| Updated: With an average daily trading volume of more than $9.6 trillion, the foreign exchange market is the world’s largest and most liquid. Even so, it is difficult for traders to consistently make profits, likely due to emotions, limited time, or uneven execution. One way to help is to use automated trading, which places trades automatically via dedicated platforms and pre-set strategies, potentially reducing stress, time pressure, and impulsive decisions.
Plus500 USThis content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.
eToro50% of retail investor accounts lose money
Fusion Markets74-89% of retail's CFD accounts lose money
FP Markets73.33% of retail investor accounts lose money
BlackBull MarketsTrading leveraged products is risky
Global Prime74-89% of retail CFD accounts lose money
Pepperstone72.9% of retail investor accounts lose money
IG67% of retail client accounts lose money when trading CFDs with this investment provider.
ActivTrades72% of retail investor accounts lose moneyAutomated trading provides a structured approach by allowing trading software to execute orders based on predefined strategies and market analysis. This enables traders to act on opportunities even when they are not actively monitoring the markets. While FX enthusiasts may be hesitant when executing trades due to their own biases, emotions, or irrationality, automated trading software reduces the human element, allowing traders to place orders with logic and precision as soon as an opportunity arises.
One of the best qualities of automated trading is that it ensures your strategy remains active even when you’re not actively online in your trading account. The software will automatically execute orders after scanning the markets, using pre-set parameters for your trades to maintain consistency.
In this guide, we cover everything you need to know about automated trading to help you master algorithmic strategies. We will also list 12 forex brokers that allow the use of automated trading software and provide the ideal infrastructure for algorithmic trading.
What is Automated Trading?
Automated trading, also known as algorithmic trading, allows trades to be placed automatically based on predefined criteria, unlike manual trading, where you make decisions and open or close trades yourself.
Key features and benefits include:
- Predefined trading parameters: If you use automated trading software, you will need to set up criteria to determine the open and close points for your forex trades.
- Money management: Money management is an important factor when setting up the order conditions for your automated trades, allowing you to choose a loss limit where automated trades will not be executed.
- Algorithm-based strategies: There are plenty of automated trading software options online. The algorithm for this type of trading may be based on technical analysis, fundamental analysis, or economic news used to spot trends.
- Emotion-free execution: Automated trading programs lack emotions, biases, and other factors that can impact human decision-making. Instead, this software simply uses predefined criteria and monitors the forex market, looking for a currency pair that matches the preset parameters. If a pair is located, it is immediately singled out as potentially profitable, and the software automatically places the respective buy or sell trade.
- Market responsiveness: While automated trading software can be used by various types of traders, those who prefer placing orders based on spreads instead of interest rates can seriously benefit from the use of this type of trading tool. Automated trading programs can quickly spot price discrepancies and instantly place an order that corresponds to the preset criteria of currency speculators.
- Versatility in strategy: In addition to spreads, there are also market indicators like ranging average crossovers, triple tops or bottoms, and resistance/support signals, which may also trigger an automated trade.
The best thing about using this type of software is that you do not need to manually open and close trades. If you prefer, you do not even need to spend time analyzing forex markets, reading financial news, or looking at charts to spot trends. The automated trading software will do that for you and will execute orders even when you are too busy to check your trading account.
Top 12 Forex Brokers Offering Automated Trading Platforms
Offering more than 90 currency pairs, competitive spreads, and an average order execution speed of 37 milliseconds, Fusion Markets is a suitable destination for a large number of traders. If you create a Fusion Markets account, you will be able to choose from several platform options, with MT4, MT5, TradingView, and cTrader enabling you to either develop your own EAs or use readily available software solutions for automated trading.
Fusion Markets also supports DupliTrade, allowing you to copy other traders’ orders into your own MT4 account. Another option with Fusion Markets is to use the company’s proprietary Fusion+ platform, which enables free copy trading for customers with a monthly trading volume of at least 2.5 lots in forex and metals.
