Forex trading bots, forex robots or Expert Advisors (EAs) are computer programs working on a set of forex trading signals, helping traders define whether to trade a specific currency pair at a particular time.
The 24*7 available forex robots automate foreign exchange trading procedures. These robots use pre-programmed algorithms and trading strategies to assist traders in analyzing market conditions and making informed trading decisions. These forex bots execute the trade on behalf of the traders as they have access to real-time market conditions like price charts, indicators, economic views etc.
In this blog, we will learn about the top 8 forex trading bots in depth, other than discussing different aspects of these bots like their types, and pros & cons.
Types of Forex Trading Bots
Several types of forex trading bots are available, each with its characteristics and functionalities. Let us see some common types of forex trading bots here:
Trend-Following Bots
These bots identify and capitalize on market trends to analyze historical price data and technical indicators to determine market trends. After this, they enter the trade in the direction of the trends.
Mean Reversion Bots
This type of trading bot operates on tending prices that revert their average or mean values after deviating. They detect overbought and oversold conditions in the market and trade with the expectation that prices will revert to the mean in the future. They use indicators to identify these trading opportunities.
Breakout Bots
Aiming to identify significant price breakouts from consolidation or range-bound periods, these trading bots monitor support and resistance levels and other technical patterns to detect potential breakouts. During any breakout, the forex trading robots enter the trade toward the breakout, hoping to capture the subsequent price movement.
Arbitrage Bots
These bots generate profits by exploiting price discrepancies in different markets or exchanges. Monitoring different markets regularly and identifying instances where the same asset is priced differently, they execute the trade by buying at the lower-priced markets and at the same time selling at the higher-priced market.
Scalping Bots
Scalping trading bots aim to capture small gains from every trade by executing a large number of trades. They need low latency and high execution speed to take advantage of quick price fluctuations.
Advantages of Forex Trading Bots
- Removing Emotional Influence: Human emotions like fear and greed often cloud judgment, leading to bad trading decisions. Automated robots trade using logic and data, avoiding emotional bias.
- 24/7 Trading: Forex markets are open all the time, but traders might miss good opportunities when they’re not active. Forex robots trade non-stop, making sure no opportunity is missed.
- Testing and Improving: Robots let traders test their strategies on past data, helping them refine their approach and get better results.
- Speed and Accuracy: Automated robots can make trades super fast, reacting to market changes in milliseconds, something human traders can’t do.
Spreading Risk: With robots, traders can trade multiple currency pairs at once, spreading out the risk and possibly making more money.
Hedging v/s Scalping Robots
Hedging and scalping are two different trading strategies with different characteristics and objectives in forex trading. Let us discuss the difference between hedging and scalping forex trading bots in depth:
|
Hedging |
Scalping |
|
| Objective | The primary objective of hedging bots is to reduce or offset the risk of adverse price movements by offsetting market positions. | The aim of these bots is to capture small price movements within short timeframes and generate quick profits from frequent trade. |
| Strategy | These bots enter long and short positions simultaneously or at different times to protect against potential losses. Their purpose is to limit exposure to market volatility and manage risk. | These bots enter and exit trade rapidly with the aim of taking advantage of small price fluctuations. They focus on making multiple small gains that can accumulate substantial profits over time. |
| Timeframe | These strategies are implemented over longer time frames such as days, weeks or even months. | The bot strategies are implemented over very short timeframes, like minutes or seconds. |
| Use of Stop Loss | These bots also utilize stop-loss orders to limit potential losses when the market moves against the hedged positions. | They often use tight stop-loss orders to limit potential losses if the market moves against the scalped positions. |
| Trading Frequency | They generally have a lower trading frequency in comparison to scalping bots. This is because they mainly focus on managing risk and not capturing quick profits. | Scalping bots have high trading frequency, executing multiple trades throughout the trading session. |
| Market Condition | They are suitable in markets with higher volatility or during uncertain conditions, where traders look to protect their positions from adverse price movements. | Scalping bots are typically employed in markets with high liquidity and low volatility, as they need quick execution and minimal slippage to be effective. |
Forex Trading Bots: Pros and Cons
Having read about the forex trading robots and their working procedure, it is the right time to discuss its pros and cons in the blog.
|
Pros |
Cons |
| Automation of trading processes | Lack of Adaptability |
| Eliminating human emotions and biases | Complex Setup and Maintenance |
| Continuous market monitoring and faster execution | Heavy Dependence on Historical Data |
| Enhanced efficiency and accuracy in trade execution | Threat of Malfunctioning or Technical Issues |
| Backtesting and Optimisation Capabilities | Lack of Emotional Intelligence |
| Optimisation of Parameters for Improved Performance |
Top 8 Forex Trading Robots
Having discussed the types and pros & cons of the forex trading bots, let us now discuss the top 8 forex trading bots so that you can easily choose the best one.
Forex Fury is a well-established EA with live verified Myfxbook accounts. It stands out for its free updates, settings files, and user-friendliness. Unlike others,their team tests their robot on real accounts ranging from $100 to $50,000. It is run by Patrick Ryan from Forex Robot Nation, the service has a dedicated team of experts. The system uses moving averages and proprietary software to execute trades on MT4 or MT5 accounts, with adjustable settings like take profit, stop loss, news filters, and more. Traders can access all features for a lifetime membership fee of $229.99.
