Best High-Frequency Trading (HFT) Brokers 2025
High-frequency trading (HFT) uses algorithms and automation to execute trades at lightning-fast speeds. Here we have listed the best brokers and platforms for high frequency trading in the UK based on our tests. This guide also explains how high-frequency trading software works, from the pros and cons to UK regulations and risk management considerations.
Top High-Frequency Trading Brokers
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During our test, Interactive Brokers showcased impressive execution speed under 10ms through their Gateway API, offering substantial multi-asset liquidity and accurate order routing. Spreads differed across venues, dipping to just 0.1 pips on EUR/USD, with costs between $2 and $3.50 per lot equivalent. The FIX API, co-location, and smart order routing facilitate high-frequency trading on an institutional level.
Instruments Regulator Platforms Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower Min. Deposit Min. Trade Leverage $0 $100 1:50 -
In recent tests tailored for high-frequency traders, Global Prime delivered swift execution under 30ms with negligible slippage. Spreads begin at 0.0 pips, coupled with a $6 round-turn commission. With FIX API and extensive multi-bank liquidity pools, it affords institutional-level access, ideal for latency-sensitive trading strategies.
Instruments Regulator Platforms Forex, indices, commodities, cryptocurrencies, shares, bonds ASIC, VFSC, FSA MT4, TradingView, AutoChartist Min. Deposit Min. Trade Leverage A$200 0.01 Lots 1:200 -
In our HFT assessments, IC Markets showed execution times under 20ms on cTrader and MetaTrader, with minimal slippage. Spreads for EUR/USD averaged 0.1 pips, with a $7 round-turn commission per lot. True ECN links, FIX API access, high liquidity, and close hosting at Equinix NY4 and LD5 suit traders excellently.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto ASIC, CySEC, FSA, CMA MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade, Quantower Min. Deposit Min. Trade Leverage $200 0.01 Lots 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) -
In our HFT tests, BlackBull Markets achieved execution speeds of 20-40ms and tight spreads beginning at 0.0 pips. With their FIX API, Equinix co-location, and scalable VPS, they support ultra-low latency trading. Raw ECN liquidity and clear slippage control meet institutional-grade trading needs.
Instruments Regulator Platforms CFDs, Stocks, Indices, Commodities, Futures, Crypto FMA, FSA BlackBull Invest, BlackBull CopyTrader, MT4, MT5, cTrader, TradingView, AutoChartist Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:500 -
In our test at Pepperstone for high-frequency trading, execution time was reliably under 30ms with almost no slippage on cTrader via Equinix LD5. Spreads were between 0.1–0.3 pips for EUR/USD, with a $7 round-trip commission per lot. The FIX API, raw ECN feeds, and deep liquidity pools render it ideal for low-latency algorithmic strategies.
Instruments Regulator Platforms CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto (only Pro clients), Spread Betting FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade, Quantower Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:500 (Pro) -
In our testing, FP Markets demonstrated fast execution with 30–45ms latency on raw ECN accounts, featuring spreads of 0.0–0.2 pips and $6–$7 round-turn commission per lot. Their FIX API, cTrader platform, and VPS options provide robust infrastructure for HFT trading, ensuring dependable liquidity and narrow spreads.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Bonds, ETFs, Crypto ASIC, CySEC, FSA, CMA Iress, MT4, MT5, cTrader, TradingView, AutoChartist, TradingCentral Min. Deposit Min. Trade Leverage $40 0.01 Lots 1:30 (UK), 1:500 (Global) -
During our recent assessments, Eightcap provided sub-40ms execution through cTrader, with raw ECN spreads starting at 0.0 pips and a $6 round-trip commission, ideal for high-frequency configurations. FIX API and VPS hosting ensure reliable, low-latency algorithmic trading. Its deep liquidity and clear pricing make it competitive for high-frequency strategies.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities ASIC, FCA, CySEC, SCB MT4, MT5, TradingView Min. Deposit Min. Trade Leverage £100 0.01 Lots 1:30
Interactive Brokers
Global Prime
IC Markets
BlackBull Markets
Pepperstone
FP Markets
EightcapSafety Comparison
Compare how safe the Best High-Frequency Trading (HFT) Brokers 2025 are and what features they offer to protect traders.
| Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
|---|---|---|---|---|---|
| Interactive Brokers | ✔ | ✔ | ✘ | ✔ | |
| Global Prime | ✘ | ✔ | ✘ | ✘ | |
| IC Markets | ✘ | ✔ | ✘ | ✔ | |
| BlackBull Markets | ✘ | ✔ | ✘ | ✔ | |
| Pepperstone | ✔ | ✔ | ✘ | ✔ | |
| FP Markets | ✘ | ✔ | ✘ | ✔ | |
| Eightcap | ✔ | ✔ | ✘ | ✔ |
Payments Comparison
Compare which popular payment methods the Best High-Frequency Trading (HFT) Brokers 2025 support and whether they have trading accounts denominated in British Pounds (GBP).
| Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
|---|---|---|---|---|---|---|
| Interactive Brokers | ✔ | ✔ | ✘ | ✘ | ✘ | ✘ |
| Global Prime | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
| IC Markets | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
| BlackBull Markets | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| Pepperstone | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
| FP Markets | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
| Eightcap | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
Mobile Trading Comparison
How good are the Best High-Frequency Trading (HFT) Brokers 2025 at mobile trading using apps or other mobile interfaces.
| Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
|---|---|---|---|---|
| Interactive Brokers | iOS & Android | ✔ | ||
| Global Prime | iOS & Android | ✘ | ||
| IC Markets | iOS & Android | ✘ | ||
| BlackBull Markets | iOS & Android | ✘ | ||
| Pepperstone | iOS & Android | ✘ | ||
| FP Markets | iOS & Android | ✘ | ||
| Eightcap | iOS & Android | ✘ |
Beginners Comparison
Are the Best High-Frequency Trading (HFT) Brokers 2025 good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?
| Broker | Demo Account | Minimum Deposit | Minimum Trade | Support Rating | Education Rating |
|---|---|---|---|---|---|
| Interactive Brokers | ✔ | $0 | $100 | ||
| Global Prime | ✔ | A$200 | 0.01 Lots | ||
| IC Markets | ✔ | $200 | 0.01 Lots | ||
| BlackBull Markets | ✔ | $0 | 0.01 Lots | ||
| Pepperstone | ✔ | $0 | 0.01 Lots | ||
| FP Markets | ✔ | $40 | 0.01 Lots | ||
| Eightcap | ✔ | £100 | 0.01 Lots |
Advanced Trading Comparison
Do the Best High-Frequency Trading (HFT) Brokers 2025 offer features that allow for more advanced trading strategies?
| Broker | Automated Trading | Pro Account | Leverage | VPS | AI | Low Latency | Extended Hours |
|---|---|---|---|---|---|---|---|
| Interactive Brokers | Capitalise.ai & TWS API | ✘ | 1:50 | ✘ | ✔ | ✔ | ✔ |
| Global Prime | ✔ | ✘ | 1:200 | ✔ | ✔ | ✔ | ✘ |
| IC Markets | Expert Advisors (EAs) on MetaTrader, cBots on cTrader, Myfxbook AutoTrade | ✘ | 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) | ✔ | ✘ | ✔ | ✘ |
| BlackBull Markets | Expert Advisors (EAs) on MetaTrader, cTrader Automate | ✘ | 1:500 | ✔ | ✘ | ✔ | ✘ |
| Pepperstone | Expert Advisors (EAs) on MetaTrader | ✔ | 1:30 (Retail), 1:500 (Pro) | ✔ | ✔ | ✔ | ✘ |
| FP Markets | Expert Advisors (EAs) on MetaTrader | ✘ | 1:30 (UK), 1:500 (Global) | ✔ | ✘ | ✔ | ✘ |
| Eightcap | TradingView Bots | ✘ | 1:30 | ✔ | ✘ | ✔ | ✘ |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the Best High-Frequency Trading (HFT) Brokers 2025.
| Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
|---|---|---|---|---|---|---|---|---|---|
| Interactive Brokers | |||||||||
| Global Prime | |||||||||
| IC Markets | |||||||||
| BlackBull Markets | |||||||||
| Pepperstone | |||||||||
| FP Markets | |||||||||
| Eightcap |
Our Take On Interactive Brokers
"Interactive Brokers ranks highly for seasoned traders due to its robust charting platforms, live data, and bespoke layouts via the new IBKR Desktop app. Its competitive pricing and sophisticated order choices appeal to traders, and its wide equity options are industry-leading."
Pros
- Interactive Brokers has introduced ForecastTrader, an innovative product offering zero-commission trading with yes/no Forecast Contracts on political, economic, and climate events. It features fixed $1 contract payouts, 24/6 market access, and a 3.83% APY on positions held.
- While initially targeting seasoned traders, IBKR has recently widened its appeal by eliminating its $10,000 minimum deposit requirement.
- Interactive Brokers has been awarded Best US Broker for 2025 by DayTrading.com. This accolade highlights its dedication to traders in the US, offering exceptionally low margin rates and access to global markets at minimal expense.
Cons
- IBKR offers a variety of research tools, but their inconsistent placement across trading platforms and the 'Account Management' webpage creates a confusing experience for users.
- Support can be sluggish and frustrating. Tests reveal that you may face challenges reaching customer service quickly, which could result in delays in issue resolution.
- You are limited to a single active session per account, meaning you cannot use both your desktop programme and mobile app at the same time. This restriction can occasionally lead to a frustrating experience for traders.
Our Take On Global Prime
"Global Prime is ideal for novice and experienced traders, offering superb market access, competitive fees, and diverse tools, including copy trading."
Pros
- Diverse deposit methods available without any charges.
- £0 initial deposit
- VPS
Cons
- Clients from the United States and Canada are ineligible.
- No integration with MetaTrader 5.
- The selection of account types is limited.
Our Take On IC Markets
"IC Markets provides excellent pricing, swift execution, and easy deposits. With cutting-edge charting tools like TradingView and the Raw Trader Plus account, it continues to be a preferred option for intermediate and advanced traders."
Pros
- Access over 2,250 CFDs across diverse markets like forex, commodities, indices, shares, bonds, and cryptocurrencies. This variety enables traders to employ diversified strategies.
- IC Markets provides some of the industry's narrowest spreads, offering 0.0-pip spreads on major currency pairs. This makes it an extremely cost-effective choice for traders.
- As a well-regulated and reputable broker, IC Markets focuses on client safety and transparency to provide a dependable global trading experience.
Cons
- IC Markets provides metals and cryptocurrencies for trading through CFDs, though the selection is narrower compared to brokers such as eToro. This limits opportunities for traders focused on these asset classes.
- The tutorials, webinars, and educational resources require enhancement, lagging behind competitors such as CMC Markets, which diminishes their appeal to novice traders.
- Certain withdrawal methods incur fees, including a $20 charge for wire transfers. These costs can reduce profits, particularly with frequent withdrawals.
Our Take On BlackBull Markets
"Following the upgrade to Equinix servers in New York, London, and Tokyo, BlackBull has reduced latency, making it a clear choice for stock CFD trading using ECN pricing."
Pros
- After collaborating with ZuluTrade and Myfxbook, upgrading its CopyTrader, and activating cTrader Copy, BlackBull provides an exceptionally thorough trading experience.
- BlackBulls's research excels, particularly in the daily 'Trading Opportunities' articles. These publications simplify complex market dynamics into clear insights, enabling traders to effectively capitalise on emerging trends.
