| Updated: February 25, 2025Automated trading systems have played an increasingly important role in shaping the trading strategies of forex enthusiasts, allowing them to capitalize on opportunities that may have otherwise gone unnoticed. A plethora of brokers and platforms now cater to traders who make use of these systems, giving veterans and novices alike ample opportunity to take advantage of automated trading. If you happen to be such a trader, this guide offers an overview of the ins and outs of automated trading.
Below you can find a list with the Forex brokers where you can use automatic trading:
Top 5 Forex Brokers with automatic trading
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BlackBull Markets
- Broker boasting lightning-fast execution speed
- ECN brokers with tight spreads from 0.0 pips
- $0 minimum deposit requirement
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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Pepperstone
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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FP Markets
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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Axi
- Raw spreads start from 0.0 pips
- Offers order execution faster than standard ECN model
- Axi Select Funded Trader Program offers funding up to $1 million
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
Brokers Compared by Spread
| Brand | Commission per lot | |
|---|---|---|
| BlackBull Markets | AVG 0.3 pips | $0 (ECN Standard Account), $6 round turn (ECN Prime Account), $4 round turn (ECN Institutional Account) |
| Fusion Markets | AVG 0.93 pips | $0 Classic Account, $4.50 round turn on Zero Account |
| Pepperstone | AVG 1.1 pips | $0 (Standard Account), $7 round-turn (Razor Account, TradingView, MT4, MT5), $6 round-turn (Razor Account, cTrader) |
| FP Markets | AVG 1.2 pips | $0 Standard Account; $6 round turn on Pro Account |
| Axi | AVG 1.2 pips | $0 on Standard Account; $7 round trip on Pro Account |
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| BlackBull Markets |  |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
| Fusion Markets |  |
$0 |
| Pepperstone | |
$0 |
| FP Markets | |
$50 (AU$100) |
| Axi | |
$0 |
Forex Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| BlackBull Markets | |
1:500 (FMA), 1:500 (FSAS) |
| Fusion Markets | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC | Retail Account) |
| Pepperstone | |
1:500 (CySEC | Pro Account), 1:500 (SCB | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (DFSA | Retail Account), 1:30 (FCA | Retail Account), 1:200 (SCB | Retail Account) |
| FP Markets | |
1:500 (CySEC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:500 (FSAS | Retail Account) |
| Axi | |
1:500 (Elite Account), 1:400 (Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (DFSA | Retail Account), 1:30 (FCA | Retail Account), 1:500 (SVGFSA) |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| BlackBull Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| Fusion Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| Pepperstone | |
MetaTrader 4, MetaTrader 5, Proprietary Mobile, Proprietary Web |
| FP Markets | |
cTrader, TradingView |
| Axi | |
MetaTrader 4 |
Comprehensive Comparison of Forex Brokers with automatic trading
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
|
AVG 0.3 pips |
|
|
 |
$0 |
|
AVG 0.93 pips |
|
|
 |
$0 |
|
AVG 1.1 pips |
|
|
 |
$50 (AU$100) |
|
AVG 1.2 pips |
|
|
 |
$0 |
|
AVG 1.2 pips |
|
Automated Trading 101
Automated trading is a revolutionary technology that, as suggested, enables the automatic execution of trades. At its core, it involves the use of sophisticated algorithms and software to identify trading opportunities, perform technical analysis, monitor market conditions, and respond to economic events in real-time without the need for manual input. The system can then execute orders on the trader’s behalf by utilizing the said data based on predefined rules and criteria.
In terms of practical usage, an automated system can be customized to suit individual trading strategies and goals and can be used to trade a variety of financial instruments, including currencies, stocks, and commodities. We should also highlight that automated trading is flexible, allowing for the execution of stop-loss orders and other order types.
Essentially, automated trading allows for the implementation of complex trading strategies that would be difficult or impossible to execute manually. Furthermore, it ensures that a person can continue participating in the market even when they are busy and unable to trade manually. This efficiency is another reason why so many individuals gravitate toward automated trading.
As traders are often prone to making decisions based on emotional bias, another perk of automated trading has to do with minimizing the negative impact this type of decision-making can have on one’s results.
Automated Trading Types
Automated trading has evolved to encompass a wide range of strategies and approaches, catering to diverse trading needs and goals. The various types of automated trading can be broadly categorized into a number of key areas, including:
- High-Frequency Trading (HFT): This type of automated trading involves executing a large number of trades at extremely high speeds, often in fractions of a second. HFT strategies are designed to capitalize on small price discrepancies and market inefficiencies and are typically used by institutional traders and hedge funds.
- Trend Following: With this strategy, established trends in the market are identified and followed. Trend-based strategies are suitable for trading various instruments.
- Copy Trading: Copy trading has gained significant popularity in recent years, particularly among retail traders. This approach involves replicating the trades of experienced and successful traders with the goal of achieving similar returns. Copy trading can be considered a form of automated trading, as it uses algorithms and software to mirror the trades of other traders.
- Mean Reversion: Meta Reversion is all about identifying overbought or oversold conditions in the market and then trading in the opposite direction in anticipation of a reversal. Mean reversion strategies are based on the idea that asset prices will eventually revert to their historical means and can be used to trade a range of financial instruments.
