Over the years, trading has become much simpler and faster. With advanced technology, users can now easily execute trades by leveraging computer programs – machine learning and artificial intelligence. Traders Union experts have compiled and compared the best Forex brokers for algorithmic trading. A list by the experts contains 11 best algo trading software in the year 2023.
Types of automated trading software
Automated trading software uses computer programs for trading. This allows traders to focus on other equally important activities and avoid trading emotions. These programs can be implemented in almost every stage of the trading process. Here are the main types of automated trading software existing in a modern trading environment.
- Trading advisors and bots. These programmers allow traders to engage in Forex trading activities when uploaded on an MT4 or MT5. They analyze the market and help determine whether a trader should enter it at that particular time or wait a while. Trading advisors and bots study available data and calculate the possible return or risk of engaging in the trade. The most common trading advisors and bots are: Coinrule, Zignaly, 3 Commas, Pionex, and CryptoHopper.
- Copy trading. Copy trading allows beginners to copy trades placed by successful traders. Instead of analyzing traders’ performance manually, traders can utilize copy trading software to relieve themselves of the manual searching process of analyzing market trends. Copy trading bots copy other traders’ trades and trade on your behalf. The main platforms for copy trading include: eToro copy trader, RoboForex, and IC Markets, Exness.
- Strategy builders. These programs help investors come up with useful trading strategies, back-test and apply them effectively. The most common strategy builder is RoboForex. It helps traders create and test their Forex trading strategies more effectively. In general, robots have a high execution speed and provide unlimited helpful strategies.
How to choose the best algo trading broker?
As we mentioned earlier, the market today offers various options, and traders are often spoilt for choice when it comes to algo trading brokers. However, not all brokers are created equal, and some of them are simply better than others. It can be difficult to distinguish between a good algo trading broker and a poor one. Traders Union experts published some advice on how to choose the best algo trading broker.
- Licensing and reliability. This is one factor that you should always pay attention to when it comes to Forex brokers. You need to know that you are working with a trustworthy broker. Confirm that you conduct due diligence on any broker that you plan to work with, and ensure that the broker is regulated and licensed.
- Permission on trading with bots. You might think that all brokers support automated trading, but this is often not true. There are brokers that even have bans on trading bots. When choosing an algo trading broker, ensure that you consider the permission to trade with bots.
- VPS servers. Another factor when choosing an algo trading broker is if they have a virtual private server in some of the world’s biggest trading centers e.g., London and New York. With VPS hosting, you get server space with a huge number of resources. This offers greater control and customization.
These are some crucial factors which you should pay attention to. On the Traders Union website you can find more information and advice.
Summary
In conclusion, automated trading software makes trading much easier. On the Traders Union website you can find more advice on how to choose the right software, the best Forex platforms for algo trading, and more.
