Financial markets continue to evolve, and technology is at its core .
Many financial firms resemble a tech company more than a financial services firm, and FinTech drives innovation. Trading with one of the best automated Forex brokers adds to the long-term profitability, and we have identified some excellent choices.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- Pepperstone, Great ECN execution on MT4/5, cTader, TradingView and Pepperstone proprietary platform.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- FP Markets, ECN trading with leverage up to 1:500.
- Eightcap, Competitive pricing + excellent daily videos.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
Best Automated Brokers Comparison
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Regulators | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, CMA, CySEC, FSCA | ASIC, CySEC, FCA, SCB |
Year Established | 2006 | 2010 | 2011 | 2005 | 2009 |
Execution Type(s) | Market Maker | No Dealing Desk, NDD | ECN/STP, Market Maker | ECN/STP | ECN/STP, Market Maker |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.9 pips | 1.1 pips | 0.1 pips | 1.2 pips | 1.0 pips |
Average Trading Cost GBP/USD | 1.5 pips | 1.4 pips | 0.2 pips | 1.4 pips | 1.2 pips |
Average Trading Cost Gold | $0.29 | $0.15 | $0.18 | $0.16 | $0.12 |
Trading Platform(s) | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ | Other, MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Trading View+ | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Trading View |
Islamic Account | |||||
Negative Balance Protection | N/A | N/A | |||
| Visit Website | Get Started Visit Website75-95% of traders on margin lose | Visit Website | Visit Website | Visit Website |
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade remains one of the most competitive automated Forex brokers, allowing clients to deploy any Forex trading robot operating on the MT4 and MT5 trading platforms. It also supports social trading via DupliTrade, ZuluTrade, and MQL5 Signal Service. Completing the broad choices of trading platforms are the proprietary WebTrader, AvaOptions and AvaTradeGO. The choice of fixed and floating spreads and a commission-free asset selection above 1,250 attracted over 300,000 clients to this Irish-based broker. Operational since 2006, this well-regulated market maker has excellent technology infrastructure and became one of the most transparent and trusted online multi-asset brokers with a balanced product and services portfolio ideal for all retail traders.
Pros & Cons
- High quality educational offering via AvaAcademy
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
Pepperstone
In Summary Great ECN execution on MT4/5, cTader, TradingView and Pepperstone proprietary platformPepperstone connects traders to deep liquidity pools and has NDD order execution with ultra-fast average order execution speeds of 30 milliseconds. The commission-based trading account features raw spreads from 0.0 pips for a commission of $7.00 per 1.0 standard round lot, and high-volume traders can lower final trading fees via a volume-based rebate program. It makes Pepperstone one of the best Forex brokers offering automated trading.
The well-balanced asset selection of 1,500+ assets includes Forex, CFDs on Forex indices, cryptocurrencies, and ETFs.
Pros & Cons
- Excellent choice of trading platforms consisting of MT4/MT5, cTrader, TreadingView and Pepperstone Platform
- Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
- Social trading support via Signal Start, MetaTrader Signals, Copy Trading by Pepperstone, DupliTrade
- Leverage of up to 1:400 depends on jurisdiction and superb trade execution
- Demo accounts have 60-day time limits
FXTM
In Summary Best all-around broker with high floating leverage and fast executionWe have made FXTM one of our top-rated automated trading Forex brokers because in addition to its lengthy track record, it enjoys a very high level of regulatory oversight. In addition, it has a sterling reputation, and it offers a highly competitive fee structure which tends to keep down the cost of trading.
Traders get the core MT4/MT5 trading platforms, with full support for algorithmic and copy trading, while FXTM also features its proprietary mobile application, FXTM Trader. With 1,000+ assets, direct share investments, and in-house constructed thematic stock baskets, FXTM maintains a balanced asset selection, supplemented by quality education, research, and trading signals.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
FP Markets
In Summary ECN trading with leverage up to 1:500FP Markets is an ASIC-regulated Australian automated trading Forex broker, which launched in 2005. For most traders, the unique selling point of this broker is in the extremely wide range of tradable assets offered, providing the opportunity to trade over ten thousand individual stocks and shares including publicly quoted Hong Kong and Australian companies. FP Markets also offers 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin. FP Markets offers an unusual hybrid ECN/STP execution model, meaning their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
Eightcap
In Summary Competitive pricing + excellent daily videosAlgorithmic traders require an innovative infrastructure, excellent trade execution, deep liquidity, and low trading fees, which Eightcap provides. Forex traders can rely on the MT4 trading platform, which remains the primary choice with thousands of EAs, try its successor MT5, which requires re-coding MT4 solutions or take advantage of Capitalise AI, where traders can automate Forex strategies in a code-free environment.
Algorithmic Forex traders who require low latency 24/5 market access can qualify for free VPS hosting if they trade a minimum of five standard lots monthly. It is a generous offer with conditions most automated Forex traders easily exceed.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingBlackBull Markets was founded in 2014 in New Zealand. Like many antipodean automated trading Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.
Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-grade pricing for retail traders via proprietary price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage of up to 1:500
- Limited deposit options
Asset List and Leverage comaprison
Currency Pairs | Yes | Yes | Yes | Yes | Yes |
CryptocurrencyPairs | No | Yes | Yes | Yes | Yes |
CommoditiesAnd Metals | Yes | Yes | Yes | Yes | Yes |
Index CFDs | Yes | Yes | Yes | Yes | Yes |
Equity CFDs | Yes | Yes | Yes | Yes | Yes |
Bonds | No | Yes | Yes | No | No |
ETFs | No | Yes | Yes | No | No |
Options andSynthetics | Yes | No | Yes | No | No |
MaximumRetail Leverage | 1:2000 | 1:500 | 1:400 | 1:500 | 1:500 |
MaximumPro Leverage | 1:2000 | 1:500 | 1:400 | 1:500 | 1:500 |
Overview of Automated Forex Trading Software
MT4 | Yes | Yes | Yes | Yes | Yes |
MT5 | Yes | Yes | Yes | Yes | Yes |
cTrader | No | No | No | No | No |
ProprietaryPlatform | No | Yes | Yes | No | No |
AutomatedTrading | Yes | Yes | Yes | Yes | Yes |
Social Trading | No | Yes | Yes | Yes | Yes |
MT4/MT5Add-Ons | No | Yes | Yes | Yes | Yes |
GuaranteedStop Loss | No | No | No | No | No |
Negative BalanceProtection | Yes | Yes | Yes | Yes | Yes |
UniqueFeature One | Low trading costs | MAM/PAMM Accounts | ExcellentEducation | Cutting-edgeTrading Tools | VPS Hosting |
UniqueFeature Two | Trading Signals | VPS Hosting | Quality Trading Tools | MAMAccounts | API Trading |
Automated Forex Trading Explained
Trading Forex manually can be exhausting and repetitive, involving analyzing charts, reading economic reports, monitoring price action, and identifying buying and selling opportunities. After placing a trade, emotional decision making displaces the best trading plan for most traders, and the long-term outcome is a loss. Between 70% and 85% of retail traders manage losing portfolios. Automated Forex trading can provide a solution.
100% automated Forex trading robots or expert advisors (EAs), as they are named on the MT4 trading platform are increasingly popular, but they neither guarantee profits nor present a one-stop solution to long-term profitability. The superior ones are expensive or remain inaccessible to the public. However, trading with one of the best automated Forex brokers adds to the long-term profitability of any automated trading strategy, and we have identified some excellent choices.
Given its popularity, there is plenty of misleading information about Forex trading robots and EAs. Current retail solutions remain simplistic and without advanced ML/AI at the core.
One of the most commonly-deployed strategies is a moving average crossover. For example, the EA will buy an asset when a fast-moving average crosses above a slow-moving average and sell when it crosses below it.
Does Automated Trading Work? Is it Profitable?
Automated trading works, as evident by its use among financial institutions and expanding investment into sophisticated solutions. For anyone trading for a living, professional or private, automated trading, partial or full, remains a requirement in today’s markets. Retail traders who seek to upgrade their trading operations should never listen to marketing teams or reviews but test any solution in a demo account. MT4 offers back-testing capabilities, allowing traders to gather sufficient data during the limited free trial version. Coding your strategy remains the most beneficial option, but many are unable to do so. The MT4 marketplace has almost 20,000 EAs, and retail traders are likely to find what they need. I recommend taking your time to research and test before committing to a purchase. The bottom line is that automated trading works and can be profitable.
How Do I Start Automated Trading?
Traders must decide which automated Forex trading software suits their needs, as there are several options available. There are fully autonomous ones, semi-autonomous, copy trading and signal providers.
- Copy Trading - Copy trading allows traders to copy others. The set-up remains simple, and platform providers offer tools to safeguard, protect and alert traders. It is a low-cost alternative to automated trading.
- Broker-Based Automated Trading Platforms - Most brokers provide trading platforms that fully support automated trading. Traders can either code their strategy or acquire an existing solution.
- MT4 - MT4 remains the most popular one due to its versatile infrastructure. The MQL4 coding language allows developers to create expert advisors (EA), and many brokers offer APIs that offer more advanced solutions to connect to MT4 for order placement and management.
- Trading Signals - There are many signal providers, and most brokers maintain a team of analysts. While some use simple automated trading solutions to derive signals, well-established ones have human analysts for more precise trading recommendations. Traders usually have to place trades manually.
- Robots - Trading robots are more advanced and coded in Python, R, or C#. Most operate independently from a broker or trading platform and connect via an API.
- Free Automated Trading Software - Thousands of free automated trading software options exist, but most, if not all, fail to work. They only create consistent revenues for developers, and I recommend all traders avoid them.
- Automated Trading Apps - FinTech companies churn out automated trading apps to meet the demands of retail traders preferring to use their mobile devices. Many operate in the cloud and can offer simplistic solutions.
How to Choose an Automated Trading Program
To find the right automated trading program I recommend the following steps.
- Define your trading needs to find the most suitable solution.
- Read reviews, looking for operational issues to see what robots to avoid.
- Consider costs - you get what you pay for. Many free options are unreliable.
