Best Automated Forex Brokers

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Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Financial markets continue to evolve, and technology is at its core. Many financial firms resemble a tech company more than a financial services firm, and FinTech drives innovation. Trading with one of the best automated Forex brokers adds to the long-term profitability, and we have identified some excellent choices.

1
eToro
DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.
Best social trading platform on the market
Excellent choice of options for crypto traders
2
AvaTrade
DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
3
ZuluTrade
DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.
Social trading system that works with dozens of brokers
4
FXCM
DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.
No dealing desk execution + wide range of trading apps

eToro
5.0/5 in this category
In Summary
Best broker for social traders and crypto traders : 75% of retail CFD accounts lose money

eToro was founded in the early days of the online retail Forex era, in 2007 – this broker occupies a unique space as the king of social and copy trading. eToro has a long track record and unique reputation to protect, although this image is more focused on its copy trading model than on any other individual feature, except maybe its special relationship with cryptocurrencies. 

Unique Features

Headquarters

Cyprus

Regulation

CySEC, FCA, ASIC

Year Founded

2007

Type of Broker

Market Maker

Minimum Deposit

$200

Maximum Leverage

1:30

Type of Platform

Proprietary platform

eToro is regulated in Cyprus, the U.K., Australia, and the United States although its U.S. offering is firmly differentiated from its offering to the rest of the world.  

eToro guarantees several benefits to anyone opening an Islamic account: no rollover interest or commissions on any trade contracts lasting for longer than 24 hours will be charged, and no commissions or fees are charged to Islamic accounts for account management. Notably, interest-free leverage is also offered to Islamic account holders. 

eToro is a leading cryptocurrencies CFD broker. Following its 2019 acquisition of Danish blockchain company Firmo and Belgian crypto portfolio tracker application Delta, it released its cryptocurrency wallet for mobile devices. The proprietary sentiment indicator for digital assets based on Twitter activity presents a social trading tool millennials favor.

eToro Pros & Cons

Pros

Cons

Excellent equity asset selection and broad cryptocurrency choices

Low leverage and higher minimum deposit

 

Cryptocurrency wallet for Android and iOS

MT4 trading platform not supported

 

Twitter-based digital asset sentiment indicator

Internal withdrawal fees plus higher

core trading costs

Simple social trading procedure

Below average educational resources

 

AvaTrade
5.0/5 in this category
In Summary
Highly regulated, choice of fixed or floating spreads

AvaTrade was founded in 2006 in Dublin, Ireland. They are one of the largest and most famous Forex / CFD brokers in the world and became well-known for offering their clients a choice of fixed or floating spread cost of trading models. They enjoy an extremely high and strong level of regulation, making them a favorite for traders who are extremely nervous about the security of their deposit, which in Ireland can be protected by a strong investor deposit protection provision. AvaTrade is directly regulated in Ireland (and by extension, the European Union), Australia, Japan, South Africa, and the British Virgin Islands. Outside the European Union, Ava’s maximum leverage offered runs as high as 400 to 1.

Unique Features

Headquarters

Ireland

Year Founded

2006

Type of Broker

ECN/STP

Minimum Deposit

$100

Maximum Leverage

1:400

Type of Platform

MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based

In addition to their longevity and safe reputation, clients know that through AvaTrade they have access to a broad range of asset classes through which diversification can be achieved successfully: AvaTrade offers trading in over 55 different Forex currency pairs, 17 commodities, 20 equity indices, 14 cryptocurrencies, plus 66 individual stocks and shares. Even better, and unusually, 2 bonds and 6 ETFs are also on the menu. The diversity offered here stands out.

Whether you are located within the European Union or not, all branches of AvaTrade will offer you negative balance protection, above and beyond what is mandated by the law. This means that under no circumstances will any client of AvaTrade ever be held liable by the firm for an amount larger than their deposit.

