The best-automated forex trading software allows you to trade using algorithms or bots. Expert Advisers with MetaTrader 4 or 5 are recommended by there are other good options. See which trading platforms we recommend.
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Here are some good forex trading platforms with automation tools
| Broker | Our Rating | Regulation | Standard EUR/USD Spread |
Standard GBP/USD Spread |
Standard AUD/USD Spread |
Raw EUR/USD Spread |
Raw GBP/USD Spread |
Raw AUD/USD Spread |
Commissions (USD Base) |
MetaTrader 4 | MetaTrader 5 | cTrader | Execution Speed | Minimum Deposit | Currency Pairs | Crypto CFDs | Retail Leverage | Prof. Leverage | Read Full Review |
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81 | NFA/CFTC | 1.4 | 2 | 1.4 | - | - | - |
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120ms | $0 | 68+ (Spot) | - | 50:1 | 100:1 |
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61 |
NFA/CFTC FCA,CIRO |
1.50 | 1.5 | 1.4 | 0.0 | 0.2 | - | $7.00 |
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30 ms (May 2023) | $100 | 80+ (Spot) | - | 50:1 |
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43 |
ASIC, FCA CYSEC |
- | - | - | - | - | - | - |
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120ms | $10 | - | 24 (Spot) |
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41 |
SEC, NFA/CFTC FINRA |
1.4 | 1.3 | 1.2 | - | - | - | - |
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110ms | $2000 | 70+ (Spot) | - | 50:1 | 50:1 |
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71 |
NFA/CFTC FCA, ASIC |
1.2 | 1.9 | 1.4 | - | - | - | $6.00 |
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174ms | $450 | 80+ (Spot) | - | 50:1 | 50:1 |
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For those with the technical know-how, forex trading robots can take a manual trading strategy to the next level: increasing trade volumes and amplifying profits.
The best automation software can spot trading opportunities that no human would ever see, simply due to the sheer volume of data points a machine can review and analyze.
This page looks at the best-automated forex trading software for forex trading and the brokers that offer them.
Forex Panel Score
Average Spread
EUR/USD = 1.4 GBP/USD = 2 AUD/USD = 1.4
Trading Platforms
MT4, TradingView, OANDA Trade (fx Trade)
Minimum Deposit
$0
Why We Recommend OANDA
We recommend OANDA as the best overall choice for American forex traders based on its range of trading platforms and selection of 68 currency pairs.
We particularly appreciate OANDA’s extensive MetaTrader 4 offering, which provides excellent support for automated trading with EAs and advanced charting. Or TradingView charts on OANDA Trade.
Pros & Cons
Broker Details
OANDA has MetaTrader 4 (MT4) Expert Advisors for trading automation
OANDA is one of the largest brokers on our list due to its large international presence. The broker’s offering for clients in the US differs slightly due to regulatory requirements, but the extensive array of MetaTrader 4 add-ons and integrations pushes it to the top spot.
Key Strengths:
If you’re in the US, OANDA offers a single, straightforward account type. While the broker does make use of a dealing desk, we found that the unique free structure and low commissions left plenty of opportunities for savings, provided you’re prudent. The Spread-Only account roughly parallels other brokers’ Standard Account offerings. Variable spreads start at 0.6 pips, and commission is included in round-turn trades for standard lots.
OANDA also offers an attractive rebate program that rewards high-volume traders. If you meet the minimum deposit requirements and exceed a monthly trade volume of US $10 million, you can choose between cash rebates and commission reductions ranging from US $5.00 and US $15.00 per million dollars traded.
If you already know you intend to narrow-focus your day-trading activity on forex, OANDA will likely meet your needs. The broker limits American traders to the currency markets, but offers a respectable selection of pairs: 10 majors and 58 minors, exotics and crosses. That includes EUR, GBP, USD, JPY, NZD, AUD and CHF – all the major base currencies. While we find that’s more than enough to support even sophisticated strategies, we can understand why traders looking for a more diversified portfolio might balk.
Between its proprietary web and mobile trading platforms and comprehensive suite of MetaTrader 4 integrations and premium tools, OANDA stands out for its support for automated trading. We personally trialled basic and more advanced algorithmic trading strategies and found that OANDA’s platforms provided the tools we needed.
