Online trading is a fast-growing phenomenon. No wonder, because it can be done on the go, while at work or in your sleep. But most of these types of online trading platforms are too complicated to use by amateur investors. And they do not offer any support for novice forex traders who want to learn the basics of this market.
That’s where an automated forex trading platform comes in handy! These tools allow you to trade with low risk and low investment, maximizing profit even when you’re just starting with online stock trading.
The 4 Best Automated FOREX Broker in 2021
eToro was formed in 2007, at the dawn of the Forex trading online period. The company is well-known as a leading force in terms of social as well as copy investing. eToro has a long history and a distinct identity to uphold, albeit this impression is based mainly around its copy investing methodology than on any other characteristic, except its particular association with digital currencies.
eToro is a regulated company with licences from Cyprus, the United Kingdom, Australia, and the United States. However, its US service is distinct from its global service.
Anyone who opens an Islamic profile with eToro will receive many perks, including no recurring interests or charges on trading agreements that run further than one day. Also, the brokerage charges no commission or levies for account maintenance. Islamic depositors are also eligible for leveraging without interest.
eToro debuted its cryptocurrency client for portable devices after its 2019 acquisitions on Danish blockchain startup Firmo & Belgian cryptocurrency asset tracking software Delta. The unique virtual asset mood gauge built on Twitter engagement is a social trading instrument that youngsters like.
Other features of eToro include:
- Multiple payment systems including PayPal, Neteller, Skrill, Bank Transfer
- 24/7 customer service
- Interactive user interface
- Excellent social and copy trading
AvaTrade was started in 2006 by a Dublin-based company. The company is one of Europe’s most significant and foremost Forex and CFD operators, with a reputation for providing customers with the option of constant or variable spreads cost of operating strategies. They are favored by investors who are concerned about the privacy of their investments.
AvaTrade has licenses from Australia, South Africa, Japan, and Ireland. Ava’s highest leverage provided beyond the Euro Zone is 400:1.
Customers understand that AvaTrade’s history and solid reputation are built on access to various investment vehicles through which hedging may be effectively accomplished.
AvaTrade provides over 55 unique Fx pairs, 17 metals/non-metals, 20 equity indexes, 14 cryptos, and 66 distinct securities to invest in. Even more and uncommon, there are two bonds and six ETFs on the selection. The variety on offer here is exceptional.
Regardless of if you’re in the Eu Countries or not, every AvaTrade office will provide you with weak balance insurance more than what is legally required. This implies that no customer of AvaTrade can be made responsible by the company for a sum greater than their investment.
Other features of AvaTradeinclude:
- Minimum deposit of 100 USD
- Impressive social and copy platform for automated trading
- Easy withdrawal and deposits via channels like PayPal, Credit and Debit Cards
ZuluTrade is among the top copy trading companies globally, and it continues to be a dominant player. It collaborates with over 35 firms to provide unrivaled exposure to over 25,000,000 investors and techniques.
Variety has been one of the greatest important aspects of copy trading, and ZuluTrade excels at it. The majority of features of the market situation, including commodity choices, leverage, pricing structure, and initial investment, are determined by the dealer’s choice of partnering brokerage.
The technology is provided by ZuluTrade, which interacts through the Metatrader 4 trading system. Brokerage frequently boosts margins on ZuluTrade funds, which investors should be aware of.
Advanced products like ZuluGuard & Automator assist traders using the copy system. The company also safeguard copiers from different signals that are not active or performing as expected. ZuluTrade also automates the duplicating procedure of trades.
Combo Plus is an example of a subscription-based service provided by ZuluTrade. With this service, copy traders can fully automate their trades and gain a competitive advantage. ZuluTrade has handled over $1.2 trillion in transaction volume, as well as it is signal source remuneration mechanism is still better than those of rival copy trading systems.
After acquiring a license of operation from the EU, ZuluTrade became a registered asset management business in the Eurozone, something none of its rivals had. The Formax Group acquired ZuluTrade in China in 2017.
Other features of ZuluTrade include:
- Registered asset management firm
- Unique tools for copy trading
- Minimum deposit of 1 USD
FXCM has been located in the United Kingdom. This was following the compelled move from the United States, where it had been serving customers in 1999. The Forex brokerage has made a remarkable recovery since being acquired by Leucadia in 2015. Note that Leucadia is part of the openly traded commercial bank Jefferies Financial Groups in the USA.