Gleneagle Asset Management Limited (ABN 29 103 162 278) trading as Fusion Markets, is the issuer of the Fusion Markets Products described in this communication. Trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit and is not suitable for all investors. You should read all of these Financial Product Service Terms, the Product Disclosure Statement (PDS) and the Financial Services Guide (available on our website) carefully, consider your own financial situation, needs and objectives for investing in these Fusion Markets Products and obtain independent financial advice.- 2. FP Markets
FP Markets is a retail broker that has been a prominent name in the foreign exchange market since 2005. It covers a plethora of CFD markets, including more than 60 currency pairs.
To offer competitive trading conditions to a wide range of investors and traders, FP Markets supports various platforms, including MT4, MT5, cTrader, WebTrader, and more. Algorithmic/automated trading is available on all supported platform options, allowing traders to use EAs or build their own algorithms for trading.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.33% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. BlackBull Markets is known for offering trading conditions that will suit the preferences of a variety of traders, including automated trading enthusiasts. BlackBull features a range of markets comprising CFDs, forex, and more, and it is regulated by the FMA (New Zealand) and the FSA (Seychelles). Additionally, it supports the most popular trading platforms suitable for automated trading, like MT4, MT5, and cTrader. TradingView is also available via BlackBull Markets.
Traders can utilize Expert Advisors (EAs) or build their own custom algorithms to implement their strategies. With spreads from 0.8 pips (ECN Standard) and 0.0 pips (ECN Prime), competitive leverage, and execution speeds of under 75 milliseconds, BlackBull Markets is well-suited for those looking to automate their forex trades.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.- 4. Pepperstone
Pepperstone is a retail broker that grants access to a wide selection of tradable markets, with the forex section offering more than 90 currency pairs to trade. Pepperstone is well-known among investors for its competitive prices, with its Razor account spreads on major currencies starting as low as 0.0 pips.
For their trading sessions, users can choose from platforms like MT4, MT5, TradingView, and cTrader. All three support automated trading tools, allowing clients to develop, test, and implement EAs for their future algorithmic trades. This combination of tight spreads and extensive platform support makes Pepperstone an appropriate environment for sophisticated, high-frequency algorithmic trading strategies.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.9% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 5. Eightcap
Whether you are new to forex trading or are an experienced trader, Eightcap’s trading conditions may prove suitable for your preferences thanks to the broker’s impressive market coverage. Over 40 currency pairs can be traded at Egithcap, along with 800+ stocks, 100 cryptocurrencies, and other CFD instruments.
Eightcap supports some of the most popular platforms for automated trading. Both the MT4 and MT5 solutions are available to Eightcap’s clients, allowing them to develop EAs and initiate automated trades when preset conditions are met. Meanwhile, FlashTrader will allow traders to set automatic triggers and stops, allowing them to set risk levels while trading with bots. TradingView is also among the supported platforms.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.09% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 6. Global Prime
Global Prime is a well-established retail broker that caters to the needs of various traders, including FX enthusiasts interested in algorithmic trading. It offers the Standard ECN account, whose spreads start at 0.9 pips, and the commission-based Raw ECN with spreads from 0.0 pips.
While the broker is not yet available for TradingView users, it supports MT4 and MT5. These platforms are convenient for automated trading, supporting a wide range of tools for implementing algorithmic strategies during trading sessions.
Global Prime is a trading name of FMGP Trading Group Pty Ltd (ABN 74 146 086 017) and is regulated by ASIC and licensed to carry on a financial services business in Australia under Australian Financial Services License No. 385620. Gleneagle Securities Pty Limited trading as Global Prime FX, is a registered Vanuatu company (Company Number 40256) and is regulated by the VFSC. The website is owned and operated by FMGP Trading Group Pty Ltd, ABN 74 146 086 017. - 7. XM Group
When it comes to forex trading, XM has established itself as a strong destination for many investors. XM supports multiple account options, spreads from 0.08 or 1.6 pips on a range of currency pairs.