That said, the integrations in question worked smoothing and gave us exactly what we needed. Between MultiCharts, which connected to OANDA Trade via API, and AutoChartist, for example, we had access to more tools and indicators than with other brokers.
OANDA’s tight spreads, advanced technical analysis tools and extensive selection of trading instruments make it an excellent choice for US forex traders, regardless of experience level.
OANDA offers new Welcome Bonus of up to $10,000
OANDA is now offering a Welcome Bonus of up to $10,000 for all new account holders, a unique incentive to help boost your trading account. To opt into this offer you simply need to:
or
*OANDA’s Welcome Bonus of $10,000 is now available for all new account holders.
Forex Panel Score
Average Spread
EUR/USD = 0.8 GBP/USD = 0.8 AUD/USD = 1.7
Trading Platforms
MT4, MT5, FOREX.com Trading Platform
Minimum Deposit
$100
Why We Recommend FOREX.com
We recommend FOREX.com for its excellent MetaTrader 4 platform options, which include advanced trading tools and charting abilities suitable for even experienced traders. If you intend to pursue automated trading for forex, this broker offers nine proprietary EAs, including Sentiment Trader.
The broker’s proprietary REST API allows you to connect your algorithmic strategy to 80 forex markets for deep liquidity access.
Pros & Cons
Broker Details
FOREX.com MT4 EAs allow for algo trading
FOREX.com is one of the largest brokers on this list due to its large international presence. While the offering for US account holders differs slightly due to regulatory requirements, it remains an excellent option for its low trading costs and powerful collection of trading tools.
Key Strengths:
If you’re a beginning retail investor, the Standard and MetaTrader 4 accounts charge no commission or funding costs and a minimum spread of 1.2 pips. The main difference? Your trading platform. Standard account holders will execute trades via FOREX.com’s proprietary platform, while MT4 account users will, predictably, trade via the MetaTrader 4 trading platform.
If you’re a system trader or rely heavily on volume and speed to generate gains, you may prefer the RAW Spread Account. This account has variable spreads that start from 0.0 pips and a commission of $14.00 round-turn ($7.00 side ways) for each 100k lot you trade.
With over 80 currency pairs, plus unleveraged gold and silver, FOREX.com stands out among US forex brokers for the range of asset classes available to US-based forex traders.
Of all the brokers we reviewed, FOREX.com offers the most comprehensive range of trading tools and platforms to support your automated trading system.
If you prefer the classics, FOREX.com has a dedicated account type just for MetaTrader 4. In addition to advanced charting, hundreds of technical indicators and drawing tools, MetaTrader 4 allows forex traders to automate trading strategies using their own or third-party EAs.
MetaEditor, the internal code editor included in the MetaTrader 4 trading terminal, empowers you to develop and test your own Expert Advisors with custom technical indicators and scripts using the MQL4 programming language. Even better: because developer MetaQuotes has released the source code for MetaTrader 4, high-quality, professionally designed integrations apps and robots to facilitate automated trading abound. MetaTrader 4 also helps you safeguard your investment and outsource risk management with integrations designed to automatically hedge positions.
For those who prefer the look and feel of MetaTrader 4 but require access to the more powerful technical indicators and analytics of its younger sibling, MetaTrader 4’s Python package allows for integration with MetaTrader5.
Not convinced MetaTrader 4 is right for you? FOREX.com has other options available. The broker’s proprietary REST API enables traders to connect an algorithmic trading strategy to over 80 forex markets, giving traders access to deep liquidity, as well as advanced order types and live-streaming prices.
FOREX.com also offers brokerage account holders the option to trade via NinjaTrader 8, which supports automated trading and EAs. The platform boasts access to thousands of third-party technical indicators to assist in developing trading apps, advanced charts, chart drawing tools and social trading services. Professional developers well-versed in C# can write and sell automation on an open market, while less advanced forex traders can take advantage of NinjaTrader’s “point and click” construction system to build, backtest and implement automation and indicators.
Finally, FOREX.com account holders have access to automated market analysis via Trading Central, FOREX.com’s proprietary expert advisor tool and advanced charts powered by Trading View.
In terms of trading tools, beginners developing the trading strategy to drive an EA will appreciate FOREX.com’s charting tools, particularly the ability to customize virtually every aspect of a chart – from indicators to colors to size – ensures maximum clarity and legibility for even novices trading on a demo account.