- BlackBull provides three ECN-powered accounts—Standard, Prime, and Institutional—to cater to traders of all experience levels, from novices to seasoned professionals. The variety of account types allows for flexible options tailored to individual trading needs and available capital.
Cons
- Despite enhancements such as webinars and tutorials in the Education Hub, our review indicates that the courses still require greater emphasis on elucidating broader economic factors affecting prices.
- Unlike many leading brokers, BlackBull imposes a bothersome $5 fee for withdrawals. This charge can reduce the overall cost-effectiveness, particularly for traders who regularly transfer funds.
- BlackBull does not offer its own trading platform, instead utilising MetaTrader, cTrader, and TradingView. Although these platforms are highly regarded, some brokers, such as eToro, provide proprietary platforms with distinct features that cater well to novice traders.
Our Take On Pepperstone
"Pepperstone is a premier trading platform, providing tight spreads, swift execution, and sophisticated charting tools for seasoned traders. Beginners benefit from no minimum deposit, comprehensive learning materials, and outstanding 24/7 support."
Tobias Robinson
Reviewer
Pros
- In recent years, Pepperstone has significantly enhanced the deposit and withdrawal process. By 2025, clients can use Apple Pay and Google Pay, while 2024 saw the introduction of PIX and SPEI for customers in Brazil and Mexico.
- Pepperstone presents itself as an economical choice for traders, offering spreads as low as 0.0 in its Razor account. The Active Trader programme provides rebates up to 30% on indices and commodities, plus $3 per lot on forex.
- Support for top-tier charting platforms such as MT4, MT5, TradingView, and cTrader. These tools accommodate different short-term trading methods, including algorithmic trading.
Cons
- Pepperstone's demo accounts expire after 30 days, which may not provide sufficient time to explore various platforms and evaluate trading strategies.
- Although its market range has improved, its crypto offerings remain limited compared to brokers specialising in this sector, lacking real coin investment options.
- Pepperstone doesn't offer cTrader Copy, a favoured feature for copying trades found in the cTrader platform, which is available on other platforms such as IC Markets. However, Pepperstone has launched its own user-friendly copy trading app.
Our Take On FP Markets
"FP Markets achieves a perfect blend of affordability and quality for active traders. They maintain low trading costs while enhancing investment options, charting tools, and research features, alongside providing reliable support for urgent queries."
Pros
- FP Markets provides an excellent range of trading options, thanks to its broadened commodities offerings and support for more than 10,000 stocks.
- FP Markets now offers advanced research tools from Trading Central and Autochartist. These tools assist traders in spotting short-term opportunities by analysing chart patterns, indicators, and other technical elements.
- FP Markets provides swift and reliable support, accessible 24 hours a day, five days a week, with average response times under one minute during tests.
Cons
- FP Markets falls short of leading MetaTrader brokers. Although it provides a Trader's Toolbox on MT4, it offers only 130 instruments, restricting opportunities for serious traders. In contrast, Pepperstone offers 1,300 assets.
- FP Markets’ Iress platform is exclusively available to Australian clients. The platform is geared towards stock trading rather than forex. Data fees may accumulate quickly unless you are an active trader or hold a high-balance account.
- The Raw account offers excellent pricing. However, the Standard account has wider spreads, averaging 1.1 pips on EUR/USD, which lags behind the competitive 0.8-pip spread at IC Markets.
Our Take On Eightcap
"Eightcap excels for traders, offering diverse charting platforms, educational Labs, and AI tools. With over 120 crypto CFDs, it stands out in crypto trading and has won our 'Best Crypto Broker' award twice consecutively."
Pros
- In 2021, Eightcap enhanced its lineup, now providing an extensive range of cryptocurrency CFDs. It offers crypto/fiat and crypto/crypto pairs, along with crypto indices for comprehensive market exposure.