Members of XM will be able to trade on the MT4 and MT5 platforms, both of which facilitate the use of numerous trading tools. XM clients will be able to set up their own algorithms or use preset EAs that will allow them to engage in algorithmic/automated trading in real-time.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 8. eToro
eToro is a global trading brand that has become popular thanks to its social trading offerings. Covering a variety of markets, eToro caters to forex traders as well, offering more than 50 major, minor, and exotic currency pairs.
Members of the broker will have access to eToro’s proprietary platform, while those who wish to copy other successful traders’ orders can use the CopyTrader software solution. The broker also emphasizes the social element, allowing eToro customers to communicate with fellow investors and explore the range of successful traders they can copy.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 50% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. - 9. AvaTrade
AvaTrade is a forex broker operating since 2006. Being a market maker in the global forex field, AvaTrade makes sure to offer its customers fixed spreads from 0.8 pips and fast execution speed that minimizes slippage.
In addition to supporting popular trading platforms like MT4 and MT5, AvaTrade also offers several platforms suitable for automated trading. AvaSocial allows you to join the large AvaTrade community and copy the trades of fellow forex investors. DupliTrade and ZuluTrade are also supported, allowing AvaTrade customers to follow and copy other successful traders.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 57% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 10. IG
With extensive experience, trading prices starting at 0.6 or even 0.1 pips depending on the account type, and numerous markets, IG is a competitive option for numerous traders across the globe. The broker has algorithmic trading, offering its clients the option to build, test, and implement their trading strategies in their forex trades.
The ProRealTime software enables building a trading strategy and fully testing its success rate before implementing it for your automated trades. Those experienced in coding can also build their algorithms using IG’s native APIs. Conveniently enough, traders can use the EAs they have created while they trade currency pairs through software like MT4 and MT5, as both are supported by IG.
CFDs are complex instruments. 67% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. - 11. ActivTrades
ActivTrades is a global forex trading brand that has been in operation since 2001. Regulated by the FCA (UK), CMVM (Portugal), SCB (the Bahamas), CVM (Brazil), and FSC (Mauritius), the broker is authorized to offer its users more than 1,000 CFD tradable assets.
Trading costs at ActivTrades are competitive, with zero commissions charged on trades and spreads as low as 0.5 pips on major currency pairs. Automated trading is available to retail and institutional traders, with a comprehensive API facilitating fast order executions of automated trades.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 12. Axi
Launched in 2007, Axi is a global forex and CFDs brand that supports automated trading systems. Both new and experienced forex enthusiasts can effectively improve their performance through Axi’s MetaTrader4 algorithmic trading solutions. Beyond forex, they can apply them to other markets such as shares, indices, and commodities.
