How to Choose the Right Arbitrage Trading Platform Wednesday March 5th, 2025 – Posted in: Arbitrage Software, cryptoarbitrage software

Introduction and Key Concepts

An arbitrage trading platform, or arbitrage trading software, incorporates one or more arbitrage trading strategies. It typically operates in an automated mode—automated arbitrage—or in a semi-automated mode, acting as an arbitrage scanner or arbitrage signal bot. These platforms can function across multiple markets, including forex, options, and cryptocurrencies.

Arbitrage trading software can take various forms:

  • Standalone Programs: These are independent pieces of software often labeled arbitrage trading software or arbitrage trading platforms.
  • Integrated Code for Specific Platforms: A cBot written for the cTrader platform is typically called an arbitrage bot or arbitrage EA (Expert Advisor). If you see an “arbitrage bot” on a vendor’s website, it often means that the product is tied to a specific trading platform. Before purchasing, you need to verify whether your broker supports the corresponding trading platform. On the other hand, if a product is described as an arbitrage trading software or arbitrage platform, it’s usually a standalone application. However, these may also have limitations in terms of connectivity, as not all brokers or trading platforms offer APIs to link external trading algorithms.

This video demonstrates the installation and configuration process for the SharpTrader Arbitrage platform. It walks you through downloading the software, setting up the necessary dependencies, and adjusting key parameters to start trading. By the end of the video, viewers will have a step-by-step guide to getting their SharpTrader platform ready for use.

Crypto Arbitrage Software vs. Forex Arbitrage Software

The same considerations apply to crypto arbitrage software. A crypto arbitrage bot is often designed for a specific platform or exchange, which can limit your options. In contrast, crypto arbitrage software or a crypto arbitrage app typically provides broader functionality, allowing trading on multiple cryptocurrency exchanges or platforms. For example, our VIP Crypto Arbitrage product is a standalone crypto arbitrage software that automatically identifies arbitrage opportunities across multiple crypto exchanges and executes trades. This automated arbitrage software can open orders when price differences arise and close them as those differences narrow or reverse. It also supports latency arbitrage, operating entirely on autopilot.

In contrast, a crypto arbitrage scanner is a semi-automated tool highlighting potential arbitrage opportunities but not executing trades. Since arbitrage situations can appear and disappear in seconds, manual order placement based on these signals is nearly impossible. However, using such software for market research—studying how frequently arbitrage opportunities arise on certain exchanges—can guide future strategies with automated arbitrage software.

Our SharpTrader product, for instance, is a standalone automated arbitrage trading software that combines crypto and forex arbitrage capabilities. It includes multiple built-in trading strategies, algorithms for automated arbitrage, and tools for manual market analysis and post-trade reviews. With this foundation in mind, let’s choose the right arbitrage trading platform.

This video provides a comprehensive overview of the SharpTrader Arbitrage platform’s interface and features. It covers how to navigate the software, customize strategies, and monitor trading performance in real-time. By the end of the video, viewers will have a solid understanding of how to effectively use SharpTrader for arbitrage trading.

Crypto Arbitrage or Forex Arbitrage: Which is Better?

Many traders assume that crypto arbitrage is easier because cryptocurrency exchanges are generally more open to arbitrage trading, while forex brokers often discourage it. However, this isn’t necessarily the case. As the number of crypto arbitrage traders grows, prices of major cryptocurrencies tend to align quickly, making arbitrage opportunities rarer. While altcoins may still offer some opportunities, their “top of the book” volumes might be limited. In such cases, the first trader to place an order will likely capture the available profit, leaving others with slippage or losses.

Initially, most cryptocurrency exchanges only offered REST APIs for order submission, which are relatively slow. Today, many exchanges provide WebSocket APIs, allowing faster order execution. When choosing crypto arbitrage software, checking which API it supports and whether your target exchanges are included in the software’s connector list is essential. If not, determine how quickly the developer can add them and at what cost.

Additionally, you should evaluate which arbitrage strategies the crypto arbitrage software supports. Common strategies include latency crypto arbitrage and hedge crypto arbitrage. The software’s ability to support these strategies and integrate with multiple trading platforms and APIs is crucial.