Suitable even for professional traders, FOREX.com’s advanced charting features an extensive array of chart types, timeframes and technical indicators and drawing tools. Users have the option to save preferred chart types and variables for future use, as well as compare multiple financial markets with overlays. As a leader in online trading for almost two decades, FOREX.com has developed some of the most powerful, flexible analytical tools available.
FOREX.com also allows brokerage account holders to purchase VPS hosting for an additional fee.
An easy-to-navigate trading environment, low trading costs and numerous trading platforms from which to choose make FOREX.com a good choice for intermediate and advanced traders hoping to control costs without sacrificing a quality trading experience.
Forex Panel Score
Average Spread
EUR/USD = 1 GBP/USD = 1.6 AUD/USD = 1.2
Trading Platforms
MT5
Minimum Deposit
$50
Why We Recommend Trading.com
We recommend Trading.com based on its status as one of the few forex brokers offering US traders access to MetaTrader 5, along with specialized educational resources for those exploring automated trading with the upgraded MetaQuotes trading platform.
All told, we think Trading.com provides a straightforward trading environment with excellent options for trading with bots through EAS, competitive costs and a wide variety of instruments for trading.
Pros & Cons
Broker Details
Trading.com MT5 has EAs for automated trading
One of the few forex brokers to offer US traders access to mt5 forex broker, Trading.com has the customer support and educational resources for forex traders exploring the ‘upgraded’ automated trading platform from MetaQuotes.
Key Strengths:
Trading.com likes to keep things simple – very, very simple. This leading forex broker offers only one account type in a bid to increase transparency and eliminate confusion around what traders receive when opening an account with the broker.
A T1 account with Trading.com requires a minimum deposit of just USD$50, and offers variable spreads starting from 0.7 pips on major currency pairs, including EUR/USD and EUR/GBP. Trading.com charges no commissions on round-turn trades, meaning you pay only the spread.
Designed for US-based forex traders, Trading.com focuses on just that: forex. The broker deals in all major currency pairs, as well as several exotics, for a total of 70 currency pairs – but that’s the extent of its product range. Those interested in trading precious metals, indices or stocks may need to look elsewhere for a secondary brokerage account.
While Trading.com does offer forex traders the option to trade using the broker’s proprietary trading platform, those interested in an automated trading strategy may opt instead for MetaTrader5. Unlike MetaTrader 4, which relies on Expert Advisers (EAs), as well as third-party integrations and forex trading robots to support algorithmic trading, MetaTrader5 was designed specifically as an automated trading platform.
Of course, MetaTrader5 also supports EAs, but the trading platform goes further. In addition to more advanced technical indicators and advanced charting tools than MetaTrader 4, MetaTrader 5 also includes an unlimited number of pricing screens. The automated trading platform also supports mirror trading, which functions much like copy trading. Forex traders select a particular investor to follow, ‘mirroring’ his or her positions with the help of a trading program.
While MetaTrader 5 will charge a fee to mirror another trader, it also ensures that you follow a trader whose risk management style, trading strategy and market analysis match your own by giving you access to comprehensive metrics regarding previous performance, preferring financial instruments and timeframes.
For those already familiar with the MQL5 programming language, MetaTrader5 includes a proprietary code editor built into the platform that allows you to write, backtest and refine your own algorithm to support any trading style, from scalping to swing trading.
Trading.com is a great choice for traders on a budget in need of low trading fees and competitive spreads. The broker’s powerful MT5 platform offers great support for algorithmic trading strategies.
Forex Panel Score
Average Spread
EUR/USD = N/A GBP/USD = N/A AUD/USD = N/A
Trading Platforms
Thinkorswim
Minimum Deposit
$0
Why We Recommend TD Ameritrade
We recommend TD Ameritrade for the suite of automated trading features built into its proprietary thinkorswim trading platform. We particularly like the advanced charting and price alert tools included in the INVESTools package.
If you’re familiar with MetaTrader 4, you’ll find the thinkorswim interface a straightforward alternative with many of the same powerful features and more. Along with all the same tools as its MetaQuotes cousin, thinkorswim includes additional calculators and tailored EAs.
Pros & Cons
Broker Details
TD Ameritrade has automation with thinkorswim
Part of the Charles Schwab group, TD Ameritrade represents the best of both worlds to forex traders hoping to increase their gains with automated trading while managing risk with a diverse portfolio of assets.
