For those of you who haven’t considered a forex robot, it’s a great way to forge a passive income. Forex robots are a bit like a personal assistant, using pre-established parameters, rules and technical analysis to buy and sell on your behalf.
If you’re the kind of investor who doesn’t want to lift a finger then the robot will do all of the research and analysis for you. This is known as ‘fully automated’ and will execute market trades automatically.
Some forex robots allow you to use them as a semi-automated system. This could mean the platform does the leg work, sends you a buy or sell signal and then you decide what to do going forward.
We’ve put together a full guide on forex robots, covering what they do, the benefits and pitfalls. We’ve also included 5 of the best forex robots of 2020 for you to consider today.
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LongHornFX – Best Forex Trading Platform
- Super-low commissions and tight spreads
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- Trade forex, crypto, commodities, and indices
- Fully supported by MetaTrader 4
What are Forex Robots?
When it comes to forex trading, a big part of the process is dedicating time to monitoring the shifts in currency market movements. Not to mention keeping up to date with global news and economics.
Some investors make a full time living from trading and may dedicate 8 hours a day on research and making moves within the market. On the other hand, some people have never traded in forex.
Others just lack the time to learn the ins and outs of charts and trying to stay up to date with the latest news. This is where forex robots come in. After all, we live in a fast-paced and busy world – so automated systems are fast gaining popularity.
An increasing number of forex traders are taking advantage of these sophisticated systems, as they are capable of executing a forex trade from start to finish without you having to do a thing.
All you have to do is provide the funds by means of a deposit, and you are able to go about your day to day life. Your forex robot has everything under control.
How do Forex Robots Work?
In a nutshell, a forex robot is essentially a trading tool which uses algorithms alongside technical analysis. The robot scours the forex market in search of potentially profitable trades.
As we mentioned this can be based on pre-set trading strategies or can be semi-automated for more experienced forex traders.
As we are going to talk about a little later on, one of the obvious benefits of using a forex robot to trade is the lack of trading emotions, and the ability to be on the ball 24/7.
Benefits of Forex Robots
As you’re now aware, forex robots enable you to trade automatically. If you’re not already itching to get started, then below we have listed some of the main benefits of using a forex robot.
A major benefit of using a forex robot is its ability to perform an endless amount of research without you needing to lift a finger. A lot of the more experienced investors tend to focus on just a few asset classes. The general feeling is that it’s better to gain an educated understanding of a select few.
This is largely because by dabbling in a variety of pursuits it’s unlikely you would ever have enough time to fully research each asset. Crucially, incorporating asset diversification on a manual basis is going to be a difficult process to master.
On the other hand, when it comes to forex robots, they are not restricted in the way a human investor would be. A robot can scrutinise thousands of markets at a time with virtually no strain at all on it’s processing capacity.
Lack of Trading Emotions
Any seasoned trader knows that the three emotions of trading – fear, greed, and hope – are something to keep a watchful eye on.
Investments can soon take a turn for the worst if you let emotions get the better of you. In doing so, you could find yourself making irrational decisions. This can have disastrous consequences on your investment portfolio.
This is another way in which a forex robot can be advantageous, as they are accurate and logical by design – crunching numbers and making ‘decisions’ with no emotion whatsoever. The system is programmed to follow hypothetical conditions so it can never make an irrational trade.
Trading 24 Hours a day, 7 Days a Week
Forex robots shine here too. Of course, us humans require sleep and rest in order to function properly and make sound decisions in our day to day life.
- Let’s say you’re a full-time forex trader who’s daily strategy is to dedicate 5 hours on researching the relevant markets, and 4 hours acting on your discoveries.
- Whilst that 9 hour day might be profitable and you are able to make a pretty good living. Imagine how much you could stand to gain on that same day if you were physically able to research 24/7?
Whilst we need to restore and rejuvenate, forex robots can see to your investment needs on your behalf – 24 hours a day, and 7 days a week.
This is not only helpful for traders who do have hours to spare a day, but also for people with busy lives who don’t want to risk missing out on some great gains.
Helpful for Newbie Traders
Another benefit of using a forex robot is that investors have access to a huge global market, without having to spend months researching and learning how to trade. Ordinarily, the process can be very demanding, sometimes taking several months to fully comprehend the market.