By using forex robots in their trading strategies, customers will benefit from multiple advantages, such as saving time from manual interventions and removing emotions from the process. Furthermore, portfolio diversification is yet another benefit of incorporating EAs into one’s strategy. However, with plenty of EAs built for the MT4, traders must monitor their performance and see if the chosen strategy is profitable in the long run. Setting up a demo account can be of great help, as it enables them to test the forex robots in a risk-free environment.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Forex Brokers with Automated Trading Platforms Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. FP Markets | 9,422 | 4.9 ⭐ |
| 2. Fusion Markets | 4,873 | 4.8 ⭐ |
| 3. AvaTrade | 11,076 | 4.7 ⭐ |
| 4. Global Prime | 341 | 4.7 ⭐ |
| 5. Pepperstone | 3,144 | 4.4 ⭐ |
| 6. eToro | 29,171 | 4.2 ⭐ |
| 7. Eightcap | 3,429 | 4.0 ⭐ |
| 8. IG | 8,324 | 3.9 ⭐ |
| 9. Admirals | 2,046 | 3.8 ⭐ |
| 10. XM Group | 2,787 | 2.7 ⭐ |
Comprehensive Comparison of the Top 10 Forex Brokers with Automated Trading Platforms
| Forex Broker | Account Minimum | Account Types | Number of FX pairs | Min Spread | Commission | Max Leverage | Platforms | Regulators | Trust Pilot Rating |
|---|---|---|---|---|---|---|---|---|---|
| 1. FP Markets | $50 (AU$100) | Standard, Raw, Demo, Professional, Islamic | 70+ | 1.0 pips Standard; 0.0 pips Raw | $0 Standard Account; $6 round turn on Pro Account | 1:30 (Retail)1:500 (Professional) | MetaTrader4, MetaTrader5, WebTrader, IRESS, cTrader, TradingView | ASIC, CySEC, FSA (Seychelles), FSCA, FSA (St. Vincent and the Grenadines), SCB (Bahamas), FSCM (Mauritius) | 4.9 ⭐ |
| 2. Fusion Markets | $0 | Zero, Classic, Islamic, Demo, Professional | 90+ | from 0.9 pips Classic; from 0.0 pips Zero | $0 Classic Account, $4.50 round turn on Zero Account | 1:30 for ASIC Entity (1:500 for VFSC Entity) | MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade, TradingView | ASIC, FSA (Seychelles), VFSC (Vanuatu) | 4.8 ⭐ |
| 3. AvaTrade | $100 | Retail, Professional, Islamic, MAM | 50+ | From 0.9 pips (retail), 0.6 pips (pro) | $0 | 1:30 (1:400 for Pro and Non-EU Accounts) | MetaTrader4, MetaTrader5, WebTrader, AvaTade App, AvaSocial, AvaOptions, DupliTrade | CBI (No. C53877), ASIC(No. 406684), FFAJ (No. 1574), ADGM / FSRA (No. 190018), BVIFSC (No. SIBA/L/13/1049), FSCA (No. 45984), CySEC (No. 347/17), ISA (No. 514666577), SFC (No. 0261/2024) | 4.7 ⭐ |
| 4. Global Prime | $0 | Standard, Raw, Demo, Professional | 59 | 0.9 pips Standard, 0.0 pips Raw | $0 Standard Accounts; $7 round turn on Raw Accounts | 1:30 (Retail)1:500 (Professional) | MT4, MT4 Webtrader, MT4 Android, MT4 iOS; for VFSC clients MT4, MT5 (Desktop, Webtrader, Mobile), and GP Copy | ASIC (No. 385620), VFSC (No. 40256) | 4.7 ⭐ |
| 5. Pepperstone | $0 | Standard Account, Razor Account | 90+ | From 0.0 pips (Razor Accounts), 1 pip (Standard Accounts) | $0 (Standard Account), $7 round-turn (Razor Account) | 1:30 (Retail ASIC, CySEC, FCA); 1:500 (Professional); 1:400 (CMA) | MetaTrader 4, MetaTrader 5, cTrader, TradingView | ASIC (No. 414530), UK FCA (No.684312), CySEC (No. 388/20), BaFin (No.151148), DFSA (F004356), CMA (128), SCB Bahamas (SIA-F217), FSA (SD108) | 4.4 ⭐ |
| 6. eToro | $50 to $100 (varies in different jurisdictions) | Crypto Wallet (eToro Money), Retail, Professional, Corporate, Demo, Islamic | 60+ | From 1 pip | $1 or $2 (stocks only) | 1:30 (FCA, ASIC, CySEC); 1:400 (FSA) | eToro Investing, eToro App, TradingView, eToro CopyTrader, Proprietary | FCA, CySEC, ASIC, MFSA, FSRA, FSA, FINRA/FinCEN, AMF, SEC, GFSC | 4.2 ⭐ |
| 7. Eightcap | $100 | Standard, Raw, TradingView Account | 50+ | 0.1 pips on Standard and TradingView Accounts; 0.0 pips Raw Accounts | $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts | 1:30 (ASIC, CySEC)1:500 (FSA) | MetaTrader4, MetaTrader5, WebTrader, TradingView, Capitalise.ai, FlashTrader | SCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296), FSC (GB25204603), FSA (SD100), SCA | 4.0 ⭐ |
