Broker to Trading

The answer to the question, "What is the best broker for automated trading?" is that it depends on a number of factors. Firstly, a broker needs to support automated trading, that is, providing a platform that supports the use of computer programs to execute trades on behalf of the trader. A number of platforms support automated trading. MT4 is a popular platform, but there are others, including cTrader, JForex and MT4's successor, MT5.

It is not necessary to trade using an ECN broker (some brokers have stopped using this term), but some traders may find the kind of infrastructure they provide helpful for the kind of strategies they wish to trade using computer programs. These brokers may offer high-speed order execution, low average spreads on the most liquid markets (plus a commission charge), access to liquidity via the broker, co-location with liquidity providers using, for example, Equinix servers, and no dealing desk intervention, allowing a wide range of trading styles.

Because arguably there is not a best broker per se, the table above provides a range of regulated brokers offering automated trading platforms, along with the minimum deposit required to trade. This said there may exist a best broker for a trader, based on such factors as the trading platform they may wish to use and the styles of trading they wish to employ.

Thus, for automated trading, the field is limited to brokers which actually support automated trading by, firstly, providing a platform with this functionality and, secondly, providing an account which allows automated trading (in the case of MT4 or MT5, allowing the use of Expert Advisors (EAs), which are trading robots executing strategies on behalf of the trader). The brokers in the comparison table all provide platforms and allow the execution of automated trading strategies.

Some but not all of these brokers offer ECN accounts. ECN accounts, though, are not necessarily required to trade using automated strategies, but they can provide an environment that is suited to running robots in addition to offering a platform. The trader does not necessarily need to use a platform other than MT4, especially for Forex trading, but they may wish to use the expanded features offered by MT5 or the capacity to run cBots offered on cTrader.

Indeed, if the trader wishes to write their own strategies or indicators, they may find a particular underlying language offered by these platforms preferable. For example, cTrader uses the C# language, while MT4 uses a language that is similar to C++ (MQL4). Each platform has its own particular functionality; for example, cTrader has a realtviely wide range of time frames available.

Automated trading can be seen as referring to the process of automating the way a human trader may trade. Thus, the impetus to do this can come from a variety of sources associated with the experience of the human trader in relating to the complexity and scale of the market. Although algorithmic trading is automated trading, a distinction can, in theory, be made by seeing algorithmic trading as imposing computer programs in areas where the human trader would not have a role. This is a distinction, though, which in practice can be complex, as there is an argument to be made that the human trader is essential to dealing with markets and the application of any algorithm has a human source in its design.

This said, the true distinction is perhaps one of scale, as computer programs can go where the human trader cannot, for example, in high-frequency trading and other algorithmic trading methods at scale. At a more prosaic level, this can be seen as the issue a trader may face when applying a strategy to the markets: that they tire and make mistakes, which is where the need to use automated trading comes into play. However, the trader may also consider taking a break and using their capacity to exercise discretion and intuition when rested and confident, even if the decision is to choose an EA and market to trade, which is to say that there is a role for human discretion even in automated trading.

Best Broker For Automated Trading

The pick of the best broker for automated trading is IC Markets, with the caveats that other brokers could be chosen and that the title of best broker can depend on a number of factors which may be related to the way a trader trades and features offered. The core reason that IC Markets is chosen is that it focuses on automated trading. This means that it supports automated trading from high-frequency to longer-term trades.

Automated Forex traders need spreads to be low, and IC Markets can provide spreads from 0 pips, plus a commission. On the accounts that do not have a minimum deposit requirement, IC Markets can offer MetaTrader commissions from $3.5 per lot per side on the Raw Spread account. On accounts with a minimum deposit requirement, spreads down to $1 per lot per side are available. The minimum deposit for the account with the lowest spreads is $100,000 (the Raw Pro + account); however, the Raw Pro account can offer spreads of 1.5 per lot per side and has a minimum deposit of $5000.

The platforms offered all support automated trading: MT4, MT5, cTrader, and TradingView. IC Markets states that average execution speeds are under 40 40ms. IC Markets utilizes low-latency fibre-optical interconnections and co-location to trading servers and institutions in Equinix NY4. For traders who want to use a VPS, this is offered as well. The traders may start with a demo account and test out the features offered by this broker.