The robot is going to not only allow you to participate in the investment space. But, also let you bypass the need to learn how to read and understand pricing trends, technical indicators and charts. These are all vital for forex trading.
However, because the technology in question is automatically executed, you can just take a back seat and let the forex robot buy and sell assets on your behalf.
How Much do Forex Robots Cost?
The answer to this question is not a simple one, as forex trading robots do differ in price by quite a margin. Some of these systems function on a commission-based framework. This means that the platform in question will take a predetermined percentage from every successful trade made for you.
For example, let’s imagine that the platform you have selected has a stipulated commission rate of 12%:
- We’ll say you invest $3,000 into the forex robot
- 100 trades are made during the month
- The ROI is 15% which is the equivalent of $450
- Now the platform will take its 12% commission which is $54
- You will be left with $396 in gains
One of the best things about this kind of commission model is that the provider will only make money when things are going well.
This means that it’s in the provider’s best interest to try to increase your ROI by placing careful trades for you. The bigger the profit the robot provider makes for you, the more they stand to gain themselves.
In other cases, you will need to pay a flat fee to obtain to forex robot. You will then need to install the robot into a third-party trading platform like MT4 or MT5. There will be no ongoing fees or commissions, as you have already purchased the underlying software.
The key drawback here is that you will not benefit from ongoing maintenance. That is to say, the forex markets can change at a rapid pace, meaning that the best forex providers will continuously update the underlying code.
Are Forex Robots a Scam?
There are thousands of forex robot providers out there. The vast bulk of providers ‘offer’ remarkable win rates of between 80% and 90%, as well as enormous monthly returns.
These are the providers you need to watch out for, as they could be scammers. These fraudsters offer robots which work, but to offer such a farfetched guarantee of success is just impossible.
Unfortunately for some, they only find out that the promises of such high win rates are unfounded, after parting with their hard-earned cash. Some advice would be – if it looks too good to be true – it probably is. However, you don’t need to write it off immediately.
A good idea is to only join providers which offer free demos, trials or a money-back guarantee if you are dissatisfied. At Least this way, you are not opening yourself up to the danger of losing a sizable amount of your hard-earned money, only to find out that it was a bogus forex robot.
How to Choose a Forex Robot
You should proceed with caution when choosing a forex robot, not least because there have been many cases where claims made by robot provider turns out to be false. There are thousands of them out there, but more on that later.
In this section, we cover what you need to know when choosing an ‘all-in’ service. That is to say, you won’t be required to download or install MT4/MT5 and then set up the robot yourself. Instead, these providers simply ask you to make a deposit and the rest is taken care of.
How Much Automation do You Need?
As you now know, there is quite a spectrum when it comes to how automated a forex robot can be. You should have a think about how you want to trade, meaning how involved you want to be in the decision making process from start to finish.
- Would you like to deposit and then hand the reins over to the forex robot? You can sit back and allow the forex robot to do absolutely everything to do with the trade – an end to end service so to speak.
- Or perhaps you would prefer to hold onto some control? Some investors like to use a forex robot to automatically research and do the leg work in that respect.
- Later on, when it comes to actually placing a trade you might wait for a signal and then decide yourself whether to go ahead and act on it. In other words, open or close a position, or change the take profit or stop loss of an existing position in the trade.
Ultimately, it’s always advisable to check on the particular provider’s platform to see what trading patterns the forex robot uses.
What is the Minimum Deposit?
Some forex robot providers stipulate a minimum deposit before allowing you to access the service. With that in mind, it is a good idea to check what the minimum deposit is, and perhaps choose one with a modest starting amount.
It would be very disheartening to invest $3,000 of your money, to find out later that it was a fraudulent robot provider. Generally, you should expect a minimum deposit of around $250. If you find a platform with a money-back guarantee should you be dissatisfied within 30 days, then that’s a good sign.
Are the Provider Claims Valid?
Making promises of 80% returns on a monthly basis is easy. After all, just about anyone can create a website making bogus claims these days. If the price seems insanely cheap and too good to be true, then chances are it is.
If a forex provider is offering 95% ‘guaranteed returns’ and grand statements of huge profits with low risk – that’s another red alert for suspicion.
As we covered briefly earlier, it’s always good to go with forex robots which offer result authentication. Some platforms are willing to offer a money-back guarantee, others might offer you a 7-day free trial or a demo.
