| Updated: July 1, 2024Forex trading is the biggest financial market in the world, with about 10 million people trading worldwide. Whether you are a newbie or a seasoned trader, all Forex traders share the same goal – to enjoy profits during their trading sessions. Basing your trading decisions on analysis and trading strategies can prove to be very rewarding. However, developing a strategy can be somewhat burdensome, especially if you are still new to the Forex market. Thankfully, there is software that can help you master algorithmic trading.
Automated trading tools execute orders based on logical patterns, analysis, and opportunities for profit. While traders may be hesitant when trading, considering factors like biases, emotions, and irrationality, with the automated trading software all of these elements are excluded, allowing you to place orders as soon as an opportunity arises. One of the best qualities of automated trading is that it allows you to place orders even when you do not have access to your trading account. The software will automatically execute orders after scanning the markets, using pre-set parameters for your trades.
In this guide, we will cover all the automated trading information you may need. We will also list the 10 best Forex brokers that allow the use of automated trading software and are extremely suitable for algorithmic trading.
Fusion Markets74-89% of retail CFD accounts lose money
FP Markets73.85% of retail investor accounts lose money
AvaTrade76% of retail investor accounts lose money
Pepperstone75.5% of retail investor accounts lose money
Eightcap76.09% of retail investor accounts lose money
eToro51% of retail investor accounts lose money
Admirals73% of retail investor accounts lose money
Global Prime74-89% of retail CFD accounts lose money
IG70% of retail client accounts lose money
XM Group72.82% of retail investor accounts lose moneyWhat is Automated Trading?
While manual trading requires you to make decisions on your own and open and close your trades yourself, the automated trading program will enable automatic trades that will be placed based on parameters you have defined beforehand. If you resort to the use of automated trading software, you will need to set up criteria that will determine the open and close points for your Forex trades. Money management is also crucial when setting up the order conditions for your automated trades, allowing you to choose a loss limit beyond which automated trades will not be executed.
With different types of automated trading software available online, the algorithm for this type of trade may be based on technical analysis or economic news used to spot trends. Trades placed by an automated trading program lack emotions, biases, and other factors that usually affect the trader’s decisions. Instead, this software simply uses predefined criteria and monitors the Forex market, looking for a currency pair that matches the preset parameters. If such a pair is located, it is automatically categorized as potentially profitable and the software automatically places the respective buy or sell trade.
While automated trading software can be used by various types of traders, those who prefer placing orders based on spreads instead of interest rates can seriously benefit from the use of this type of trading tool. Automated trading programs can quickly spot price discrepancies and instantly place an order that corresponds to the preset criteria of currency speculators.
In addition to spreads, there are also market indicators like ranging average crossovers, triple tops or bottoms, and resistance/support signals, which may also trigger an automated trade. The best thing about using this type of software is that you do not need to manually open and close trades. In fact, you do not need to waste any of your time analyzing Forex markets, reading financial news, or looking at charts to spot trends. The automated trading software will do that for you and will execute orders even when you are too busy to check your trading account.
Top 10 Forex Brokers Offering Automated Trading Platforms
- 1. AvaTrade
AvaTrade is a leading Forex broker, operating in this field since 2006. Being one of the best market makers in the global Forex field, AvaTrade makes sure to offer its customers competitive prices and fast executions that minimize slippage. In addition to supporting popular trading platforms like MT4 and MT5, AvaTrade also offers several platforms extremely suitable for automated trading. AvaSocial allows you to join the large AvaTrade community and copy the trades of fellow Forex investors. DupliTrade and ZuluTrade are also supported, allowing AvaTrade customers to follow and copy other successful traders.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 2. Admirals
Forex traders who decide to join Admirals will have the opportunity to trade 80 currency pairs, with competitive spreads that may start as low as 0.0 pips for Zero account users. To offer a great trading experience for all of its customers, Admirals supports several popular trading platforms as well as its proprietary trading software that can run across various devices. Automated trading is also available, allowing MT4 and MT5 users to use a range of automated/algorithmic trading tools.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Traders have the opportunity to enjoy some of the best trading conditions once they become Fusion Markets’ members. Offering more than 90 currency pairs, competitive spreads, and extremely fast executions, Fusion Markets is a great destination for a large number of traders. You will be able to choose from several platform options, with MT4 and cTrader enabling users to either develop their own EAs or use readily available software solutions for automated trading. What is more, Fusion Markets also supports DupliTrade allowing you to copy another trader’s order into your own MT4 account.