- Statistical Arbitrage: Statistical Arbitrage is utilized to identify mispricings in the market by analyzing statistical relationships between different assets. Statistical arbitrage strategies are designed with the goal of profiting off of the buying of underpriced assets and selling overpriced assets.
- Market Making: Automated Market Makers (AMMs) provide liquidity by buying and selling securities at prevailing market prices.
- Event-Driven Trading: With this strategy, automated trading is executed in response to specific events or news announcements, such as earnings releases or economic data. Event-driven strategies are designed to capitalize on the market’s reaction to these events and can be used to trade a range of financial instruments.
- Machine Learning: Machine learning algorithms are used to analyze large datasets and identify patterns and relationships in the market. Machine learning strategies can be used to trade a variety of financial instruments and are increasingly being used by institutional traders and hedge funds.
Do note that the above types of automated trading are not mutually exclusive. Many traders and investors use a combination of strategies to achieve their trading goals.
Automated Trading Platforms
Automated trading platforms have become an essential tool for traders, enabling them to automate their trading strategies, manage risk, and optimize their performance. The most impressive ones offer intuitive interfaces, comprehensive user guides, and dedicated customer support teams that can help traders get started and resolve any issues they may encounter. Below, you will find some of the most popular automated trading platforms.
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MT4
MetaTrader 4 (MT4) is one of the most widely used automated trading platforms, particularly among forex traders. It offers a user-friendly interface, advanced charting and analysis tools, and a large library of indicators and expert advisors. MT4 allows traders to automate their trading strategies using its built-in programming language, MQL4, which enables them to create custom indicators, scripts, and expert advisors. Additionally, MT4 provides a range of risk management tools, including stop-loss and take-profit orders, which help traders limit their losses and lock in their profits.
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MT5
MetaTrader 5 (MT5) is the successor to MT4 and offers even more advanced features and tools. It provides a more intuitive interface, improved charting and analysis capabilities, and a larger library of indicators and expert advisors. MT5 also supports more financial instruments, including stocks, futures, and options, making it a popular choice among traders who want to diversify their portfolios. Like MT4, MT5 allows traders to automate their trading strategies using its built-in programming language, MQL5, which is more powerful and flexible than MQL4.
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DupliTrade
DupliTrade is a social trading platform that offers a range of features and tools designed to help traders succeed. This platform allows traders to automatically copy the trades of other successful traders, known as “strategy providers,” in real time. DupliTrade’s platform is designed to be highly customizable, with traders able to choose from a range of strategy providers and adjust their trading settings to suit their individual needs and risk tolerance. Speaking of which, risk management tools are available as well.
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ZuluTrade
ZuluTrade, another social trading platform, allows individuals to follow and copy the trades of other successful traders. The platform is user-friendly, with a simple and intuitive interface that makes it easy for users to navigate and find the traders they want to follow. The platform also provides a range of tools and features, including real-time trade tracking, performance metrics, and risk management options.
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cTrader
cTrader is an automated trading platform that is particularly popular among forex enthusiasts. It offers advanced features such as backtesting and optimization, which enable traders to test and refine their trading strategies before deploying them in live markets. cTrader also provides a range of risk management tools, including stop-loss and take-profit orders, and supports multiple financial instruments, including forex, stocks, and futures.
FAQs
Can I use automated trading to trade forex?
Yes, automated trading is suitable for trading currencies. In fact, forex is one of the most popular markets for automated trading due to its high liquidity and volatility. This also means that it is relatively easy to find brokers that support automated forex trading.
What is backtesting, and why is it useful for automated trading?
By backtesting an automated trading strategy, you will test it out by using historical market data and see how it would have performed in the past. In other words, you can evaluate the strategy’s effectiveness and identify potential areas that could be improved upon.
What are some common risks associated with automated trading?
There are several common risks associated with automated trading. Technical failures are not unheard of, and market volatility can lead to large losses if the automated trading strategy does not involve risk-management measures. You should also take care to avoid over-optimization, i.e., relying too heavily on historical data for optimizing the strategy.
How do I get started with automated trading?
You will basically need to choose a trading platform, develop a trading strategy, and refine the strategy through backtesting and optimization. Most traders make sure to set up risk-management tools in order to minimize losses that may result from unfavorable market conditions.
What should I consider when choosing a broker that supports automated trading?
Firstly, check the available platforms, and ensure that they are suitable for automated trading. With that determined, you should check the deposit and cashout solutions to ensure that the broker supports payment methods you find convenient. Sufficient market variety, a license that is valid in your jurisdiction, and suitable communication channels when it comes to customer support are other important factors to consider.
Conclusion
Overall, it is easy to see how the advent of automated trading has revolutionized the financial landscape. Whether used for high-frequency trading, trend following, or other strategies, automated trading has become an essential tool for many traders and investors, and is likely to continue to play a major role in the financial markets for years to come.
Why You Should Trust RationalFX
When it comes to making informed decisions about forex brokers, it's essential to rely on trustworthy sources. RationalFX, a company with over 17 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it's clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker's service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at feedback@rationalfx.com or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.