FXCM maintains its position as one of the most outstanding and accessible options. The company is accessible to all sorts of investors, with an initial investment of only $50.
The assets pool is small. Only 40 fx pairings, seven cryptocurrencies pairings, and 11 metals are available at FXCM. Stock traders have access to over 100 CFDs from the United States, the United Kingdom, the European Union, Hong Kong, and 15 index derivatives.
A few in-house developed Forex and stock bundles focused on concepts, as well as one bonds CFD, also include the collection. With a volume-based incentive scheme, FXCM provides active investors with a premium pricing structure. FXCM’s excellent performance metrics provide the entire marketplace a unique edge.
Automated Trading vs Manual Trading
Automated Forex Trading uses computer-based robots to trade in the financial markets according to predefined criteria, without any interactive user input. There are no restrictions when scalping or day trading with automated programming.
The pre-programmed software executes trades in milliseconds once specific criteria are met, giving the trader an advantage over other market participants by entering orders much faster than they can.
Automated forex trading has become very popular in recent years because of its simplicity and is so profitable for traders who know how to do it well. It is a convenient and cost-effective way for forex traders worldwide to trade the markets at all hours of the day, irrespective of timezone.
Automated forex trading software is often referred to as Day Trading software because it allows you to be involved in the markets around the clock if you choose to be. You will find that many automated systems can detect market shifts based on news released by influential economic bodies throughout the world.
Automated forex trading systems will execute trades for you whenever there are significant changes in exchange rates based on your programmed instructions. This means that you can be in control of your trades at all times, even while you sleep. You need to set clear exit plans before setting up an automated forex trading system because it will make it easy to manage your positions.
How A Robot Forex Trading System Works
Some automated forex trading systems enable the trader to use live market data feeds, using algorithms that are updated several times throughout the day. These algorithms respond very rapidly to changing market conditions and execute trades based on specific rules programmed into the software by the user before it is used in live trading.
When you choose to trade automated forex, the robot will use an algorithm and a set of rules and indicators and will execute trades on your behalf. The attention to detail necessary with these software programs is essential for you to be successful as a forex trader. It is also best to choose software that can work without interruptions because these programs will cost you money if you cannot sell the currency at the right time.
Manual Forex Trading
Manual forex trading or active trading is when one person controls all aspects of the trade: entering and exiting the market, timing the entry and exit points, and managing risk.
Manual Forex Trading requires constant reviewing of charts and price movements and decision-making about entry points, stop-loss points, profit targets, position size, and more.
Therefore, this job can be pretty tedious, especially for those who don’t like spending hours staring at their charts. However, some can make it fun as they try to beat the markets every time they trade. It is an extreme challenge that not many people are willing to take on.
How to Find the Best Automated Trading Platform
Investors must choose which automated Currency trading technology best matches their demands from a variety of alternatives. Completely autonomous, quasi, copy trades and signal sources are all available.
- Copy and Social Trading: This enables investors to follow in the footsteps of experts. The configuration is easy, and software providers give techniques to defend, warn, and protect investors. It is a less expensive option than automatic trading.
- Algorithmic Trading Systems Provided by Brokers: Most firms offer marketplaces that enable entirely automated trading. Investors could also create their technique or purchase an established one.
- MetaTrader 4: Owing to its adaptable architecture, MT4 stays the most common. Several financial institutions offer Interfaces that enable more complex options to link to Metatrader 4 for trade placing and administration, and the MQL4 programming language lets programmers to construct experts advisory (EA).
- Trading Alerts: There are many signal suppliers, and most companies have a group of specialists on staff. Although some traders rely on basic algorithmic trading systems to provide alerts, well-established firms employ human researchers to provide more accurate trading advice. Traders are typically required to place deals by hand.
- Bots: Trade bots are much more complex and written in languages like Python or C++. The majority of them work autonomously of a broker or brokerage firm, connecting via an Interface.
- Free software: There are many free automatic algorithmic trading choices available, but the majority, if not all, do not function. They are solely profitable for programmers, and We advise all investors to stay away from them.
- Automated Applications: FinTech businesses create algorithmic trading applications to satisfy the needs of market makers who want to operate on their phones. Many are cloud-based and can provide simple alternatives.
