should I use my brokerage's ATS or another comany

Discussion in 'Automated Trading' started by drink, Apr 5, 2007.

  1. drink


    Hi, newbie question...

    I'm trying to implement my first ATS. I've noticed that some brokerages offer their own API (like IB or Genesis) but that there are also 3rd party companies that specialize in ATS's but are not brokerages--such as NeoTicker and TradeBolt.

    Would you recommend using one of these 3rd party comanies that can interface with your brokerage, or doing everything just through the brokerage.

  2. The third-party software implement's the Broker APIs that they support i.e. they are interacting with your broker exactly the same way you would.

    If you didn't use third-party software, then you would have to implement your Broker API yourself.

    So the question really is: do you write your own ATS software or use third-party software?

    If the third-party software can do what you need it to, then it can make a lot of sense to take that route.

    The fact that most third-party software supports multiple Broker APIs is a bonus as it means you can change brokers without having to change your ATS.

    There is of course nothing to stop you writing your own ATS software that allows you to support multiple Brokers too.

    Some other third-party software:

    Some of these can interface with multiple Broker APIs and others can't.