 

AvaTrade Pros & Cons

 

Pros

Cons

Well-regulated globally, with the Bank of Ireland, the primary regulator

Low leverage for retail traders

 

Low minimum deposit and in-depth educational tools

High quarterly inactivity fee

 

Wide asset choice across seven sectors

Unacceptable cost for AvaProtect

 

Superior mobile trading platform

 

 

ZuluTrade
4.5/5 in this category
In Summary
Social trading system that works with dozens of brokers

ZuluTrade is one of the best copy trading platforms available globally and maintains a leadership position in that field. It works together with more than 35 brokers, offering unparalleled access to traders and strategies exceeding 25,000,000. Diversification remains one of the most defining strategies for copy traders, and ZuluTrade delivers. Most aspects of the trading environment, like asset selection, leverage, cost structure, and minimum deposit, remain dependent on the partner broker the trader selects. ZuluTrade provides the infrastructure and connects via the MT4 trading platform. Brokers usually increase the spreads on ZuluTrade accounts, which is a fact that traders must consider.

Unique Features

Headquarters

Greece

Year Founded

2007

Type of Broker

35,38,139

Minimum Deposit

Broker Dependent

Maximum Leverage

Broker Dependent

Type of Platform

MetaTrader 4, Web-based

Copy traders benefit from innovative tools including ZuluGuard and Automator. They protect copiers from non-performing signal providers and automate the copying process, respectively. The subscription-based Combo Plus providers copy traders with an option for full automation of copy trading and a competitive edge. ZuluTrade executed more than $1.2 trillion in trading volume, and the compensation model for signal providers remains superior to other copy trading platforms. It became a licensed portfolio management company in the EU in 2015, after receiving the EU Portfolio Management License, which competitors do not possess. In 2017, ZuluTrade became part of the Chinese-based Formax Group.

FXCM
4.5/5 in this category
In Summary
No dealing desk execution + wide range of trading apps

FXCM is a UK-based broker since 2015 after a forced relocation from the US, where it catered to clients since 1999. Since its acquisition by Leucadia in 2015, part of US publicly listed merchant bank Jefferies Financial Group, FXCM embarked on an impressive turnaround. Clients have access to the MT4 trading platform, its proprietary Trading Station, newly added automated trading platform Capitalise, social trading market-leader ZuluTrade, and eight specialty trading platforms for algorithmic traders. It remains one of the most impressive and competitive selections among all brokers. With a minimum deposit of just $50, FXCM remains accessible to all types of traders.

Unique Features

Headquarters

United Kingdom

Regulation

FCA, ASIC, FSCA

Year Founded

1999

Type of Broker

No Dealing Desk, Dealing Desk

Minimum Deposit

£300

Maximum Leverage

1:30

Type of Platform

MetaTrader 4, Proprietary platform, Web-based

Asset selection is compact. FXCM maintains just 40 currency pairs, seven cryptocurrency pairs, and eleven commodities. Equity traders get 100+ CFDs from the US, the UK, the EU, and Hong Kong, plus fifteen index CFDs. Completing the list are a handful of in-house created Forex and equity baskets based on themes and one bond CFD. FXCM does offer active traders a competitive pricing environment with a volume-based rebate program. The superior execution statistics at FXCM add another distinct advantage to the overall trading environment

Top List of the Best Automated Forex Brokers Overview

 

 

eToro
Visit Site

AvaTrade
Visit Site

ZuluTrade*
Visit Site

FXCM
Visit Site

Our Rating

9.7

9.6

9.4

9.3

Retail Loss Rate

75.0%

79.0%

Broker Dependent

74.8%

Regulated

Yes

Yes

Yes

Yes

Minimum Raw Spreads

Not Applicable

Not Applicable

Broker Dependent

Not Applicable

Minimum Standard Spreads

1.0 pips

0.9 pips

Broker Dependent

1.3 pips

Minimum Commission for Forex

Not Applicable

Not Applicable

Broker Dependent

Not Applicable

Commission for CFDs/DMA

0.09%

Commission-free

Broker Dependent

Commission-free

Commission Rebates

Not Applicable

Not Applicable

Broker Dependent

Yes

Minimum Deposit

$200

$100

Broker Dependent

$50

Demo Account

Yes

Yes

Broker Dependent

Yes

Managed Account

Yes

No

Broker Dependent

Yes

Islamic Account

Yes

Yes

Broker Dependent

Yes

Inactivity Fee

$10 per month

$50 per month

Broker Dependent

$50 per year

Deposit Fee

No

No

Broker Dependent

No

Withdrawal Fee

Yes + Third-Party

Third-Party

Broker Dependent

Third-Party

Funding Methods

10

5

Broker Dependent

5

Asset List and Leverage Overview 

Scroll horizontally to see the whole table.
 

