Compare the best forex robots for auto-trading
Wondering if a forex robot can boost your investment profits? In this guide, we’ll take you through the key factors to consider if you’re contemplating the virtues of robotic assistance.
Where can I find the best forex robots?
We’ve carefully selected and reviewed a list of the best forex robots available on the market. Scan the different parameters and choose the one that fits your needs. If you’re still not sure how to find the best bot for you, read on.
Read forex robot reviews
Aren’t sure how to choose? That’s exactly why we’ve provided reviews for you to read and compare the autotraders available. Alternatively, you may be looking for a review of Bitcoin Era, analysis of Bitcoin Revolution or our investigation of Bitcoin Profit – which are all robots that automatically trade cryptocurrencies.
What is autotrading?
Forex autotrading (or auto-trading) refers to a trading system that uses technical analysis and indicators to determine the best time to buy or sell a currency pair in order to optimise profits. The computer program makes decisions using algorithms that factor in market rates, recent news and price analysis.
What are auto-trading forex robots?
Autotrading forex robots (aka, automated trading software, expert advisers (EAs), forex trading robots) are computer programs that can assist traders by carrying out their trades in an automated manner. Forex robots monitor the markets round the clock and perform technical analysis based on their respective algorithms.
Trading robots carry out trading decisions on behalf of traders by finding currency pairs, deciding the best entry and exit points in the market and keeping your losses to an absolute minimum.
How do forex robots work?
Using a combination of mathematical and programmable skills, a robot is built with the primary purpose of carrying out your trades. To do this, they use an array of technical indicators and continuously scan the market in order to detect trading signals and act on them. They perform market analysis and make trades without emotion.
A forex robot can also support the trading strategies of more experienced traders. Users can access commonly available technical indicators to build rules for automated trading. For example, a user could input the condition for a long position trade to be executed when the 50-day average for the currency pairs exceeds the 100-day average on a 20 minute chart period. By inputting such conditions, the trade is automatically carried out, without the need for the trader to input it manually.
Robots also allow traders to set their own custom indicators. As soon as a trade order is executed, any protective mechanisms (stop loss or trailing orders) will be triggered in accordance with the trader’s instructions.
Are forex robots legit? Will they make me money?
Yes, many popular robots are entirely legitimate and designed to maximise trading potential. However, as with almost any market, scams are not uncommon, so a sensible degree of caution is advisable when finding the software for you.
Unlike humans, robots can monitor markets 24/7 and are devoid of any emotional or psychological factors. They can also process data at a much higher speed. These advantages can give forex auto trading robots an edge.
Of course, utilising a robot doesn’t necessarily mean forgoing all human input. Traders can set their own custom indicators and work alongside the robot. While trading robots offer better analysis and add efficiency to your trading, they don’t come with a guarantee of profits. Ultimately, that remains your responsibility.
Are robots safe and secure?
Yes, most of the autotrading robots use industry-grade security practices to avoid getting hacked. When trading with robots, a user is vulnerable to displaying their personal information, financial history, investment strategies, and credit or debit card numbers, so caution is definitely advised.
Trustworthy robots offer encryption for user’s passwords and facilitate high-grade security by hiding trading activity from brokers and hackers. At the same time, cyber-attack techniques have grown sophisticated in the last few years. Here are a few key precautions that should help to keep you safe:
- Avoid using robots on a public network or public computer.
- Install a good antivirus software program on your computer when using a forex robot.
- Keep your systems and browsers up-to-date with the latest firewalls.
- If you’re using a mobile app make sure you have additional security protocols like 2FA in place.
How to choose your perfect forex robot
If you’re a beginner, choosing suitable autotrading software that meets your requirements can be tricky. We’ve compiled a list of factors that should assist you in selecting a robot that suits all your needs.
- Backtesting – Good robots allow you to backtest your present trading idea or strategy against historical data. Backtesting allows traders to create an optimum strategy and increases the likelihood of success.
- Live Trade Results – It’s common for service providers to display the winning ratio for robots using simulated results rather than live results. It is a manipulative practice that showcases the robot’s winning outcomes at a much higher rate. Try to ensure you evaluate a robot’s live trading results rather than stimulated results.
- Fees and Cost – Analyse and study the fee structure of several robots before you sign up. Some robots offer a monthly subscription for a period of 1 month, 3 months, 6 months and so one. Other robots require you to pay a one-time subscription payment. You’ll also find that robots have differing minimum investment amounts.
- Drawdown – Each trader operates in their own style with varying percentages of drawdown. This can range from 25% to more than 50%, depending on the forex robot. Check if the drawdown offered by the trading robot meets your specific needs.
- Multiple Payment Methods – Most forex robot service providers offer common payment methods, including wire transfer, credit card and PayPal. In addition to the traditional methods, many software providers have also started offering bitcoin and other cryptocurrencies as payment options.