Gleneagle Asset Management Limited (ABN 29 103 162 278) trading as Fusion Markets, is the issuer of the Fusion Markets Products described in this communication. Trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit and is not suitable for all investors. You should read all of these Financial Product Service Terms, the Product Disclosure Statement (PDS) and the Financial Services Guide (available on our website) carefully, consider your own financial situation, needs and objectives for investing in these Fusion Markets Products and obtain independent financial advice.- 4. Global Prime
As a Forex trader, you should always choose a broker offering the best trading conditions. Luckily for you, Global Prime is a well-experienced retail broker, catering to the needs of various traders, including Forex investors. While the broker will release new platform solutions soon, it currently supports only MT4. Nevertheless, the platform is extremely convenient for automated trading, supporting a wide range of tools that can be great for implementing your Forex strategies in your future trading sessions.
Global Prime is a trading name of FMGP Trading Group Pty Ltd (ABN 74 146 086 017) and is regulated by ASIC and licensed to carry on a financial services business in Australia under Australian Financial Services License No. 385620. Gleneagle Securities Pty Limited trading as Global Prime FX, is a registered Vanuatu company (Company Number 40256) and is regulated by the VFSC. The website is owned and operated by FMGP Trading Group Pty Ltd, ABN 74 146 086 017. - 5. FP Markets
Whenever you are looking for the best trading conditions, you should join FP Markets, which is a leading retail broker. Covering a wide range of CFD markets, this brand is perfect for Forex traders, allowing them to trade more than 60 currency pairs. To offer a convenient trading experience to a wide range of investors, FP Markets supports various platforms, including MT4, MT5, cTrader, WebTrader, and more. Algorithmic/automated trading is available on all supported platform options, allowing traders to use EAs or build their own algorithms for trading.
10 per quarter for non-AU traders; 20 per quarter and notional volume of AU$1,000,000 per 4 quarters in the last 1 year 73.85% of retail CFD accounts lose money - 6. eToro
Not only is eToro a reputable retail broker but it is also a brand that has become extremely popular thanks to its social trading offerings. Covering a variety of markets, eToro caters to Forex traders as well, offering more than 40 major, minor, and exotic currency pairs. Members of the broker will have access to eToro’s proprietary platform, while those who wish to copy other successful traders’ orders can use the CopyTrader software solution. The broker also emphasizes the social element, allowing eToro customers to communicate with fellow investors and explore the range of successful traders they can copy.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. - 7. XM Group
When it comes to Forex trading, XM ranks as one of the top destinations for various investors. Focusing on ensuring a fair and safe trading environment, XM supports multiple account options, all of which offer competitive prices on more than 50 currency pairs. Members of XM will be able to trade on the MT4 and MT5 platforms, both of which facilitate the use of numerous trading tools. XM clients will be able to set up their own algorithms or use preset EAs that will allow Forex traders to engage in algorithmic/automated trading in real-time.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 8. Pepperstone
Pepperstone is a reputable retail broker that grants access to a wide selection of tradable markets, with the Forex section offering more than 90 currency pairs to trade. Pepperstone is well-known among investors for its competitive prices, with its Razor account spreads on major currencies starting as low as 0.0 pips. For their trading sessions, investors can choose from platforms like MT4, MT5, and cTrader. The great news is that all three support automated trading tools, allowing traders to develop, test, and implement EAs for their future algorithmic trades.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 9. IG
When it comes to determining the top players in the Forex field, IG definitely earns its spot among the best brokers for currency pair trading. With extensive experience, competitive trading prices, and numerous tradable markets, IG is one of the best picks for numerous traders across the globe. IG enables algorithmic trading, offering its clients the option to build, test, and implement their trading strategies in their Forex trades. The ProRealTime enables building a trading strategy and fully testing its success rate before it is adopted for your automated trades. Those experienced in coding can also build their algorithms using IG’s native APIs. Conveniently enough, traders can use the EAs they have created while they trade currency pairs in their MT4 account at IG.
