Forex robots, also called Expert Advisors (EAs) or trading algorithms, are programs that automatically buy and sell (i.e., trade) based on the written instructions. Building a Forex robot is no easy task, as it requires programming knowledge, but there are ways to overcome such weaknesses.
A Forex robot has several advantages over manual trading, but also some points to consider before deciding to use one. As such, this article aims at helping traders to find the best Forex robots in 2021 and explains what are the things to consider when comparing two or more robots.
Our List of the Best Forex Robots
Below you can find our list of the best Forex robots in 2021:
What are Forex Robots?
Forex robots are programs that automatically execute orders to buy or sell. They can be applied on any currency pair and timeframe and operate 24/5 for as long as the Forex market remains open.
Some limitations do exist, like the need to keep the trading platform always open and connected to the Internet. However, a Virtual Private Server (VPS) solves them easily. Sometimes, this means an additional trading cost but there are brokers who offer free VPS connections.
How Does Forex Robots Work?
Two things are worth noting here. One is how to get one Forex robot. To solve this issue, the trader may purchase one already built, or may build one according to the trader’s strategy. Even if the trader does not have programming capabilities, he/she may outsource the task to a third party.
Another is how to use it. First, a Forex robot must be uploaded on the trading platform. This is not a difficult process, assuming you know the steps. Second, the Forex robot must be enabled for live trading. Otherwise, it won’t take any trade. Third, even before the previous step, the trader must back-test the strategy and see if it offers similar results with the broker as with other brokers. Finally, after applying the robot on a chart, it will start opening and closing positions according to the instructions.
Key Features To Look In Forex Robots
Make sure you know the strategy that lies behind the Forex robot. For example, a Forex robot may have been built for the 5-minute chart, but if the trader uses it on the 1-hour chart, the results differ completely. Also, the trader must ensure that it uses the same properties as the ones used in back-testing.
Naturally, profitability is one expect – the bigger, the better. Also, equally important is the drawdown. Here is where the trader must be careful as Forex robots advertised as having impressive profitability often pair it with large drawdowns.
Pros & Cons of Using Forex Robots
How To Choose the Best Forex Robots for Me?
One of the first things to do is to check the timeframe that the robot must be used and see if it is compatible with the size of the trading account. For example, if the Forex robot must be used on the daily chart and needs a stop of a couple of hundred pips for every trade, then the trader must make sure that the risk can be adjusted to the size of the trading account.
Anyway, the list we provide in this article offers a great comparison of the best Forex robots in 2021 and makes it easier to pick the right one.
How To Safely Use a Broker to Make Money Online Trading?“ A broker runs a business, and so it charges a fee for its services. Various types of fees exist, but in general, the trader groups these fees into a category called trading fees. The broker has expenses related to the technology that it uses, the servers, and so on, and it is not responsible for the trader’s decisions to trade a certain market. For this reason, the trader must research and get informed before opening a trade. ”
Forex robots make the life of a trader easier, but sometimes using them can be a challenging task. For this reason, the list of the best Forex robots in 2021 that we present in this article provides a good start for choosing the right robot to add to a trader’s tools to use in financial markets.
Frequently Asked Questions
No. A regulated broker must follow specific rules to be allowed to offer its services in the area regulated by the financial authority. These rules come with supplemental costs, both before the license is given and after. Rigorous controls take place constantly, and the broker must meet all the conditions, otherwise, the financial authority withdraws the license. For this reason, some brokers choose to skip regulation, to the detriment of their customers and the brokerage industry at the same time.
It depends on what the trader wants. For stock trading, the MetaTrader may not be the best choice, as it offers Contracts for Difference (CFDs) only. For FX traders, the MT4 and 5 are viewed as the most complete solutions available on the market.
Yes. Stiff competition forced Forex brokers to offer other markets to their customers in order to differentiate their services. As such, from the same FX trading account, the trader may add positions on gold, silver, oil, or other commodities, but also on CFDs on individual shares and indices.
Yes. The broker only requires a legal ID for verification purposes and the rest of the process is a basic one. Depending on the broker, a trading account can be opened in a couple of hours.