With so many active trading options available today, choosing the best Forex robot has become of major significance in Forex trading. A Forex robot is essentially one of the approaches employed by a trader for buying or selling on the Forex spot market. Forex robots are also referred to as “autotrading.” Autotrading was first introduced on the Chicago Mercantile Exchange back the 1970’s, but appeared big time only with the arrival of the internet in 1999. Today, most online brokerages offer Forex robots and competition is fierce.
Robot vs. Human
There continues to be a debate, nonetheless, as to what is more beneficial for placing Forex trades—consistent use of autotrading or depending on a human trader. Clearly, an automated trading situation will accommodate more trades per market within a shorter time span than any human can handle. In addition, with autotrading, trades are placed in real time and traders can duplicate these actions across several timeframes and on more than one market all at the same time. Even more important, robots are not subject to the emotional highs and lows that human traders bring to the trade.
Conversely, even the best Forex robot can be exposed to fraudulent activity and scams. Traders are not always fully alert to the manner in which the autotrading method works and this leaves them susceptible to a variety of broker swindles. These rip-offs encourage traders to place inappropriate trades and often result in shrewd brokers closing up shop and disappearing with clients’ funds. Another point to be made is that robots are not always simple to set up and the many customized trading strategies can be complicated for novice traders. If they are applied when not totally understood, trading action can go off in unexpected directions and lead to great losses.
The Best Forex Robots
As mentioned above, selecting the best Forex robot is not always easy. There are hundreds of online brokers in the market these days and each one seems to be offering the best Forex robot software, the most unique platforms and the premium technical analysts. The most advantageous way to reach a decision as to which robot to choose, is to refer to people who have used Forex robots or are still using them. Recommendations from experienced traders go far in weeding out brokers who do not follow industry regulation or who are not true Forex brokers. It is also easy for Forex traders to obtain information these days about brokers who have conducted business in an unacceptable manner as everything is now easily recorded and online. After all, a robot is only as good as the broker providing it.
Furthermore, anyone interested in Forex trading should always do the proper research and due diligence before choosing an online broker. The location of the brokerage is often a good indication of the degree of its regulation and authorization. Avoid any broker who is not certified by at least the local regulatory organization, but preferably by more than one such regulator. There are several online sites, such as Daily Forex that review brokers and compare their features. The name of the regulator should be provided on the broker website as this is a key marketing item for brokers. But if it isn’t, it is worth referring to one of the available online sites that list brokers and their regulatory organizations.