eToro
Visit Site

AvaTrade
Visit Site

ZuluTrade*
Visit Site

FXCM
Visit Site

Currency Pairs

49

55

Broker Dependent

40

Cryptocurrency Pairs

93

11

Broker Dependent

7

Commodities and Metals

31

24

Broker Dependent

11

Index CFDs

13

26

Broker Dependent

15

Equity CFDs

2,039

982

Broker Dependent

56

Bonds

0

0

Broker Dependent

1

ETFs

151

31

Broker Dependent

0

Options and Synthetics

0

42

Broker Dependent

17

Maximum Retail Leverage

1:30

1:30

Broker Dependent

1:400

Maximum Pro Leverage

1:400

1:400

Broker Dependent

1:400

Overview of Trading Platforms 

Scroll horizontally to see the whole table.
 

eToro
Visit Site

AvaTrade
Visit Site

ZuluTrade*
Visit Site

FXCM
Visit Site

MT4

No

Yes

Yes

Yes

MT5

No

Yes

No

No

cTrader

No

No

No

No

Proprietary Platform

Yes

Yes

No

Yes

Automated Trading

No

Yes

Yes

Yes

Social Trading

Yes

Yes

Yes

Yes

MT4/MT5 Add-Ons

No

No

Broker Dependent

Yes

Guaranteed Stop Loss

No

No

Broker Dependent

No

Unique Feature One

Broad Equity CFD Selection

Regulated by CB of Ireland

Excellent choice of strategies

Superior trading platform

Unique Feature Two

Not Applicable

Broad Asset Selection

Automated trading tools

High leverage and rebates

*Note: ZuluTrade is a broker aggregator that works with multiple brokers on their copytrading platform. As such, offerings may vary depending on the broker chosen.

Automated Forex Trading Explained

Many retail traders may feel outmatched in the ultra-competitive global financial system, but technology narrows the gap. Anyone who actively traded Forex manually experienced the exhausting, repetitive nature of analyzing charts, reading economic reports, monitoring price action, and identifying buying and selling opportunities. After placing a trade, emotional decision making displaces the best trading plan for most traders, and the long-term outcome is a loss. Between 70% and 85% of retail traders manage losing portfolios. Automated Forex trading can provide a solution, but it is not as simple as it sounds. Many traders dream of a hands-free approach to trading that delivers consistent profits on autopilot free of charge. The reality is different and consists of using a Forex auto trader that assists in the trading process rather than as a standalone trading robot.

By some accounts, automated trading solutions account for over two-thirds of all global trading activity. Some blame excessive volatility and flash crashes on them, as algorithms without human intervention chase identical trades. Since trading 100% automated is possible, many retail traders rush to acquire a Forex trading robot or an expert advisor (EA), as MetaQuotes labels them on their MT4 trading platform, the most popular one for automated traders. Despite their capabilities and expanding sophistication, traders must understand that automated trading solutions neither guarantee profits nor present a one-stop solution to long-term profitability. They are beneficial but expensive, while the superior ones remain closely guarded by the financial firms who own them. The retail market remains flooded with thousands of Forex trading robots, many free of charge, which fail to deliver results. Some may work for a limited time and just enough for the provider to earn affiliate commissions from their broker. Therefore, traders with a genuine interest in automated trading must conduct proper due diligence, identify their needs, and then seek a solution that delivers. Learning how to trade alongside a trading robot and how to use it effectively will differentiate between profits and losses. Trading with one of the best automated Forex brokers adds to the long-term profitability of any automated trading strategy, and we have identified some excellent choices.

Automated Forex trading remains the fastest-growing segment, followed by social trading, and traders should not confuse the two. Given its popularity, there is plenty of misleading information about Forex trading robots and EAs spread by smart marketing teams. While the technology exists for sophisticated automated trading solutions developed with machine learning (ML) and artificial intelligence (AI) components, all retail solutions remain simplistic and without advanced ML/AI at the core. The majority of solutions available to the retail sector consists of uncomplicated technical analysis components, simple risk management rules defined by the user, and price alerts. The product is wrapped into a futuristic and user-friendly design to mask its lack of sophistication. Marketing teams spin an excellent and intriguing story that connects with retail traders seeking to earn from Forex trading on autopilot, preferably free of charge or for a small one-time purchase price.