Pros and Cons of Using Automated Forex Trading Platforms
Interest in automated trading is rising as individual traders look to be their own self-appointed fund managers. Here are five reasons why:
There are many benefits regarding forex trading through automated software that users should know about. The advantages are:
Not having to watch the market all day long. It can run unattended 24 hours a day, only pausing when the market is closed for the night. Calculations are carried out soon after the close of each trading session automatically in real-time with no delays in processing data.
Ability to program multiple strategies with varying stop-loss points, targets and leverage according to your risk appetite. It eliminates human error in trading by eliminating emotions and using predetermined criteria for potential trades.
Ability to program a set of rules that will allow a market order to be automatically entered as soon as the entry criteria are met, and also provides for an exit order, all without you having to be at your computer terminal.
When the system is fully working, you don’t need to monitor it as everything is done automatically by the computer bot after all factors have been dealt with. The winning trades are locked in, and voila! No more worries about slippage or missing a potential winning trade just because you were busy playing golf or watching TV or chatting with friends on social media. You actually can attend to your other important chores during the day knowing that the automated forex trading platform will do its job.
Disadvantages of Automated Forex Trading
There are also some disadvantages to automated forex trading that users should be aware of. The disadvantages are:
- Automation can only handle a limited number of positions, sometimes just one or two positions, because it is programmed based on preset rules. So it cannot follow all moving patterns effectively unless you have many positions. For example, if it “bought” 3 contracts at once for one pip, the system will somehow lose one pip out of 3 contracts even though the price went up or down by less than one pip. 3 contracts may be bought even though the price moved only up by 5 points. So typically, automated forex trading usually has a maximum of 5 positions which are the entries in the market at any given time.
- It can also lose money when you enter a market order when it is too late to get in cheaply because your rules are configured to buy when you think it will go up, but instead, it goes down. That way, it could end up with no position in the market because your stop-loss order was not reached in time or was not triggered in time causing the loss.
- It can also lose money when you enter a market order when it is too late to get out cheaply because your rules are configured to sell when you think it will go down, but instead, it goes up. That way, it could end up with no position in the market because your stop-loss order was not reached in time or was not triggered in time causing the loss.
- Not all traders are equal when it comes to automated forex trading. You have to be familiar with the type of strategy recommended by the automated forex trading platform. Also, know how much capital you can risk. Then, have a great deal of patience, persistence and perseverance. Furthermore, be very good at analyzing charts and making decisions on which markets to trade.
- You may need to upgrade or update the software in the future if it’s not compatible with the new version of your operating system, or any other unforeseen events may arise in which you’ll need to consult with technical support for assistance. This can be quite an ordeal depending on how good or bad your previous experience was when dealing with customer service. Afterwards, it’s always best to be prepared for any eventuality when relying entirely on an automated forex trading platform to make your trading decisions.
Even though most forex schedules have the same standard characteristics and style, their functionality differs significantly. You may decide which events will impact the market and not by integrating their event tracking with currency exchange instruments. Our evaluation is primarily centered on features that benefit traders. These include the capacity to receive real-time auto-updates, online educational content, and alarm alerts.
Does automated forex trading work?
Although most forex programs ‘function,’ in the sense that they are configured to conduct transactions periodically, they are not flawless and thus cannot promise long gains. At best, they’re a valuable tool that market participants may utilize to make more educated trading selections.
What is the best-automated forex trading software?
The best-automated tool is reviewed in this post. Etoro stands out as one of the best due to its minimum deposit, regulations, and copy trading platform.
Is Automated Trading Legal?
Using automated trading is legal. However, for various practical and ethical considerations, some brokers do not allow investors to employ bots. Most renowned, trustworthy brokers, on the other hand, will enable investors to utilize bots or EAs properly.
Can you make money with automated trading?
As evidenced by commercial organizations’ adoption of algorithmic trading & more significant investment in advanced services, automated trading thrives. Whether wholly or partly, automated trading is a need in a volatile marketplace for anybody investing for a profit, whether corporate or individual. Market participants who want to improve their trading activities should ignore promotional companies and recommendations and test any strategy in a sample platform.
Back-testing features are included in Metatrader 4, enabling investors to accumulate enough information during the short free sample period. However, many people are incapable of working. Professional investors can find what they require in the Metatrader 4 platform, which offers nearly 20,000 Expert Advisors. Before purchasing, I suggest doing some development and experiments. The ultimate conclusion is that algorithmic trading may be lucrative and effective.