Key Strengths:
The TD Ameritrade Standard account operates on a dealing desk model with a 1.0 pip minimum spread. Where the broker shines, however, is in the variety of products available to retail investors and the high-quality customer support and enhanced safety features.
For everyday traders for whom forex is part of a diverse investment strategy, TD Ameritrade can be an attractive option. As a full-service brokerage, TD Ameritrade offers account holders a comprehensive array of trading products, including 70 forex pairs, ten precious metals, cryptocurrency, futures and futures options and ETFs. Note, however, that commissions will vary depending on the product.
Acquired by TD Ameritrade and the Charles Schwab Group in 2009, thinkorswim now comes standard with a TD Ameritrade investment account, meaning account holders have access to its powerful INVESTools suite of solutions. Broadly similar to MetaTrader 4, thinkorswim nevertheless edges out the popular third-party platform with the charts, calculators and EAs to support just about any trading strategy.
For those new to automated trading, thinkorswim makes the transition easy with tools like Strategy Roller, which allows traders to ‘borrow’ the trading platform’s pre-defined criteria to roll forward a covered call strategy on a monthly basis.
Algorithmic traders have access to over 400 technical studies on which to base an automated trading strategy via thinkScript, and thinkorswim claims to have developed a social sentiment tool as powerful as that of any other broker, which traders can use to develop trading signals.
thinkScript also ensures that enterprising forex traders have access to a fully automated trading strategy, albeit one that requires a bit more legwork. Using thinkScript, traders can automate each piece of a trading strategy using the platform’s Condition Wizard and market movement monitors to scan the markets and execute trades when conditions are met.
For those with some extra cash to spend, forex trading robots developed explicitly for use with thinkorswim using tools like NinjaTrader are available for purchase on the open market.
Backed by one of the most well-known and trusted financial services companies in the US, TD Ameritrade offers new traders plenty of educational support. Advanced traders appreciate the flexibility of the thinkorswim platform, as well as the diverse range of tradable assets.
Forex Panel Score
Average Spread
EUR/USD = 0.16 GBP/USD = 0.59 AUD/USD = 0.29
Trading Platforms
MT4, IG Trading Platform, L2 Dealer, ProRealTime
Minimum Deposit
$0
Why We Recommend IG Group
We recommend IG Group for the unique platform choices it provides US traders. In particular, we like ProRealTime for its sophisticated charting capabilities and automated trading tools designed to leverage the power of machine learning.
With ProRealTime, you have the option to build customized algorithms along with the associated technical indicators. If you’re a devotee of MetaTrader 4, IG Group also provides access to this popular platform and its extensive collection of EAs.
Pros & Cons
Broker Details
IG offer ProRealTime charting software with automation
IG might be the largest broker on this list, with licenses in the UK, Australia, Singapore and even Japan. For US account holders, IG offers access to a few trading platforms not found with other brokers, including ProRealTime – great news for those who like chart trading.
Key Strengths:
IG offers US traders a single account type: the CFD account. With no commissions and good leverage, however, it has attractive features for novice forex traders and more experienced hands. Leverage for major currency pairs extends to 50:1, the maximum allowed, while minor pairs are capped at 20:1.
Spreads vary across currency pairs and can range from a tight .08 pips for EUR/USD to 3.2 pips for GBP/CHF. IG also claims to offer 20% lower spreads than the nearest competitors for EUR/USD pairs.
IG specializes in forex products, and the range of available currency pairs won’t disappoint. Over 65 major currency combinations, including EUR/USD and EUR/GBP, as well as a collection of exotic and emerging currencies.
In addition to MetaTrader 4, which affords forex traders the option to develop customized automations with the MQL4 programming language or integrate an independently-developed a third-party forex trading robot, IG account holders can also opt to automate their trading using ProRealTime.
A specialist platform best known for its powerful charting tools, ProRealTime also supports automated trading strategies with a suite of trading tools designed to leverage the power of machine learning for trading from charts. Automated trend lines, for example, can be set to re-draw automatically every five minutes, while custom technical indicators configured by individual traders trigger specific order types.
For those with the desire, ProRealTime also supports the development of customized algorithms using ProBuilder, its proprietary coding language. Traders can also use ProBuilder to create their own technical indicators to support a proprietary forex trading robot.
From advanced market research to an extensive portfolio of trading products to competitive spreads, IG has all the features an advanced trader needs to make the most of an automated trading strategy.
