The post Best Forex Auto Trading Software by Stjepan Kalinic appeared first on Benzinga. Visit Benzinga to get more great content like this.
Automated forex trading is more prevalent than an average trader might expect. While for stocks, this number goes above 70%, in the forex market, it is closer to 90%.
Brokers offer solutions through a trading platform or third-party software for traders who want to explore automating their efforts. This article will look into the best broker software solutions for automated forex trading.
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Table of contents
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Quick Look: Best Forex Auto Trading Software
- Best for Forex Backtesting for New Traders: ForexTester Software
- Best for Beginner Automated Traders: FOREX.com
- Best for Developers: OANDA
- Best for Social Traders: eToro
- Best for Multi-Asset Traders: TD Ameritrade
5 Best Forex Auto Trading Software Options
Automated trading requires a reliable and regulated broker-side solution. Benzinga’s choices follow.
1. ForexTester Software
Best for Forex Backtesting for New Traders: ForexTester Software
ForexTester is a powerful trading simulation software that offers traders the opportunity to test their trading strategies before they enter the market. ForexTester Software also has a special Crypto Tester, for people, who want to try themselves in Crypto.
Instruments: Forex and cryptocurrencies
Platform: Web trading and mobile trading (Windows and IOS using Parallels Desktop)
Minimum Deposit: $0
Special Features:
- Strategic trade backtesting for expert traders
- Allows new and seasoned traders to develop and test strategies using detailed analysis charts and tools provided by the backtesting software
Benefits:
- Access to an enormous range of currency pairs
- Simple user interface
- Customizable screens and charts
- Excellent customer support
Disadvantages:
- Not suitable for all trading platforms
Get started
securely through Forex Tester’s
website
ForexTester is insightful backtesting software offering traders a platform to practice forex trading and backtest strategies. Designed for all trading skill levels, from beginners to professional traders, ForexTester gives users access to 22 years of historical data.
The platform is easy to navigate with a user interface similar to most trading screens. Traders use the platform to enter and exit trades over a chosen timeframe. You set the rules of engagement, and ForexTester reports your performance, tracking your profits and losses and logging them for future analysis.
You can use forex backtesting for multiple trades in different timeframes, testing various strategies. Artificial Intelligence (AI) optimizes trading strategies.
Best For
- Forex backtesting for new traders
- Strategic trade backtesting for expert traders
- Allows new and seasoned traders to develop and test strategies using detailed analysis charts and tools provided by the backtesting software
- Access to an enormous range of currency pairs
- Simple user interface
- Customizable screens and charts
- Excellent customer support
- Only suitable for use with the Windows operating system and IOS using Parellels Desktop
2. FOREX.com
Best for: Beginner automated traders
A specialized global broker operating since 2001 under the umbrella of StoneX Group Inc., FOREX.com trades on the Nasdaq stock exchange under the ticker SNEX and publishes quarterly earnings results. It has a long and successful track record of adhering to regulations from multiple global financial authorities.
Instruments: Forex, cryptocurrencies, contract-for-difference (CFD)
Platform: Web trading, mobile trading (iOS and Android), desktop platforms (Advanced Trading Platform, MetaTrader 4)
Minimum Deposit: $100
Special Features:
- Comprehensive educational library structured by topics, including webinars, quizzes and performance analytics tools.
Benefits:
- Low fees
- Great selection of forex pairs
- High number of research tools
- Application programming interface (API) access
Disadvantages:
- Lack of negative balance protection
- Desktop platform not as user-friendly as it might be
get started
securely through FOREX.com’s
website
FOREX.com is a one-stop shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker.
Best For
- MetaTrader 4 users
- Beginner forex traders
- Active forex traders
- Impressive, easy-to-navigate platform
- Wide range of education and research tools
- Access to over 80 currencies to buy and sell
- Leverage available up to 50:1
- Cannot buy and sell other securities (like stocks and bonds)
3. OANDA
Best for: Traders who want to improve their coding ability and develop automated trading systems independently.
A U.S.-based broker operating worldwide since 1996, OANDA is a highly regulated broker licensed by the U.S. Commodity Futures Trading Commission (CFTC), the National Futures Association (NFA) and the Financial Conduct Authority (FCA).