| 8. IG | $0 | Spread Betting Account, CFD Trading Account, Limited Risk Account, DMA Account, Islamic, Professional, Demo, Options and Share Dealing Accounts* | 90+ | from 0.6 pips Forex trading; 0.165 pips av. spread DMA trading | $0 | 1:30 (Retail)1:500 (Professional) | MetaTrader4, L2 Dealer, ProRealTime, IG proprietary software, TradingView, | ASIC, FCA, DFSA, CFTC, FMA, FINMA, BaFin, MAS, JFSA, FSCA, BMA (Bermuda) | 3.9 ⭐ |
| 9. Admirals | $100 | Trade (Standard), Invest (MT5), Zero | 82 | From 0.0 pips (Invest and Zero Accounts), 0.5 pips (Trade Accounts) | $3 per lot | 1:30 (Retail)1:500 (Professional) | MetaTrader4, MetaTrader5, WebTrader, MT Supreme Edition, StereoTrader | CySEC (No. 201/13), ASIC (No. 410681), FCA (No. 595450), JSC (No. 57026), FSCA (No. FSP51311), EFSA (No. 4.1-1/46), CMA (No. 178), CIRO, FSA (No.SD073) | 3.8 ⭐ |
| 10. XM Group | $5 | Demo, Standard, Micro, Ultra Low, XM Zero, Shares Account, Islamic Account | 50+ | From 0.0 pips (Zero Account), from 0.8 pips (Standard and Micro Accounts) | $0 Ultra Low Micro and Ultra Low Standard Accounts; $3.50 per side XM Zero Account | 1:30 for CySEC and ASIC Entities (1:1000 for Other Jurisdictions) | MetaTrader4, MetaTrader5, MT4 WebTrader, MT5 WebTrader, MT4 Multiterminal, XM App | CySEC (license no. 120/10), FSC Belize (license no. 8557558 ), FSC of Mauritius (GB23202700), FSA Seychelles (SD190), DFSA (ref. no. F003484), FSCA (49976), SCA (20200000322), CMA (233), Registrations for EU passporting: - BaFin, CNMV, MNB, CONSOB, ACPR, FIN-FSA (Finland), KNF, AFM, FI | 2.7 ⭐ |
Types of Automated Trading
As mentioned, there are many forms of automated trading software, using various charts and sources of information to spot trends indicating potential profits for opening a trade. Automated trading software generally falls into two broad categories, distinguished by how they determine the criteria for opening and closing trades:
- Copy/Social Trading: Tools that automatically duplicate the trades of other, usually more experienced, human traders.
- Trading Bots (Algorithmic Trading): Software that autonomously analyzes market data, charts, and news to identify profitable trades based on preset algorithms or rules.
Copy/Social Trading
Copy/Social trading is a popular automated tool integrated into several trading platforms. A wide range of brokers support trading tools like ZuluTrade and DupliTrade, which are typically integrated into the MetaTrader platform. These software solutions allow you to track the trades and suggestions of more experienced traders, with ZuluTrade automatically executing orders identical to those of other traders. Copy trading is popular with many traders, but it does require some time to investigate different expert investors and choose which traders’ orders are worth mirroring/copying.
Trading Bots (Algorithmic and Expert Advisors)
Social trading is not for everyone, which is why there is also the option to choose automated trading with bots. Instead of relying on the decisions of other traders who might be influenced by various factors, automated trading with bots will simply place orders based on algorithms that have been predetermined by you or an Expert Advisor (EA) software you have purchased. Bots will track markets and execute orders whenever clear market indicators show a trade that may be profitable.
Both social and bot-automated trading have their strengths and weaknesses, and it is up to your experience, free time, and other preferences to pick whichever form of automated trading is more suitable for you.
Best Automated Trading Platforms
Luckily, reputable retail brokers typically offer popular trading platforms that support social/copy trading or allow the use of EAs for algorithmic trading. Whichever version of automated trading is your preferred method, you still need to know which platform will offer you the easiest and most profitable Forex trading experience.
