Forex trading is a tricky business, with the market being open 24 hours a day and fluctuating at different times of the day. If you’re a UK broker that trades in the currency markets, then there’s a good chance that you will have considered using various automated systems to help with your trading decisions. Many brokers in the UK use forex robots when trading currencies because they take much of the emotion out of decision making when it comes to price fluctuations.
It is not unusual for brokers to offer the latest technological innovations, resulting in additional revenue. Some brokers will go as far as providing regular retail traders access to automated trading robots. However, despite the apparent attraction of this type of technology to busy broker staff, it is rare to find any UK based brokers offering trading robots.
Traders can program forex robots with various settings which define when they trade. These could be based on any number of factors, including currency movements or technical indicators. There are two main types of robots – those with fixed parameters and those that allow customizations by the trader who owns the robot. The latter is just computer programs written by individuals, which you can automatically trade in the Forex market.
The use of robots in the Forex market is nothing new, with their popularity dating back to the early days of online trading. However, they have taken off in recent years as computer technology has advanced and retail traders have become more sophisticated. The attraction of using a robot is that it can take the emotion out of trading by removing any need for human interaction. It helps traders who find it difficult to control their emotions when making trading decisions.
Several Forex robots
There are several different Forex robots on the market, but all essentially do the same job – they trade instead of you.
The most popular robot is the so-called ‘expert advisor’ or EA. You can buy or download these programs for free that attach to your trading platform and trade automatically according to the settings you have programmed into them.
The second type of Forex robot is the ‘algorithmic trader’. This robot uses mathematical formulas to decide when and how to trade. They are usually used by institutional traders who need to execute large orders in a short space of time. However, a growing number of retail traders use algorithmic traders to take advantage of the many benefits.
Main benefits of forex bots?
The primary benefits of using a Forex robot are that they can help you make money whether the market is going up or down, and they can help you trade in a disciplined manner without emotion. They can also help you to keep track of your trading performance and make adjustments to your trading strategy as needed.
The main downside of forex bots?
The main downside of using a Forex robot is that it can be expensive, mainly if you are using an EA that has been programmed with complex settings. There is also no guarantee that a robot will make money, as all robots are subject to losses just like any other trader. As with all forms of trading, it is essential to do your research before selecting a robot and ensure it is compatible with the trading platform you are using.
So, do UK brokers use Forex robots?
The answer is a resounding no, with very few brokers offering this type of technology to their clients. This is likely because UK traders are a primarily retail market and are less sophisticated than their counterparts in other parts of the world. However, this may change in the future as Forex robots become more popular and mainstream. In the meantime, there are several different types of robots available for you to choose from, now do some research and find the right one for you.
To work with licensed and professional brokers, check out Saxo Bank!