Demos are a good option for both newbies and experienced traders alike, because you are able to try out the automated signals before you have spent anything. You can also check the provider’s consistency by studying the backtesting results.
These show which trading methods have been used with success or otherwise over a period of time. More about that later. A legitimate company will be able to make numbers and results readily available for clients, rather than just bigging it up with clever marketing and big promises of fast wealth.
Can You Access Your Funds?
The last thing you want to be stung by is a long redemption period. It’s always a good idea to make sure the forex robot provider will enable you to gain access to your own funds whenever you like, with no withdrawal limitations. Always check the terms and conditions.
What are the Payment Options?
Not all forex robots are the same. Some, for instance, only allow deposits/withdrawals from cryptocurrencies. Especially if you have a specific payment method in mind (such as Visa), you should always make sure you check this information to make sure the platform is going to be suitable.
Which Currencies am I Able to Trade?
Different forex robots specialise in different currency pairs. You might find that it examines heaps of pairs like minors, majors and exotics. Whereas some might only scan a few pairs.
It’s important to have the full picture when it comes to your funds and where they are being invested.
There are a few other things you can evaluate on your quest to find your perfect forex robot.
Has the Forex Robot Been Back-Tested?
Back-testing is going to give you a good indication of how the system functions and a variety of different market situations such as important news, low and high volatility and announcements.
The best platforms are back-tested on different currency pairs as well as other market conditions. These tests often illustrate minimum and maximum drawdown, possible wins and losses, and risk-reward ratios. Some brokers will perform this test for you.
Live Trading Information
Many forex robot providers make promises of 90 – 99% winning ratios. However, this isn’t always the case. We will only recommend companies who are legitimate in the forex robot space.
Results can differ when it comes to ‘real-time trading’ and ‘simulated trading’, as the latter parameters can be stringently controlled. This means it doesn’t illustrate liquidity as well, which can be essential for real-time trading.
Are There Order Limitations?
Another consideration is how the forex robot performs when you change the size of your order. A great way to test this is to try a demo or free trial.
Some platforms work better when you stick with a similar order, but it might decrease your profitability when there is a change in the size of the order. The ideal forex robot is one which performs well regardless.
Forex Robot Drawdowns
The drawdown is the contrast between the next low point in your trading account balance and the high point. Essentially the difference in the balance of your account illustrates the lost revenue from losing trades.
No two traders are the same, as some people like a maximum drawdown of 15%, while others might favour a more conservative drawdown of just 5%.
This is entirely down to you. You can check this on both consecutive drawdowns as well as on a trade by trade basis.
How to Get Started With a Forex Robot
We’re now going to run through everything you need to know before signing up to a forex robot provider. This information is going to set you off on the right track from the get-go.
Step 1: Choose a Forex Robot Provider
To get the ball rolling, you will need to choose which forex robot you wish to use. If you are unable to locate a provider that best meets your needs, we discuss the best forex robots of 2020 further down in this guide.
Step 2: Decide on Your Trading Biases
On some forex robot platforms, there are a variety of trading options to select from. These range from types of financial assets you might want to access, to insights into take-profit and stop-loss orders.
If you are new to the world of online trading then the fully automated service will probably be a better option for you. The forex robot will be trading so you don’t have to.
And as we touched on earlier, using a demo account or even a free trial is a great way to familiarise yourself with the settings.
Step 3: Deposit Some Money and Begin to Trade
Now you are signed up, you can go ahead and deposit some money. As we said, different platforms accept different payment methods.
Assuming you’ve already checked out what is available to you. You’ll also need to make sure you are aware of what the minimum deposit is. Once you are happy and have made your first deposit, you will begin to receive forex signals.
Please note that if you did decide to go with a manual account, you will be expected to place the trades yourself. If you decide to go fully automated, you don’t have to do anything else.
Buying a Forex Robot for MT4/MT5
It is also possible to simply buy a forex robot from an online provider, and then download the software to your computer. Then, you simply need to upload the software file into MT4/MT5. In doing so, the robot will begin trading straight away.
You can, of course, set up specific trade parameters. This will include metrics such as your minimum and maximum trade size. If opting for this method, you are best to run MT4/MT5 in demo mode for a number of weeks to make sure the robot is fit for purpose.
