Automated Forex Trading – A Complete Expert’s Guide 2024
Want to jump straight to the answer? The best forex broker for traders is Avatrade
The #1 Forex Trading Course is Asia Forex Mentor
Forex trading can be extremely lucrative but comes with several risks. One of the biggest risks is that of losing money due to the volatility of the markets. To overcome this risk, trading currency markets use computer-automated programs called automated forex trading robots.
Automated forex trading is getting increasingly popular with time. Regarding providing a comprehensive service, trading platforms have you covered. It's also possible to build your algorithmic models or utilize the forex trading robot signals provided by third parties. However, before you start using a trading bot, you should have the basic forex knowledge to determine the best time to buy or sell a currency pair.
Ezekiel Chew, the head of Asia Forex Mentor, will further explain the concept of automated trading. Ezekiel has two decades of experience in trading forex and is highly regarded in the industry. So in terms of credibility, he is the perfect person to talk about automated trading strategies.
This guide will cover the basics of automated forex trading, the best-automated trading systems platforms, and choosing the right platforms. So, let's get started.
What is Automated Forex Trading
Automated forex trading is a method of trading using a computer program called forex trading robots. This type of trading is also known as algorithmic trading or black-box trading. It requires a proper trading matrix and software to operate. The main advantage of automated forex trading is that it takes emotion out of the equation and sticks to a strict trading plan.
Forex traders are not required to manually monitor, analyze, and execute trades in auto trading. Instead, the computer program automatically does all of these tasks according to the trading matrix. In addition, an automated trading system assumes the duty of performing price analysis and determining whether or not to go long or short in the market.
The automated trading robot is based on instructions, so it may need to be changed now and then, depending on the trading strategy used. This might be necessary because various trading robots follow different plans. The computer program will also respond to changes in market conditions automatically.
Does Automated Forex Trading Software work?
Yes, it is. You can use software to trade automatically even when you are not in front of your computer. If you have a solid trading plan in place, auto trading can help. Even big traders use computerized trading systems. Traders seeking successful trades frequently utilize auto-trading platforms.
You may purchase or develop an automated forex trading program to test to increase your trust in automatic forex robots. Most trading platforms provide the ability to backtest using a demo account.
The best way to begin auto trading is by automating your manual trades. Translate your techniques into code so the computer can do your work. According to some seasoned traders, it is superior to manual trading since it eliminates all human emotions from the process.
The only way to know if an automated trading strategy is good is by looking at its authenticated trade history results. If you want to program your trading strategy, ensure it has a proven profit record first.
Best Automated Trading Systems Platforms
#1. Avatrade
AvaTrade is a fully functional trading platform that lets you trade on your own, but it also offers exposure to MetaTrader 4, making it an excellent automated forex trading solution. MT4 is a 3rd-party platform used by trading sites and brokers as it comes with a huge section of trading tools and charts.
MT4 enables users to trade using automated trading platforms and forex EAs (expert advisors). It has pre-programmed files that follow a set of market conditions and advanced trading rules. The main idea is that the MT4 file will trade on behalf of the user. Once the robot has been set up and given authorization via MT4, it will scan the markets for opportunities 24/7.
#2. Forex.com
Forex.com is a well-known online broker that specializes in forex trading. This highly regulated online broker allows traders to trade on over 80 forex pairs, including liquid and exotic ones. In addition, it also offers MT4 support, allowing users to install an automatic trading file easily.
You can customize these popular forex EAs however you want. Forex.com offers a facility key for 24/7 trading- a fully-fledged MT4 VPS hosting service. Automation takes up a lot of processing power, so using a VPS will let you watch your forex trading platform robot in real time via the MT4 app.
#3. FXCC
FXCC is a global ECN forex broker that offers access to over 56 currency pairs. In addition, this online broker provides 24/7 customer service and uses the latest security technologies to keep client funds safe. What's more, FXCC is one of a handful of online brokers that don't charge commissions on forex trades.
Like other online brokers, FXCC offers MetaTrader 4 Mobile, MetaTrader 4, and MAM (multi-account manager) trading platforms. Automated forex trading is possible on all three platforms using expert advisors (EAs). And as you might expect from a well-rounded online broker, FXCC provides a free VPS service to keep automated trading programs running smoothly.
#4. eToro
eToro is one of the best auto trading platforms in terms of reputation, safety, and asset diversity. Additionally, it is easy to use and has low fees. eToro also serves as an online broker and social trading platform for over 17 million clients. It allows users to get market data from stocks, forex, and cryptocurrencies and trade accordingly.
eToro is a popular multi-asset trading platform that offers all the necessary services. So whether you're searching for an automated stock trading platform, a forex trading platform, or a Bitcoin trading platform, eToro has you covered. eToro is a 100 percent commission-free brokerage with no ongoing costs associated with the platform.