One of the most deployed strategies is a moving average crossover. For example, the EA will buy an asset when a fast-moving average will cross above a slow-moving average and sell when it crosses below it. The shorter the time frames of moving averages, the more trades are executed by the Forex robot. The reliability of the signals and the profitability will decrease as trading volumes will spike, generating profits for the developer if granted in association with a broker for a reduced price or even free of charge. It is crucial to ignore marketing and understand that most remain rooted in core technical analyses without sophisticated components. It is why they generally fail to produce long-term profitability. Another fact to consider is that the lower the price, the less likely the profit potential. Automated trading solutions that work as intended require years of development and may cost tens of millions until they are ready to trade financial markets. Nobody will grant free access or any direct access to them, as the more capital chases the same trade, the lower the overall profit potential.

The Difference Between Automated & Manual Trading

Manual trading relies 100% on the trader who must carry out all aspects by being physically present in front of their trading desk. It requires long hours and repetitive tasks in a high-stress environment, where most allow emotions to direct trading decisions. Most retail traders have full-time jobs and careers to attend to, allowing them to trade at the worst possible times and being absent during peak profitability. Automated trading can bridge the challenges and help retail traders close the existing gap between professional and institutional traders. Alert algorithms carry out the analysis process, and the most sophisticated ones deploy cutting-edge AI components that can read news and adjust trading strategies. Traders may receive price alerts for trade confirmation or under full automation while they are away from their trading desks. Automated trading provides complete cross-asset diversification without employing a team of analysts. One intelligent upgrade can analyze tens of thousands of assets in microseconds depending on the underlying technology infrastructure.

While most retail traders have no access to sophisticated ML/AI-powered automated trading solutions, numerous competitive options allow traders to gain an edge. I recommend ignoring a set-and-forget EA or trading robot, which usually fails over the long-term. Those who favor a 100% hands-free approach will find a better choice with social trading platforms. Retail traders seeking an edge should look for EAs that will work alongside them and help identify trading signals based on their strategy. It will take away repetitive analyses and emotion-based trading decisions while keeping the final decision in human hands. Another smart choice is an EA that monitors existing trades and adjusts take-profit and stop-loss levels after a manual trade placement. Some options will allow retail traders to reduce their time to 30 minutes in front of trading screens spread out over three ten-minute sessions.

Does Automated Trading Work? Is it Profitable?

Automated trading works, as evident by its use among financial institutions and expanding investment into sophisticated solutions. For anyone trading for a living, professional or private, automated trading, partial or full, remains a requirement in today’s markets. Retail traders who seek to upgrade their trading operations should never listen to marketing teams or reviews but test any solution in a demo account. MT4 offers back-testing capabilities, allowing traders to gather sufficient data during the limited free trial version. Coding your strategy remains the most beneficial option, but many are unable to do so. The MT4 marketplace has almost 20,000 EAs, and retail traders are likely to find what they need. I recommend taking your time to research and test before committing to a purchase. The bottom line is that automated trading works and can be profitable.

Automated Forex Trading Software: Find the Best Platform

Traders must decide which automated Forex trading software suits their needs, as there are several options available. There are fully autonomous ones, semi-autonomous, copy trading and signal providers.

  1. Copy Trading - Copy trading allows traders to copy others. The set-up remains simple, and platform providers offer tools to safeguard, protect and alert traders. It is a low-cost alternative to automated trading.

  2. Broker-Based Automated Trading Platforms - Most brokers provide trading platforms that fully support automated trading. Traders can either code their strategy or acquire an existing solution.

  3. MT4 - MT4 remains the most popular one due to its versatile infrastructure. The MQL4 coding language allows developers to create expert advisors (EA), and many brokers offer APIs that offer more advanced solutions to connect to MT4 for order placement and management.