Support and Features for Forex Arbitrage Software

When it comes to forex arbitrage trading software, many forex brokers indeed discourage arbitrage trading, as they often rely on trader losses rather than commission income. Therefore, the most important factor in selecting a forex arbitrage trading platform is the algorithm’s ability to conceal arbitrage activity from brokers.

Another key factor is the software’s connectivity. Ideally, the platform should support multiple trading platforms and APIs, allowing you to switch brokers or platforms as needed.

The Best Arbitrage Trading Platform

In summary, the best arbitrage trading platform is one that:

  • Supports fully automated arbitrage across both cryptocurrency and forex markets.
  • Offers latency and hedge arbitrage algorithms for crypto exchanges.
  • Includes strategies designed to mask arbitrage trading on forex brokers.
  • Provides a variety of trading strategies, allowing you to adapt based on the type of forex broker.
  • Can connect to various trading platforms and exchanges, ensuring compatibility and flexibility.

Best Crypto Arbitrage Platforms

  1. SharpTrader
    SharpTrader stands out as a robust all-in-one arbitrage trading platform. Built on a 64-bit architecture for enhanced performance, it supports both crypto and forex arbitrage, featuring 11 integrated strategies. It connects to 40 crypto exchanges and 65 FIX API brokers, including cTrader, Interactive Brokers, and Rithmic. Key features include built-in money management, advanced analytical modules, and fast feeds from LMAX endpoints in London, New York, and Tokyo. Additionally, SharpTrader offers full extensibility, allowing traders to integrate third-party libraries, develop custom strategies, and quickly adapt to new broker or exchange APIs.
  2. VIP Crypto Arbitrage
    VIP Crypto Arbitrage provides a standalone solution for fully automated crypto arbitrage. It efficiently identifies and executes trades between multiple exchanges, leveraging real-time data to capitalize on price discrepancies. Its simple yet powerful design makes it accessible to traders of all levels. VIP Crypto Arbitrage supports latency arbitrage strategies, ensuring the fastest execution possible in today’s competitive market.
  3. Coinrule
    Coinrule is known for its user-friendly approach to automated crypto trading. Although it’s primarily designed for strategy building, its ability to monitor multiple exchanges and execute rules-based trades can be leveraged for arbitrage opportunities. Coinrule’s straightforward interface and rich templates make it an excellent choice for traders seeking a balance of simplicity and functionality.
  4. PixelPlex
    PixelPlex is a trusted technology provider that develops custom blockchain solutions. While not an out-of-the-box arbitrage platform, their team has experience creating highly tailored trading systems, including arbitrage functionalities, for institutional clients. PixelPlex is ideal for bespoke software to fit specific trading requirements.
  5. ArbiSmart
    ArbiSmart is a platform focused on automated crypto arbitrage. It connects to multiple exchanges and scans for price differences, executing trades automatically. Known for its accessibility, ArbiSmart appeals to both novice and experienced traders. Its transparent performance reporting and regulatory compliance make it a solid choice for those new to automated arbitrage.
  6. ShufflUp
    ShufflUp specializes in crypto arbitrage opportunities across numerous exchanges. With its straightforward interface and clear data visualization, it’s easy to spot and execute arbitrage trades. ShufflUp is especially appealing to traders looking for a focused, no-frills solution for identifying and acting on arbitrage opportunities.
  7. WunderTrading
    WunderTrading is a crypto trading automation platform that supports a wide array of exchanges. Its arbitrage tools enable users to take advantage of market inefficiencies by setting up automated trading strategies. The platform’s integration with TradingView also provides advanced charting and analysis, making it a well-rounded choice for arbitrage traders.
  8. Antier Solutions
    Antier Solutions offers tailored cryptocurrency exchange and trading software development. Their expertise in blockchain technology allows them to create platforms with custom arbitrage features. For businesses seeking a tailored solution or institutional traders looking for high-end infrastructure, Antier Solutions can deliver robust and scalable arbitrage trading systems.
  9. PixelPlex (Custom Solutions)
    PixelPlex appears again in the list because of its expertise in developing bespoke blockchain and trading solutions. While they don’t offer a generic product, their ability to create highly customized arbitrage platforms sets them apart for those needing a personalized approach to crypto arbitrage.

