Automated trading can be a way to codify strategies used or developed by the trader into programs executing these strategies. Doing so may result in a reduction of some types of errors, but also carries risk from factors related to automated trading, such as rapid drawdown and software or hardware related issues.
Automated trading is supported at some brokers which offer platforms supporting the development or use of online trading robots. A selection of Forex brokers offering automated trading is provided below, as well as an article and a chalkboard infographic about automated Forex trading.
| Online Broker | Minimum Deposit | Automated Forex Trading Platforms | About |
|---|---|---|---|
| XM | $5 Minimum Deposit | MT4, MT5 Automated Forex Trading Platforms | XM offers automated Forex trading on MT4 and MT5 and has a Cent account for traders who want to test EAs About |
| FXTM | $10 Minimum Deposit | MT4, MT5 Automated Forex Trading Platforms | FXTM provides automated Forex trading on MT4 and MT5 and has an MT4 Micro (Cent) account to test out algos on a live account About |
| Oanda | None Minimum Deposit | MT4, MT5 Automated Forex Trading Platforms | Oanda Global offers accounts for automated Forex traders, scalpers and high volume traders About |
| Pepperstone | $200 Minimum Deposit | MT4, MT5, cTrader, TradingView Automated Forex Trading Platforms | Pepperstone offers Forex trading on MT4 and MT4, allowing EAs and on cTrader, allowing cBots and on TradingView, via PineScript About |
| IC Markets | $200 Minimum Deposit | MT4, MT5, cTrader Automated Forex Trading Platforms | IC Markets allows Forex styles such as high volume trading, scalping and automated trading About |
| ThinkMarkets | None Minimum Deposit | MT4, MT5 Automated Forex Trading Platforms | ThinkMarkets offers automated Forex trading on MT5 and MT4 About |
| AvaTrade | $100 Minimum Deposit | MT4, MT5 Automated Forex Trading Platforms | AvaTrade allows Expert Advisor (EAs) on MT4 and MT5 About |
| Dukascopy | $1000 Minimum Deposit | MT4, JForex Automated Forex Trading Platforms | Dukascopy Bank operates the SWFX Marketplace with ECN liquidity and does not restrict Forex trading styles About |
| FXPRIMUS | $15 Minimum Deposit | MT4, MT5, cTrader Automated Forex Trading Platforms | FXPRIMUS offers automated trading on MT4, MT5 and cTrader and provides a Cent account About |
| FOREX.com | $100 Minimum Deposit | MT4 Automated Forex Trading Platform | FOREX.com is major MT4 broker (also offering MT5 in some regions) allowing automated trading with EAs About |
| Vantage | $50 Minimum Deposit | MT4, MT5 Automated Forex Trading Platforms | Vantage allows EA automated trading on MT4 and MT5 About |
Brokers Which Offer Automated Forex Trading
These brokers offer trading platforms which support automated trading. What this means for the trader is that they may choose a strategy and have it run automatically, taking trading decisions for them.
What does a strategy mean when trading ? It encompasses rule based trading methods. For example, taking a trade when a technical indicator gives a certain signal, or where moving averages cross. It can be simple or more complex (but typically not too complex). Since the strategy is based on rules, these can be codified into instructions for a computer program, allowing the strategy to trade automatically. Automated strategies can be based on strategies used by the trader when executing their own trades and can be strategies which the trader may not be able to implement themselves.
However because a strategy worked in the past (or when backtested) does not mean it will work in the future, and what works in a discretionary context, may not necessarily work so well without the trader implementing the trade. The trader can use provided templates, can modify them or write their own strategies (which normally involves learning a programming language).
These brokers also allow the use of automation using a Virtual Private Server (VPS), whereby the trader can run automated trading strategies even when disconnected from the broker. The program which executes the strategy is run on a third party trading server, which means that it can run 24/7 and this should be able to reduce connection and other issues which could interrupt the trade.
Trading platforms
It can be seen that these brokers all offer one or more of: MT4, MT5, cTrader or JForex. These platforms all support automated trading. Some of the brokers offer platforms other than these, which may be designed for traders who execute their own trades, or may also support automated trading.
Automated Forex Trading
It might be said that the Forex market is suited to automated trading to some extent at least, in that it operates continuously from open on Friday to close on Sunday. Thus traders can run strategies 24/7 while the market is open. A motivation for using an automated strategy (also known as an online trading robot) may be that the robot can trade at times the trader may not be able to. Additionally a robot can trade without tiring, executing trades at greater frequency.
