The automated trading industry increased in popularity in the last years as more and more brokerage houses offer conditions for automated trading to their clients. An automated Forex trading software is an advantageous solution for both the trader and the broker.
On the one hand, the trader is active 24/5 on the most liquid market in the world. On the other hand, the broker earns more from commissions and fees as the trading activity increases considerably. As such, retail traders should be aware of the best automated Forex trading software solutions of the year.
Our List of the Best Automated Forex Trading Software
Here is our list of the best automated Forex trading software to consider in 2021:
What Is An Automated Forex Trading Software
Also called an Expert Advisor (EA), and automated Forex trading software is a robot that opens and closes positions according to instructions received. The most popular trading platforms, the MetaTrader4 and 5, give traders the possibility to program their trading software using the MetaEditor capabilities.
Upon completion and back-testing, the robot is attached to a chart or to multiple charts and begins opening and closing positions automatically. It uses defined risk and money management and operates 24/5.
How Does An Automated Forex Trading Software Work?
First, traders must attach the robot to a chart. Next, they must check that automated trading is enabled at the broker. Most of the time, this is just a simple check box that needs to be ticked in order for the robot to start opening positions. Finally, the robot will buy, sell, set stop-loss, and take-profit orders automatically, based on the programmed market conditions. Every time the robot sees identical conditions, it opens a buy or sell position and then manages it automatically.
Key Features To Look In An Automated Forex Trading Software
One of the most important things to look for is the trading account used. Some automated Forex trading software gives different results on different brokers. For example, one broker may have a 0.5 pips spread on the EURUSD pair, another 0.7 or 1, and so, the robot’s results will differ. Therefore, one of the key features is to use similar accounts on different brokers.
Another thing to consider is the Virtual Private Server or VPS for trading. For the automated Forex trading software to open and close positions 24/5, the trading platform must remain open all the time. This is difficult to do without a VPS due to power outages or Internet breakdowns. A VPS solves for these issues, but it often comes at an additional cost.
Pros & Cons of Using An Automated Forex Trading Software
How To Choose the Best Automated Forex Trading Software For Me?
Most automated Forex trading software available to the retail trader uses technical analysis to open and close trades. Therefore, one criterion is to choose an EA based on a technical trader strategy that the trader understands. In doing so, future errors can be easily solved.
Next, the trader must look for a broker that offers similar trading conditions with the ones that the results are based upon. Otherwise, results may differ.
Finally, the trader must also consider the trading style. If an EA is based on swing trading on the 4h charts or more, then it makes no sense to use it on the one-minute or five-minute timeframes. More precisely, use the robot for its intended purposes.
How To Safely Use a Broker to Make Money Online Trading?“ A brokerage house is a trader's partner. It intermediates the transactions and routes the clients' orders to the market. However, a broker is not trading for the trader; it simply executes the orders received. As such, it is the trader's responsibility to document and research before opening a buy or sell position on the market. Risk management is paramount when trading financial markets, and this should be priority number one for any trader willing to take chances trading. ”
Choosing the right automated Forex trading software that works for you is not an easy task. As mentioned throughout this article, some work for some traders, some others are suitable for different strategies. Nevertheless, an automated Forex trading software makes the trader’s life easier and, when finding the right one, offers ideal conditions to approach the markets.
The list we present here is a comprehensive one, covering various trading styles and strategies, with the intention that all traders find something that suits their desired approach to markets.
Frequently Asked Questions
No, they are not. This should be a top priority for a trader to check the regulation as it often comes with enhanced protection for the traders. Segregated accounts, negative balance protection – are only a couple of features to look for.
MetaTrader 4 and 5 work best with automated Forex trading software. It is easy to build, upload and use one without much of a struggle. However, other trading platforms exist as well, but the most expertise on automated trading one can find on MetaTrader 4 and 5.
Yes. Because of stiff competition, Forex brokers extended their offering, and nowadays, traders have access to more than just currency pairs. As such, a trader may diversify the investments via trading indices, commodities, fixed-income, energies, and so on.
Most of the time, yes. Online trading made it easy to find the right broker and to open a trading account. Upon document verification, it is just a matter of hours until the traders receive credentials for login into the trading account.