Forex Panel Score
Average Spread
EUR/USD = 1.0 GBP/USD = 2.0 AUD/USD = 1.0
Trading Platforms
eToro Trading Platform, eToro Trading App
Minimum Deposit
$50
Why We Recommend eToro
We recommend eToro to American traders with an interest in automated social and copy trading, particularly for cryptocurrency. While experienced traders may find the platform too limited, beginners and casual traders will enjoy the features designed to make it simple to mirror professional strategies and open positions automatically. American traders should be aware, however, that Forex trading is not available.
Pros & Cons
Broker Details
eToro has copy trading to copy other traders
eToro doesn’t yet offer forex trading to US customers – Americans are limited to trading cryptocurrency and bitcoin – but we’ve included it here since its trading platform offers several automated trading supports.
Key Strengths:
While eToro continues to expand its presence in the US, residents of some states may find themselves eligible for only a virtual account. For other American traders, the brokerage currently offers a single account option and limits forex trading to cryptocurrencies.
An eToro Standard account operates on a dealing-desk model with a 1 pip spread and a ‘spread plus 1%’ fee round round-turn per lot. Leverage is capped at 30:1, slightly lower than other brokers we reviewed. The costs associated with trading stocks and ETFs are competitive, however, with 0% commission. Stock traders can buy and sell fractional shares, also at no commission.
As you might expect, given the emphasis on digital currency, eToro allows traders to fund accounts using cryptocurrency, including Bitcoin (BTC) and Ethereum (ETH).
In addition to 42 cryptocurrencies, eToro’s American account holders can trade in stocks and ETFs.
As the broker best known for going all-in on social trading and copy trading, eToro stands out for its copy trading tools, designed to allow new or casual retail investors to easily follow the movements of more experienced and successful forex traders. The system operates on a similar logic as mirror trading, with eToro’s sentiment data collection tool for monitoring top traders on the platform and synthesizing their trading decisions into a broadly applicable series of trades executed on behalf of any user following those investors.
A wall-style feed of comments, tips and suggestions from eToro’s ‘community’ of investors takes pride of place in the platform interface, giving US clients insight into how successful eToro retail investors and professional traders around the world perceive the forex market in real-time.
More experienced traders may find the platform rather too restrictive, given the emphasis on copy trading and the focus on casual retail traders who lack the desire to develop their own trading strategies. In addition to the limited range of products, eToro’s trading platform also lacks third-party integrations for more powerful platforms, such as MetaTrader 4 or MetaTrader 5.
For casual or beginner traders interested in exploring day trading and those who prefer to trade only crypto, eToro has much to offer. Regulatory restrictions and a limited range of automations may render it less appealing to experienced traders accustomed to coding their own bots or using custom robots.
OANDA is the broker with the best-automated forex trading software in the USA. They offer the MetaTrader 4 platform, which simplifies automating trades with expert advisors and has a strategy tester so that you can backtest your EAs.
What sets OANDA apart is their competitive average spreads of just 1.4 pips on EUR/USD with no commissions, which lowers the trading costs for your automated trades. With such low trading costs, you can run your automated trades throughout the day without concerns about unexpected price spikes.
Automated Forex Trading is a method where your trading strategies are programmed into a platform, enabling trading bots to execute trades automatically when certain set conditions are met. These programs cover all aspects of your trades, including trade criteria, execution rules, and risk management – allowing the program complete control over your trading.
The programs are helpful because they can operate 24/5, even when you’re not actively monitoring the markets (or asleep). You can automate your trades in any available market, from stocks to forex, which is helpful if your strategy is technical analysis-based.
Most automated forex trading strategies implement trading rules based on criteria from technical analysis or price action, which the programs can easily follow.
You can start automated trading with minimal cost, as there are tools online to help build trading robots that translate your strategies into programs that automate them. Below, we’ve highlighted two methods of starting automated trading:
These are programs that automate your trading strategy on the MetaTrader 4 platform. You set the rules, and the Expert Advisor executes trades on your behalf, which is perfect if you want a specific strategy carried out consistently.
Copy trading is when you mirror the trades of experienced traders in real-time. You choose a trader whose strategies you like, and your account automatically replicates their trades. It’s great for beginners or those who prefer a more hands-off approach.