- Deposit and Withdrawal Limits – Deposit limits may vary between service providers. Robots require you to fund your account with a minimum investment, which can be as low as $100, for Big Breakout FX robot, and as high as $250, for BinBot FX robot.
- Good Reputation – Before picking your software, take a close look at any online testimonials you can find and verify that customers are completely satisfied. We also offer genuine reviews that should help you to make a well-informed decision.
- Security – The software program will be installed on your computer or laptop hard drive. It will be privy to your private financial history and personal information. You need to check if the service provider is offering encryption and keeps your trading history hidden.
- Design and Ease of Use – The user-interface should be fairly simple and easy to navigate. Sign up for a demo account on the software platform and get acquainted with the program before you start trading with real money.
Will I also need an online broker account?
Yes, autotrading forex robots require a trading account that is both live and funded. If you haven’t already signed up for an account, we suggest selecting one from this list of forex brokers, or this list of the best CFD brokers.
The advantages of using automated trading software
Before you consider using an autotrading robot for forex trading, consider the following advantages and drawbacks:
- Eliminate emotions – One of the primary advantages of using a robot is that it can help to keep emotions in check. Autotrading software automatically carries out trades as per the specified instructions. It isn’t influenced by emotions like fatigue or stress.
- Accessibility – For a beginner, the forex market can seem complex. Robots offer a route in.
- Backtesting – Robots provide you with the tools to backtest a trading strategy or an idea. By backtesting an idea based on historical data, a trader can fine-tune their strategy.
- Discipline – Every successful trader knows the value of discipline and forex markets are especially volatile so maintaining a controlled approach is imperative. Automated trading enables you to set the ground rules and stick to them.
- Entry speed – The volatility of forex markets means that it’s possible to make a huge loss very quickly. Robots act with enhanced speed and can enter and exit a trade with precise timing.
What are the drawbacks?
- Technological discrepancies – Robot software programs need a continuous internet connection to function effectively. A lost internet connection can result in negative outcomes, including missend trade orders, the placing of hypothetical trade orders, etc.
- Monitoring requirements – Although forex robots conduct automatic trading, a certain level of human intervention and monitoring is required to prevent potential mechanical failure and discrepancies in the software network.
- Over-optimisation – Over-optimisation of trades can result in negative results. Useful tools like backtesting don’t guarantee success. Live trade results can turn out to be very different to trade outcomes displayed while backtesting.
Should I use a forex robot?
It’s up to you to weigh up the benefits of forex trading robots. There’s no doubt that a good robot has the potential to seriously upgrade your trading capabilities, but It’s important to keep in mind that robots don’t guarantee profits. While robots can clearly add speed, accuracy and discipline to your trading, you should regard them as tools to be deployed intelligently rather than fix-all solutions.
This is completely dependent on your trading ability. If you are an experienced trader, robot trading software can be a useful tool to sharpen your skills. Equally, if you’re just starting out, a robot can provide a platform to help you improve your trading skills. But do keep in mind that robots don’t guarantee profits.
Yes, similar tools have also been developed for other forms of trading. For instance, cryptocurrency traders can also find crypto trading robots that enable automation in the crypto market.
Yes, most of the robots are pretty simple to use. You should be able to check out the user-interface by signing up for a demo account on a platform that interests you.
Robots are a computer program that can be installed in a few simple steps. Usually, download > install > connect to your broker account.
You can install robot trading software on your desktop. In some cases you can use on your mobile device; but this is very much a desktop application.
It depends on the service provider you choose. Backtesting doesn’t always translate into a profitable strategy.
Yes, it is completely legal to trade FX using online trading robots in the UK. However, regulations pertaining to Forex and robots may vary in other countries.
Most of the popular robots do not allow you to trade anonymously and it isn’t advisable to conduct anonymous trades.
Your trading history is accessible from the online CFD broker platform. Some autotrading providers offer it within the robot, but not always.
Yes. This depends on the profits you generate over the course of a year. For example, in the UK, if you make a significant amount in profits (£11,700) you are liable to pay capital tax gains that range anywhere between 10-28% of that amount. You are not accounted to pay income tax returns on the generated profits. Tax liability varies according to the jurisdictional laws of your country.
Yes, in the UK, CFD platforms and robots are regulated by the FCA. If you’re not from the UK, please check the regulatory status in your home country.
- 1. Compare the best forex robots for auto-trading
- 2. Where can I find the best forex robots?
- 3. Read forex robot reviews
- 4. What is autotrading?
- 5. What are auto-trading forex robots?
- 6. How do forex robots work?
- 7. Are forex robots legit? Will they make me money?
- 8. Are robots safe and secure?
- 9. How to choose your perfect forex robot
- 10. Will I also need an online broker account?
- 11. The advantages of using automated trading software
- 12. What are the drawbacks?
- 13. Should I use a forex robot?
- 14. FAQs