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 it 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 that 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-type account for traders who want to test EAs on a real account About |
| BlackBull | None Minimum Deposit | MT4, MT5, cTrader, TradingView Automated Forex Trading Platforms | BlackBull offers rapid order processing ECN trading conditions suitable to strategies such as automated Forex trading, with no minimum deposit for its account types About |
| Pepperstone | $10 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 | $0 Minimum Deposit | MT4, MT5, cTrader, TradingView Automated Forex Trading Platforms | IC Markets allows Forex styles such as high-volume trading, scalping and automated trading About |
| AvaTrade | $100 Minimum Deposit | MT4, MT5 Automated Forex Trading Platforms | AvaTrade allows Expert Advisor (EAs) on MT4 and MT5 About |
| FXPRIMUS | $15 Minimum Deposit | MT4, MT5 Automated Forex Trading Platforms | FXPRIMUS offers automated trading on MT4 and MT5 About |
| HYCM | $20 Minimum Deposit | MT4, MT5 Automated Forex Trading Platform | HYCM offers automated Forex trading with EAs on MT4 and MT5, with a low minimum deposit About |
| Vantage | $50 Minimum Deposit | MT4, MT5 Automated Forex Trading Platforms | Vantage allows EA automated trading on MT4 and MT5 About |
Brokers Offering Automated Forex Trading
The brokers on this page 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? Essentially, it reflects the application of rule-based trading methods. For example, taking a trade when a technical indicator gives a certain signal or when moving averages cross. It can be simple or more complex (but typically not too complex, as this can result in other issues emerging).
Since the strategy is based on rules, these can be codified into instructions for a computer program, allowing the strategy to be traded automatically by a computer program. Automated strategies can be based on strategies used by the trader when executing their own trades and can be strategies that the trader may not be able to implement themselves, for example, because they require trading at a higher frequency than is comfortable for the trader. The trader can use provided templates, can modify them or write their own strategies (which normally involves learning a programming language).
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 brokers above 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 designed for continuous operation. Therefore, robots are able to run 24/7, and connection and other issues that could interrupt the trade should be alleviated compared with a home setup. As with any system, interruptions may still happen.
Trading platforms
It can be seen that these brokers all offer one or more of the following: MT4, MT5, cTrader, and TradingView; 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 a greater frequency compared with a human executing the trade.
