FIT TRAINING by CPG Invest
​FIT = Financial Independence via Trading ​

​Knowledge Base​: 

Comparing 4 Keys Brokers

​Selecting a Trade API:

CG22Apr21, updated CG17Jan22: Automated trading and investing using RStudio on AWS 
EXTRACT from: 
https://exploringfinance.github.io/posts/2020-11-14-automated-trading-and-investing-using-aws/

Selecting a Trade API
There are currently multiple R packages that provide simplified access to different APIs for trading. Obviously, if you already have an account with one of the brokerage firms below, I would start there. However, if you are deciding who to go with, below is a brief description of each. All 4 firms offer free trading so that is not listed as a ‘pro’. Interactive Brokers along with the R Package are not listed because you need the IB Trader Workstation open and running to use the API, which eliminates the ability to automate the trading on a remote server.

1. CG17Jan22: ROBINHOOD is REJECTED Up-Front as they lost -80% of their Market Capitalisation since Inception: July 2021! 
   RobinHood was a pioneer in offering free trading, but once the other major firms cut commissions to zero, the biggest benefit was lost. The RobinHood R package provides easy access to the API. Customer base: 13 million client accounts with estimated $20 billion in AUM.
   • Pros: Very easy to use mobile app. API login is simple, only requiring username and password. Free Stock on sign-up. Fractional share trading. Cryptocurrencies available.
   • Cons: RobinHood is not a full service broker. You can only have one account and IRAs are not offered. No Mutual Funds. Account Transfers are not accepted so the account must be funded with cash.
2. TD Ameritrade has recently been acquired by Charles Schwab but you can still set up accounts and trade. rameritrade provides access to the API, but the initial setup takes a few steps as detailed in a previous article. Customer base: 11 million client accounts with over $1 trillion in AUM.
   • Pros: Full service brokerage firm, Oauth 2.0 allows for tokens to maintain indefinite access after initial authentication is completed.
   • Cons: The initial authentication is a bit complicated. Mutual Funds are not available through the API. The future status of the API is unknown due to the Schwab acquisition.
3. Alpaca is a fintech firm that is built for the trading API. They offer tons of technical integration options and algo trading. Full disclose, I have never used AlpacaforR, but the documentation seems very straight forward. Customer base: unknown.
   • Pros: Alpaca is built around the API rather than having an API built on top of a brokerage platform. Truly designed as a technical trading platform for algo traders and quant funds.
   • Cons: Not a full service brokerage firm, so no IRAs. No user friendly interface exists because of the focus on the API.
4. ETrade is another of the major discount brokerage firms. Although it was recently acquired by Morgan Stanley, multiple sources confirm the company will stay mostly intact, including the API. etrader provides access to the API through R. Customer base: 5.2 million client accounts with $346 billion in AUM.
   • Pros: Full service brokerage firm. Allows Mutual Fund Trading. Might be offering fractional share trading in the near future (unconfirmed).
   • Cons: The authentication process has multiple steps and is more complicated to fully automate compared to the others. The R Package does not include Futures or MMF (though ETRADE does offer these).

I will be using the rameritrade package in the example below. As the author of the package, I am a bit biased. While I think ETRADE offers a better option over TD Ameritrade, the setup for automation is more complicated with etrader as shown in this article.

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ROBINHOOD : Attention DANGER : Le Bain de Sang !

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AVERTISSEMENT : Introduction à la formation  

Les renseignements fournis dans les présentent publications sont donnés uniquement à titre d’information et ne constituent en aucun cas une offre, sollicitation, démarchage ou recommandation d’achat ou de vente de placements ou d’engagement dans toute autre transaction. Toute information, description, exemple et calcul contenus dans cette publication sont fournis à titre d’indication et ne doivent pas être traités comme faisant autorité. 
Les informations présentées ne constituent pas un conseil en investissement. Les présentes informations proviennent de sources extérieures et sont données à titre indicatif. CPG Invest et son Auteur Christian P. GATT, lui-même, ne sauraient être tenue responsable pour les dommages directs ou indirects résultants d'erreurs, d'omissions ou de modifications ultérieures des données. 
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