Instruments: Forex, CFDs
Platform: Web trading (OANDA and MetaTrader), mobile trading (iOS and Android), desktop (OANDA Trade, MetaTrader 4)
Minimum Deposit: $0
Special Features:
- Dedicated developer portal with extensive resources and code samples
Benefits:
- Great selection of trading platforms
- Low trading fees
- Application programming interface (API) access
Disadvantages:
- Inactivity fees
- Narrow product portfolio
- OANDA Trade doesn’t support expert advisors (EAs)
Get started
securely through Oanda’s
website
OANDA offers commercial and standard access to the forex market, with over 70 currency pairs to trade. OANDA’s platform is comprehensive, offering a wide range of indicators and charting tools for experts as well as a simple and intuitive layout that’s perfect for beginners.
You won’t find retirement savings or stock trading on OANDA — the platform doesn’t offer any type of trading beyond the forex market. However, the broker does forex trading especially well — though it could stand to offer more in the way of customer service and lower fees.
Best For
- New forex traders looking for an easy-to-use platform
- Mobile traders who need a comprehensive on-the-go offering
- Experienced forex traders who seek a wide selection of charting tools, indicators and currency pairs
- Over 70 unique currency pairs to trade
- Comprehensive and easy-to-understand platform
- Mobile platform improves upon the desktop version
- Only forex trading available
- No retirement accounts available
4. eToro
Best for: Traders who focus on forex and cryptocurrencies and enjoy the experience of social trading
An Israeli fintech company that has been on the global market since 2007, eToro is regulated by the Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC) and Cyprus Securities and Exchange Commission (CySEC).
Instruments: Forex, crypto, stocks, exchange-traded funds (ETFs)
Platform: Web trading, mobile trading (iOS and Android)
Minimum Deposit: $10
Special Features:
- Social trading
- Smart portfolios
Benefits:
- Fast account opening
- Low trading fees
- Extensive educational library
Disadvantages:
- High withdrawal fees
- No desktop-based platform
- Only one base currency supported
get started
securely through eToro’s
website
Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).
eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.
Best For
- International Forex/CFD Traders
- New cryptocurrency traders looking for an easy-to-use platform
- Traders who want to buy and sell cryptocurrencies on-the-go
- Simple platform that is easy to master
- CopyTrader feature that allows new traders to copy the same strategies used by professionals
- Virtual dummy account that gives you $100,000 to practice trades
- U.S. traders currently limited to cryptocurrencies
- Only 15 major coins available to trade
5. TD Ameritrade
Best for: Multi-asset traders
An American stockbroker company operating since 1975, TD Ameritrade is scheduled to integrate into Charles Schwab Corporation by 2023.
Instruments: Forex, cryptocurrencies, stocks, bonds, options, futures, ETFs
Platform: Web platform, mobile platform (iOS and Android), and desktop platform (thinkorswim).
Minimum Deposit: $0
Special Features: Its thinkorswim platform — one of the best desktop trading platforms
Benefits:
- Great educational library, including automated trading in particular
- Broad selection of research and trading tools
- Commission-free trading with no hidden fees
Disadvantages:
- Limited deposit and withdrawal options
- Lack of two-factor authorization for safer logins
- Account base currency available only in U.S. dollars
get started
securely through TD Ameritrade’s
website
This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.
Best For
- Novice investors
- Retirement savers
- Day traders
- World-class trading platforms
- Detailed research reports and Education Center
- Assets ranging from stocks and ETFs to derivatives like futures and options
- Thinkorswim can be overwhelming to inexperienced traders
- Derivatives trading more costly than some competitors
- Expensive margin rates
What is Forex Auto Trading?
Forex auto trading is a type of trading where all trading decisions fall under the independent control of a machine. It transforms a rule-based trading strategy into an automated program that executes and manages trades without external input.
An auto trading system achieves its goals by avoiding ambiguity and strictly defining the rules for entry, exit and the market’s direction. This approach requires using programming languages like MQL, based on C++.
Does Forex Auto Trading Work?
Auto trading works, but it is only as good as the underlying strategy behind it and the programmer’s ability to transform it into a working algorithm. In contrast to advertisements that offer turnkey solutions, the best automated trading solutions are developed in-house at financial institutions and never become available to retail markets. Thus, it is unlikely that the broadly available black box solutions can deliver outstanding results — at least comparable to seasoned traders’ manual results.
