or “About Us” section.
• Visit the Regulator’s Website: Every country’s financial regulator has a website where they list all the brokers they regulate. Search for the broker’s name to see if they’re listed.
• Contact the Regulator: If you can’t find the information you’re looking for, you can directly contact the regulator with the broker’s name and any other identifying information you have.
• Check for Memberships: Regulated brokers often belong to compensation schemes or organizations that protect clients’ funds. Check if the broker mentions such memberships on their website.

Check out our dedicated guides on best CySEC-regulated brokers and best FCA-regulated brokers.

How to check if a broker’s fees are competitive?

A broker may have several account types, each with different pricing mechanisms. The question is, how to know which one is best fitted for your particular style of trading? I will try to answer this question by providing an example with two distinct accounts, one STP and the other ECN:

The biggest difference between STP and ECN accounts, apart from the execution model, is the pricing mechanism. Usually, STP accounts afford commission-free trading and floating spreads, whereas ECN accounts have fixed commissions and raw spreads (typically starting from 0.1 pips). At first glance, the former sounds more favorable because you only have to pay one cost – the spread – rather than two.

Read more about Best STP forex brokers and Best ECN forex brokers.

Many brokers recognize the psychological significance of this sort of thinking and seek to exploit it by raising the spreads on their STP accounts to the point where they are no longer the more competitive option. I will now demonstrate how to do a quick test for yourself to evaluate the competitiveness of a broker’s ECN and STP accounts.

Pick an instrument, say, the EURUSD. Suppose also that the spread on the pair is 0.9 pips on a broker’s STP account and 0.1 pips on its ECN account. There is also a $6 commission for trading 1 lot (100,000 units) contract. If the EURUSD pip value is $10, you can do a simple calculation to determine the value of a hypothetical position on the EURUSD executed on both account types. The formula is the value of a trade = spread x pip value + commission. When we pop in the above values, this is what we discover about our hypothetical broker:

This is just a hypothetical example, but hopefully, it illustrates how more can be less in trading. So it’s worthwhile evaluating the costs of a broker you consider opening an account with for yourself before doing so. And if you are still uncertain, you can always check out our database of reviews to sort out the most competitive brokers.

Check out our list of Best lowest spread forex brokers.

How to choose a trading platform?

A trading platform is your window into the market. It allows you to observe price action behavior and study potential opportunities for placing orders. Technical traders use a platform’s array of indicators, drawing tools, and other features to examine various price patterns, changes in volatility, liquidity, and so on in order to gauge the most favorable times to enter or exit the market.

The best platforms are also the most versatile ones. They include a wide spectrum of technical indicators, such as Fibonacci retracement levels, oscillators, trend-based and range-based indicators, and others, as well as drawing tools, such as trend lines, channels, wedges, etc. They are also the ones that allow you to easily scale price action up and down.

In addition to these components, when looking for a suitable platform, you must also look for efficiency. Ask yourself: Does the platform facilitate easy and rapid order placement through one-click trading? Does it support algorithmic trading via Expert Advisors (EAs)? Can it handle market, limit, and stop orders? These factors, and more, contribute to a platform’s overall effectiveness.

The two most popular retail platforms in the industry are MetaTrader 4 and MetaTrader 5. Over the years, the two have become the benchmark for simplicity and reliability. The two entries in the popular franchise have a decent range of technical indicators and drawing tools and afford multi-timeframe analysis.

Read more about best MT4 brokers and best MT5 brokers.

However, despite MetaTrader’s easy learning curve, its rugged design becomes apparent when contrasted against newer and sleeker platforms. In my estimation, MetaTrader is a good choice for newbies wanting to learn the ropes, but to take your trading to take it to the next level, you may need something more sophisticated.

The answer of some brokers is to develop their proprietary platforms. The advantage of most such platforms is their convenience. The ability to search for instruments by asset class, scale price action up and down with ease, or execute complex box orders are benefits you cannot find in MetaTrader. To summarise, the question of choosing the best platform for you is one of simplicity vs practicality.

Check out our dedicated guide on Best forex trading platforms.

What to Avoid When Choosing a Forex Broker with API?

Here is a quick rundown of what to avoid when choosing a broker offering trading API:

• Unregulated brokers. Trading with an unregulated broker exposes you to a higher risk of fraud or unethical business practices, as they are not bound by any regulatory standards or rules. Additionally, in case of any disputes or if the broker goes bankrupt, there might be no legal recourse or compensation schemes available to recover your funds.
• Brokers without access to deep liquidity. Brokers with poor liquidity access run higher risks of causing negative slippage. High liquidity is necessary for fast and precise order execution.
• Brokers without VPS hosting. Virtual Private Servers improve the connectivity and speed of order execution.
• STP accounts with floating spreads from 1.8 pips or above.
• ECN accounts with round-turn commissions above $7.

Read more about Best brokers with VPS.

How to Avoid Forex and CFD Scams?

Scammers rely on the gullibility of traders. A common tactic fraudsters employ is to promise quick and easy profits at no risk to the trader. Often scammers would use labels that closely resemble the brands of real and legitimate companies. That is why regulators like the FCA have registers where traders can read about such fraudulent companies pretending to be others.

The best and easiest way to protect yourself is to make sure you work with a trustworthy and transparent broker. You can find a comprehensive list of reliable brokers by jurisdiction here.

Another important consideration is online safety. Be cautious about where you leave your personal information. Registering your details on suspicious pop-ups that promise enormous profits could lead to your contact information landing on a scammer’s dialing list. Remember, no licensed broker would make unsolicited cold calls.

The next time you get contacted out of the blue with promises of becoming the next Warren Buffet, you must remember that you are most likely speaking to a scammer. I am of the opinion that nowhere is the “if something sounds too good to be true…” saying more accurate than in the world of trading. That is why you should do your due diligence before opening an account with any broker.

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