How to Spot a Legitimate Forex Broker
In the vast majority of cases, you will need to sign up to a reliable forex broker if you wish to use a robot. After all, the robot will need a platform to execute its trades!
A good way to check out the legitimacy of a forex brokerage company is to make sure it has been registered with a regulatory authority.
Genuine companies must operate under stringent licencing rules and ensure that brokers segregate the funds of traders. This is common practice in many sectors and means that a company has to keep your money separate from the money of the business itself.
By law, brokers are obliged to put forward reports periodically stating their activity. Regulatory bodies then monitor and scrutinize this data. In the case of foul play, these bodies are well within the law to enforce consequences on the broker in question.
There are around 20 forex regulators worldwide. Some of the most well known are:
- FCA: Financial Conduct Authority (United Kingdom)
- CFTC: Commodities and Futures Trading Commission (United States)
- ASIC: Australian Securities and Investments Commission
- CySec: Cyprus Securities and Exchange Commission
- BaFIN: The Bundesanstalt für Finanzdienstleistungsaufsicht (Germany)
We at Learn 2 Trade only recommend heavily regulated forex brokers.
Best Forex Robots of 2020
There are hundreds if not thousands of providers offering forex robots – most of them with seemingly amazing results.
With that said, we have warned you extensively about the potential pitfalls of choosing the wrong forex robot, so now we are going to list the top 5 forex robots for your consideration in 2020.
1. FX Fury
This has to be one of the most popular forex robots on our list. It makes daily trades with low risk and a highly methodological strategy. The maximum trades at any one time is 7, and trades will only be held open for a short amount of time.
FX Fury is a scalper with time restrictions and runs on an M15 time schedule. Especially in the last few years, this robot has shown the ability to adjust to the latest currency pairs.
At the time of writing, the platform has well over sixty automatic updates, which continues to grow. The robot provider offers unlimited demos with each licence, which means you can test as much as you want or need to.
You might just want a forex robot to act as a ‘fact-checker’ in your trading endeavours. But some of the other things you can expect from the FX Fury robot are as follows:
- Average winning percentage of 93%
- 15-year backtest gains of 466,725%
- 10 trades or under
- MT4 broker compatible
- Developing for 5 years
- 100% Verified Live Myfxbook Accounts
More than 2,500 people run FX Fury on their accounts daily, and like most reputable forex robot providers there are more updates added year on year.
- Compatible with MT4
- Claimed win rate of 93%
- Results verified via Myfxbook
2. Forex Stream 10
Forex Steam 10 is fully automated. You are able to download the forex robot and pretty much let it start trading for you straight from the box.
If you are a bit more advanced in the forex trading market you can quite easily configure and optimise the robot to trade in your own specific conditions. This enables you to hold onto a little control, but use the forex robot only where you need to.
The Forex Steam robot seems to be steadily growing accounts and is considered to be very dependable and trustworthy. Of course, with forex trading, there are never any guarantees, but having a loyal customer base is a good sign of any business.
The platform offers regular free updates which means more potential profitability for customers. Some of the best Forex Steam features included with this forex robot are:
- Adjustments on risk-reward
- Verified results
- One price - various versions
- More than 3,000 active clients per day
- Average win rate 75%
- Avoiding bad trades using ‘max spread’
- Trailing stop enhancement for a better running
- Major Market revises for 2020 onwards
There is also the option of a light version of the forex robot, for those who prefer to grow their portfolio steadily over a longer period of time. This platform is one of the cheapest on the market.
- Average win rate of 75%
- Claims to attract 3,000 new clients every day
- Simple pricing structure
3. Binary Strategy Forex Robot
Interestingly the creators of the Binary Strategy Forex Robot are real-life coders and traders. As the name suggests this forex robot focuses on the binary options market. This is one market which seems to have a particularly large number of broker scammers.
This forex robot, however, offers 2 strategies which are constructed around divergence - these strategies are ‘valor’ and ‘spirit’. Rather than selling two separate products, they have doubled up.
Generally speaking, these strategies are compatible with the vast majority of brokers. Although you might find that when it comes to binary options a lot of product developers neglect to make trading results available. So third party websites like Myfxbook might be unable to host these results.
The Binary Strategy forex robot on the other hand supplies results on a daily basis via a chart on their web page. They also use detailed backtesting techniques on meta-trader 4. This means the system has been fully tested for years on end before they began trading.
