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Quote from CalTrader:
The problem is with the implementation itself: Often the software of these companies requires the ability to randomly obtain a port number on which to either communicate or receive data over a particular block of port numbers.
These are very poor requirements: In a corporate network it would require - somewhere on either a router, firewall or both - a block of open ports with no security handshake. This is a BIG problem for network security.
A simple solution would be for the software to asssign SPECIFIC ports for use by a SPECIFIC account: believe me this is not hard to implement even in a very high volume scenario.
Most likely these companies have no talent - or budget to hire talent - to accomplish these improvements, and in an attempt to further cut costs and achieve margins they are unwilling to put any investments into their systems. As a result they lose customers - of course these dont appear directly on any financial statement and thus nobody on their boards objects.
Are you referring to IB? If so please elaborate about the comments on money, talent and the requirement to open a specific port (we have them all).
Companies put firewalls in place for a reason. I'm not a techie but I'm fairly confident that the PHD from MIT who runs our operations knows a thing or two about security.