To choose an automated trading program, you consider the features available to help run your strategies, like trading tools to develop test strategies. The top features we think are essential are highlighted below, and the best forex brokers will have a combination of these for their programs.
1. Ability to write your own programs
Look for programs allowing you to write or customize your trading algorithms. This flexibility lets you tailor strategies to fit your specific trading style and goals without using third-party tools.
2. Fast software performance
Fast performance is key in automated trading, as it allows your strategies to be executed efficiently, keeping up with market changes.
3. Backtesting using real-market data
Backtesting helps you test your strategies against historical data, giving you an insight into how they might perform under real market conditions.
In automated trading, you use robots or set specific rule conditions to find trading setups. Once these conditions are met, the system automatically executes the trade for you. This is great if you want to trade without constantly monitoring the market.
Manual trading involves actively finding and verifying each trade setup. You make all the decisions based on your analysis and execute trades yourself. It’s more hands-on and requires your constant attention, but it allows for more personal control and flexibility.
We think both methods have their benefits. Automated trading can save you time and can be consistent, while manual trading lets you apply your personal judgment and adapt quickly to market changes.
Automated trading has its pros and cons that you should consider:
To start automated Forex trading with MetaTrader 4, follow these steps for a smoother experience:
FOREX.com is the best trading platform for automated forex trading as it offers multiple platforms and tools to improve your experience by automating your strategies.
They offer MT4, MT5, and Capitalise.ai, a no-code programming method and automating strategies that plug into your MT4 platform. We like this method because it makes automating strategies more accessible to people who do not know programming.
In addition, Forex.com impresses with its account types, offering spreads starting from 1.2 pips on EUR/USD (no commission). Alternatively, they offer a RAW account with 0.0 spreads and a $7 per lot commission.
IG.com is the broker with the lowest spreads for automation, offering an average spread of 0.8 pips on EUR/USD while also offering multiple automation platforms like MetaTrader 4 and ProRealTime.
Low spreads are essential for automated trading because they reduce the cost of your trades, improving your profit margins – especially if your strategy trades frequently throughout the day.
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Standard Account Spreads
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1.40 | 1.40 | 1.70 | 2.00 | 1.40 |
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1.20 | 1.80 | 1.60 | 1.70 | 1.60 |
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1.00 | 1.00 | 1.50 | 2.00 | 1.00 |
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1.20 | 1.40 | 1.90 | 1.90 | 1.40 |
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1.00 | 1.20 | 1.60 | 1.60 | 1.50 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
You can test automated trading in a demo account, a great way to practice and see how automated systems work without risking real money. Most brokers provide free access to demo trading accounts, and you can use them on any platform, including MetaTrader 4, which is ideal for automating your strategies.
We think using a demo account is smart, especially if you’re new to automated trading. It gives you the chance to experiment and learn without any financial risk. Once you feel confident and understand the strategy, you can consider moving to live trading with real funds.
Automated trading can be profitable, but it depends on many factors, including the strategy used, market conditions, and the effectiveness of the trading system.
Most importantly, the strategy you want to automate is the foundation of its success, so if your strategy is poor or too risky, you may not be profitable. However, if it has a track record and you know it works, the likelihood of it being profitable increases.
Expert Advisors and Forex Robots are essentially the same thing; both follow programmable rules and automatically execute trades based on these rules. “Expert Advisors” is the brand name of forex robots used by MetaTrader platforms.
These systems might be called different names on other trading platforms but function similarly; for example, cTrader uses “cBot.”
The best financial market for using automated trading software is the Forex market. It’s ideal because of its deep liquidity, which means many buyers and sellers are available during all market hours.
Forex offers relatively cheap trading costs compared to other markets, which can help maximize your profits. Plus, it’s open 24 hours a week, allowing your automated software to trade anytime, day or night.
You can use automated trading on cryptocurrencies to execute trades based on predefined criteria, making it easier to capitalize on crypto movements even when you’re not actively watching. However, remember that the crypto market can be highly volatile, so it’s essential to approach automated trading cautiously.
The CFTC, or Commodity Futures Trading Commission, is a key regulator in the U.S. It’s one of the U.S. regulators that oversees the Forex market and other derivatives, ensuring they are fair and transparent.
Their key role is to ensure brokers treat their clients fairly and prevent fraud, manipulation, abusive practices, and systemic risks related to derivatives. Essentially, they ensure the trading environment is safe for you.
