Automated Forex Trading
Automated forex trading is a hands-off approach to investing which makes use of advanced software and tools. A computer program essentially analyses price patterns, decides whether to buy or sell, and executes forex trades on the investor’s behalf. Human intervention is then about choosing and tweaking trading algorithms based on performance.
Importantly, the liquid and high-speed world of forex auto trade copiers is steadily making manual trading obsolete. In fact, institutional FX traders have been using automated trading robots for many years. The technology is now available to retail traders through bots for computers, plus iOS, Android, Windows, and other operating systems.
This tutorial explains how automated forex trading works and lists the best bots and supporting brokers in 2024.
The Best Brokers For Automated Forex Trading
#1 - AvaTrade
Why We Chose AvaTrade
AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.
"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting
- Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
- Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
- Minimum Trade: 0.01 Lots
- Leverage: 1:30 (Retail) 1:400 (Pro)
Automation
Expert Advisors (EAs) on MetaTraderPros
- AvaTrade is a heavily regulated and trustworthy broker with licenses from the ASIC, CySEC and more
- There's a great range of fee-free deposit methods, including bank wire, credit cards and popular e-wallets like Skrill
- Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools
Cons
- Traders from the US are not accepted
- There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders
- There is no ECN account with raw spreads
#2 - OANDA US
Why We Chose OANDA US
OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available for short-term traders, alongside flexible contract sizes and automated trade executions.
"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."
- DayTrading Review Team
- Instruments: Forex, Crypto
- Regulator: NFA, CFTC
- Platforms: OANDA Trade, MT4, TradingView, AutoChartist
- Minimum Deposit: $0
- Minimum Trade: 0.01 Lots
- Leverage: 1:50
Automation
Expert Advisors (EAs) on MetaTraderPros
- Seasoned day traders can access industry-leading tools, including an MT4 premium upgrade and advanced charting provided by MotiveWave
- There's a strong selection of 68 currency pairs for dedicated short-term forex traders
- The proprietary OANDA web platform continues to deliver a highly competitive charting environment, including 65+ technical indicators powered by TradingView
Cons
- There's only a small range of payment methods available, with no e-wallets supported
- The range of day trading markets is limited to forex and cryptos only
- It's a shame that customer support is not available on weekends
#3 - Deriv.com
Why We Chose Deriv.com
Deriv.com is a low cost, multi-asset broker with over 2.5 million global clients. With just a $5 minimum deposit, the firm offers CFDs, multipliers and more recently accumulators, alongside proprietary synthetic products which can't be found elsewhere. Deriv provides both its own in-house charting software and the hugely popular MetaTrader 5.
"Deriv.com will suit day traders looking to make fast-paced trades using CFDs and multipliers with high leverage up to 1:1000. The broker is also the industry leader in synthetic indices, which simulate real market movements and are available around the clock. "
- DayTrading Review Team
- Instruments: CFDs, Multipliers, Forex, Stocks, Indices, Commodities
- Regulator: MFSA, LFSA, VFSC, BFSC
- Platforms: Deriv Trader, MT5
- Minimum Deposit: $5
- Minimum Trade: 0.01 Lots
- Leverage: 1:1000
Automation
Expert Advisors (EAs) on MetaTrader, DBotsPros
- There's a good range of fast deposit and withdrawal methods with zero payment fees and low minimum deposits
- Deriv bolstered its short-term trading opportunities in 2024 with accumulator options on simulated indices featuring up to 5% growth rates
- Deriv continues to offer fast and reliable 24/7 support and the WhatsApp service is particularly convenient
Cons
- There are limited copy trading tools and analysis features compared to alternatives like IQ Cent
- There's no loyalty program or rebate scheme for high volume traders
- The range of 100+ assets trails some competitors such as Quotex which offers 400+
#4 - Pepperstone
Why We Chose Pepperstone
Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.
"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."
- DayTrading Review Team
- Instruments: CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread Betting
- Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
- Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
- Minimum Deposit: $0
- Minimum Trade: 0.01 Lots
- Leverage: 1:30 (Retail), 1:500 (Pro)
Automation
Expert Advisors (EAs) on MetaTraderPros
- Now offering spread betting through TradingView, Pepperstone provides a seamless, tax-efficient trading experience with advanced analysis tools.
- Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.
- Pepperstone emerges as a low-cost broker, especially for serious day traders with spreads from 0.0 in the Razor account and rebates of 25%+ through the Active Trader program.
Cons
- Pepperstone’s demo accounts are active for only 30 days, which may not be not long enough to familiarize yourself with the different platforms and test trading strategies.
- There’s no simplified proprietary trading platform, nor are there any social trading features, which could be a disadvantage if you are new to day trading.
- Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.
#5 - XM
Why We Chose XM
XM is a globally recognized forex and CFD broker with 10+ million clients in 190+ countries. Since 2009, this trusted broker has been known for its low fees on 1000+ instruments. XM is regulated by multiple financial bodies, including the ASIC and CySEC.
"XM is one of the best forex and CFD brokers we have tested. The flexible account types will suit a variety of short-term trading styles while the $5 minimum deposit and smooth sign-up process make it easy to start trading."
- DayTrading Review Team
- Instruments: Forex, Stock CFDs, Turbo Stocks, Indices, Commodities, Precious Metals, Energies, Shares, Crypto, Futures
- Regulator: ASIC, CySEC, DFSA, FSC, FSCA
- Platforms: MT4, MT5
- Minimum Deposit: $5
- Minimum Trade: 0.01 Lots
Automation
Expert Advisors (EAs) on MetaTraderPros
- XM continues to deliver diverse and multilingual educational materials and offers a useful live education schedule for its webinars and insights
- 1000+ instruments are available, including recently added thematic indices, providing exposure to emerging industries
- XM is a hugely respected broker authorized by tier-one regulators
Cons
- There is weak regulatory oversight through the global entity
- PayPal deposits are not supported
- There's $5 inactivity fee after only 3 months, though this won't affect active traders
Automated Forex Trading Explained
The top autopilot forex trading systems scan the markets to identify price patterns and execute trades. Software follows a set of rules and criteria, programmed by the developer and/or tailored by the individual forex trader.
Let’s say an investor knows how to code and create an automated forex trading robot. This means they could instruct it to short the EUR, for example, if the European Central Bank (ECB) eases its monetary policy. The investor can dictate the lot size, plus the profit to accumulate before closing the position.
Trading platforms like MetaQuotes’ MT4 and MT5, plus TradeStation, all support with the build of automated forex trading systems, including with Expert Advisors (EAs) that follow a set of rules rooted in technical analysis. MT5’s programming language is MQL5 while EasyLanguage is TradeStation’s simple coding language that is particularly popular with beginners. Python and R are also suitable for programming automated forex trading systems.
Types of Forex Trading Automation
You can separate forex trading systems into two groups:
- Fully automated trading systems derive their signals and execute positions (openings and exits). You may also hear them referred to as ‘forex auto trading robots’. They allow human intervention through settings concerning lot size, take profits, stop losses, and various other risk-management parameters.
- Partial systems include forex signal providers. They follow a set of criteria and useful information based on technical analysis to make trade suggestions. However, the investor will have to manually execute positions.
Popular Services
Copy Trading
One of the best forms of forex automation is through copy trading. This is a time-saving and beginner-friendly way to speculate on currencies while learning from the pros. All you need to do is find an experienced investor and copy their positions.
On most platforms, after you select an investor, you simply set the system to ‘follow’ or ‘copy, and your account automatically mirrors the positions of the master trader.
The best-known and most popular forex copy trading platforms include:
The auto robot solutions listed above offer a wide range of automation-related features. MT4 and MT5, for example, provide everything from social trading with large community support to free and fully automated forex trading software downloads. eToro, on the other hand, does not feature bots, but it has a solid copy and social trading framework.
Forex Signals
The top brokers offer forex trading signals on iOS, APK and desktop devices. Some offer this service for free, while others charge a subscription. Brokerages may have teams of experts churning out signals while other rely solely on automated analysis.
The human factor is an important component of a quality signal service. Humans will mix various economic indicators with fundamental and technical triggers.
Robots
Bots generate and react to signals automatically. They essentially act on market data without human intervention. Thus, they completely remove the emotion-based element of forex investing.
The profitability of forex trading robots, however, varies. Traders will have to supervise and tweak code as robots are not infallible. Even the most lucrative programs need attention now and then.
