How to Choose the Best Forex Robot？

Table of Contents

Introduction

What Is A Forex Robot？

Pros & Cons of Forex Robots

5 Tips for Choose a Forex Robot

1) A Thorough Testing

2) Live Trading Result Matters

3) A Demo Account Available

4) Low Drawdown Rate

5) Check out User Reviews

2022 Best Forex Robot Trading Providers

Conclusion

A Brief Introduction

This article provides an overview of what a forex robot is, what are the advantages and disadvantages of using a forex robot, and a list of some reputable forex robot providers. You may gain a better understanding of forex robot trading and how to choose a proper forex robot based on the information provided in this article.

What Is A Forex Robot？

A Forex robot is a computer program that uses a set of forex trading signals to determine whether to purchase or sell a certain currency pair at any given moment.

There is an increased demand for Forex robots in the forex market. This is because traders hope to make easy money from the Forex market without having to devote a lot of personal time to it. Traders are seeking an automated system that does not require their attention in their forex trading.

Forex bots are capable of scanning multiple charts more efficiently than humans. Aside from that, they have been designed with particular parameters for the purpose of making trade decisions. Using implanted trading signals, they determine when it is appropriate to trade and when it is not.

Pros & Cons of Forex Robots

Pros of Forex Robots

1) Multitasking

Multitasking may be necessary in certain trading situations. When trading in such circumstances, a trader can easily make mistakes that can negatively impact their trading performance. Unlike a human, a forex robot can handle a variety of tasks simultaneously without making any mistakes. Consequently, Forex robots are now able to implement far more complex and sophisticated trading strategies compared to human traders. Additionally, forex robots are able to trade 24 hours a day without taking a break.

2) No Emotion Interference

Money trading can be a challenging activity for humans due to their own biases and assumptions, as well as emotions such as fear and greed. They may hesitate, fail to take trades, make the wrong trades, or hold their position for too long as a result.

In contrast, a forex robot is designed to follow a set of predetermined rules, and they will remain faithful to them regardless of what happens. Thus, a forex robot is capable of removing the risk associated with human emotions in the trading environment.

3) Make BackTesting Easier & Faster

In backtesting, possible trading strategies are tested against historical data and the results are used to optimize the chosen strategy. It is a time-consuming and complex process if done manually.

Forex robots, however, are capable of downloading, storing, and analyzing large amounts of historical data, which allows traders to evaluate the effectiveness of different strategies prior to using them on the live market.

4) Speedy & Efficient

Another great advantage of Forex robots is their speed of analysis and execution. In comparison with a Forex robot, a human trader lacks efficiency and speed and therefore may spend more time analyzing a market and calculating a trading decision, potentially foregoing a potentially highly profitable trading opportunity or even making an inaccurate decision that will lead to capital losses.

While Forex robots are capable of analyzing a given market (according to predetermined parameters), generating decisions, and even executing them in a matter of seconds.

Cons of Using a Forex Robot

1) Require Stable Net Connection

For Forex robots to function effectively, a high-quality computer must be connected to the internet via a highly stable connection. If the server is experiencing delays or malfunctions, the robot might trade incorrectly or have glitches.

2) Lack of Human Creativity

Successful forex traders apply a broad range of skills and knowledge to the market, applying research, analytical thinking, observation, as well as imagination and creativity to predict how markets will change in the near future. Contrary to this, forex robots are limited to their original programming and their past performance, which places them at a significant disadvantage over human traders.

3) Need to Be Reoptimized

As the forex market is constantly evolving, and some trading strategies that have worked earlier may no longer work in the future, it may be risky if the algorithm of the forex robot is not accordingly updated. As an example, if a major market change occurs, and your robot has been optimized to perform another task, you would lose money unless you turned the system off. Forex robots are not 100% error-free, and they need also to be adjusted to match the changing market.

4) Scams Everywhere

Nowadays, lots of poorly designed forex robots pop up on the market. Investors should be aware that these schemes are nothing more than a scam to make payments to an online marketer on a monthly basis. It is generally a scam if they promise that you can earn overnight riches, which sounds too good to be true.

5 Tips for Choose a Forex Robot

Here are five tips to help you choose a proper forex robot:

1) A Thorough Testing

Forex robots of high quality should be tested for a long period on historical data in order to provide effective assistance in forex trading. Furthermore, you should also examine the embedded algorithms and indicators used in their trading.

2) Live Trading Result Matters

Most sellers hype that their products have a winning ratio of 90-99%. However, the results are found on 'simulated' trading and not on 'real-time' trading, when you look at the bottom of the page. Simulated trading is controlled by parameters, whereas real-time trading is chaotic. It is very different from achieving results in simulated trading. Therefore, a forex robot's live trading results should be considered as an important criterion when choosing it.

3) A Demo Account Available

An excellent forex robot trading platform should be able to provide traders with a free forex EA demo account. This is crucial since you need to test the forex robot before using it for real-life trading purposes. Ideally, you should know how everything works before risking your money, and that is why a demo account matters. If you are considering selecting a forex robot, ensure that the robot is accompanied by a free demo account.

4) Low Drawdown Rate

The size of a drawdown on a trader's portfolio is not the same for everyone. While some traders are capable of enduring a 50% loss on their portfolio, others would consider a 25% loss as a career ending event. Before choosing a trading robot, it is important to examine how much drawdown it can withstand. Do not just consider drawdown on a per-trade basis, but also consecutive drawdowns. Forex robots that have drawdowns that cause you discomfort should be avoided.

5) Check out User Reviews

On many websites, different forex robots are rated based on a number of criteria, making it easier for the user to evaluate each program.

If you want to know if a trading robot is suitable for you, you can use transparent data on each trading robot. Online reviews left by users can also be very helpful in making a decision.

2022 Best Forex Robots Providers

Forex robot trading, also known as Algo trading, Automated trading, since there are forex brokerages providing robot trading or algo trading out there, picking a reliable platform equipped with robot trading can be a challenging task.

For your reference, we have compiled a list of the Best Algorithmic Trading Forex Brokers in 2022, selected by WikiFX, a global forex broker regulatory inquiry tool.

Provider	Minimum Deposit	Supporting Platform	Website
	$100	MT4	https://www.wikifx.com/en/dealer/8261153765.html
	$100	MT4/MT5	https://www.wikifx.com/en/dealer/0001378443.html
	100AUD	MT4/MT5	https://www.wikifx.com/en/dealer/0361967978.html
	$10	MT4/MT5	https://www.wikifx.com/en/dealer/0001283907.html
	$200	MT4/MT5	https://www.wikifx.com/en/dealer/9641842942.html
	$2000	API, FIX	https://www.wikifx.com/en/dealer/0001646186.html
	$200	MT4/MT5	https://www.wikifx.com/en/dealer/0361453884.html
	GBP250	ProRealTime,MT4, L2Dealer	https://www.wikifx.com/en/dealer/0001473583.html
	100 AUD	MT4/MT5	https://www.wikifx.com/en/dealer/0361170645.html
	€100	MT4/MT5	https://www.wikifx.com/en/dealer/1981903262.html

Here is the video of Best Algo Trading Platform for your reference:

Conclusion

To conclude, forex robots can be effective tools if used properly. It is recommended that you familiarize yourself with the robot's features and functions. Make sure that you are also familiar with the Forex market. Maintain a consistent investment philosophy and manage the robot you select on a regular basis.