29. Stock Trading API in Vietnam Market

Published at 1649067493.775

API Definition

An application programming interface (API) is a set of definitions and protocols that allow two software to communicate with each other.

To develop an algorithmic trading system, investors need to optimize the process of obtaining data, retrieving positions, and placing/editing/canceling orders through APIs provided by securities companies or exchanges. In Vietnam, the process is implemented with a frequency of approximately one cycle every 02 seconds. In developed markets, the frequency can be thousands of times faster. Investors need programming experience to call API properly, including authentication, key retrieval, connection configuration to the server, sending queries, parsing response packets, performance testing, and security testing.

API Categories

  • The REST API only returns data when requested.

  • The FIX API returns data immediately upon data update.

  • The RPC API returns data immediately upon data update.

With these three API categories, there’s the speed superiority of FIX and RPC APIs over the remaining.

Stock Trading API in Vietnam 

A pioneer in providing open APIs for the investor community is the Bank of Investment and Development of Vietnam Securities Joint Stock Company (BSC). DNSE Securities JSC focuses intensively on supporting algorithmic trading through API as well as AmiBroker analysis software. More recently, SSI Securities Joint Stock Company has just launched an API service. With its leading position in the industry for many years, it has marked the official period of widely accepted algorithmic trading in Vietnam. Their detailed API information is available publicly online. Other securities companies have also fully developed their APIs but have not announced them officially yet.

Which API to Choose

  • SSI and BSC APIs are suitable for beginner traders who need to familiarize themselves with algorithmic trading and require stability. In the introductory stage of algorithmic trading, a stable and simple-to-use API with a professional support team is key. BSC has many years of experience in implementing API services. SSI with Q-Trader trading software also meets the needs above.

  • DNSE is suitable for high-volume experienced traders. Apart from basic functionality, high-volume traders are most concerned with costs. With the direction focusing on the algorithmic trading market, DNSE is a stock company that meets this criterion when trading large volumes.

Over time, new APIs will roll out with many improvements. Currently, API development is no longer a technological challenge for securities companies. Many big names have joined the market. Traders can expect that big securities companies such as HSC, VND, and VPS will soon announce their own APIs, thereby adding options to the market.

Investors in Vietnam have witnessed a profound quantitative and qualitative shift in the transition from trading over the counter to online trading. A bigger revolution for Vietnamese investors will be from online trading to automated, algorithmic trading.