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Configuring IB Gateway for Paper Trading Through a Local API

Article FMZ forum · Author: ianzeng123
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Summary

This guide explains how to connect Interactive Brokers’ IB Gateway to the FMZ trading host on macOS. It describes Gateway as a lightweight API bridge between strategy software and IBKR, and contrasts it with Trader Workstation and IBKR Desktop. The host and Gateway must run on the same computer because the instructions rely on a localhost connection.

The setup sequence is to install and log into Gateway, select paper or live mode, enable socket clients, set the corresponding port, trust the local IP address, restart Gateway, and accept the first connection prompt. The guide then gives the host connection settings and suggests beginning with a paper account. It explains that the API can carry market data, account information, orders, and notifications. This is operational setup guidance rather than a trading method; it offers no performance evidence. Details may depend on the current Gateway version and account configuration.

Key ideas

  • IB Gateway serves as a local API bridge between trading software and Interactive Brokers.
  • The guide pairs paper trading with port 4002 and live trading with port 4001.
  • Socket clients must be enabled, and the Gateway may need a restart for settings to take effect.
  • The host and Gateway are configured to run on the same computer using localhost.
  • The API can provide market data and account information and relay order actions.

Tags

EquitiesExecutionUS markets

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.