CFDs are complex instruments. 70% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. - 10. Eightcap
Whether you are new to Forex trading or you are an experienced trader, Eightcap is the right choice for you, offering some of the best trading conditions online. Covering a selection of tradable markets, Eightcap allows its clients to trade more than 40 currency pairs. The brokers support some of the most popular platforms, which enable automated trading of Forex and other instruments. Both the MT4 and MT5 solutions are available to Eightcap’s clients, allowing them to develop EAs and initiate automated trades when preset conditions are met. Meanwhile, FlashTrader will allow traders to set automatic triggers and stops, allowing them to handle risk levels while trading with bots.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.09% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Comprehensive Comparison of the Top 10 Forex Brokers with Automated Trading Platforms
| Forex Broker | Account Minimum | Account Types | Number of FX pairs | Min Spread | Commission | Max Leverage | Platforms | Regulators | Trust Pilot Rating |
|---|---|---|---|---|---|---|---|---|---|
| 1. Fusion Markets | $0 | Zero, Classic, Islamic, Demo, Professional | Over 200 | 0.9 pips Classic; 0.0 pips Zero | $0 Classic Account, $4.50 round turn on Zero Account | 30:1 for ASIC Entity (500:1 for VFSC Entity) | MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade | ASIC, FSA (Seychelles), VFSC (Vanuatu) | 4.8 ⭐ |
| 2. FP Markets | $50 (AU$100) | Standard, Raw, Demo, Professional, Islamic | 70+ | 1.0 pips Standard; 0.0 pips Raw | $0 Standard Account; $6 round turn on Pro Account | 30:1 (Retail)500:1 (Professional) | MetaTrader4, MetaTrader5, WebTrader, IRESS | ASIC, CySEC, FSA (Seychelles), FSCA | 4.8 ⭐ |
| 3. AvaTrade | $100 | Retail, Professional, Islamic, MAM | 250+ | From 0.9 pips (retail), 0.6 pips (pro) | $0 | 30:1 (400:1 for Pro and Non-EU Accounts) | MetaTrader4, MetaTrader5, WebTrader, AvaTadeGO, AvaSocial | FFAJ (License No.1574),CySEC (No. 347/17) ISA (No. 514666577), IIROC, ADGM / FSRA (No.190018), CBI (No.C53877), BVIFSC (No. SIBA/L/13/1049), FSCA(No.45984), ASIC(No.406684) | 4.5 ⭐ |
| 4. Pepperstone | $0 | Standard Account, Razor Account | 100 | From 0.0 pips (Razor Accounts), 1 pip (Standard Accounts) | $0 (Standard Account), $7 round-turn (Razor Account) | 1:30 (Retail ASIC, CySEC, FCA); 1:500 (Professional); 1:400 (CMA) | TradingView, MT5, MT4, cTrader | UK FCA (No.684312), CySEC (No. 388/20), ASIC (No. 414530), BaFin (No.151148), DFSA, CMA | 4.5 ⭐ |
| 5. Eightcap | $100 | Standard, Raw, TradingView Account | 50+ | 0.1 pips on Standard and TradingView Accounts; 0.0 pips Raw Accounts | $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts | 30:1 (ASIC, CySEC)500:1 (FSA) | MT4, MT5, WebTrader, TradingView | SCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296) | 4.3 ⭐ |
| 6. eToro | $1 - $50 (varies in different jurisdictions) | Crypto Wallet, Retail, Professional, Corporate, Demo, Islamic | 55 | 1 pip | $0 | 1:30 (FCA, ASIC, CySEC); 1:50 (FINRA); 1:500 (FSA) | eToro Investing, eToro App, TradingView, eToro CopyTrader | FCA, CySEC, ASIC, MFSA, ADGM, FSA, FINRA/FinCEN | 4.2 ⭐ |
| 7. Admirals | $100 | Trade (Standard), Invest (MT5), Zero | 82 | From 0.0 pips (Invest and Zero Accounts), 0.5 pips (Trade Accounts) | $3 per lot | 30:1 (Retail)500:1 (Professional) | MT4, MT5, WebTrader, MT Supreme Edition, StereoTrader | CySEC (No. 201/13), ASIC (No. 410681), FCA (No. 595450), JSC (No. 57026), FSCA (No. FSP51311) | 4.1 ⭐ |
