The Best API First Stock Brokers for Automated Investing

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Benefits of Automated Investing

Automated investing is the way to go if you want to invest but lack the time and resources to research your investments. API automated stock brokers automatically invest or trade for you based on the instructions you give them. 

Automated investing is time-sensitive. The quicker a stockbroker gets relevant investment information, the faster he reacts to the changes in the market and makes profiting investment decisions. 

For any traders to stay on top of the market trends, they need API, which stands for Application Programming Interface. The API is a set of codes that send out instructions from one interface to another. In automated investing, API stockbrokers use the API to transfer information from automated trading algorithms to their preferred trading platform. 

In so doing, these API brokers access instantaneous real-time updates that they use to make timely and accurate automated investment decisions.

Now that you know the meaning of API, let’s look at the best API stock brokers you can use for automated investing.

Interactive Brokers (All world)

Interactive Brokers is one of the world’s biggest electronic automated investing platforms. It has footholds in the US, Europe, UK, Australia, and Asia. So, regardless of your location, you can access Interactive Brokers (IBKR) services on all platforms. 

Using Interactive Brokers as your preferred API stockbroker gives you the opportunity of trading in a wide range of asset classes from the best markets across the globe. Its asset classes are in 135 markets in 33 countries and 23 currencies. 

With the Interactive Brokers’ web-based API (supported by TWS; it’s trading software), you can automatically invest or trade in forex, stocks, bonds, EFTs, cryptocurrencies, warrants, structures products, options, and futures.

You can trade using the IBKR mobile trading app, the web, and desktop. You have to deposit funds in your account by bank transfer to start investing.

Fees-wise, this automated investing platform is very low cost. Opening up an IBKR account and withdrawing funds is totally free of charge. And it doesn’t require a minimum deposit. Interactive Brokers charges a margin rate ranging from 0.85% to 1.55% for its brokerage services.

Check out this article/video on Interactive Brokers fees breakdown vs. other brokers (they’re a lot better).

TD Ameritrade (US)

If you reside in the US and some select countries outside the US, TD Ameritrade is one of the best API stock brokers for you. Although US-based, it is available in China, Hong Kong, Singapore, and Malaysia. The TD Ameritrade’s official API is built for services to integrate with the TD Ameritrade system.

Fees-wise, this API stockbroker is pocket-friendly. It charges low trading fees, no minimum deposit/withdrawal or inactivity fees. You can deposit money in your trading account using bank transfers. TD Ameritrade charges a margin rate ranging from 7.5% to 9.0% for its brokerage services. 

Automated investing is available on US stocks, forex, EFTs, bonds, funds, futures, options, and cryptocurrencies. To engage in the trade, you can use TD Ameritrade’s mobile, desktop, and web platforms. 

In case of any inquiries, it has live chat and phone support services.

Alpaca (US)

If you are looking for an API stockbroker with a very high level of investor protection, Alpaca is the winner for you. Only people living in the US and non-US residents on an invite-only basis can use it. Also, both individuals and businesses can use it. 

Like most automated investing platforms, trading is available on mobile and web platforms. You can only trade on US equities and stocks. And you can make deposits using bank transfers. 

Fees-wise, there are no minimum deposit fees, no commission fees, or inactivity fees. For its brokerage services, Alpaca charges a margin rate of 3.75%.

It offers customer support through email support.

Alpaca uses a restful web API with clean API documentation.

eToro (Worldwide)

If you reside in the US, UK, Europe, Australia, or South Africa, you can engage in automated investing using eToro. 

With eToro, you can trade on indices, forex, stocks, cryptocurrencies, EFTs, and commodities using its mobile trading app.

When it comes to payment options, the eToro API offers more options. You can use bank transfers, PayPal, and credit cards. 

Fees-wise, this API stockbroker charges more than its counterparts. Some of its fees include a withdrawal fee of $25, spread and overnight charges, and an inactivity fee for accounts that remain dormant for more than 12 months. eToro also charges a low minimum deposit.

eToro also offers 24 hour -a day customer support five days a week. 

IG UK

IG-UK is a global automated investment platform that works in more than 20 countries. 

Opening a trading account with IG is free, with no minimum deposit. (Here is how to use the IG API) 

IG UK provides access to thousands of financial markets globally. You can use it to trade stocks, forex, cryptocurrencies, commodities, EFTs, and indices. 

After making your payments through bank transfers, PayPal, or credit cards, you can start trading using the EToro mobile trading app, Web Trader, or MT4.

Fees-wise, EToro is low-cost. Although it charges no withdrawal fees, it charges an inactivity fee of $12 every month if an account remains inactive for more than 24 months.

Autoshares

Autoshares is a division of ViewTrade Securities that offers automated investing globally. You can use the Autoshares API to trade in stocks, securities, EFTs, and options using the web and mobile platforms using the Autoshares web trader.

Fees-wise, Autoshares charges a commission of $4.95% per trade. 

Etrade

If you are a retail trader interested in engaging in automated investment, Etrade is the best API stockbroker to use.

With Etrade, you can trade on stocks, futures, options, mutual funds, bonds, CDs, and EFTs. Your investments can be either short or long term, simple or complex. And you can start automated investing at the beginner or expert level.

Fees-wise, account opening is free, and there is no minimum deposit. It also doesn’t charge withdrawal fees, inactivity fees. Etrade charges margin rates from 5.45% to 8.95% for its brokerage services.

To replenish or deposit into your account, you can use a check, mail, or mobile check deposit.

Zerodha (India)

Zerodha is the largest electronic API first stockbroker in India. It has over 8 million customers who contribute to over 15% of India’s retail order volumes daily.

Zerodha’s success and profitability is because it invests in different asset classes such as stocks and IPOs, bonds and government securities, direct mutual funds, currency derivatives, commodity derivatives, futures, and options.

Fees-wise, Zerodha is more costly than its counterparts. 

Lemon Markets (Europe-although it’s still in beta)

Lemon Markets is one of the best trading APIs for developers when it comes to automated investing. You can use it;

  • To create your own services
  • To connect your automated investing with other interfaces or third-party platforms
  • To trade in more than 8000 ETFs and global stocks.

Tradier (US)

Tradier is a one of a kind platform for automated investing. If you are a trade or investor interested in building your own brokerage application, Tradier is the best API first broker to go to.

You don’t directly trade on Tradier. Instead, it helps you (the investor or customer) choose a software package from a third-party provider. Tradier’s easy-to-use REST API helps both businesses and individuals to seamlessly integrate or build their own brokerage applications.

Fees-wise, Tradier charges no commission fees for stock and options trading.

Conclusion.

You can start your investment journey with one of the API stock brokers mentioned above. However; whatever the case, select an automated investment platform that caters to your needs and goals. If you want to get started with automated investing & algorithmic trading straight away (without the need for coding), you can check out Aikido Finance which integrates very easily with your Interactive Brokers account.

More To Explore

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