Automated Trading Systems & Platforms UK 2022

Automated Trading.
Automated trading, known also as algorithmic trading, involves programming a set of rules which a computer system follows to open and close orders on your behalf. Automated trading is offered by many platforms and apps in the UK, and investors can access major markets like forex and crypto using algorithmic strategies. Our guide explains how automated trading works and which brokers and software offer the service, including MetaTrader 4 (MT4).
Brokers with Auto Trading.
Show Filters.
Show Details.
Filter Brokers.
FCA Regulated.
Low Deposit.
Signals Service.
Islamic Account.
Cryptocurrency.
MetaTrader 4.
MetaTrader 5.
Copy Trading.
Spread Betting.
Found 89 Brokers.
Pepperstone.
Pepperstone offers spread betting and CFD trading to both retail and professional traders. Clients can trade FX, indices, commodities and shares on MT4, MT5 and cTrader platforms.
CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs.
Demo Account.
Regulated By.
FCA, ASIC, DFSA, CMA, BaFin.
MT4 Integration.
Min. Deposit.
$500 recommended.
Avatrade.
Leading forex and CFD broker since 2006, regulated in Ireland, Australia, Canada, Japan, Abu Dhabi, and South Africa. AvaTrade offers multiple trading platforms, including MT4/5, Web Trader, Mobile App, Vanilla options and Social Trading. +1250 Financial Instruments, Educational content and multilanguage customer support active 24/7. 20% Welcome bonus available on allowed countries.
Demo Account.
Regulated By.
CBoI, ASIC, FSA, FSCA, FSB.
MT4 Integration.
Min. Deposit.
CMC Markets.
CMC Markets is headquartered in London and listed on the LSE (FCA Regulated). It offers competitive spreads on a global range of assets via its Next Generation platform.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% (April-June 2022) of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Demo Account.
Regulated By.
FCA, MAS, ASIC, IIROC.
MT4 Integration.
Min. Deposit.
FXCC.
FXCC is a trustworthy trading broker regulated by the CySEC. The brokerage offers ECN trade executions, leverage up to 1:500 and $0 commissions.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
XTB.
XTB is one of the largest stock exchange-listed FX & CFD brokers in the world, offering access to over 2100 instruments on their xStation platform.
81% of retail accounts lose money.
Demo Account.
Regulated By.
FCA, CySEC, IFSC, KNF, DFSA.
MT4 Integration.
Min. Deposit.
Vantage FX.
Reliable and affordable trading since 2009. Join over 900,000 others trading on 1000+ CFD products. Trade Forex CFDs from 0.0 spreads on our RAW account through TradingView, MT4 or MT5. Vantage is ASIC regulated and client funds are segregated. Open an account less than 2 minutes.
Demo Account.
Regulated By.
ASIC, FCA, CIMA.
MT4 Integration.
Min. Deposit.
XM.
XM.com offers a range of account types and a $5 minimum deposit to appeal to all levels of trader. With 1000+ markets and low variable spreads XM.com provides an excellent trading experience.
Demo Account.
Regulated By.
IFSC, DFSA, CySEC, ASIC, FCA, BaFin, CNMV, MNB, CONSOB, ACPR, FIN-FSA, KNF, AFM, FI.
MT4 Integration.
Min. Deposit.
0.01 Micro lots.
Eightcap.
Eightcap is a multi-regulated FX and CFD broker offering MT4 and MT5. The brand provides award winning trading platforms, zero commissions, free education and low spreads.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
IC Markets.
Trade Forex on 0.0 pip spreads with the world’s leading True Raw forex broker – IC Markets.
Demo Account.
Regulated By.
ASIC, CySec, FSA.
MT4 Integration.
Min. Deposit.
City Index.
Established spread betting, forex and CFD broker with over 30 years in the business. Regulated around the globe.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Demo Account.
Regulated By.
ASIC, FCA, MAS.
MT4 Integration.
Min. Deposit.
£/$100 (varies by location)
Axi.
