Forex trading as a portmanteau exchange of foreign currency has grown popular over the last decade. The daily trading volume for Forex reached a record high of $ 6.6 trillion in 2019 April. It has remained a popular platform ever since and has witnessed retail traders and various trading strategies. However, taking a trading decision needs thorough research, which can be time-consuming. So, traders often rely on Forex trading bots for automatically performing trades with superb precision.
To assist retail traders in Forex trading, Forex trading robots have been assigned across MetaTrader platforms. The Forex robot is a software with the ability to automate trading decisions and responses. They function across the MetaTrader platform, making suggestions on placing and managing the forex trades.
Availing the service of a Forex trading robot is easy, as the software can be subscribed online. The trading platform is unpredictable and hostile, so even trading robots are subjected to errors occasionally. Though they are not 100% failsafe, they can be of significant help to traders and provide expert suggestions in making a consequential decision.
How does the Forex trading robots work?
These trading bots function based on the signals received from the Forex trading platforms. These software run the signals or data received on trading simulations and can suggest appropriate proposals regarding the value of a currency pair at any given time. Most trading companies are adapting their trading strategies to accommodate these bots. These ‘robots’ or computer software have been proven to streamline their ventures and maximize profits. These can be of exceptional help to traders, without devoting their personal time to interpret trading signals manually.
These robots can instantly read and interpret trading data, scan charts, and suggest a favorable action, which would otherwise be impossible by human efforts. These robots have been designed to adjust to various trading strategies and parameters necessary to make decisions in Forex trading. For example, they can read currency pairs perfectly, and determine whether purchasing or selling pairs would be profitable at a particular time.
The Pros and Cons of Forex Trading Robots
Like any other component of the trading platform, these Forex trading robots come with their fair share of criticisms. Listed below are the advantages as well as disadvantages of using Forex trading robots:
- Forex trade robots are best known for the convenience they offer to users. They are easy to use and saves from the labor of manually having to research the currency pairs and their value.
- They can suggest favorable decisions even in the most unstable market conditions
- They can save time and function throughout the day, which would otherwise not be possible for humans. These robots can analyze signals from trading platforms 24 hours a day.
- Though these robots are programmed to make trading decisions all day, careful supervision is advised rather than letting Forex trading robots take all decision on your behalf.
- With the popularity of the use of Forex trading robots, the risks of getting scammed have risen. Companies that promise “instant riches” overnight often run potential security risks and scams. So be wary while subscribing to a Forex trading robot.
Do Forex trading robots really work?
The reception of Forex trading robots has always been ambiguous. While some of the users have appreciated their role in everyday Forex trading, others have not been so positive in their reviews. However, it has been a general acknowledgement that these robots can help cut losses, but they are not responsible for bringing in huge profits. Instead, their effectiveness lies in the fact that they can quite successfully interpret the trading platforms and assist in the decision-making process.
For the time being, these trading bots are considered legal in most trading platforms, though some countries may offer restrictions on their usage. So, to purchase and avail services from Forex Trading robots depends primarily upon the user. If you are interested in buying a Forex trading robot for your trading ventures, you can look into the services provided by companies like Ganon, Itic Software, Westernpips Private 7, and Odin.