- With spreads starting at 0 pips, minimal commission charges, and leverage up to 1:500 for select clients, Eightcap delivers affordable and flexible trading opportunities. These conditions suit various strategies, such as trading and scalping.
- Eightcap excels with a suite of advanced trading tools, such as MT4 and MT5, and has recently joined the 100-million-user social trading network, TradingView.
Cons
- Despite a helpful array of educational guides and e-books in Labs, Eightcap lags behind IG's extensive resources for aspiring traders. IG boasts a dedicated Academy app and features 18 diverse course categories.
- Despite the growing range of tools available, Eightcap lacks popular industry resources such as Autochartist and Trading Central. These provide advanced charting analytics, live news, and essential market insights for traders focused on short-term strategies.
- The demo account is available for 30 days, after which it requires a request for extension. This is less convenient than XM's offering, which provides an unlimited demo mode.
High-Frequency Trading Explained
High-frequency trading programs execute a large volume of trades ultra-fast, from hundreds or even thousands of trades per second. These algorithms are typically designed using open source programming languages like Python or Java and are executed on platforms that are optimised for high-frequency trading.
This style of automated trading has become increasingly popular in recent years, particularly following the implementation of MiFID II regulations, which placed greater emphasis on the use of electronic trading and data analytics in financial markets. It is now estimated that 50% of US stock trading volumes are driven by high-frequency trading systems.
How High-Frequency Trading Works
High-frequency trading firms use various strategies to identify profitable opportunities, such as statistical arbitrage and market making. These often rely on quantitative analysis techniques, plus machine and deep learning algorithms that can identify patterns and trends in market data that are difficult or impossible for human traders to detect.
High-frequency trading typically relies on specialised hardware and software designed to reduce latency. Reducing latency, or the delay between receiving market data and executing a trade, is critical to the success of high-frequency trading. Even small delays can result in missed opportunities or unfavourable execution quotes. As such, high-frequency trading platforms invest heavily in technology and infrastructure, including high-speed data networks and customised servers to optimise transaction speeds.
High-frequency trading firms are also exploring emerging technologies such as quantum computing. These powerful machines are capable of processing vast amounts of data and performing complex calculations at speeds that are orders of magnitude faster than traditional computers.
Importantly, the main characteristics of a high-frequency trading setup are speed and volume. Other key features include:
- Automation: High-frequency trading strategies are automated, with complex algorithms entering and exiting the market sometimes thousands of times a second.
- Data analysis: High-frequency trading firms use advanced data analysis techniques to identify market inefficiencies and generate signals. This can involve analysing vast amounts of historical data, as well as real-time market data.
- Low margins: High-frequency trading strategies typically operate on low margins, with profits generated by small price movements across a large volume of trades.
- Technology-driven: This method of trading is highly dependent on advanced technology, including low-latency trading infrastructure and powerful computing systems.
For Retail Traders
Technically, anyone can participate in high-frequency trading, but in reality, it is mostly limited to institutional investors and professional traders due to the high costs and advanced technology required.
Retail investors may not have the financial resources or access to the necessary infrastructure to engage in high-frequency trading. Additionally, the competition in the high-frequency trading market is intense, and success often depends on having access to proprietary data and market information, which may not be available to retail traders.
But whilst high-frequency trading is usually beyond the reach of small investors trading from home, there are some software options available for individuals.
One strategy is to use algorithmic trading software that provides signals based on set criteria or technical indicators. These signals can be used to automate trades using bots and execute orders quickly and efficiently.
Another option is to invest your money in funds or other financial products that deploy high-frequency trading strategies. However, these trading vehicles often come with high fees and large minimum investment requirements.
UK Regulation
The FCA have implemented rules to reduce the concerns surrounding market manipulation and other critiques. For example, its handbook sets out rules around market abuse, including manipulating prices or engaging in insider trading.
