Best Forex Brokers For Automated Trading

by Forex EA Top Team
Best Forex Brokers For Automated Trading

The forex market is full of brokers that provide a significant number of benefits to those looking to implement their automated trading systems. Certain factors must be taken into account, including regulations, platforms, VPS/execution speeds, costs, allowed strategies, and minimum deposit. To find the perfect one for your needs, you should scan every brokerage for those qualities mentioned above, so you go home with easy profits made by EA. Choosing the best robot may depend on your needs, i.e., which currency pairs it trades, the trading strategy it uses, the platform it works on, etc.

You will see the complete list of brokers compiled below. While some may catch your eye more than others, all of them can serve your purpose of utilizing a trading robot. Individual reviews, Q&As, and a detailed buying guide will help you choose the best forex broker for automated trading.

Top 5 Forex Brokers For Expert Advisors In 2021


#1: XM

This is an internationally-regulated broker that offers the best automated experience. With XM, you are not restricted to using EA on a particular standard account at the same execution speeds. The latency is low, and there is a possibility to trade micro-lots. Traders can benefit by using their trading robots on both MetaTrader 4 and 5 platforms. The broker has ultra-low spreads starting from 0.6 pips, perfect for any automated trading system that utilizes scalping. The minimum cost required to get started is as low as 5 USD, which can help bring in new traders globally.

Highlights
  • Fast executions with no/minimum slippage perfect for scalping robots
  • The same speed can be observed on all types of accounts
  • Many instruments are available with the broker, so you can test your EA for the currency pair it is built for
Drawbacks
  • You need to have a minimum deposit of 5,000 USD to utilize their VPS for free

 

 

XM FOREX BROKER
Regulations:
CySEC, IFSC, FSC, ASIC, DFSA
Platforms:MT4/MT5
Min. Deposit:$5
Offers VPS:
Yes (minimum $5000 deposit required in your trading account)

#2: IC Markets

With its headquarters in Sydney, Australia, IC markets rose to quick fame over the past years due to its tight spreads on all currency pairs and Electronic Communication Network (ECN) services. The brokerage currently doesn’t include ECN accounts in its resources; instead, it has a new name to trade your robots – raw spread account. The server location is in New York and has no restrictions imposed on trading styles. Trading fees are super low, with only a 7 USD charge per lot round-turn. Efficient risk management, 50% stop out level, and super-fast trades combine here to give you the best auto trading experience.

Highlights
  • The broker has quite competitive spreads on all currency pairs compared to others
  • Raw accounts come with aggregated source pricing from 25 institutional-grade sources perfect for EAs
  • Zero spread on EUR/USD on raw spread account.
Drawbacks
  • The broker does not provide its services to US residents

 

 

IC MARKETS FOREX BROKER
Regulations:
CySEC, AFSL, FSA
Platforms:MT4/MT5
Min. Deposit:$200
Offers VPS:Yes (Paid)

#3: FXTM

Also known as ForexTime, the broker has solid Electronic Communication Network (ECN) services, especially for traders looking to trade with their robots. The ECN account has No Dealing Desk (NDD), meaning that there will be no requotes on your orders. Spreads and fees are kept competitive and low during high market volatility with a fixed commission of 4 USD per lot. You can utilize MetaTrader 4/5 here. The company allows you to use the FXTM invest program via which investors can follow the trades from your automated trading software. This will enable you to earn by copy trading.

Highlights
  • No Dealing Desk (NDD) makes up for the best speeds on opening/closing your trades
  • A variety of ECN accounts are available with the best liquidity
  • Competitive are the fees with only a 4 USD commission per round lot
  • The average spread on EUR/USD is 0.1 pips
Drawbacks
  • Be careful with the high leverage of 1:2000 as it can wipe out your account in minutes
  • A hefty minimum deposit of 500 USD is required to test out their ECN accounts

 

 

FXTM Forex Broker
Regulations:
CySEC, FCA, FSCA
Platforms:MT4/MT5
Min. Deposit:$500
Offers VPS:
Yes (a minimum $5000 deposit is required)

#4: Dukascopy

Dukascopy has built its reputation as a renowned bank and platform for automated trading. All the trades sent through the bank execute on a Straight Through Processing (STP) basis. It has No Dealing Desk (NDD). Therefore, there are no requotes, and all positions from your robot carry out straight on its Electronic Communication Network (ECN). All clients enjoy an equal amount of liquidity and quotes and can benefit from all kinds of trading (News, scalping, day, etc.). Dukascopy allows all expert advisors, with most instruments traded on a 24 hours basis via robots without any hiccups.

Highlights
  • Straight Through Processing and No Dealing Desk enables fast executions and minimum latency
  • No different account types. All clients enjoy the same benefits irrespective of their deposit
  • As the bank is a broker itself, it provides a range of further benefits not included with any other brokerage
  • Dukascopy is connected to other large banks that trade huge amounts of lots and provide lucrative liquidity
Drawbacks
  • The bank adheres to the regulations by the Swiss Financial Market Supervisory Authority (FINMA) only. No other top tier firms check on it

 

 

Dukascopy Forex Broker
Regulations:FINMA
Platforms:JForex
Min. Deposit:$100
Offers VPS:Yes

#5: XTB

XTB does not have an Electronic Communication Network (ECN). However, the broker still offers automated trading through tight spreads and low latency on its standard account. Rest assured, as you can use MetaTrader 4, where you can backtest your automated trading software. It is the right choice for scalpers as market executions on your orders come with no company charges. Appealing to both novice and pro traders alike, XTB has over 1500 instruments that you can trade with your expert advisor or EA. Various authorities license the broker so you can rest assured that your cash is in safe hands.

