How to Choose the Best Forex Robot

By: DailyForex.com

With today’s fast paced trading options, choosing the best Forex robot has taken on a major role in Forex trading. The use of a Forex robot is basically one of the methods employed by a trader to buy or sell on the Forex spot market. It is often referred to as ‘autotrading.’ Although autotrading was originally used on the Chicago Mercantile Exchange as far back the 1970’s, it emerged big time with the advent of the internet in 1999. Today, most online brokerages offer Forex robots.

There continues to be a debate, however, as to which is a more beneficial manner for placing Forex trades—using autotrading or employing the service of a human trader. Obviously, an automated trading situation can accommodate more trades per market than any human can cope with. Additionally, with autotrading, trades are placed in real time and a trader can replicate these actions across several timeframes and on more than one market. What’s more, robots are not subject to the emotional ups and downs of human traders.

On the other hand, even the best Forex robot can be subject to scams and frauds. Traders do not always understand how the system works and this leaves them vulnerable to all sorts of broker rip-offs. It can lead not only to traders placing inappropriate trades but can result also in shrewd brokers closing up shop and absconding with clients’ funds. In addition, robots are not easy to set up and choices for customized trading strategies can be complicated for novice traders. If not fully understood, trading activity can go unmonitored and consequently lead to losses.

The Best Forex Robots

Choosing the best Forex robot is not always an easy task. There are hundreds of online brokers with each one touting to offer the best Forex robot software, the most outstanding platforms and the finest technical analysts. The most advantageous way to reach a decision is to speak to people who have used Forex robots for a while. Referrals from experienced traders go a long way in weeding out brokers who do not abide by industry regulation or who are not bona fide Forex brokers. Ongoing Forex traders are also privy to information concerning brokers who have not performed in the manner they promised or are rumored to have conducted business in an unacceptable manner. After all, the robot is only as good as the brokerage offering it.

Likewise, there are literally hundreds of Forex robots that are offered not by brokers, but by individual traders looking to make a quick buck. While some of them may be profitable, there’s a higher chance with these robots that losses may occur. Make sure to verify the robot’s success before registering, and if possible, see if the company is registered or regulated anywhere. If these things aren’t available but the Forex robot still seems interesting, try asking for references or seeing if the company offers reliable testimonials. Without some sort of validating feature, your service of interest may not actually be the best Forex robot available.

The DailyForex.com team is comprised of analysts and researchers from around the world who watch the market throughout the day to provide you with unique perspectives and helpful analysis that can help improve your Forex trading.