Additionally, MiFID II, first proposed in 2011 following the 2010 Flash Crash, was an update to the original 2007 MiFID rules, targeting high frequency trading. Under the new MiFID II definition, firms are required to provide detailed information about their trading activities, including the use of algorithms and high-frequency trading programs. This information must be reported to regulators in real-time, enabling them to monitor market activity and identify potential issues.
Pros Of High-Frequency Trading
- Market Liquidity: High-frequency trading firms provide liquidity and facilitate price discovery by acting as market makers. This is one of the biggest benefits of high frequency trading as market makers can help to reduce bid-ask spreads and allows traders to enter and exit positions more easily.
- Access To Dark Pools: HFT firms participate in dark pools which are private trading venues that are typically only accessible to institutional investors and large financial firms. They allow buyers and sellers to trade large blocks of shares anonymously, without disclosing the identity or size of their orders to the broader market. This can help to reduce market impact and improve execution quality.
- Market Stability: High-frequency trading can improve market stability by providing liquidity during periods of volatility or uncertainty. This can benefit retail traders by reducing the likelihood of market disruptions or flash crashes. Although some blame the Flash Crash of 2010 on high-frequency trading programs, this has since been debunked by the CTFC in 2014.
- ETFs: High-frequency trading can also benefit retail traders who invest in ETFs, as firms can help to ensure that prices remain closely aligned with the underlying assets through arbitrage. This can help to reduce tracking errors and improve overall returns.
Cons Of High-Frequency Trading
- Unfair Advantages: To participate in high-frequency trading, you must have access to fast and sophisticated trading technology, which is typically only accessible to large firms. This can create unfair advantages and allow them to extract profits at the expense of slower and smaller market participants.
- Complexity: High-frequency trading algorithms are complex and difficult to understand, making it harder for regulators and market participants to monitor and control the activities of such companies.
- Risk of System Failures: High-frequency trading firms rely heavily on technology, meaning they can be vulnerable to system failures and cyber attacks, causing significant disruption.
How To Compare Brokers That Offer High-Frequency Trading
- Network tools and infrastructure: Look for brokers that offer low latency connections to the financial markets, as well as high-speed servers and advanced network tools.
- Fees: High-frequency trading strategies involve executing a large volume of trades, so transaction costs can have a significant impact on profitability. Look for HFT brokers that offer competitive pricing with low to zero commissions, tight bid-ask spreads, and minimal slippage.
- Limit order books and quote data: HFT traders rely on real-time order book and quote data to execute trades quickly and efficiently. Brokers with access to real-time order books and customisable data flows will rank highly.
- Automation: The best high-frequency trading brokers offer automated apps, trading tools, robots and integration functionality to design, test and deploy HFT strategies. Many algorithms within the industry are designed with reliable programming languages such as Python or Java.
- Trading instruments: Consider the range of trading instruments available, including options, futures, forex and even cryptos such as Bitcoin. Note, some high-frequency trading brokers specialise in certain markets or asset classes.
- Rules: Due to the risks involved in high-frequency trading, some brokers may have certain criteria. For example, LMAX Exchange is a UK-based broker that specialises in forex trading. They require traders who want to engage in high-frequency trading to have at least £25,000 in capital and to demonstrate their knowledge and experience in HFT systems. They also require traders to sign a declaration of compliance with their high-frequency trading rules and regulations.
- Customer service: With high-frequency trading, every nanosecond counts, so access to a responsive customer support team 24/5 is important.
- UK regulation: The best high-frequency trading brokers for British traders are regulated by the Financial Conduct Authority. The best brokers regulated by FCA add credibility to their brand while ensuring that safeguards are in place to comply with law, such as segregated accounts and negative balance protection (for retail traders).
Specialist HFT Platforms
Specialist platforms for high-frequency trading include NYSE Arca, NASDAQ OMX, and CME Globex. CME Globex is particularly popular amongst high-frequency trading firms and is accessible to retail traders through specific brokers.
- CME Globex allows traders to choose from a range of advanced order types that are specifically designed for high-frequency trading, including iceberg orders, stop orders, and market orders.