Expert Advisors (EAs) are automated trading programs that automate trading on MetaTrader platforms and can execute trades based on pre-set rules and strategies without manual intervention.
EAs can analyze the market, make decisions, and even open and close trades, making them helpful in streamlining your trading process.
Trading robots are algorithmic strategies that execute trades for you in the market. They work by following predefined rules and strategies you set.
Once these conditions are met, the robot automatically makes trades, managing entry and exit points without your direct involvement. These robots are great for consistent trading and can operate round the clock, making them helpful in taking advantage of market opportunities even when you’re not actively monitoring the market.
Automated trading is primarily regulated by the SEC (Securities and Exchange Commission) and CFTC (Commodity Futures Trading Commission) in the USA.
The “Regulated Automated Trading” rules aim to mitigate risk and increase transparency in automated trading through CFTC-regulated brokers. They include new definitions for algorithmic traders, compulsory exchange controls, registration criteria for direct connectivity, pre-trade risk controls, and obligatory testing environments for automated trading systems.
Automated trading can be suitable for beginners, as it’s easy to set up and use. However, it’s important to have a profitable trading strategy, which beginners may not have yet developed.
Once you gain experience and establish a consistent strategy, then automating that strategy could be the next step.
You can trade with an offshore broker that allows you to trade forex CFDs instead of spot forex, and they can offer higher leverage, sometimes up to 1000:1. Most offshore brokers use the MetaTrader 4 trading platform, have lower minimum deposits, and also offer trading in cryptocurrencies like Bitcoin.
Automation software tools use Forex trading robots to identify trading opportunities and enter or exit market positions. These robots only need to be set up, thereafter do not need manual involvement.
Forex trading robots also help minimize losses by removing two human weaknesses from trading decisions: fear and fuzzy logic. Automated trading bots open and close positions on the basis of the trading signals they receive from an algorithm – no more, no less. While day trading experts of yore spent years mastering their emotions to avoid hasty decisions, today’s online investors can count on a bot to make the right call. Even better – algorithms never sleep, which means you don’t need to be awake to take advantage of the 24/7 nature of the global forex market.
Whether you build your own automated trading bot or take advantage of a pre-existing automation largely depends on your preferred forex trading strategy and your experience level.
Those less familiar with the US regulatory framework for foreign exchange, cryptocurrency and other commodities and futures trading might find themselves wondering why so many of the best forex brokers and, by extension, trading platforms, aren’t available in the USA.
Forex trading in the US is 100 per cent legal under both federal law and the regulations set by the Commodities Futures Trading Commission (CFTC) and the National Futures Association (NFA). BUT – and it’s a big “but” – American rules forex trading doesn’t allow contracts for difference (CFDs) or spread betting. That means all forex trading in the US is spot forex trading – forex traders buy and sell the actual currency, rather than betting on what the market might do.
How to ensure your broker is on the right side of the CFTC and the NFA? Stay on the lookout for claims that you can “trade” forex without actually purchasing currency. Because unless you purchase the underlying asset – whether it’s a currency pair or a commodity – you’re either trading CFDs or engaging in spread betting. Both of these practices violate CFTC and NFA regulations, and any US forex broker that claims to allow them is either blatantly violating regulations or using confusing marketing language to obscure the actual nature of your trade.
So, if it’s legal to trade forex in the US, why don’t US traders have access to some of the best forex brokers? Capital requirements. Regulated brokers in the US are required to maintain a minimum capital balance of USD $ 20 million to obtain a license to access American foreign exchange markets. That’s a significant investment for access to a single market that, unlike most of the rest of the world, doesn’t allow trading in CFDs – the preferred asset class of many retail investors.
The best and wealthiest brokers will go to the trouble of obtaining licenses from multiple international regulators, but the combined associated costs still fall short of the price of a US license, placing the American market out of reach for all but the biggest brokerages.
Due to the recent growth in the popularity of forex trading, unethical individuals and institutions may seek to profit from perceived regulatory loopholes. We advise all US forex traders, whether beginners or experienced investors, to partner only with regulated brokers fully licensed by the CFTC and the NFA. Even in one of the most tightly surveilled global markets, fraud can and does occur, and trading through a licensed forex broker can protect you against scams and market manipulation.
See our other US Forex broker comparisons on our US-based homepage.