Whether you are new to forex trading or you have been a long-term currency trader, you have most likely heard of MetaTrader 4, MT4 for short. This is the first platform that was developed for the purpose of online trading, making it accessible to any type of trader. MT4 has adopted a wide range of tools, including copy/social trading features.
The platform allows its users to develop, test, and integrate EAs into their forex trading sessions. Thanks to the MQL4 IDE (Integrated Development Environment), MT4 users can develop their trading strategies and use trading bots that can automatically execute orders based on indicators they have been instructed to track and spot while analyzing the forex market.
MetaTrader 5 (MT5) is considered the more sophisticated version of its predecessor, MT4, and also offers traders the chance to use trading bots for algorithmic (automated) trading. Thanks to the MQL5 IDE environment integrated into MT5, Forex traders can develop, test, debug, and utilize trading bots for their algorithmic trading experiences.
While MT4 and MT5 are supported by many retail brokers, brands have also adopted the cTrader platform, which is a great solution for more innovative forex trading sessions, enabling the use of various tools, including automated trading features like cBots, indicators, and algorithmic plugins. Traders can develop new indicators, cBots, and plugins as long as they use cTrader Desktop. Once created, these tools can be used for automated trades, based on detailed market analysis.
As mentioned earlier, copy/social trading is also a form of automated trading that can be utilized by forex traders. One popular platform for copy trading is DupliTrade, which is available at plenty of retail brokers. It allows its users to pick a strategy provider (expert trader) to copy, enabling DupliTrade clients to adjust their trading parameters when it comes to mirroring a strategy provider’s order.
Social automated trading is also popular on the ZuluTrade platform, which is supported by several reputable retail brokers. Expert traders can register to share strategies, and their performance is ranked by ZuluRank. This allows investors to select top traders and automatically copy their positions. Users can apply over 40 filters to choose suitable experts, considering metrics like profit, drawdown, and trading style. ZuluTrade also features ZuluGuard, a risk management tool that protects investors by adjusting or stopping strategy copying if performance deviates.
Pros and Cons of Automated Trading
If you are still wondering whether automated trading is a suitable strategy for your forex trading, you can compare the drivers and restraints of using this type of trading software. Below, we have drawn a comparison between the pros and cons of using automated trading software for your forex trades:
Key Pros
- Trades are based solely on algorithms and logic, eliminating the emotional element
- Suitable for busy investors, allowing automated trades even when not logged into their trading accounts
- Optimizes trading, allowing opening and closing trades at the most profitable price points according to your parameters
- Automated trading is implemented into the majority of popular trading platforms adopted by top-notch brokers
Key Cons
- Finding the right expert to copy when mirroring/copying trades can require time and extra research, and positive results are not guaranteed
- Not every trader can develop successful trading algorithms, which often leads to purchasing EAs available online
- Automated trading can be quite risky, requiring regular strategy adjustments that may require more of your free time
FAQs
The use of automated trading software is legal and can be used in several markets, including forex. There are no legal restrictions forbidding the use of trading bots or copy trading tools whenever you are trading currency pairs. However, we suggest making sure that the broker of your choice has not imposed any restrictions on the use of automated/algorithmic trading platforms.
While it is true that most popular forex trading platforms support the use of automated trading tools, you should keep in mind that the broker might not allow its clients to use them. The majority of reputable brokers are suitable for automated trading.
Automated trading is quite convenient for some traders, but it is not necessarily more profitable than placing your forex orders yourself. Automated trading can free up time required for proper market monitoring, enabling quick order executions whenever the software indicates potentially profitable market movements.
Copy trading and social trading do share a lot of similarities, allowing traders to make automated trades based on the act of mirroring the trades of more experienced forex investors. However, copy trading lacks the social element, with instant duplication of trades without any further interaction with the expert you copy. Meanwhile, social traders are constantly communicating with each other, comparing strategies, and making the trading process a lot more interactive.
Like any other type of technology, automated trading can experience some technical failures. However, for traders, many platforms that allow the development of trading bots also have testing and debugging of any failures. Remember that you cannot rely on automated trading to be fail-proof all of the time.