Forex Brokers That Allow EAs

With the invention of EAs and auto trading robots, trading has now been more simplified. You are no longer required to be sitting in front of your PC, all the day. Trading robots or Expert Advisors are designed to trade the market on your behalf. All you need is to buy a legitimate auto trading EA and get it installed on your PC associating it with the platform you wish to use.

Once configured, robots start placing trades while the users may pay attention towards monitoring of the forex account. Many traders are actually day workers. They use trading as a second income stream. At times, it becomes very difficult for them to go side by side, keeping an eye on the market to find best profitable opportunities and doing their other main business. Surely, this category of market players will benefit more from the use of forex robots.

Identifying trading opportunities by analyzing currency pairs in the forex market and then implementing buy or sell signals on the forex charts was never been so easy but thanks to Expert Advisors doing all this mess for traders. As per normal practice, trading in forex involves analyzing the market by poring over several chart setups to decide whether to buy or sell. It also involves making a decision regarding orders with the best-expected outcome. But using an EA have now resolved the hassles.

Ever since expert advisors (EAs) were introduced, they have been modified a lot of time incorporating latest developments and procedures. Today expert advisors have been transformed from a simple robot that used to do analysis and then trades accounts, to complex algorithmic trading software which is now being used for advanced forex trading.

There are two types of forex robot algorithmic trading:

  • High-frequency trading
  • Low-frequency trading.

To create an edge with speed, high-frequency trading algorithmic is used. The speed of the connection plays a vital role in High-frequency trading, since trades are to be executed within milliseconds. High-frequency trading robots make profit from arbitrage. In other words, they scan several exchanges or data centers where the differences between the prices of the same asset are relatively small. Robots following High-frequency trading then place a large volume of trades on the lower price (for buy orders) and unload them to other traders in the market at higher prices. Let us make you understand following a simple example, a high-frequency expert advisor may buy gold at 1,400.40 from one exchange, and re-sell same to other traders at 1,400.46. The difference between the prices is 0.06, though it may look small, but the high-frequency forex robot may place 10,000 lots on this trade, which confers on the pip movement a value of $60,000 per pip. In view of that this trade moved just 6 pips or 0.06 points, while, the profit made would be $60,000 X 5 = $300,000.

Institutional traders and big banks normally use high-frequency trading robots to trade the forex market. Because of the fact that institutional players normally have large capital available and therefore, can afford all relevant tools and software to scan the market for such opportunities and execute trades within a matter of milliseconds. The robots have a potential of placing trades several times within milliseconds. However, Retail forex traders in general, do not have access to these systems because of scarcity of available funds and therefore left with a choice to use the second model of algorithmic trading, commonly known as low-frequency trading.

Low-frequency trading is a model that actually analyses different factors before placing a trade. A speed doesn’t matter here. Therefore, low-frequency trading robots aim to make a profit from price movement over time. Price movements are determined by different factors such as earning reports and interest rate statements, technical analyses, candlesticks and chat patterns. Low trading frequency model will only work if the idea behind developing the strategy for it is economically and technically sound. This means that robots must not be trusted blindly.

How Expert Advisors Work

In simple words, EAs are the computer programs generated for placing automated trades. Unlike auto trading robots, Expert Advisors provides the users an option to make a final decision. All we mean to say is that auto trading robot doesn’t require your approval to place a trade. Once configured, there is no more human intervention, accepted. But EAs gives you the power to actually keep the EA from placing a certain trade.

Characteristics of A Good Expert Advisor

An expert advisor needs to meet certain criteria, to be declared as a Good Expert Advisor. Few parameters are listed as follows:

  • The pathways for trade entry and exit must be well defined.
  • The EA should have acceptable money management strategies.
  • The expert advisor must be customizable.
  • A commercially sold EA should be hack-proof.
  • Coding for programming EAs should be bug-free

Where Can You Obtain Expert Advisors?

There are two ways you can have your Expert Advisor, one is to locate a seller, selling expert advisor, be it a regulated brokerage firm with good repute or an independent individual experienced trader. The other way is to make your own EA. You can hire a programmer to write coding for you. You just need to let him know your defined strategy to convert it into coding for you. Let us mention you categorically that both of the ways have their own benefits and drawbacks. You must know both pros and cons of creating your own EA or purchasing it.

List of Top Brokers Offering EAs

Given below is the list of some top brokers that allow the use of EAs in trading;

eToro: eToro is one of the pioneers to offer trading in currencies, stocks, commodities and indices. The broker has a client based in more than 140 countries. It is regulated by Financial Markets Authority (Netherlands). The broker also offers expert advisors for automated trading. Offering a generous leverage with a competitive spread, the company requires only $50 to be deposited to open an account and get started.

Avatrade: In 2006, a company with a name Avatrade, was created as a combined effort of financial professionals having an aim of perfecting the online experience for retail traders. The broker offers trader, reliable environment, with complete security of funds. AVA Trade EU Ltd is based in Ireland and is regulated by the Central Bank of Ireland. Considering the needs of all stakeholders, the broker also offers an Islamic Account. EAs facility is also available at Avatrade.

Hot Forex: Hot Forex is an online brokerage offering to trade in forex and commodities. The broker is based in Ebene House, 3rd Floor, 33, Cybercity, Ebene, Mauritius. The company is regulated by Financial Services Commission (Mauritius). It also allow traders to use EAs for automated trading purposes. Minimum deposit required to open an account is just $5 at Hot Forex.

Trade.com: Let us bring you one of the premier brokers offering online trading in currencies and CFDs. The broker offers state-of-art MT4 and Sirix platforms. Multilingual Customer support is available 24/5 at the company’s official website. The broker is regulated by Cyprus Securities and Exchange Commission (Cyprus). To open an account, a minimum deposit of $100 is required. The broker also offers Expert Advisors. Novice traders can get a maximum benefit using EAs because all trading is done automatically, EAs doesn’t require traders to have previous knowledge or experience of trading.

24Option: 24Option is an online leading brokerage offering to trade in Forex, stock and CFD. The broker offers some of the highest returns of up to 88% in the industry. The website is available in multiple languages. The broker offers a leverage of 1:400. The minimum deposit amount required to open an account is $250. EAs are offered at 24Option. The company is regulated by Cyprus Securities and Exchange Commission (CySEC).

XTB: XTB UK is an FCA regulated brokerage company, founded in 2009. The broker offers to trade in currencies, stocks, indices, commodities and CFDs. Multilingual customer support is offered by the broker. The website of the broker can be accessed in multiple languages. Along with the MetaTrader4, the broker also offers EAs facility to traders. The broker offers three types of accounts including, Standard, Basic and Pro.

LCG: London Capital Group Holdings (plc) is a company registered in England and Wales with registered number: 05497744. The broker offers to trade in shares, forex, indices and CFDs. The company is fully authorized and regulated by Financial Conduct Authority (FCA).

XM: XM is a brand name of Trading Point Holdings Ltd which wholly owns Trading Point of Financial Instruments UK Ltd (XM UK). The broker is fully authorized and regulated by the Financial Conduct Authority (FCA). The broker offers online trading in stocks, metal, currencies, commodities and CFDs. Currently, the company has clients from all across the globe.

FXTM: The award-winning brokerage company is based in Cyprus, offers to trade in currencies, stocks and commodities. The broker is fully registered and regulated by Cyprus Securities and Exchange Commission (CySEC). A live standard account and a demo account is offered at FXTM. The broker has institutional and retail clients from all around the world.

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