Understanding the Differences between REST API, FIX API, and TWS API

REST API, FIX API, and TWS API are different types of APIs that brokers offer for algorithmic trading. Here are some of their differences:

– REST API stands for Representational State Transfer Application Programming Interface. It is a web-based API that uses HTTP methods (such as GET, POST, PUT, DELETE) to send and receive data between a client and a server. REST API is stateless, which means it does not store any data or status between requests. REST API supports caching, which can improve performance for slow or non-time-sensitive APIs. REST API is also easy to use and understand, as it follows a uniform resource identifier (URI) format for accessing resources.

– FIX API stands for Financial Information eXchange Application Programming Interface. It is a messaging protocol that enables fast and reliable communication between financial institutions. FIX API is mainly used for trading execution and market data delivery. FIX API is point-to-point, which means it connects two parties directly without intermediaries. FIX API is also customizable, which allows users to define their own messages and workflows according to their needs. FIX API requires more technical knowledge and skills than REST API, as it has a complex syntax and structure.

– TWS API stands for Trader Workstation Application Programming Interface. It is a proprietary API that Interactive Brokers offers for its clients to access its trading platform. TWS API supports various programming languages such as Java, Python, C#, etc. TWS API allows users to trade multiple asset classes such as stocks, options, futures, forex, bonds, etc. TWS API also provides access to market data, historical data, streaming data, account details, etc.

Source: (1) REST api vs REST Webservice vs RESTFul web service. https://stackoverflow.com/questions/33796975/rest-api-vs-rest-webservice-vs-restful-web-service
(2) What is difference between REST and API? – Stack Overflow. https://stackoverflow.com/questions/41189842/what-is-difference-between-rest-and-api
(3) Know the Difference Between REST API and RESTful API. https://www.geeksforgeeks.org/know-the-difference-between-rest-api-and-restful-api/
(4) What’s the difference between FIX and REST APIs? | FixSpec. https://fixspec.com/whats-the-difference-between-fix-and-rest-apis/
(5) What are the types of APIs and their differences? | TechTarget. https://www.techtarget.com/searchapparchitecture/tip/What-are-the-types-of-APIs-and-their-differences
(6) What’s The Difference Between FIX and REST APIs? – Medium. https://fixspec.medium.com/whats-the-difference-between-fix-and-rest-apis-ad956f7a5dd0