IG is a regulated broker that provides access to 18,000+ markets, including 24-hour indices and extended trading hours on 70+ US stocks. It offers access to more than 13000 global shares, ETFs, and managed portfolios. It also offers advanced charting tools and multiple trading platforms such as L2 dealer, ProRealTime, and MT4. A demo account is also available, and provides expert analysis and educational resources. Its customer service is available 24/7, and negative balance protection is also offered. However, its spread bets and CFDs involve high risk, with 76% of retail investor accounts losing money. Traders must understand the associated risks before investing with it.
Forex Fury is a top-rated Forex robot with a proven long-term performance and verified live Myfxbook results showing a 93%-100% win rate on accounts of every size. It is popular for its live testing on both small and large accounts, providing more credibility than other vendors with only demo accounts. It is managed by Patrick Ryan of Forex Robot Nation, and the service offered includes free updates, customizable settings, and easy usability. The robot also employs moving averages and proprietary software for strategic trading on MT4 or MT5 accounts, allowing traders to adjust various parameters. Its lifetime membership costs $229.99 and grants access to the software, guides, and updates.
Coinrule offers a user-friendly and intuitive platform for cryptocurrency trading. It is suitable for both beginners and experienced traders with various subscription tiers to meet their different needs. Users can set trading rules without any coding knowledge in this forex bot. Its web-based service works with multiple cryptocurrencies and supports popular exchanges such as BitMex and Coinbase Pro. While availing a free demo account, some of its monthly subscriptions can be pricey. Also, one downside is the lack of a mobile app. Overall, Coinrule’s versatility and accessibility make it a suitable choice for traders of all levels.
- 5. Centobot
The forex and cryptocurrency trading robot offers a relatively low minimum deposit of $250 to the traders. However, there are multiple concerns associated such as the lack of transparency regarding its developers and trading strategies. Its software is user-friendly that allows users to create their own robots with customized settings. It claims a reported profit of 297%.Traders should be cautious and must conduct thorough research before using the platform. Also, considering the undisclosed aspects and potential risks involved is advised.
GPS Forex Robot, developed by industry professionals, utilizes innovative technology and algorithms. It offers 12 selectable trading styles and strategies, giving users flexibility in choosing their preferred approach. The robot is compatible with MT4 and is priced affordably. It provides automatic updates to stay current with market changes, offering potential advantages for traders. The minimum deposit is $100, and the website claims a live, verified gain of over 300%. However, users should be aware of potential drawbacks like slow customer support, infrequent trading, and mixed user reviews. As with any trading software, caution and thorough research are recommended for GPS forex robots as well.
ForexVPS offers specialized servers for trading, like ensuring 24/7 uptime and ultra-low latency as quick as 1 millisecond. It is designed for running Expert Advisors on platforms like MT4 or MT5, the VPS also eliminates the risk of missed opportunities and potential losses due to internet connection issues or terminal downtime. With its worldwide data centers, users can access the VPS through a Remote Desktop with a reliable internet connection. Various pricing tiers offer different RAM and SSD capacities, starting from £26.31 per month. Traders can also get the mid-level package for free through their broker by meeting monthly trading volume requirements. The service also includes a latency checker to test broker’s speed.
The EA Builder is a versatile tool compatible with MT4, MT5, and TradeStation, empowering traders to create custom indicators and strategies without coding skills. It offers a user-friendly interface, enabling easy rule and algorithm implementation for various assets with just a few clicks. The program operates online without the need for installation, supporting MetaTrader 4 and 5 as well as TradeStation. It comes in both free and paid versions, catering to different trader needs. While lacking live customer support, the tool includes video tutorials for assistance. Lifetime access requires a one-time payment of $97. Minimum deposit and win rate depend on the chosen platform and strategy used.
| Forex Bot | Performance | Accuracy (%) | Price |
| Forex Gump | High Performance | 80 | $99 |
| IG | Performance is not known | Not Known | Variable |
| Forex Fury | High Performance | 85 | $229 |
| Coinrule | Performance is not known | Not Known | Variable |
| Centobot | High Performance | 88 | $250 |
| GPS Forex Robots | High Performance | 90 | $149 |
| Forex VPS | Performance is not known | Not Known | Variable |
| EA Builder | Performance is not known | Not Known | $97 |
Can You Make Money Using a Forex Robot?
Rapid Market Changes: The forex market moves fast and changes frequently, making it challenging to keep track of trends.
Forex Robot Advantage: Using a Forex Robot is a great way to consistently make successful trades, enabling you to stay updated on the foreign exchange market conditions.
Making Money with a Forex Bot: Yes, a Forex bot can help you earn money, but certain conditions must be met for successful Forex trading.
Maximising Profits: To maximise your profits when trading forex with a forex bot, consider the critical variables outlined for effective trading.
FAQs
Can you make money with Forex bots?
Forex trading bots offer short-term profits only as their long-term performance is often mixed. The reason behind this is that these bots function in a certain trend, which attracts profits only in the short term.
Which is the best Forex robot?
Some of the trending forex bots are:
- Learn2Trade – Suitable for Beginners
- XTB – Daily Forecasts
- Forex Fury – Best for 2024 Forex Trading
- IG – For variable pricing
What does a Forex Robot cost?
The forex robots cost from a few hundred dollars to several thousand dollars. Also, free forex robots are also available with some vendors, but they have limited functionality and might not be as effective as the paid options.
Does a Forex Trading bot work constantly?
Forex trading bots constantly work 24 hours a day and seven days a week; they analyse historical data and perform market analysis for the traders.
Do Forex trading bots really work?
Forex trading bots are pre-programmed to analyse the forex market after studying historical data, price fluctuations and other relevant data.