#5. IG
IG is one of the oldest online brokers and has provided access to thousands of markets since 1974. And it's No. 1 for a good reason — the online broker offers competitive spreads, innovative technology, and superb customer service.
IG provides traders access to over 16,000 markets, including forex, shares, indices, commodities, and cryptocurrencies. It also offers industry-leading market research and educational resources. For automated trading, IG provides the MetaTrader 4 platform and its web-based platform, L2 Dealer.
How to choose an Automated Forex Trading Program
You must take care of some things to choose the best-automated trading platform. Each automated forex trading platform has its features and characteristics. Some of them might be good for you and some not so much. It all depends on your trading goals and style.
Let's consider the factors when selecting an automated forex trading software.
#1. Define your requirements
Auto trading systems can differ in many ways, including speed, performance, and simplicity of use. Therefore, what works well for one trader might not work for another. For example, some traders prefer programs with a very low spread (the difference between the asking and bidding prices).
Some traders might want a trailing stop, precise limit order execution, and market reports. Therefore, they should consider opting for Virtual Private Server (VPS) web hosting rather than generic WiFi. It delivers fast access, secures trades, and more. Moreover, the auto trading software must be able to create reports, put stop orders, place conditional orders, tick trading, etc.
#2. Cost of Automated Trading Tools
Once you have defined your requirements, you need to consider the cost of the software. Some might offer free trials but require a monthly subscription once the trial period is over. Some are open-source and free to use, while others have a one-time fee.
The best way to determine if a forex trading robot or software is right for you is to try it out on a demo account first. This way, you can test its features and performance without risking any real money.
#3. Learn How it Works
Before you spend any money on an auto trading program, make sure that the firm offering it provides screenshots or videos of the software in action. This will give you an idea of how well the program works and whether it is worth subscribing to. In addition, you should consider details like account activity, transaction prices, profit posting time, and delivery when evaluating a service.
You may discover if the program suits you by running a tutorial program to see whether you like it and answer all of your questions. However, for more complicated programming issues, such as creating the sale conditions and utilizing the system in general, you might need to contact customer service for assistance.
#4. Check for Review from other Traders
Many online forex brokers claim to provide the best services and bonuses, but not all of these are true. Some traders lose money quickly because they believe the false claims made by trading platforms to sell their software programs.
There are many online trading frauds, and it's tough for inexperienced traders to identify scams, especially if they've never used automated trading. Reviews might be used to validate institution claims. Customers' prior experiences with a company may be discovered through Google.
#5. Keep the Fees and Commissions in Mind
You should always consider fees when choosing a financial firm. Some firms are less transparent about fees than others, and some may make unrecorded deductions that can eat into your profits. However, after you purchase an application from one of these institutions, they guarantee you can return it for a refund if you don't like it.
Consider a few online user testimonials for these programs that evaluate their advantages and disadvantages from different angles. To engage customers, some companies give a free presentation on the application. Others offer perks like trial memberships.
Best Forex Trading Course
Asia Forex Mentor offers the best forex trading education in Asia. The course is set up so that you can earn money while learning. You'll be able to trade forex profitably with a skilled trader's help. In Singapore and other sites worldwide, tens of thousands of people from the United States, the United Kingdom, and other Asian countries have been taught.
Ezekiel Chew's teaching method is founded on the principle of return on investment, which states that if you invest $1, you will gain $3. It's not about zany strategies or elaborate procedures. Professional traders and financial organizations use his authorized system. He is the driving force behind the growth of various companies, including DBP, the Philippines' second-largest state-owned corporation.
Due to his strategy's effectiveness, many full-time traders have joined the program with little to no prior trading experience and emerged successful.
Best Forex Broker
Conclusion: Automated Forex Trading
Automated trading is a great way to make consistent profits in the Forex market. However, finding the right auto forex software is not as easy as you think. You need a good understanding of the Forex market before trading successfully.
It's critical to understand how to use this automated tool, especially when performing analyses based on price action. This might save you time by allowing the robot to execute the trade while focusing on other activities.
You don't need to be a professional or expert trader to make money using auto trading methods. Automated software can assist you and make trade execution easier. However, it's important to remember that no software can replace the human element in trading. No matter how good the software is, you will still need to understand the market before making consistent profits.
Furthermore, also remember that no FX trading platform guarantees success. Auto trading software can help you achieve your financial goals when implemented correctly.
Automated Forex Trading FAQs
Is Automated Trading Profitable?
Yes, auto trading is quite a profitable and popular Forex trading method. However, you must choose the right forex robot/software to avoid scams in this space. You can make money from automated forex trading with the right programs and tools.
Is Automated Trading possible?
Yes, automated trading is possible. You need to find the right forex robot/software and tools to help you automate your trades. There are many different types of software out there, so do your research before choosing one.