- Try a demo automated bot to evaluate performance and flag any issue with the code.
Expert Advisors vs. Forex Robots
Expert advisors (EAs) are specific to the MT4 and MT5 trading platforms by MetaQuotes, coded in MQL4 or MQL5, and generally less sophisticated. They operate inside the trading platform and often produce trading signals that require manual execution. Forex robots can offer notably more sophistication and include machine learning and artificial intelligence. They run independently from brokers and connect via APIs for order placement and trade management while operating without the trading platform. They generally execute without intervention if desired.
The Cost of Algorithmic Trading
Automated, or algorithmic trading, accounts for 80%+ of daily Forex trading volumes, and the MT4 trading platform remains the leading algorithmic Forex trading platform, but what about the costs of algorithmic trading?
Here is a breakdown of monthly costs algorithmic Forex traders face:
- Algorithmic trading platform - Free, as brokers provide it at no additional cost.
- API - Usually free, but it may have a minimum deposit requirement and minimum monthly trading volume.
- VPS hosting - Often available free of charge at Forex brokers, but with minimum deposit and monthly trading volume requirements.
- High-speed internet connection - Between $20 to $150 monthly, depending on geographic location and internet service provider.
The two primary non-recurring fees for algorithmic Forex traders are:
- Developing a Forex trading strategy - The costs depend on the length it takes to develop and test a strategy and associated trading losses in a live account, which can exceed thousands of dollars.
- Coding the strategy - It depends on the complexity of the algorithm and can cost between a few hundred to tens of thousands of dollars (high-end models can cost millions, but prices are coming down as AI-based models become more affordable).
Pros & Cons of Automated Trading
Traders must always consider both sides, which allows them to make an informed and objective decision. Here are some pros and cons to think about before deciding.
The Pros of Automated Trading
- No emotional decision making.
- Severe reduction of the negative impacts of trading psychology.
- Ability to receive 24/7 market coverage, which remains asset dependent.
- In-depth cross-asset diversification.
- Traders may spend as little as 30 minutes in front of their trading desk per day.
- Elimination of repetitive technical analyses.
- Reduction in stress levels.
- Improved trading speed and advanced order placement.
The Cons of Automated Trading
- Retail solution cannot adapt to changing market conditions.
- They remain based on technical analyses and fail during fundamental events.
- Functioning solutions are expensive and out of reach for many traders.
- Most are unprofitable.
Which Financial Markets are the Best for Using Automated Trading Software?
All markets are suitable for automated trading software, but each requires a different solution. The three most popular trade markets remain Forex, index CFDs, and cryptocurrencies. Traders must use the appropriate automated trading software with the intended market sector to achieve the best trading results.
The Advantages of Automated Forex Trading
- Deep liquidity and high leverage.
- 24/5 operability.
- Volatility that creates trading opportunities.
- Availability of the MT4 trading platform.
- Low capital requirements to start an automated trading portfolio.
- VPS hosting by brokers.
The Benefits of Automated CFD Trading
- Index CFDs carry less risk than individual equity CFDs.
- Tight spreads and low commissions.
- Strategies developed for the market open and market close.
- Index CFDs provide low-cost diversification and fixed trading times.
Automated Trading on Cryptocurrencies
- Volatility creates trading opportunities.
- Thousands of assets with increased profit potential.
- 24/7 trading.
Forex Robot Scams
Regrettably, the automated trading scene remains littered with Forex robot scams. Using common-sense will prevent traders from falling for them. Scammers provide doctored account screenshots displaying enormous profits. Nobody would sell automated trading solutions that generate those profits. Traders should ask themselves why a Forex robot or EA is available free of charge or even for a few hundred dollars if it makes developers unheard-of returns per month. The answer is obvious. Scammers prey on the fact that up to 85% of retail traders lose money, and all seek to capitalize from the most liquid financial market in their sleep without any effort. Using automated trading solutions properly is beneficial and necessary for committed traders, but asking the impossible will always result in losses. Profit-guarantees remains another red flag to avoid together with set-and-forget solutions, which remain well-known scammer marketing methods.
The Best Times for Auto Trading
This depends on auto trading software and its sophistication. Retail solutions remain pure technical analysis versions, and the best times would be when there are no economic releases, central bank conferences, meetings, speeches, or other market-moving events. Another well-suited period for trading robots is on which has high liquidity, like the first and last hour of the Tokyo, London, and New York trading sessions.
Leverage & Automated Trading
Leverage can magnify profits and losses, and many traders fail to understand how to use high-leverage set-ups effectively in conjunction with risk management. Deploying an untested automated trading solution in a high-leverage account without constant supervision exposes the trader to avoidable losses. After testing it in a demo account and performing extensive back-tests, traders should take it into a live version with low leverage and low capital for testing in real market conditions. After enough data and trust exist, both can gradually increase to the desired levels. I recommend traders monitor their account performance and deploy stringent risk management rules during the initial set-up of any automated trading solution.
Final Thoughts
Although most trading robots tend to lose money, often quickly, there are successful hedge funds which use longer-term trading robots profitably, and there’s no reason why you can’t do the same.