| 8. Global Prime | $0 | Standard, Raw, Demo, Professional, Islamic | 56 | 0.9 pips Standard, 0.0 pips Raw | $0 Standard Accounts; $7 round turn on Raw Accounts | 30:1 (Retail)500:1 (Professional) | MT4 Desktop, MT4 Webtrader, MT4 Android | ASIC (No. 385620), VFSC (No. 40256) | 4.1 ⭐ |
| 9. IG | $0 | Retail, Professional | 80+ | 0.6 pips CFD trading; 0.165 pips DMA trading | $0 | 30:1 (Retail)500:1 (Professional) | MT4, L2 Dealer, ProRealTime, IG proprietary software | ASIC (No. 515106), FCA (No. 114059), CFTC, DFSA (No. F001780), MAS, BMA | 4.1 ⭐ |
| 10. XM Group | $5 | Ultra Low Micro, Ultra Low Standard, XM Zero | 50+ | From 0.0 pips (Zero Account), 0.6 pips (Standard and Micro Accounts) | $0 Ultra Low Micro and Ultra Low Standard Accounts; $3.50 per side XM Zero Account | 30:1 for CySEC and ASIC Entities (1000 for Other Jurisdictions) | MetaTrader 4 and 5, MetaTrader 4 and 5 on mobile, MT4 WebTrader, MT5 WebTrader, MT$ Multiterminal | FCA (ref. no. 705428), (ASIC) (ref. No. 443670), FSC (license no. 000261/397), DFSA (ref. no. F003484), CySEC (license no. 120/10), MiFID, CFTC | 2.7 ⭐ |
Types of Automated Trading
As already mentioned, there are different forms of automated trading software, using various charts and sources of information to spot trends that would indicate potential profits for opening a trade. Generally speaking, we can differentiate two different types of automated trading depending on the way open and close order spots criteria are determined. Copy/social trading has become a popular way to automatically duplicate orders of other traders, still allowing you to place trades based on preset conditions. Meanwhile, there are also trading bots that track the Forex market by analyzing charts, news, and other sources of materials that indicate currency pairs with potential for profits.
One popular automated tool integrated into several popular trading platforms supported by leading brokers is copy/social trading. A wide range of brokers support trading tools like ZuluTrade and DupliTrade, which are typically integrated into the MetaTrader platform. These software solutions allow you to track the trades and suggestions of more experienced traders, with ZuluTrade automatically executing orders identical to those of other traders. Copy trading is quite popular with a large portion of traders but it does require some time to investigate different expert investors and choose which trader’s orders are worth mirroring/copying.
Social trading is not everyone’s cup of tea, which is why there is also the option to choose automated trading with bots. Instead of relying on the decisions of other traders who might be influenced by various factors, automated trading with bots will simply place orders based on algorithms that have been predetermined by you or an Expert Advisor (EA) software you have purchased. Bots will simply track markets and execute orders whenever clear market indicators show a trade that may be profitable.
Both social and bot-automated trading have their strengths and weaknesses and it is up to your experience, free time, and other preferences to pick whichever form of automated trading is more suitable to you.
Best Automated Trading Platforms
Luckily for you, most reputable retail brokers offer popular trading platforms that support social/copy trading or allow the use of EA for algorithmic trading. Whichever version of automated trading is your preferred method, you still need to know which platform will offer you the easiest and most profitable Forex trading experience.