  4. Trading Signals - There are many signal providers, and most brokers maintain a team of analysts. While some use simple automated trading solutions to derive signals, well-established ones have human analysts for more precise trading recommendations. Traders usually have to place trades manually.

  5. Robots - Trading robots are more advanced and coded in Python, R, or C#. Most operate independently from a broker or trading platform and connect via an API.

  6. Free Automated Trading Software - Thousands of free automated trading software options exist, but most, if not all, fail to work. They only create consistent revenues for developers, and I recommend all traders avoid them.

  7. Automated Trading Apps - FinTech companies churn out automated trading apps to meet the demands of retail traders preferring to use their mobile devices. Many operate in the cloud and can offer simplistic solutions.

Using Automated Trading

While automated trading remains straightforward, here are some pointers to improve your overall trading results. I recommend following them to avoid many of the failed solutions available.

  • Before moving to automated trading, traders should understand manual trading and spend time on education and gain trading experience.

  • Always test a Forex robot or EA in a demo account before deploying it in a live one.

  • Avoid trading 100% autonomously and monitor the robot, tweak settings where necessary, and make sure to remain in control.

  • Never mix automated trading and manual trading in one account.

  • Using a VPS can improve trading results, and many brokers offer it.

How to Choose an Automated Trading Program

Finding the right automated trading program remains a daunting task with thousands to consider. Traders must narrow down their search, and I recommend the below four as a starting point.

  1. Define trading needs - Traders must know what they look for and define their trading needs, then find solutions that satisfy them.

  2. Read reviews - Traders should consider positive and negative ones with a healthy dose of skepticism. Rather than focusing on profitability, scanning reviews for operational issues can reveal which Forex robots to avoid.

  3. Consider costs - Traders should avoid free and cheap automated trading solutions, as they are either scams or do not work. You get what you pay for and using common sense must prevail. Since the few that deliver results remain costly, consider the trading account size and if a purchase makes sense. Proper cost-benefit analyses and projected return on capital will provide more in-depth details.

  4. Try a demo automated trading - Traders should always run any automated trading program in a demo account and evaluate the performance carefully, together with potential error messages that point to issues in the code and trading algorithms.

Expert Advisors vs. Forex Robots

Expert advisors (EAs) are specific to the MT4 and MT5 trading platforms by MetaQuotes, coded in MQL4 or MQL5, and generally less sophisticated. They operate inside the trading platform and often produce trading signals that require manual execution. Forex robots can offer notably more sophistication and include machine learning and artificial intelligence. They run independently from brokers and connect via APIs for order placement and trade management while operating without the trading platform. They generally execute without intervention if desired.

Pros & Cons of Automated Trading

Traders must always consider both sides, which allows them to make an informed and objective decision. Here are some pros and cons to think about before deciding.

The Pros of Automated Trading

  • No emotional decision making.

  • Severe reduction of the negative impacts of trading psychology.

  • Ability to receive 24/7 market coverage, which remains asset dependent.

  • In-depth cross-asset diversification.

  • Traders may spend as little as 30 minutes in front of their trading desk per day.

  • Elimination of repetitive technical analyses.

  • Reduction in stress levels.

  • Improved trading speed and advanced order placement.

The Cons of Automated Trading

  • Retail solution cannot adapt to changing market conditions.

  • They remain based on technical analyses and fail during fundamental events.

  • Functioning solutions are expensive and out of reach for many traders.

  • Most are unprofitable.

Which Financial Markets are the Best for Using Automated Trading Software?

All markets are suitable for automated trading software, but each requires a different solution. The three most popular trade markets remain Forex, index CFDs, and cryptocurrencies. Traders must use the appropriate automated trading software with the intended market sector to achieve the best trading results.

The Advantages of Automated Forex Trading

  • Deep liquidity and high leverage.

  • 24/5 operability.

  • Volatility that creates trading opportunities.

  • Availability of the MT4 trading platform.

  • Low capital requirements to start an automated trading portfolio.

  • VPS hosting by brokers.

The Benefits of Automated CFD Trading

  • Index CFDs carry less risk than individual equity CFDs.

  • Tight spreads and low commissions.

  • Strategies developed for the market open and market close.

  • Index CFDs provide low-cost diversification and fixed trading times.

Automated Trading on Cryptocurrencies

  • Volatility creates trading opportunities.