- CME Globex is designed to provide fast and reliable access to global futures and options markets, with an average round-trip latency of less than 40 microseconds. This makes it a popular choice among high-frequency trading platforms looking to execute trades quickly and efficiently.
- CME Globex offers direct market access to its exchange, allowing high-frequency traders to bypass traditional brokers and connect directly to the exchange’s matching engine. This can help to reduce latency and improve execution times.
- CME Globex also offers co-location services, which allow high-frequency trading organisations to place their servers near the exchange’s matching engine. This can help to reduce network latency and improve execution times.
High-Frequency Trading Firms In The UK
In the UK, multiple firms implement high-frequency trading strategies to maximise profits. Some of the largest companies with offices in London, as well as New York, Amsterdam and Hong Kong are:
- Tower Research Capital: A global quantitative trading firm that uses HFT strategies to trade across a range of asset classes, including equities, forex, and futures. TRC has offices in London and other global financial centres.
- Optiver: A proprietary trading firm that also uses high-frequency trading systems. The company has been active in the UK since 2010 and has a significant presence in London.
- Jane Street: Active since 2013, Jane Street is a quantitative trading firm that uses advanced mathematical models and high-frequency trading strategies to trade various financial instruments, including stocks and forex.
History Of High-Frequency Trading
High-frequency trading first emerged in the UK in the early 2000s, when firms began using computer algorithms to make fast trades.
In 2010, the “Flash Crash” occurred, during which the US stock market experienced a rapid and severe drop in prices. Many attributed this crash to high-frequency trading firms. Prices picked up again shortly after, but this event led to increased scrutiny of high-frequency trading systems around the world.
In recent years, the UK has seen the development of new trading venues and platforms, such as the London Stock Exchange’s Turquoise platform, which caters to the needs of high-frequency trading platforms and other high-volume traders.
High-frequency trading remains a significant force in the UK financial markets, with many firms using advanced algorithms to process vast amounts of market data from large databases, all in real time.
However, the use of high-frequency trading in the UK remains controversial, with some arguing that it can exacerbate market volatility and create an unfair leg-up for certain market participants, putting retail traders at a disadvantage as they lose out on the opportunity to capitalise on small price movements.
Bottom Line On High-Frequency Trading
High-frequency trading systems are used by experienced traders and institutional investors such as hedge funds. But with the emergence of new technologies like quantum computing, high-frequency trading programs are increasingly becoming available to retail traders. To get started, see our list of the best high-frequency trading platforms and brokers.
FAQ
Can You Do High-Frequency Trading From Home?
The technology that underpins high-frequency trading systems requires a significant capital investment. Historically this has put high-frequency trading programs out of reach for retail traders. However, online brokers and trading platforms are increasingly offering better infrastructure for high-frequency trading setups, ensuring low latency.
What Are The Top 10 High-Frequency Trading Firms?
There are many firms that participate in high-frequency trading. Among the most well-known companies are Citadel Securities, Jane Street, Tower Research Capital, Two Sigma Investments, DRW Trading, Hudson River Trading, IMC Trading, Optiver, Flow Traders, and Quantlab Financial.
Can You Build Your Own High-Frequency Trading System?
You can start high-frequency trading from home, but building the right systems, technology and infrastructure required is expensive. Instead, many retail investors turn to the best brokers for high-frequency trading. These platforms offer tight data latency, low fees and sophisticated automated trading tools.
The top brokers and websites also offer useful educational materials, training guides and handbooks on high-frequency trading for beginners, including online courses, 101 tutorials, blogs, e-books, PDFs, research papers and academic journals, podcasts and key definitions.
Is High-Frequency Trading Good Or Bad?
High-frequency trading has been the subject of much speculation in the news, especially in terms of its impact on the financial markets and the environment. High-frequency trading firms can create liquidity and help ensure competitive fees, but it does favour institutional investors and large trading firms over retail investors.