Brokers and Exchanges: How Trading Bots Connect to Markets

Brokers and exchanges are the marketplaces where your trading bot executes trades on your behalf. Understanding how Finterion connects to these markets is essential for setting up your automated trading and ensuring your bot can operate effectively.

What Are Brokers and Exchanges?

Exchanges

An exchange is a marketplace where buyers and sellers meet to trade assets. In the cryptocurrency world, exchanges facilitate the buying and selling of digital assets.

Brokers

A broker acts as an intermediary between you and the exchange, often providing additional services like research, margin trading, or simplified interfaces.

How Finterion Connects to Markets

Finterion uses secure API connections to execute trades on your behalf. Here's how it works:

The Connection Flow

┌─────────────────────────────────────────────────────────────┐
│                    YOUR TRADING SETUP                        │
├─────────────────────────────────────────────────────────────┤
│                                                              │
│   ┌──────────┐      ┌──────────────┐      ┌──────────────┐  │
│   │   YOU    │      │  FINTERION   │      │  EXCHANGE/   │  │
│   │          │ ───► │  PLATFORM    │ ───► │   BROKER     │  │
│   │          │      │              │      │              │  │
│   └──────────┘      └──────────────┘      └──────────────┘  │
│                                                              │
│   1. Subscribe      2. Trading bot      3. Orders executed  │
│      to algorithm      generates           on your account  │
│                        signals                               │
│                                                              │
└─────────────────────────────────────────────────────────────┘

Step-by-Step Process

1. You create an account on a supported exchange or broker
2. You generate API keys from your exchange account
3. You connect your exchange to Finterion using your API keys
4. You subscribe to a trading algorithm
5. The algorithm generates trading signals
6. Finterion sends orders to your exchange via API
7. Your exchange executes the trades in your account

API Keys and Security

API keys are credentials that allow Finterion to interact with your exchange account:

Important: Always disable withdrawal permissions on API keys used with Finterion. Your funds stay in your exchange account at all times.

Supported Markets

Different trading algorithms support different markets. When choosing an algorithm, check which exchanges it's compatible with.

Why Different Algorithms Support Different Markets

Common Supported Exchanges

Your Funds Stay in Your Control

A key principle of Finterion's design is that your funds never leave your exchange account:

┌─────────────────────────────────────────────────────────────┐
│                    FUND CUSTODY                              │
├─────────────────────────────────────────────────────────────┤
│                                                              │
│   YOUR EXCHANGE ACCOUNT                                      │
│   ┌─────────────────────────────────────────────────────┐   │
│   │                                                      │   │
│   │   💰 Your funds stay here                           │   │
│   │                                                      │   │
│   │   ┌─────────────┐    ┌─────────────┐               │   │
│   │   │ EUR: €5,000 │    │ BTC: 0.5    │               │   │
│   │   └─────────────┘    └─────────────┘               │   │
│   │                                                      │   │
│   └─────────────────────────────────────────────────────┘   │
│                          ▲                                   │
│                          │ API Connection (Trade only)       │
│                          │                                   │
│   ┌─────────────────────────────────────────────────────┐   │
│   │              FINTERION                               │   │
│   │   • Sends buy/sell orders                           │   │
│   │   • Monitors positions                               │   │
│   │   • Never has access to withdraw                    │   │
│   └─────────────────────────────────────────────────────┘   │
│                                                              │
└─────────────────────────────────────────────────────────────┘

What Finterion Can Do

What Finterion Cannot Do

Connecting Your Exchange Account

Prerequisites

Before connecting an exchange to Finterion:

1. Create an account on a supported exchange
2. Complete verification (KYC) as required by the exchange
3. Deposit funds to your exchange account
4. Enable 2FA for additional security

Creating API Keys

The process varies by exchange, but generally:

1. Log in to your exchange account
2. Navigate to API settings (usually under Security or Settings)
3. Create a new API key
4. Enable "Read" and "Trade" permissions
5. Disable "Withdraw" permission
6. Save your API key and secret securely
7. Enter the credentials in Finterion

Exchange-Specific Guides

Multiple Exchange Support

You can connect multiple exchange accounts to Finterion:

Benefits of Multiple Exchanges

Managing Multiple Connections

YOUR FINTERION DASHBOARD
═══════════════════════════════════════════════════════

Connected Exchanges
───────────────────────────────────────────────────────
Exchange      Status       Algorithms        Balance
───────────────────────────────────────────────────────
Binance       ✅ Active    BTC Momentum      €15,000
Kraken        ✅ Active    ETH Strategy      €8,000
Coinbase      ⏸️ Paused    -                 €2,500
───────────────────────────────────────────────────────

How Trading Bots Use Your Exchange

When you subscribe to a trading algorithm, here's what happens:

Order Execution Flow

1. Algorithm generates signal: "Buy 0.1 BTC at market price"
2. Finterion validates: Checks your balance and position limits
3. Order sent to exchange: Via secure API connection
4. Exchange executes order: Trade happens on the exchange
5. Confirmation received: Finterion updates your dashboard
6. Position tracked: Your holdings are monitored

Order Types Used

Execution Speed

Signal Generated → Order Sent → Order Filled
      │                │              │
      └── < 100ms ─────┴── depends ───┘
                           on market
                           liquidity

Choosing the Right Exchange

When selecting which exchange to use with a trading algorithm:

Factors to Consider

Fee Comparison Example

Fees vary and may change. Check current rates on each exchange.

Troubleshooting Connection Issues

Common Problems

API Key Checklist

• API key copied correctly (no spaces)
• Secret key copied correctly
• Read permission enabled
• Trade permission enabled
• Withdraw permission DISABLED
• IP whitelist configured (if required)
• API key not expired

Security Best Practices

Protecting Your Exchange Account

1. Enable 2FA on your exchange account
2. Use unique passwords for each exchange
3. Whitelist IPs if your exchange supports it
4. Monitor activity regularly
5. Never share API secrets

Protecting Your API Keys

FAQs

Can Finterion withdraw my funds?

No. When you create API keys, you should only enable "Read" and "Trade" permissions. Finterion does not require and should never have withdrawal access.

What happens if my exchange goes down?

If your exchange experiences downtime, no new orders can be placed. Existing positions remain on the exchange. Finterion will resume trading when the exchange is back online.

Can I use the same exchange account for manual trading?

Yes, but be aware that manual trades may affect the algorithm's strategy. It's often better to use a separate account or sub-account for algorithmic trading.

Do I need to keep my computer on?

No. Finterion's servers run 24/7 and execute trades on your behalf. You only need to log in to monitor performance or make changes.

What if I want to stop the algorithm?

You can pause or disconnect the algorithm at any time from your dashboard. Any open positions will remain until you decide what to do with them.

Related Topics

• What Is a Trading Bot?: Understanding automated trading
• Quoted Currencies: How portfolio values are denominated
• Assets: Understanding supported trading assets
• Orders: How orders are executed

Summary

Brokers and exchanges are the infrastructure that enables your trading bot to operate. Through secure API connections, Finterion sends trading signals to your exchange account, where orders are executed with your funds. Your assets remain in your exchange account at all times—Finterion only has permission to trade, never to withdraw. When choosing an algorithm, ensure it supports an exchange you have access to, and always follow security best practices when creating API keys.