Automated forex trading is more prevalent than an average trader might expect. While for stocks, this number goes above 70%, in the forex market, it is closer to 90%.
Brokers offer solutions through a trading platform or third-party software for traders who want to explore automating their efforts. This article will look into the best broker software solutions for automated forex trading.
5 Best Forex Auto Trading Software Options
1. Best for Forex Backtesting for New Traders: ForexTester Software
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Forex Backtesting for New Traders
ForexTester is a powerful trading simulation software that offers traders the opportunity to test their trading strategies before they enter the market. ForexTester Software also has a special Crypto Tester, for people, who want to try themselves in Crypto.
Instruments: Forex and cryptocurrencies
Platform: Web trading and mobile trading (Windows and IOS using Parallels Desktop)
- Access to an enormous range of currency pairs
- Simple user interface
- Customizable screens and charts
- Excellent customer support
- Strategic trade backtesting for expert traders
- Allows new and seasoned traders to develop and test strategies using detailed analysis charts and tools provided by the backtesting software
- Not suitable for all trading platforms
2. Best for Traders who Want to Improve Their Coding Ability: OANDA
A U.S.-based broker operating worldwide since 1996, OANDA is a highly regulated broker licensed by the U.S. Commodity Futures Trading Commission (CFTC and the National Futures Association (NFA) for over-the-counter traders. OANDA also supports MT4 which gives you the ability to build and support automated trading strategies.
Platform: Mobile trading (iOS and Android)
- Great selection of trading platforms
- Dedicated developer portal with extensive resources and code samples
- Low trading fees
- Application programming interface (API) access
- Access to MT4 which supports EAs and provides the ability to program automated trading strategies
- Inactivity fees
- Narrow product portfolio
- OANDA Trade doesn’t support expert advisors (EAs)
3. Best for Beginner Automated Traders: FOREX.com
A specialized global broker operating since 2001 under the umbrella of StoneX Group Inc., FOREX.com trades on the Nasdaq stock exchange under the ticker SNEX and publishes quarterly earnings results. It has a long and successful track record of adhering to regulations from multiple global financial authorities.
Instruments: Forex, cryptocurrencies, contract-for-difference (CFD)
Platform: Web trading, mobile trading (iOS and Android), desktop platforms (Advanced Trading Platform, MetaTrader 4)
- Low fees
- Great selection of forex pairs
- High number of research tools
- Application programming interface (API) access
- Comprehensive educational library structured by topics, including webinars, quizzes and performance analytics tools.
- Lack of negative balance protection
- Desktop platform not as user-friendly as it might be
4. Best for Traders Forex and Cryptocurrencies Traders who Social Trade: eToro
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eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
An Israeli fintech company that has been on the global market since 2007, eToro is regulated by the Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC) and Cyprus Securities and Exchange Commission (CySEC).
Instruments: Forex, crypto, stocks, exchange-traded funds (ETFs)
Platform: Web trading, mobile trading (iOS and Android)
- Fast account opening
- Low trading fees
- Extensive educational library
- Social trading
- Smart portfolios
- High withdrawal fees
- No desktop-based platform
- Only one base currency supported
5. Best for Multi-Asset Traders: TD Ameritrade
An American stockbroker company operating since 1975, TD Ameritrade is scheduled to integrate into Charles Schwab Corporation by 2023.
TD Ameritrade is a leading online brokerage firm that provides a wide range of trading and investing services. Their suite of auto trading software makes it easy for investors to automate their trades and take advantage of market opportunities.
The TD Ameritrade auto trading software offers numerous features to help investors manage their portfolios with ease. It includes features like portfolio rebalancing, automated buying and selling, and the ability to manage multiple accounts.
Instruments: Forex, cryptocurrencies, stocks, bonds, options, futures, ETFs
Platform: Web platform, mobile platform (iOS and Android), and desktop platform (thinkorswim).
- Great educational library, including automated trading in particular
- Broad selection of research and trading tools
- Commission-free trading with no hidden fees
- Its thinkorswim platform — one of the best desktop trading platforms
- Limited deposit and withdrawal options
- Lack of two-factor authorization for safer logins
- Account base currency available only in U.S. dollars
What is Forex Auto Trading?
Forex auto trading is a type of trading where all trading decisions fall under the independent control of a machine. It transforms a rule-based trading strategy into an automated program that executes and manages trades without external input.
An auto trading system achieves its goals by avoiding ambiguity and strictly defining the rules for entry, exit and the market’s direction. This approach requires using programming languages like MQL, based on C++.
Does Forex Auto Trading Work?
Auto trading works, but it is only as good as the underlying strategy behind it and the programmer’s ability to transform it into a working algorithm. In contrast to advertisements that offer turnkey solutions, the best automated trading solutions are developed in-house at financial institutions and never become available to retail markets. Thus, it is unlikely that the broadly available black box solutions can deliver outstanding results — at least comparable to seasoned traders’ manual results.
Expert Advisors vs. Forex Robots
Much misinformation exists in the forex industry, especially regarding automated trading.
While some may think there are differences between EAs and forex robots, these are interchangeable terms. An EA is a set of rules compiled into an executable program that runs on a trading platform like MetaTrader.
However, in addition to automatically executing the trades, depending on the setup, it can only notify traders when a promising trade might be set up — allowing them to enter at their own discretion. Yet, this setup doesn’t take away the ability to trade fully autonomously.
Automation is Situational
In contrast to advertisements promising turning beginners into forex millionaires, the truth about automated forex trading is more complex. Since saving time is the main benefit of automated trading, positional traders who focus on a long time horizon don’t benefit much.
Outside of the social trading aspects, beginners have odds stacked against them as automated trading requires experience and coding ability. Most traders should focus on polishing their skills and expertise until automated trading becomes a viable replacement for their effort.
Best Online Forex Brokers
Choosing the right forex broker involves research of services and tools for your trading plan and experience level. Make sure you check out forex platforms using a demo account before you deposit any real money.
Benzinga has put together a table to compare top brokers. You can also look over our FOREX.com review to get a comprehensive forex broker review.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
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Best For
Investors interested in 0% commission or eco conscious trading
CedarFX is not regulated by any major financial agency. The brokerage is owned by Cedar LLC and based in St. Vincent and the Grenadines.
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Best For
Best for Leverage Trading with Many Instruments
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Best For
Non US Forex Trading
Frequently Asked Questions
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Every forex trade has four key decisions: direction, entry-level, take-profit level and stop-loss. Each of them can be algorithmically decided, allowing for the complete automation of forex trading.
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What are some excellent forex auto trading programs?
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While MetaTrader 4 & 5 are an industry standard, other viable options include cTrader and TradingView. However, these software providers require a custom-coded strategy and a reliable forex broker to execute the trades.
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What are the benefits of using forex auto trading software?
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Trading forex can be a time-consuming process. Saving time is the main benefit. Automated trading allows tracking more markets with faster reaction time, improving profitability and mitigating emotions that impact the trading process.