Highlights
  • They have a large number of available instruments on which you can test your trading robot
  • Customer care is excellent
  • Transparency, along with excellent trading conditions, is at hand
  • The research section at XTB is equipped with quite useful material
Drawbacks
  • Only MetaTrader 4 is available to use your expert advisors. The trading robots running on MT5 can not be utilized as the broker does not support it
  • The broker does not offer ECN accounts, which are comparatively fast

 

 

XTB Forex Broker
Regulations:IFSC
Platforms:MT4, X station
Min. Deposit:$250
Offers VPS:No

What is automated trading?

As the name suggests, automated trading refers to using automatic means such as robots to execute your trading operations. These robots are also known as expert advisors or EAs. Such trading software enters or exits the market based on the coded information designed to beat the banks and institutions and make gains. 

Some expert advisors are also created for the sole purpose of managing your positions like take profit, stop loss, trailing stop, etc. You can install an EA into the directory of your MT4/5 account or into other platforms, after which you run it by placing it on a chart and enabling the live trading button.

With the development in coding now, even a beginner can make a trading robot that meets his/her requirements. MetaTrader is one of the most widely-used platforms in the world for creating and using such EAs. Depending on the kind, your automated software may be a scalper, a day trader, or a swing trader.


Why use automated trading in Forex?

Depending on their coding, an EA may hand out good trading profits while you sit back and enjoy the passive income. You will keep adding up benefits as you thoroughly remove your emotions while employing a robot. One can undoubtedly increase the efficiency of his executions by using expert advisors that help manage trades. It also allows you to have many real-time trades in a single second and handle them all with no hassles. Developing the software according to your needs is a handy tool as you can modify your robot to perform day or night.

Discipline is one of the critical factors in determining your forex success. And it can be obtained by using a trading robot. One also has the benefit to backtest such software, so you know beforehand whether it will work or not. You can run these systems on multiple accounts on a VPS server making everything super smooth and fast yet effective.


What is important when choosing a broker for Forex EA software?

There are specific factors to take into account evaluating a broker, which we used in our analysis. Let us now look at each of them.

  • Automated Trading: It can be a hassle when you verify all the Know Your Customer (KYC) policies from your brokerage only to realize they don’t allow automated trading. A significant portion of executions (80 percent) is done in the forex by a trading robot these days. 
    Therefore, most brokers will enable you to utilize an EA, which must be used as criteria when selecting one. With such vast choices of brokerage firms to choose from now, you can consider other essential factors like fees, execution speeds, etc. 
  • Platforms: MetaTrader has been hailed as one of the best forex trading software for many years. The top in the industry allows you to use almost all of your robots and even has its own glossary with a considerable collection of expert advisors. It also provides you the convenience of developing your custom trading software. Most of the EAs are coded, especially for MT 4/5 that offers one of the best-automated trading platforms. While choosing a forex broker to use your expert advisor, the best recommendation is to look for a trading platform that supports MetaTrader 4/5.
  • VPS: A Virtual Private Server or a VPS can help you execute your trades with minimum latency having low slippage or none at all. Such servers have a meager delay time of less than 50 ms. 
    This can be extremely beneficial if you have a trading robot that scalps the market and requires blazing fast speeds to execute orders. The broker may provide a VPS service at some cost or free for clients that meet a specific deposit requirement. Nonetheless, a few also offer this service for free, and those should be a priority while choosing a forex broker.
  • Certain Strategies Allowed: Your broker may ban you if it spots that something fishy is going on according to their set terms and conditions. For example, a vast number of repeated order modifications that are not possible manually may be deemed harmful as the brokerage restricts the use of EAs. 
    What matters most is the trading strategy your robot uses to help out in choosing an exchange. The company may not like scalping, hedging, news trading, mirror trading, etc. If your automated software works with any of these, it may be a problem. So when selecting a broker, always look out for the accepted strategies.
  • Execution Speeds: No compromise must be made on slippage and execution speeds, especially for those who trade with scalping robots. When there are any delays on trades, it can be a death sentence for an EA, whose core system was built solely on entering and exiting the markets quickly. 
    Minimum latency, along with low slippage, can ensure that your balance stays positive at the end of the day and place you in the winning 10 percent of traders. Execution speeds can be increased via a VPS, so keep an eye out for a broker that provides free VPS with ultra-fast executions, as stated before.
  • Low Costs: Low costs on deposit, withdrawal, and spreads are a plus for any broker. Most of the ECN brokerages that allow automated trading keep their spreads low to provide traders with maximum benefits. Again it can be quite satisfactory for scalping robots. 
    Individual exchanges give out rebates to their traders that have a healthy advantage on the trading itself as it encourages one to stay and fight the bulls and bears.