With a wide range of platforms available, each with unique features and benefits, traders can find an arbitrage solution that matches their needs. From all-in-one platforms like SharpTrader and VIP Crypto Arbitrage to highly customizable offerings from PixelPlex and Antier Solutions, there’s an option for every type of arbitrage trader.

Conclusion

Choosing the right arbitrage trading platform requires a comprehensive evaluation of the software’s capabilities, supported strategies, and integration options. Understanding the difference between standalone applications and platform-dependent bots and the API options provided by brokers and exchanges is essential. While no single solution is perfect for every trader, the best arbitrage platform should offer a mix of flexibility, speed, and built-in strategies that cater to your specific trading needs—be it crypto or forex arbitrage. Additionally, having a reliable support team, ongoing updates, and a proven track record will help ensure long-term success.

FAQ

  1. What is the difference between an automated arbitrage and a semi-automated arbitrage scanner?
    Automated arbitrage software handles the entire trading process—from identifying price differences to executing trades—without manual intervention. On the other hand, a semi-automated arbitrage scanner only highlights potential arbitrage opportunities, requiring the trader to act on those signals manually.
  2. How vital is API speed in arbitrage trading?
    API speed is critical, especially in crypto arbitrage. Faster APIs (such as WebSocket APIs) allow trade to be placed more quickly, increasing the likelihood of capturing profitable arbitrage opportunities before prices converge.
  3. Can I use a single arbitrage platform for both crypto and forex trading?
    Some platforms, like our SharpTrader software, support crypto and forex arbitrage. Such multi-functional platforms often provide a unified interface and multiple built-in strategies for trading in different markets.
  4. How can I ensure my forex arbitrage trades remain undetected by brokers?
    To minimize detection, choose arbitrage software incorporating strategies to mask trading behavior. Additionally, selecting brokers known for their more lenient policies toward arbitrage can help reduce scrutiny.
  5. What kind of support should I seek in an arbitrage trading platform?
    Reliable, responsive support is essential. Ensure the software provider offers timely assistance, regular updates, and precise documentation. This ensures that any technical issues or compatibility concerns are promptly addressed, helping maintain consistent performance over time.
  1. How is SharpTrader better than the previous arbitrage platform from BJF Trading Group?
    A: SharpTrader introduces several key improvements and additional features, making it a more robust and versatile solution:
  • Enhanced Performance and Stability: SharpTrader is built on a 64-bit platform, ensuring superior performance and stability compared to older versions.
  • Improved Data Management: It uses the Firebird database, providing safer, more reliable, and more convenient data storage.
  • User-Friendly Interface: The redesigned interface is more intuitive, making it easier to navigate and configure.
  • Expanded Strategy and Market Coverage: SharpTrader offers 11 arbitrage strategies in a single platform, integrated with 40+ cryptocurrency exchanges and 65+ FIX API bridges, including Interactive Brokers and Rithmic.
  • Built-in Fast Feeds and Flexibility: It provides free built-in fast feeds from endpoints in London, New York, and Tokyo. Moreover, any session can be used as a fast feed.
  • Advanced Customization and Money Management: Hundreds of adjustable parameters allow for creating highly sophisticated setups complemented by built-in money management tools.
  • Extensibility and Scalability: The platform’s structure, built on C# .NET, supports third-party connections and easily integrates new connectors if the broker or exchange API has an open protocol description. This means you can incorporate your own strategies or extend the application as your trading needs evolve.
  • Comprehensive Testing and Analytics: It includes robust testing modules, advanced analytical tools, and a charting module (soon to be added) for complete trading experience.

These improvements collectively provide traders with greater flexibility, faster execution, more powerful analytics, and a wider range of market access, positioning SharpTrader as a significant upgrade over its predecessor.