Expert Advisors vs. Forex Robots
Much misinformation exists in the forex industry, especially regarding automated trading.
While some may think there are differences between EAs and forex robots, these are interchangeable terms. An EA is a set of rules compiled into an executable program that runs on a trading platform like MetaTrader.
However, in addition to automatically executing the trades, depending on the setup, it can only notify traders when a promising trade might be set up — allowing them to enter at their own discretion. Yet, this setup doesn’t take away the ability to trade fully autonomously.
Automation is Situational
In contrast to advertisements promising turning beginners into forex millionaires, the truth about automated forex trading is more complex. Since saving time is the main benefit of automated trading, positional traders who focus on a long time horizon don’t benefit much.
Outside of the social trading aspects, beginners have odds stacked against them as automated trading requires experience and coding ability. Most traders should focus on polishing their skills and expertise until automated trading becomes a viable replacement for their effort.
Best Online Forex Brokers
Choosing the right forex broker involves research of services and tools for your trading plan and experience level. Make sure you check out forex platforms using a demo account before you deposit any real money.
Benzinga has put together a table to compare top brokers. You can also look over our FOREX.com review to get a comprehensive forex broker review.
Claim Exclusive Offers
get started
securely through FOREX.com’s
website
FOREX.com is a one-stop shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker.
Best For
- MetaTrader 4 users
- Beginner forex traders
- Active forex traders
- Impressive, easy-to-navigate platform
- Wide range of education and research tools
- Access to over 80 currencies to buy and sell
- Leverage available up to 50:1
- Cannot buy and sell other securities (like stocks and bonds)
get started
securely through IG Markets’s
website
IG is a comprehensive forex broker that offers full access to the currency market and support for over 80 currency pairs. The broker only offers forex trading to its U.S.-based customers, the brokerage does it spectacularly well. Novice traders will love IG’s intuitive mobile and desktop platforms, while advanced traders will revel in the platform’s selection of indicators and charting tools. Though IG could work on its customer service and fees, the broker is an asset to new forex traders and those who prefer a more streamlined interface.
Best For
- New forex traders who are still learning the ropes
- Traders who prefer a simple, clean interface
- Forex traders who trade primarily on a tablet
- Easy-to-navigate platform is easy for beginners to master
- Mobile and tablet platforms offer full functionality of the desktop version
- Margin rates are easy to understand and affordable
- Access to over 80 currency pairs
- U.S. traders can currently only trade forex
- Customer service options are lacking
- No 2-factor authentication on mobile
get Started
securely through CedarFX’s
website
Billing itself as the world’s 1st eco-friendly broker, CedarFX makes it easy to trade and give back to the planet. You can choose a 0% Commission Account or an Eco Account — or open multiple accounts to meet all your needs.
CedarFX offers access to a wide range of tradable securities, including stocks, futures, major and exotic forex pairs, cryptocurrencies and more. Though CedarFX could introduce a few additional educational resources, the broker remains a unique option for traders invested in giving back.
Best For
- Forex investors
- Investors interested in 0% commission or eco conscious trading
- Investors looking for 24/7 customer service
- Allows users to offset their carbon footprint
- 0% commission investing
- Offers demo account access
- 24/7 customer service available through live chat
- Eco Account Option (10 trees planted for each lot traded)
- Fast deposits/withdrawals with Bitcoin
- Limited number of educational resources for new investors
Get started
securely through HYCM’s
website
HYCM is 1 of the world’s leading forex brokers, offering investors access to over 69 unique currency pairs. However, forex isn’t the only thing the broker offers — HYCM also offers high rates of leverage, stock and ETF trading, commodity investing and much more. Getting started with HYCM is quick and easy, and most investors can open an account in as little as 10 minutes.
HYCM offers a varying fee structure, which allows investors to choose the spread option that’s best for them. A wide range of educational and investing tools are available, which can be equally beneficial to both experienced and novice traders. Though HYCM isn’t currently available in the United States, it can be a great choice for residents of the other 140 countries where it offers service.
