Forex traders used to dream of being able to automate trading plans. The relatively recent availability of trading platforms like the MetaTrader suite made this dream come true.
You can now either do some programming yourself or hire a programmer to code your trading plan. Other services now provide ready-made automated trading plans. Read on to find out more about forex auto trading and how to get started.
What is Auto Forex Trading?
Automatic forex trading involves software that runs scripts you can program yourself or purchase. It can also involve the use of services to automatically trade your account based on the service’s proprietary trading plan.
Another form of automated forex trading is provided by online brokers that facilitate copy trading that duplicates an expert trader’s transactions in your personal trading account.
Does Automated Forex Trading Work?
The best thing about automated forex trading is it can take the emotions and human error out of the trading process. Any trading plan is only as good as its established track record in a live trading account. You will need to make sure your trading plan makes a consistent profit before taking the time to code it or hire someone to do that for you.
Most 3rd party automated trading services have already gone through that process and continue to tweak their plan based on changing market conditions to help assure maximum returns for clients.
Making Money with Auto Forex Trading
You can make money with auto forex trading if your own trading plan (or a plan you pay to subscribe to) turns out to be profitable. But market conditions change over time. Remember that a system that works over some historical time frames may not remain profitable in the future.
Most auto forex trading systems and services use technical analysis to determine when to enter and exit the market. While that market analysis method has a strong following, it’s also known to break down during times when the currency market is adjusting quickly to new information.
Such breakdowns can cause unexpected losses when your auto trading system blindly follows technical trading signals without human discretion and an understanding of underlying conditions. It may be wise to stop a technical automatic system from trading during major economic and geopolitical events.
Best Automated Forex Trading Software
Most people think of automated trading as software-driven or trade performed by a 3rd-party expert advisor. But other types of automated trading include a forex trading robot service and automated copy trading that mirrors the transactions of an experienced trade.
Benzinga has reviewed the available options. Take a look at our top picks for automated forex trading.
1. Best Overall Automated Trading Software: MetaTrader 4 or 5
The MetaTrader 4 and 5 (MT4/5) trading platforms from MetaQuotes have dominated the automated online forex trading market for years. Most top forex brokers support trading via 1 or both platforms.
Using these platforms’ built-in MQL4 or MQL5 programming languages, you can code your own expert advisor (EA) to automate your trading plan. You can also have 1 of the available expert EA developers code it for you. The software also has an extensive user community and a large number of EAs written by 3rd-party developers you can run on your MT4/5 installation.
MT4/5 also hosts a wide range of expert traders whose trading signals you can review and copy. You do this using the trading platform’s inbuilt social trading feature available under its Signals tab. You can follow some signals for free. Others involve a subscription cost of some type.
This free online trading software remains the gold standard for automated forex trading for retail traders.
2. Best Forex Trading Robot Service: DAXrobot.com
The DAXrobot service allows you to choose a forex trading robot from its top offerings clearly ranked by success. You can also use DAXrobot’s web-based platform to create and run your own trading robot, which many traders find easier than trying to code one in MT4/5.
To make your own robot, select which currency pairs you want to trade and at least 3 indicators. The only broker you can use DAXrobot with is DAXbase operated by Clever Technologies. It requires a $250 minimum deposit to get started.
3. Best Automated Copy Trading Service: eToro
While eToro doesn’t allow you to automate your own trading plan, the online broker can automatically follow and copy the trades of 1 or more of the expert traders featured in its social trading service. These traders have an established track record you can review for proven, consistent profitability.
eToro allows you to trade over 2,000 different assets and offers a free demo account to check out its services. Almost any trader can use eToro’s intuitive forex platforms and apps. When it comes to educational resources, eToro has some excellent offerings. The online broker even accepts U.S. based traders as clients from most states.
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 see how other brokers compare with that top U.S. based broker.
Is Automated Forex Trading Right for You?
Many traders find automated forex trading an attractive idea. But the need for a consistently profitable trade plan, a trustworthy trading robot or expert trader to copy stops them from going forward.
Automated forex trading can help you enter forex trading. You can realize your dream of financial independence by growing your trading capital over time without much effort.
Frequently Asked Questions
What are some excellent forex auto trading programs?
There are numerous choices to include MetaTrader4, Zen Trading Strategies and eOption.
What are the benefits of using forex auto trading software?
It allows you to backtest strategies, diversify positions and decrease emotional trading decisions.
FOREX.com, registered with the Commodity Futures Trading Commission (CFTC), lets you trade a wide range of forex markets plus spot metals with low pricing and fast, quality execution on every trade.
ForexSignals.com offers a highly rated platform with mentors who have 80 years of combined experience in the trading pits. They’ll help you decode real-time daily live streams using market analysis, trade signals and more. ForexSignals.com doesn’t stop there. You can access hundreds of educational videos and workshops and even individualized private sessions with mentors. Never trade alone! Join ForexSignals.com now.