Introduction to Interactive Brokers API

It’s likely that if you’re reading this blog, you’ve already researched Interactive Brokers Python API and found that it has great online reviews. The broker is well-known for its extensive marketplace selection and affordable commission rates.

By becoming proficient with the native Python API, you can improve the circumstances. You can accomplish a few of the following tasks:

Independent Trading 

Whether you’re looking for a fully automated solution or something more manageable, the API offers a starting point for connecting your automation scripts with Interactive brokers.

Building a customized trading terminal

Interactive Brokers offers a great and feature-rich TWS. If you would prefer a different method of executing trades, the API can be used to quickly create a custom terminal.

Assembling historical data 

Access to historical data is a prerequisite for the majority of automated trading systems. IB offers streaming data and generous API rate limits.

TWS’s common, widely-used built-in technical indicators make it easy to create custom indicators. However, if you want to make your own unique indications, the API is your best bet. 

Another well-known feature of Python is its extensive library system. If you’re interested in machine learning, the API offers a way to connect to amazing Python libraries covering these subjects.

Personalized alerts and notifications Do you need an alert that TWS cannot deliver? There’s a good chance you’ll be successful using Python.

The Interactive Brokers Python API was officially developed and is maintained by Interactive Brokers. This ensures that there will be no errors and a steady connection to the IB servers.

In contrast, code wrappers and libraries such as IBridgePy and IbPy are not officially supported by IB because they were developed by third parties.

IB-insync is a widely used third-party framework. It uses asynchronous methods of communication with the native API to increase efficiency. It also simplifies the process of obtaining data via the API.

There are four easy steps to setting up a connection to the Interactive Brokers Python API. Create an account with IB; they offer top-notch test demo accounts. If you decide to connect to a live account, TWS offers a read-only option for the API, which is useful for first-time testing and learning.

This is the native Python API for IB. It is now simpler to connect to and interact with IB’s server-linked client thanks to these Python script files.

Click this link to download your IB client (TWS or IB Gateway).  You may already be familiar with Interactive Brokers’ standard trading client, TWS. An alternative is to use the Interactive Brokers Gateway client. Using TWS is a good idea when first testing your script because it provides visible proof of any activity on your account. It’s easy to switch to the Gateway later on.