Automated Currency Trading

Automated Currency Trading | Find A Broker

Brokers With Automated Currency Trading Platforms Comparison Table
Online BrokerMinimum DepositAutomated Currency Trading Platforms
$200MT4, MT5, cTrader
$100MT4, JForex
$200MT4, MT5, cTrader
$300MT4, JForex
$200MT4, MT5
$300MT4, MT5
$200MT4, MT5
$5MT4, MT5
$100MT4, MT5
NoneMT4, MT5
$100MT4, MT5
$10MT4, MT5

Automated Currency Trading - What Is It

These brokers offer platforms which can be used for automated currency trading. But what is automated currency trading ?

What is automated currency trading ?

Automated currency trading is using computer programs to make trading decisions about currency pairs. Trading can be divided into two categories, discretionary trading and automated trading. However they have similarities. Typically a discretionary trader, who makes the decisions to trade, uses rules to make a trade. These rules can be lighter or harder depending on various factors. For example a trader might buy or sell when given a signal from a technical indicator.

However the trader may find that it is impractical for them to trade all the time like this. So automated trading allows the trader to codify these rules into a computer program which is then executed on their behalf. There are disadvantages to this, as without the human touch, trading can be too automatic. Trading programs or system can result in large losses or drawdown (even if the end result is positive).

The advantage is that human issues with emotions or exhaustion do not apply, as the program is dispassionate and never tires. It can also be possible for a system to be adjusted by a human. The trader can run these programs from their computer, but they can also be run 24/7 even when the computer is disconnected. To do this requires the use of a Virtual Private Server (VPS) which is a computer which will host and run these programs 24/7.

What kind of broker is suited to automated currency trading ?

The broker needs to provide a currency trading platform which supports automated trading. Not all do, some are dedicated to discretionary trading. However platforms such as MT4, MT5, cTrader and JForex, which can be found at a range of brokers, do support this kind of trading.

For some strategies, it is necessary that orders are executed rapidly, and ECN brokers can provide these kind of services. Some strategies, such as scalping may not be allowed at some brokers, though ECN brokers as they do not typically intervene in the order process (known as no dealing desk intervention brokers) typically allow scalping.

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