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Best Automated Forex Trading Software

Best Automated Forex Trading Software

Regular online forex trading can be an exhausting endeavour as it requires close attention to the markets as well as a willingness to educate yourself about this constantly fluctuating market. For traders seeking something a little more flexible and time-saving, automated forex trading may be the answer.

Automated FX trading is a special system that enables a trader to automatically execute trades without having to be present. The system is written using a special language that is programmed in accordance with the trader's individual forex trading requirements, and is specifically designed to automate trades using a forex trading platform. All trades are executed via an automated forex trading robot (also known on the MetaTrader platform as an Expert Advisor, or EA), which can be programmed to trade independently through your trading account.

Once the software is implemented and launched on the trading platform, it analyses currency price charts around-the-clock, along with other market activity. It also determines the signals, surrounding spread discrepancies, price trends and news that may influence the market, in order to locate potentially profitable currency pair trades. All programs are based on the criteria determined by the user, making the entire trading process easy, straightforward and customisable.

Who can use automated forex trading software?

Historically, currency trading was reserved for the biggest and richest financial investors, with trading taking place over the phone or on special computers designed for very large trades.

Today, individuals from all walks of life have access to the foreign exchange market and the ability to trade as much money as they desire. Forex trading is no longer exclusive to private investors, central banks or hedge funds. With the availability of automated forex software, novice, experienced and veteran traders alike can automate their trades in parallel with large international organizations.

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The benefits of automated currency trading

Before getting started with the benefits of automated trading, it's essential to remember that there are always risks involved in any form of auto trading, including mechanical failures, lack of monitoring and over-optimisation (where traders believe their strategy is almost perfect, but in fact proves unreliable in a live setting). As such, automated trading systems should not be regarded as 100% reliable, as failures do happen. With that in mind, let's now take a look at the benefits.

The most important role of automated currency trading software is that it trades on your behalf without the need for you to intervene or monitor the trading activity that is being carried out, thus saving you considerable time that you would otherwise have to devote to analysing the markets and placing your trades.

Once installed, the Expert Advisor can run on an uninterrupted, 24-hour basis, scanning the market for the right trading conditions that comply with your unique trading parameters and guidelines. Furthermore, automated forex trading systems enable traders to manage multiple accounts simultaneously, which is very difficult to achieve with manual trading from a single PC.

Another benefit of automated FX trading is that it does not trade based on emotion. Instead, it trades in strict accordance with the rules it has been programmed with and never wavers from those rules – irrespective of market conditions.

Traders can therefore benefit from the complete elimination of any emotional factors that usually come into play with online trading, as EAs are fully automated with no human factor involved. Provided that the right trading signals are implemented by the trader, the temptation to place impulsive trades is completely eradicated. Traders simply need to ensure that their selected system is operating smoothly and that there are no technical errors or concerns. If you are not satisfied with the way the EA is performing it can be easily tweaked, changed and augmented until you find a recipe for success that you are satisfied with. This process is continuously repeated with the aim to develop an effective auto trading strategy.

Aside from giving traders access to huge market opportunities without the need to spend hours performing technical analysis, fundamental analysis or executing trades, there are plenty of other benefits to automated trading. For instance to manage risk, forex auto trading software places trading signals such as stop losses and take profit orders on your behalf, adjusting them accordingly and thus making trading far more efficient and convenient. Trends can also play a significant role in the number of trades that you become involved in. If set up correctly, forex automated software can take into account long-term and short-term market trends and place trades accordingly, ensuring minimal losses.

How to select the best automated trading software

There are many automated forex systems to choose from so you will need to select the best auto trading software that matches your specific needs and preferences. Forex trading automated software comes in a range of prices, varieties and levels of sophistication designed to meet different traders' needs, so assess your options carefully before making your decision.

Thanks to the internet, comprehensive customer reviews of automated software are available at the click of a button, offering detailed insight into the pros and cons of each particular system. Prices range anywhere from hundreds to thousands of dollars, and while it's good to shop around for the best deal, do not sacrifice on quality for the lowest price. Also, look out for a high level of service and technical support, which is crucial for traders of every level, and especially important for novice traders.

Always bear in mind that some companies advertise their automated platforms to have a very high percentage of winning trades, and although this does sound appealing, it must be verified. Typically, the best software publishers provide authenticated trading history results, which show you the effectiveness of their programs. All automatic forex trading software varies in terms of programmability, performance, complexity of use and swiftness, so before making your decision have in mind precisely what you wish you achieve from your selected system. While some traders want the simplest option with a set-and-forget feature, others want a more complex system that implements stop loss orders, trailing stops and other particular market orders, as well as generating reports.

For those who travel often or intend to be away from their PCs for extended periods of time, remote access capability is a must. As such, your selected program must allow access and functionality no matter where you are currently situated, whether through Wi-Fi or any other internet access. In this instance, a web-based program is the most useful and practical option. For the more cautious trader, Virtual Private Server Hosting (VPS) is an option, providing extremely fast access while isolating the automated software for security purposes.

Another factor to bear in mind is fees. While some companies charge trading commissions and extra fees, others may not do so. Further, different firms offer different return guarantees on their programs, so if you're not satisfied with the trading software you have selected, the leading firms will allow you to return their software for a refund.

Testing the automated forex trading platform

Most programs offer a free, non-obligatory demo trading period to give you a feel for the software and determine if it is right for you. This gives you the chance to get to grips with the functionality and see if you experience any problems understanding and using the system. It also gives you the chance to see how programmable and flexible the software is and change any preinstalled default settings if you so wish. Finally, it gives you an insight into the level of support, training assistance and other features available.

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Closing thoughts

Automated online trading has become more popular as more traders are entering the forex market. It is a strategy used by many investors from across the globe, whether in isolation or in addition to live forex trading. And while these programmes are far from infallible and can never 100% guarantee an infinite number of successful trades, they do eliminate psychological factors and free you up from having to spend endless hours in front of your trading platform. Above all else, the best forex trading software comes down to your specific requirements, so test out different systems first to find what works best for you.

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    1:500 for retail clients
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Note: If you close this window without choosing a firm, you agree to proceed under the FCA (UK) regulation.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.