  • Thousands of assets with increased profit potential.

  • 24/7 trading.

Forex Robot Scams

Regrettably, the automated trading scene remains littered with Forex robot scams. Using common-sense will prevent traders from falling for them. Scammers provide doctored account screenshots displaying enormous profits. Nobody would sell automated trading solutions that generate those profits. Traders should ask themselves why a Forex robot or EA is available free of charge or even for a few hundred dollars if it makes developers unheard-of returns per month. The answer is obvious. Scammers prey on the fact that up to 85% of retail traders lose money, and all seek to capitalize from the most liquid financial market in their sleep without any effort. Using automated trading solutions properly is beneficial and necessary for committed traders, but asking the impossible will always result in losses. Profit-guarantees remains another red flag to avoid together with set-and-forget solutions, which remain well-known scammer marketing methods.

Who Uses Automated Trading?

Professional and institutional traders deploy sophisticated automated trading solutions, which also cleared the path for high-frequency outlets. Retail traders also use them, but a significantly less advanced version, often reduced to the most basic technical analysis aspects without regard for fundamental conditions and economic events, or the availability of alert trading algorithms that can adapt to market conditions.

The Best Times for Auto Trading

This depends on auto trading software and its sophistication. Retail solutions remain pure technical analysis versions, and the best times would be when there are no economic releases, central bank conferences, meetings, speeches, or other market-moving events. Another well-suited period for trading robots is on which has high liquidity, like the first and last hour of the Tokyo, London, and New York trading sessions.

Leverage & Automated Trading

Leverage can magnify profits and losses, and many traders fail to understand how to use high-leverage set-ups effectively in conjunction with risk management. Deploying an untested automated trading solution in a high-leverage account without constant supervision exposes the trader to avoidable losses. After testing it in a demo account and performing extensive back-tests, traders should take it into a live version with low leverage and low capital for testing in real market conditions. After enough data and trust exist, both can gradually increase to the desired levels. I recommend traders monitor their account performance and deploy stringent risk management rules during the initial set-up of any automated trading solution.

Final Thoughts

Although most trading robots tend to lose money, often quickly, there are successful hedge funds which use longer-term trading robots profitably, and there’s no reason why you can’t do the same.

FAQs

Are Forex trading bots profitable?

The long-term profitability of retail Forex trading bots is questionable at best, with many unsophisticated versions relying on scalping using the core aspects of technical analysis. Most result in losses and remain poorly coded.

Is automated trading legal?

Automated trading is not only legal but accounts for over two-thirds of all trading activity.

What are Forex robots?

Forex robots can either trade semi-autonomously or 100% autonomously. They take care of all trading operations from analysis to order placement through trade and risk management. While human supervision is not required, I recommend traders to monitor their Forex robots to avoid unnecessary losses and understand when to use them and when to pause them.

How do Forex robots work?

Forex robots use technical analyses to identify trading opportunities. They then place trades and deploy user-defined risk management. Forex robots can operate without intervention, but traders should monitor the performance throughout the trading day.

Are Forex robots effective?

Some Forex robots remain highly effective, but traders must understand their limitations and how to use them. Those who seek set-and-forget solutions will face losses. Traders generally get what they pay for, and I recommend staying away from free offers and low-cost alternatives.

What is the best automated Forex system/platform?

The best-automated Forex trading software is the one that suits the individual trading style of Forex traders and assists in day-to-day operations rather than replaces the human aspect. The best automated Forex trading platform remains MT4 due to its infrastructure and availability at over 1,200 brokers.

Is automated trading a scam?

Automated trading is not a scam, but the sector includes many scammers prying on retail traders seeking nonexistent shortcuts to profitable trading. Traders can easily avoid scammers by ignoring profit guarantees, excessive profits, free and low-priced versions, and set-and-forget solutions.

Huzefa Hamid

I’m a retail Forex trader and I exclusively use Technical Analysis to trade. I believe that Technical Analysis offers the cleanest way to predict the future direction of price movements. The fundamentals and news create the market sentiment and emotions, and that in turn is reflected in the price chart. Your bet as a trader is not on the fundamentals – it’s on what happens to the price as a result of those fundamentals.