Automated Forex Trading Systems

Traders and investors can turn precise entry, exit, and money management rules into automated trading systems that allow computers to execute and monitor the trades. One of the biggest attractions of strategy automation is that it can take some of the emotion out of trading since trades are automatically placed once certain criteria are met. Many processes have been made more efficient by algorithms, typically resulting in lower transaction costs. Yet, these are not the only factors that have been driving the growth in forex algorithmic trading. Banks have also taken advantage of algorithms that are programmed to update prices of currency pairs on electronic trading platforms. These algorithms increase the speed at which banks can quote market prices while simultaneously reducing the number of manual working hours it takes to quote prices.

automated forex trading system

Based on our testing, Pepperstone is the best MT4 broker for Australians. The Melbourne-based broker offers low spreads and a good selection of CFDs with cryptos and shares, as well as add-on tools to enhance trading conditions. Founded in 2007, the online broker eToro quickly made a name for itself and its proprietary trading platform by emphasising the social aspect of day trading. More than a decade later, eToro boasts one of the largest, most active social-copy trading communities of any brokerage. We also appreciate that IG’s size means the broker can offer a more comprehensive range of trading software and tools, including ProRealTime. CTrader Automate offers sophisticated backtesting features, meaning you can easily optimise cBots by testing them against historical data.

How to create an automated forex trading system

The auto robot solutions listed above offer a wide range of automation-related features. MT4 and MT5, for example, provide everything from social trading with large community support to free and fully automated forex trading software downloads. EToro, on the other hand, does not feature bots, but it has a solid copy and social trading framework. The top autopilot forex trading systems scan the markets to identify price patterns and execute trades.

automated forex trading system

A major advantage of automated forex trading is the elimination of emotional and psychological influences determining trading decisions in favor of a cold, logical approach to the market. Algorithms can be used to search for patterns in historical data for developing new models. EAs automatically monitor forex markets and identify trading opportunities based on parameters set by the user. Brokers offer solutions through a trading platform or third-party software for traders who want to explore automating their efforts.


The trading software also offers unique features tailored to forex trading, including specific order and market windows. 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. 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 and the National Futures Association (NFA) for over-the-counter traders. OANDA also supports MT4 which gives you the ability to build and support automated trading strategies.

automated forex trading system

Remember, the spread represents the minimum amount of market movement you need for your position to turn a profit. For example, let’s say you decide to open a one-lot position with IC Markets. The broker ranked third overall across all order types, but turned in a particularly impressive performance when we tested limit orders. While Pepperstone didn’t top the list, we found the broker’s spreads competitive when compared to others of similar size and liquidity – 0.41 pips. In practical terms, that means you need the market to rise by 0.41 pips before you make a profit.

Stocks Trading

We personally trialed basic and more advanced algorithmic trading strategies and found that OANDA’s platforms provided the tools we needed. That said, we would’ve appreciated fewer integrations and more in-built tools. The best-automated forex trading software allows you to trade using algorithms or bots. Expert Advisers with MetaTrader 4 or 5 are recommended by there are other good options. Forex automated trading software is accessible at a great array of pricing points and levels of complexity to accommodate various trading demands.

With markets across the world active
around the clock and in different time zones, you can’t be online 24 hours a day, 5/6 days a week. Unlike some robot software offerings that make lots of bold claims, DAXrobot is straightforward and transparent with everything you need to know listed on their website for all to see. From details of every broker to the breakdown of trading systems and signals all of the information is displayed clearly. Because trade rules are established and trade execution is performed automatically, discipline is preserved even in volatile markets. Discipline is often lost due to emotional factors such as fear of taking a loss, or the desire to eke out a little more profit from a trade. Automated trading helps ensure discipline is maintained because the trading plan will be followed exactly.