Stock Trading API and Why Do You Need It

The existence of API is one of the revolutionary innovations in the industry of software development. API has already made a huge influence on the way people use and build various applications. This allows them to communicate with each other also utilize the part of one another’s functionality.

A Stock Trading API helps in the simplification of trade management for portfolio managers,  digital advisors, and roboadvisors. You can differentiate a good stock trading API when it is able to provide you with multi-asset trading functionality and has seamless integration and can be easily configured to fit into the pre-existing environment. With a good stock trading API, the investor will have the opportunity to get leverage years of trading technology experience, and the chance to launch new online investing products or enhance existing offerings.

So with this, both the users and developers will be able to experience the impact of API on a daily basis. However, there are still many people who are giving a second thought about what is being hidden behind the hood of the apps that people are using regularly. Thus, this article is aiming to help the reader know the basics of what exactly an API is, and how API helps in different programs to talk to each other and how the user can perform an API integration.

Stock Trading API and API in General

The acronym API stands for Application Programming Interface. And when one hears the word interface, such a person might tend to think of the user interface. However, in the case of the API, this deals with the software-to-software interface that will enable applications to talk to each other without employing user knowledge or intervention. In its core, an API is a piece of software code that is written in the series of XML messages. These messages are then going to define exactly which function of the remote application will be leveraged. In sum, API can be roughly defined as a set of rules that will determine how one software is going to communicate with another.

Employing a stock trading API helps in the automation of trading operations, monitor and manage the trading activity in real-time, maintain the investor’s positions, be able to download the start-of-day files form the clearing firm, be able to receive orders and then routing them through its lifecycle, be able to calculate buying power, the margin requirement, and the account balances of each of the account in real-time, be able to manage trade allocation, be able to manage trade allocations, be able to send drop copies to be given to all the appropriate receivers, and also be able to upload the end-of-day trade files to the clearing and reports to the regulator.

One significant benefit is that APIs can work with any common programming language making them a tool that is convenient and easy to understand for the developers.

Reasons for the Need of Stock Trading API Integration

Currently, APIs have already become a necessity of modern enterprise information technology. The underlying reason is less a matter of if APIs are needed, but rather as to how many are necessary and how their creation and publishing is going to be. Right now, there are already at least more than 16,500 APIs that are already in existence.

Thus, companies are now having a lot of options at their disposal when it comes to the creation of APIs and putting them in place. But, among all of those options, the most significant is the API integration platform. And here are some reasons why stock trading API integration is ideal for your business:

  • You need a stock trading API integration so that you can connect to cloud apps


There are already hundreds of cloud apps that are in existence today. This kind of technology has firmly permeated the enterprise. In fact, a 2016 survey revealed that the typical organization has 6 cloud apps that are put in place. As such, there were about 15% of all the companies that were polled that are using Google Apps and/or Office 365 at a minimum.  So when it comes to connecting to cloud apps, APIs are the standard. Most of the legacy integration technology in the likes of enterprise service buses (ESBs) was designed in the on-premise era and it is struggling to support the modern API-connectivity beyond the firewall. The gravity of the apps has already shifted to the cloud and it will no longer make sense to house the platform that connects all of these clouds beyond your firewall. To simply put it, an API integration platform that is born in the cloud is necessary to connect today’s modern cloud APIs.


  • You need an integration platform so you can meet the need for best-of-breed solutions


Try to think about the typical finance department at your average enterprise and then consider all of the tasks that fall on these teams. Their tasks cover everything from accounts payable, billing taxes, insurance payouts and more. Although there are some tools that claim that it can do everything that an average finance department would need, still, the solution is like to be both expensive and may not be very good at all of the tasks at hand.


Because of this, a number of departments and that includes 96 percent of account and finance teams are already building their own solutions and assembling their own platforms by pulling together the best-of-breed solutions that can handle specific tasks and data sets.  With an API integration platform, departments are now going to be able to easily connect the best apps and tools that are available. With this, they can now replace the all-encompassing, but inadequate options with a sleek and highly effective stack.


  • You need the integration so to quickly and easily create new APIs


Up until recently, if you are needing an API, you are now going to have two main options. One is you either use what was available or, second, you built one that is from scratch. For both scenarios, it can be problematic because assuming that an API is available from an outside source, it could be limited in its functionality or use. Furthermore, building one from scratch through code is far from ideal also because this is typically a time-consuming and difficult task.


On the other hand, with API integration platforms, another option has come in to play. By just a few clicks, you can already create an API from an existing integration thereby saving you time and money while enabling you to also fully take some leverage on your existing technology investments.


  • You need the integration to get value from existing and legacy data sources


In a number of establishments, data that is more than a year or even just a few months are ending up on a database somewhere. One part of the reason is that older data often remains underutilized which is because it can be difficult to access an also to subsequently integrate it to the current systems.


Through an API integration platform, it can be very beneficial in this kind of situation because through this solution, an enterprise can now create its own APIs just for internal purposes. This will enable a business easy to extract data from older serves and databases as well as reuse the business logic and workflows that are already working.


  • You need an API integration platform to be able to compose new apps with ease


Currently, there are many popular apps at their core that consist of prior existing technology that is tied together in a unique fashion using APIs. For example, the photo filters and the social media technology have already existed before Instagram, however, they were already able to package them together in a different way by using APIs.


There are already new apps that have been composed in the exact same way. Through the application of an API integration platform, the team can now quickly and simply connect disparate technology or expose existing integrations as APIs or microservices to bring new apps to the market.


  • You need an API integration platform in order to become more strategic


In an organization wherein API creation is a manual exercise, they will have to employ a team of developers and other IT staff in order to get everything up and running. In the same way, enterprise departments that are lacking concrete, integrated stacks are often hiring staff members that specifically designated to handle one or two apps.

Through a stock trading API integration platform, not only can your team of developers focus their efforts elsewhere on strategic projects like composing apps for another revenue stream, but also, fewer people are now needed in order to keep every department productive.

  • You need an API integration in order to improve team productivity across the board

For the developers, coders, and other members of the IT department having an API integration platform serves as a huge boon to productivity. The hours in every month that are previously being spent in creating, managing, overseeing and fixing APIs can now be devoted to other pursuits.

With API integration platform, this is going to provide the organization with similar benefits to other enterprise departments also. This technology will not only enable stacks to become a reality but with such platforms, this will often allow even non-technical teams to create and manage their own APIs if desired.


Leave a Reply

Your email address will not be published.