Latency, Colocation, and Broker Access for High-Frequency Futures Trading

# What is a good broker for HFT?


# What is a good broker for HFT?












Currently I trade trough IB. I run my HFT strategies (100 roundtrips per hour) but I think that latency is killing me and my profits are shrinking. I need the fastest possible brokers out there which meet the following requirements:

- Willing to deal with small accounts (50k). Hence lime is off the table.

- Has Java api (or it's easy to buy third party api for it)

- Can trade futures

- Offers colocation (US and EU)

- Offers data feed

- Can run on unix box

## Answer by Steve Severance (score 17, accepted)

https://quant.stackexchange.com/a/580

Look at Genesis Trading. Most of the sales guys there are kinda like used car salesmen but they will work with you. Starting up with 50K should not be a problem for them. The offer full depth of book feeds if you are colocated with them.

They do offer DMA and you can specify all routing instructions for your orders rather than getting stuck on IBs router.

You are not doing HFT but don't get discouraged. If your executions are not good and you are getting lots of slippage it may be due to IB.

## Answer by bill_080 (score 4)

https://quant.stackexchange.com/a/574

Here's a discussion/conclusion about the Flash Crash:

http://www.nanex.net/FlashCrashFinal/FlashCrashAnalysis_Theory.html

Quoting the above link:

"....A sale (or purchase) of 2,000+ contracts which rips through one-side of the depth of book in 50-100 milliseconds, will immediately overload many systems....."

My point is, HFT currently takes place in computers that are located next door to the exchange's computers and happen in milliseconds. Retail trades are not involved.

I now see that HFT has been discussed in the past:

How 'High' is the frequency in HFT?

## Answer by Dan (score 4)

https://quant.stackexchange.com/a/2422

Check out Advantage futures and the algoadvantage service they offer. You'll need to colocate a server with them and either purchase exchange connectivity software or certify your own app (this is only for derivatives trading..)

Also check out mbtrading. No java api but they offer a FIX interface so you can use quickfix. If you trade enough you can get a vps in their colo.. and you can probably colo a your own box there too, if needed.

## Answer by Suminda Sirinath S. Dharmasena (score 4)

https://quant.stackexchange.com/a/2489

For retail solution IB is pretty good. There are some discussions about many broker in Elite Trader. Lime brokerage (ex Tower Res. Cap., now associated with wedbush) seam to be putting together a good offering. They have C++ API product called Cactus and also has Apama and OneTick. They have their own co-located servers and have fast routing also.

## Answer by Robert Kubrick (score 0)

https://quant.stackexchange.com/a/2952

There is also FTEN. I heard they offer risk control, multi-exchange access and, most important, ISO execution.