Axi is a global online FX and CFD trading company, trusted by investors around the world. Highly leveraged trading opportunities plus a $0 minimum deposit make it popular with beginners and seasoned traders.
81.6% of retail investor accounts lose money when trading CFDs with this provider.
Demo Account.
Regulated By.
FCA, ASIC, DFSA, FMA.
MT4 Integration.
Min. Deposit.
Forex.com.
Forex.com boast a global reputation. Regulated in the UK, EU, US and Canada they offer a huge range of markets, not just forex, and offer tight spreads on a cutting edge platform.
Demo Account.
Regulated By.
CySEC, IIROC, NFA, CFTC, FCA, CIMA.
MT4 Integration.
Min. Deposit.
LegacyFX.
LegacyFX is a multi-asset broker offering an MT5 download & free signals.
Demo Account.
Regulated By.
CySEC, FCA, VFSC, NBRB.
MT4 Integration.
Min. Deposit.
Skilling.
Skilling are an exciting brand, regulated in Europe and beyond, offering 900+ instruments across 7 asset classes and spreads from 0.2 pips.
80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
100 EUR/USD/GBP or 1000 NOK/SEK.
0.01 Lots or 1 Share.
IG Index.
IG offer spread betting, CFD and Forex trading across a range of markets. They are FCA regulated, boast a great trading app and have over 47 year track record of excellence.
Demo Account.
Regulated By.
FCA, ASIC, MAS, FSCA, JFSA, FMA, CFTC, NFA, BMA, DFSA, FINMA, BaFin.
MT4 Integration.
Min. Deposit.
Capital.com.
Capital.com offer CFDs on a range of markets with competitive spreads and zero commissions. The broker also offers the Investmate app, negative balance protection and leveraged trading.
87.41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Demo Account.
Regulated By.
FCA, CySEC, ASIC, FSA.
MT4 Integration.
Min. Deposit.
£/$/€20 (By credit card – varies by payment method)
RoboForex.
RoboForex is a multi-asset online broker offering powerful trading aides.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
FXChoice.
FXChoice is an offshore retail broker offering MT4 and MT5 platform downloads and online CFD trading.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
Fusion Markets.
Fusion Markets offers low-cost forex and CFD trading via tight spreads. Copy trading, 1:500 leverage plus multiple account types are also available.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
FBS.
FBS is a top online broker offering MT4 & MT5 trading across a range of instruments.
Demo Account.
Regulated By.
ASIC, CySEC, IFSC, FSCA.
MT4 Integration.
Min. Deposit.
Pocket Option.
Pocket Option is a global binary options broker with a sleek proprietary trading platform and competitive range of assets.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
NordFX.
NordFX offer forex trading with specific accounts for each type of investor. Spreads start from 0.0 pips while minimum deposits start at $10.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
BitMEX.
BitMEX offer the largest market liquidity of any cryptocurrency exchange. The platform also offers low trading costs and minimum deposit requirements.
Demo Account.
Regulated By.
Republic of Seychelles.
MT4 Integration.
Min. Deposit.
Varies upon the crypto traded and amount of leverage.
NinjaTrader.
NinjaTrader offer investors futures and forex trading. Use auto-trade algorithmic strategies and configure your own platform while trading with the lowest costs.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
Varies by asset.
EagleFX.
EagleFX is an ECN/STP trading broker offering a low starting deposit and high leverage.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
VT Markets.
VT Markets is a multi-asset broker with ultra-fast trade executions, spreads from 0.0 pips, 24/5 support, and user-friendly trading platforms.
Demo Account.
Regulated By.
ASIC, FSCA, SVGFSA.
MT4 Integration.
Min. Deposit.
Videforex.
Videforex accepts deposits in a range of cryptos and fiat currencies. Payouts reach 98% per trade.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
Finq.com.
Finq.com is an online CFD trading broker offering 2100+ assets on a proprietary WebTrader terminal and MetaTrader 4.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
GO Markets.