Here is a small breakdown of what you can expect from this forex robot:
- Forex robot type: Binary Options
- Price: Under $200
- All pairs available
- M15 timeframe (expiry time 15 minutes)
- Average of 70-95% win rate
- Price of less than $200
- Can trade any current pair
- Average win rate of between 70%-95%
4. Forex Astrobot
This forex robot is 100% automated and claims that traders are able to make gains of as much as $16,000 in a month. Forex Astrobot was created by a well-known forex trader called Rita Lasker.
This MT4 forex robot allows you to trade via H1, M30 and M15 timeframes and includes all of the currency pairs.
You will be notified of any new trading prospects via 3 options: an MT4 popup alert, Mobile push notification or email.
There is also a money management feature enabling you to change the size of your lot when market conditions are deemed favourable.
In the event of a drastic shift in price value, there is a built-in algorithm called ‘slippage’. Slippage can prevent you from going into a trade with incorrect parameters.
Depending on the current market the TakeProfit tech in this robot offers anywhere up to 3 take profit levels. Some of the other things you should expect from Forex Astrobot are:
- Average win rate up to 80%
- M15, M30 and H1 timeframe
- All pairs available
- Cost - from $100 to around $230 (for the ‘ultimate version’)
- Trailing stop strategy
- 24/7 support
This platform also offers a 30-day money-back guarantee, it doesn’t matter your reason for wanting to quit.
- 24/7 support available
- Claims an average win rate of up to 80%
- 30-day money-back guarantee
5. Robomaster EU
This group has 8 indicators and 3 forex robots, they are Big Fish, EA Trade Machine and Rocket EA. All three are ‘scalping’ robots and the cost ranges from €97 - €199.
There is not much background information on this forex robot, but we are going to do a small breakdown of each of the 3 forex robots, each in their own right.
EA Trade Machine
This was the second forex robot created by this group and is also a scalping platform. There isn’t very much detail on strategy available for this forex robot.
The forex robot comes with predetermined settings, step by step user instructions and support. The price tag for this platform is €199 for unlimited, and €149 for standard.
Features promised by EA Trade Machine include:
- M5 timeframe
- Pacific, Asian and American session trading time
- 7 currency pairs
- 20% - 50% potential profit (per month)
- The strategy is stated as ‘trading in the direction of global trends’
- (channel trading)
This forex robot is recommended by the Robomaster EU team for professional scalping. You can purchase an unlimited licence for €199 or a single for €149. Rocket EA includes an in-depth manual, 24/7 customer support and pre-optimised setting files.
The Rocket EA forex robot will trade 12 currency pairs at the same time, this enables them to diversify the risk. When it comes to trading results there’s 12 separate backtests.
Some features on offer from Rocket EA are:
- Trades 24 hours a day, 5 days a week
- Asian trading time
- 10% - 20% potential profit
- 15 currency pairs for trading
- M15 timeframe
Big Fish EA
This forex robot was created for every market condition, it aims to provide a stable profit by utilizing a flexible algorithm.
The cost of the Big Fish EA robot is €120 for the unlimited version, and €97 for single. Like the other 2 by this group it comes with detailed manuals, setting files and support.
The provider has summarised what's on offer and this is what they are saying:
- Trades 24 hours a day, 5 days a week
- Created to trade USD/JPY
- 10% - 50% profit potential
- Trades on pullbacks (depending on what direction the trend is going)
- M5 timeframe
Unfortunately, there aren’t any trading results available for this forex robot.
- 3 robots to choose from
- Fair pricing model
- Lots of forex strategies included
As we have said, forex robots are a great way to trade forex without having to spend months or even years learning how to trade. Technology has advanced so much that a forex robot is able to buy and sell on your behalf whilst you get on with your busy life.
Always proceed with caution though – as there are many scam providers active in the space. Fortunately, all of the forex robots we have listed on this page are from legitimate providers. But, if you decide to go off this list – then always make sure you do some research first.
Crucially, taking advantage of demo accounts, money-back guarantees and free trials is a sensible way to get a feel for the forex robot before you part with your hard-earned cash.
LongHornFX – Best Forex Trading Platform
- Super-low commissions and tight spreads
- Leverage of up to 1:500
- Trade forex, crypto, commodities, and indices
- Fully supported by MetaTrader 4