FIX Protocol in FX Trading
The Financial Information eXchange (FIX) protocol is the standard messaging format for electronic FX trading, connecting banks, ECNs, brokers, and buy-side participants.
What Is FIX?
FIX (Financial Information eXchange) is an open messaging standard developed for real-time electronic trading. In FX, FIX messages handle order placement, execution reports, market data, and trade allocation. It's the common language that allows different trading systems to communicate with each other.
FIX in the FX Workflow
A typical FX trade flow over FIX: the client's OMS sends a NewOrderSingle message to the venue or liquidity provider. The LP responds with an ExecutionReport (fill, partial fill, or reject). Post-trade, allocation messages route the trade to the correct prime broker. All of this happens in milliseconds.
FIX Connectivity Hubs
Rather than maintaining separate FIX connections to every counterparty, many firms use connectivity hubs like oneZero's XConnect. These hubs provide a single FIX connection that routes to dozens of liquidity providers and venues, dramatically reducing infrastructure complexity and cost.