GO Markets is an ASIC-regulated FX & CFD broker with leveraged trading opportunities and spreads from 0.0 pips.
Demo Account.
Regulated By.
ASIC, CySEC, FSC of Mauritius.
MT4 Integration.
Min. Deposit.
ThinkMarkets.
ThinkMarkets is a multi-regulated forex and CFD broker.
71.89% of retail investor accounts lose money when trading CFDs with this provider.
Demo Account.
Regulated By.
FCA, ASIC, FSCA, CySEC, JFSA, FSA Seychelles.
MT4 Integration.
Min. Deposit.
SuperForex.
SuperForex is an European-based forex and derivatives broker with currency pairs, commodities, cryptos, stocks and indices. The online broker also offers welcome bonuses and trading contests.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
IronFX.
IronFX offers online trading in forex, stocks, futures and commodities.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
FXPro.
Multi-award winning trading broker. Specializing in forex but also offering stocks and tight spreads on CFDs and spread betting across a wide range of markets.
Demo Account.
Regulated By.
CySEC, FCA, FSCA, SCB.
MT4 Integration.
Min. Deposit.
FinPros.
FinPros offers 400+ instruments with low fees and instant account activation.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
Uphold.
Trading in the Uphold environment offers a one-stop-shop for all your crypto requirements.
Demo Account.
Regulated By.
FCA, FinCEN.
MT4 Integration.
Min. Deposit.
Dukascopy.
Dukascopy is a Swiss-based forex, CFD, and binary options broker with tight spreads and MT4 trading.
Demo Account.
Regulated By.
FINMA, FCMC, JFSA.
MT4 Integration.
Min. Deposit.
GoFX.
GoFX is an online broker aimed at traders from Thailand. Multiple account tiers, no deposit bonuses and loyalty promos available.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
Naga.
Naga is a social investing platform offering copy trading on major financial markets including CFDs and real stocks.
RISK WARNING: Derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail investor accounts lose money when trading derivatives with this provider. You should consider whether you understand how derivatives work and whether you can afford to take the high risk of losing your money.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
Global GT.
Global GT offers dynamic leverage, trading signals and expert market analysis. A low starting deposit and joining bonus also make it a good option for beginners.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
LonghornFX.
LonghornFX offers 150+ assets on the MT4 platform with high leverage and tight spreads.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
GC Option.
GC Option offers binary options trading with 86% payouts, double-touch contracts, and a range of expiry times. Trade binaries on MT4.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
World Forex.
World Forex offers commission-free trading with a $1 minimum deposit and 1:1000 leverage. Digital contracts are also available, offering beginners a straightforward way to speculate on popular financial markets.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
Baxia Markets.
Baxia Markets is an offshore CFD broker providing access to forex, commodities, cryptos and indices. The online brokerage offers straight-through processing with tight spreads and ultra-low latency.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
FXCentrum.
FXCentrum offers welcome deposit bonuses plus STP and ECN trade execution. Three trading platforms, mobile apps and copy trading are also available.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
Vault Markets.
Vault Markets is an award-winning brokerage headquartered in Nambia. Trade hundreds of instruments with ultra-low latency and customizable live accounts.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
TMGM.
TMGM is a competitive forex and CFD broker with a wide range of instruments, features and tools provided at low-cost.
Demo Account.
Regulated By.
ASIC, FMA, VFSC.
MT4 Integration.
Min. Deposit.
Anzo Capital.
Anzo Capital is a competitive forex and CFD broker with ECN and STP accounts. Clients can trade through MT4 and MT5. New traders can get started with a $100 deposit and a welcome bonus.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
KuCoin.
Kucoin is a global crypto exchange offering spot and margin trading alongside lending services and trading bots.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
Pionex.
Pionex is a cryptocurrency exchange with impressive automated trading tools and bots.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
AdroFX.
AdroFX is a regulated online broker offering forex, CFD and crypto trading with MT4 access and attractive welcome bonuses.