Best For
- Investors who want a customizable fee schedule
- Traders comfortable using the MetaTrader platform
- Islamic traders who need swap-free accounts that don’t build interest
- Mobile app with a simple trading experience
- Wide range of currency pairs available
- Excellent selection of educational tools
- Not currently available to traders based in the U.S.
Get started
securely through AvaTrade’s
website
A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.
Best For
- Beginners
- Advanced traders
- Traders looking for a well-diversified portfolio
- Controlled by regulatory agencies of multiple countries
- Choice offered in terms of trading platforms
- Support available in 14 languages and trading platforms in 20 languages
- Practice/demo account available for trying out
- Breadth of trading assets
- Does not accept customers from the U.S. as it isn’t regulated in the U.S.
- Transferring funds to the account may take up to five days; withdrawals could take up to 10 days
Get started
securely through Pepperstone’s
website
Pepperstone is an Australian broker focused on providing international forex, CFD and cryptocurrency trading. Though U.S. traders currently cannot open an account with Pepperstone, the broker remains an affordable and comprehensive option for international traders.
Pepperstone offers traders access to over 61 forex markets, over 60 CFDs for index funds and stocks and 5 cryptocurrencies. Leverage options with Pepperstone are extensive; you may qualify for up to 500:1 leverage when trading currencies and up to 5:1 leverage when trading cryptocurrencies, for example.
There are a few areas where Pepperstone can afford to improve. We’d love to see Pepperstone add its own trading platform in the future instead of relying entirely on 3rd-party platforms. We’d also love to see direct stock and fund purchase options in the future. Despite these flaws, Pepperstone remains a very strong choice for international traders.
Best For
- International traders interested in trading CFDs from foreign markets and currencies
- Traders who are already familiar with the MetaTrader or cTrader platforms
- Traders who are looking for leverage when trading cryptocurrencies
- Access to over 61 forex pairs and over 60 stock CFDs
- Leverage available for both forex and cryptocurrency trading
- Wide range of educational tools and courses that both beginners and experts can use
- 24/7 customer service
- Not currently available to U.S. traders
- No option to purchase stocks, bonds or mutual funds directly; only CFDs are available
get started
securely through IFC Markets’s
website
Standard Accounts: $1,000
Founded in 2006, IFC Markets is a popular forex and contracts for difference (CFD) broker that provides high-quality trading services to over 185,000 clients from more than 80 countries. The broker has oversight from the British Virgin Islands Financial Services Commission (BVI FSC) as well as the Labuan Financial Services Authority (LFSA) in Malaysia.
IFC Markets offers trading in over 600 financial instruments including forex, stocks, indices, commodities, cryptocurrency futures and synthetic assets through excellent trading platforms: MetaTrader 4, MetaTrader 5 and its own developed NetTradeX advanced platform. IFC Markets also gives clients unlimited trading opportunities via its unique GeWorko Portfolio Quoting Method that lets traders create their own synthetic instruments or choose from PCI Library, synthetic instruments created by professionals.
Best For
- Traders who want to create their own trading instruments
- Intraday and mid-term traders
- Small volume traders
- Trading platforms variety
- The GeWorko Portfolio Quoting Method lets you create synthetic assets
- 15 years experience in the business
- Highly rated by clients with 8 recent international awards
- Insured by AIG Europe Ltd.
- Only regulated by 2 minor agencies
- Not available to traders in the U.S., Japan and Russia
Frequently Asked Questions
Can forex be automated?
Every forex trade has four key decisions: direction, entry-level, take-profit level and stop-loss. Each of them can be algorithmically decided, allowing for the complete automation of forex trading.
Answer Link
What are some excellent forex auto trading programs?
While MetaTrader 4 & 5 are an industry standard, other viable options include cTrader and TradingView. However, these software providers require a custom-coded strategy and a reliable forex broker to execute the trades.
Answer Link
What are the benefits of using forex auto trading software?
Trading forex can be a time-consuming process. Saving time is the main benefit. Automated trading allows tracking more markets with faster reaction time, improving profitability and mitigating emotions that impact the trading process.
Answer Link
The post Best Forex Auto Trading Software by Stjepan Kalinic appeared first on Benzinga. Visit Benzinga to get more great content like this.