MT4 & MT5
MetaTrader 4 (MT4) and MetaTrader 5 (MT5) were created by MetaQuotes and offer some of the most popular automated forex trading solutions called Expert Advisors (EAs).
Expert Advisors represent the gold standard in automated forex trading. People code these programs in a C++ like language. EAs automatically monitor forex markets and identify trading opportunities based on parameters set by the user.
Benefits include:
- EAs can save time
- EAs help remove emotions from the trading equation
- You can find reviews and educational resources on Reddit and YouTube
- MT4 allows the importation and installation of third-party EAs so you do not have to code your own
- Users can back-test EAs before letting them handle real money. Note, back-testing does not account for slippage
Of course, there are also some drawbacks:
- Unless you rent a VPS, an EA will only work when your computer is running
- Some Expert Advisors are not “experts”. They are simplistic bits of code developed my amateur traders
Other Popular Solutions
- Lion Forex Auto Trading Gold – known for profitability and its fully automated trading capability. It integrates best with MetaTrader 4
- Galileo Forex Automated Trading – functions on MT4 and MT5. It uses advanced algorithms to make FX investment decisions
- Kairos Automated Trading Platform – the South African-based solution can be integrated into several alert platforms to execute on their data
Free Automated Forex Trading Software
People are usually right to distrust free, too-good-to-be-true deals. With automated currency exchange trading systems, the situation is a tad more nuanced, however.
Scammers will sometimes offer you software for free, then require you to sign up with a certain broker. This way, they can pick up the commission resulting from your registration. Such scams are relatively easy to spot. If the returns sound too good to be true, they probably will be.
Of course, there are no guarantees that expensive solutions will outperform free auto trading packages. However, paid-for solutions tend to yield better results. The most important thing is to look at user reviews and ratings before paying for anything. The best brokers and marketplaces provide details on historical profit and loss, risk metrics and information on the strategies used.
Getting Started
Automated forex trading systems are available all over the world, from Australia and Singapore to India, Canada and South Africa. Beginners should start by testing with small amounts or by using a paper trading account.
Most forex brokers and companies that support this type of investing allow back-testing on demo accounts. This is the process of running your best automated forex trading strategy with past price data to assess its ability to turn a theoretical profit. Such systems are available on demo accounts, so the trader does not have to risk real money to start with.
And whilst it hopefully goes without saying, the key starting point for forex investors should be to automate the manual strategies that are already successful.
Note, you do not have to be a scripting language expert to use software. The MQL community supports virtual marketplaces, where you can discuss, order, and buy ready-made or customized automated trading programs.
Final Word on Automated Forex Trading
There are many bots, signals and technology solutions when it comes to automated forex trading. For beginner investors we recommend reading software reviews online and back-testing strategies on free demo accounts. Alternatively, see our list of the best brokers for automated forex trading to get started today.
FAQs
Is Automated Forex Trading Profitable?
How much money you make will ultimately depend on your skill and knowledge as an investor. Institutions can generate serious returns because they employ the best analysts, gather many years of data, and have access to market-leading technology. Fortunately, retail forex traders can build their own robots, download free solutions, or buy programs online at the MetaTrader Marketplace, for example.
What Is The Best Automated Forex Trading Software?
The best automated forex trading software will depend on whether you want a fully automated solution or a partial service that simply provides alerts and signals. Importantly, the better the inputs into an algorithm, the better the results tend to be. The MetaTrader Marketplace is a good place to find the top forex auto trading programs.
Does TradingView Support Automated Trading Forex?
No – TradingView does not currently support automated forex trading. Instead, you may want to use desktop and mobile friendly platforms like MetaTrader 4 and MetaTrader 5.
Can A Forex Robot Make Money?
Using an automated forex robot without proper back-testing and research is risky. Robots cannot guarantee easy or fast money. Fortunately, the top brokers and platforms publish information on previous profit and loss to help traders find the best solutions.
How Does Automated Forex Trading Work?
Some brokers offer forex trading solutions that allow retail investors to automate manual strategies. Traders can code their own algorithms using beginner-friendly scripting languages alongside tutorials and guides available online. See our article above for the main advantages of automated forex trading.