Whether you are new to Forex trading or you have been a long-term currency trader, you have most likely heard of MetaTrader 4, MT4 for short. This is the first platform that was developed for the purpose of online trading, making it accessible to any type of trader. MT4 has adopted a wide range of tools, including copy/social trading features.
The trading platform allowed its users to develop, test, and infiltrate EAs into their Forex trading sessions. Thanks to the MQL4 IDE (Integrated Development Environment), MT4 users can develop their trading strategies and use trading booths that can automatically execute orders based on indicators they have been instructed to track and spot while analyzing the Forex market.
MetaTrader 5 (MT5) is considered the more sophisticated version of its predecessor MT4, and also offers traders the chance to use trading bots for algorithmic (automated) trading. Thanks to the MQL5 IDE environment integrated into MT5, Forex traders can develop, test, debug, and utilize trading bots for their algorithmic trading experiences.
While MT4 and MT5 are supported by a vast variety of retail brokers, many brands have also adopted the cTrader platform, which is a great solution for more innovative Forex trading sessions, enabling the use of various tools including automated trading features like cBots, indicators, and algorithmic plugins. Traders can develop new indicators, cBots, and plugins as long as they use cTrader Desktop. Once created, these tools can be used for automated trades, based on detailed market analysis.
As mentioned earlier, copy/social trading is also a form of automated trading that can be utilized by Forex traders. One popular platform for copy trading is DupliTrade, which is available at quite a few major retail brokers. It allows its users to pick a strategy provider (expert trader) to copy, enabling DupliTrade clients to adjust their trading parameters when it comes to mirroring a strategy provider’s order.
Social type of automated trading is also popular on the ZuluTrade platform, supported by several reputable retail brokers. Expert traders can register with ZuluTrade and share their trading strategies. Based on their success and overall trading performance, experts are ranked, allowing investors to pick from the top traders and copy their Forex trades. Platform users can use more than 40 different filters to select the right expert to copy and initiate automated trading on ZuluTrade.
Pros and Cons of Automated Trading
If you are still wondering whether automated trading is a suitable strategy for your Forex endeavors, you can compare the drivers and restraints of utilizing this type of trading software. Below, we have drawn a comparison between the pros and cons of using automated trading software for your Forex trades:
Key Pros
- Trades are based solely on algorithms and logic, eliminating the emotional element
- Suitable for busy investors, allowing automated trades even when traders are not logged into their trading accounts
- Optimizes trading, allowing opening and closing trades at the most profitable price points
- Automated trading is implemented into all popular trading platforms adopted by top-notch brokers
Key Cons
- Finding the right expert to copy when mirroring/copying trades can require some time and extra research
- Not every trader can develop successful trading algorithms, which often leads to purchasing EAs available online
- Automated trading can be quite risky, requiring regular strategy adjustments that may require more of your free time
FAQs
The use of automated trading software is legal and can be used in several markets, including Forex. There are no legal restrictions forbidding the use of trading bots or copy trading tools whenever you are trading currency pairs. However, we suggest making sure that the broker of your choice has not imposed any restrictions on the use of automated/algorithmic trading platforms.
While it is true that all popular Forex trading platforms allow the use of automated trading tools, you should keep in mind that the broker might allow the use of this type of trading tool. That said, the majority of reputable brokers have adopted a wide range of trading platforms that allow the use of a wide range of automated trading tools.
Automated trading is quite convenient for some traders but it is not necessarily more profitable than placing your Forex orders yourself. That said, automated trading can spare you some time required for proper market monitoring, enabling quick order executions whenever the software indicates potentially profitable market movements.
Copy trading and social trading do share a lot of similarities, allowing traders to make automated trades based on the act of mirroring the trades of more experienced Forex investors. However, copy trading lacks the social element, enabling instant duplicating of trades, without having any further interaction with the expert you copy. Meanwhile, social traders are constantly communicating with each other, comparing strategies, and making the whole trading process a lot more interactive.
Like any other type of technology, automated trading can experience some technical failures. Luckily for traders, many platforms that allow the development of trading bots also enable testing and debugging of any failures. That said, you cannot rely on automated trading to be fail-proof all of the time.