Demo Account.
Regulated By.
FSA, BSSLA, VFSC.
MT4 Integration.
Min. Deposit.
Bybit.
Bybit is an established crypto exchange aimed at active online traders.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
RoboMarkets.
RoboMarkets is an award-winning broker offering flexible margin trading.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
OKX.
OKX is a digital exchange offering trading on hundreds of cryptos across desktop and mobile applications with low fees.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
Core Spreads.
Core Spreads offers CFD trading and spread betting across several asset classes on two top-tier platforms.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
Bitfinex.
Bitfinex is among the best crypto exchanges for experienced investors with a free mobile trading application and low fees.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
Kraken.
Kraken is a top-rated cryptocurrency trading exchange offering the largest tokens and altcoins by market cap.
Demo Account.
Regulated By.
FCA, FinCEN, FINTRAC, AUSTRAC, FSA.
MT4 Integration.
Min. Deposit.
Varies upon the crypto traded.
Global Prime.
Global Prime is a multi-regulated trading broker offering 100+ markets. Traders can get started with a $200 minimum deposit and trade with leverage up to 1:100.
Demo Account.
Regulated By.
ASIC, VFSC, FSA.
MT4 Integration.
Min. Deposit.
Capex.
Capex offers a portfolio of trading products and leading investing tools.
Demo Account.
Regulated By.
CySEC, FSCA, ADGM.
MT4 Integration.
Min. Deposit.
Trade.com.
Trade.com offers thousands of tradable assets via CFD and DMA on MT4, MT5 and a proprietary WebTrader. Access floating spreads, third-party analysis tools and copy trading services.
Demo Account.
Regulated By.
FCA, CySEC, FSC, FSCA, FINRA.
MT4 Integration.
Min. Deposit.
ActivTrades.
ActivTrades offers online trading on the MT4, MT5 and ActivTrader platforms. Over 93.60% of orders are executed at the requested price.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
BlackBull Markets.
BlackBull Markets is an award-winning forex and CFD broker with beginner-friendly trading tools and 24/7 customer support.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
LQDFX.
LQDFX offers online trading with multiple STP accounts and MT4 analysis tools.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
Swissquote.
Swissquote is an FCA-regulated forex CFD broker offering 400+ trading products.
Demo Account.
Regulated By.
FCA, FINMA, DFSA, SFC.
MT4 Integration.
Min. Deposit.
SimpleFX.
SimpleFX is a CFD broker offering the popular MT4 platform plus its own SFX WebTrader platform. Account holders benefit from low trading fees with tight spreads.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
FXPrimus.
Speculate on traditional and emerging financial markets via MT4, MT5 and cTrader. FXPrimus is multi-regulated and offers leverage up to 1:1000 alongside monthly promotions.
Demo Account.
Regulated By.
CYSEC, MIFID, ICF, FCA, BaFin, VFSC.
MT4 Integration.
Min. Deposit.
EZ Invest.
EZ Invest is a CySEC-licensed broker offering trading on the financial markets.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
Fortrade.
Fortrade is a multi-asset broker offering a simple live account with advanced trading tools and daily analysis features.
Demo Account.
Regulated By.
FCA, ASIC, CySEC, NBRB, FSC, IIROC.
MT4 Integration.
Min. Deposit.
FP Markets.
FP Markets is a multi-asset broker offering a choice of trading platforms.
Demo Account.
Regulated By.
ASIC, CySEC, ESMA.
MT4 Integration.
Min. Deposit.
Admiral Markets.
Admiral Markets is leading Forex and CFD broker offering the MT4 & MT5 platforms.
Demo Account.
Regulated By.
FCA, CySEC, ASIC, JSC.
MT4 Integration.
Min. Deposit.
Spectre.ai.
Spectre.ai is a blockchain-based binary options broker.
Demo Account.
Regulated By.
St. Vincent and the Grenadines.
MT4 Integration.
Min. Deposit.
HYCM.
Trade on the financial markets with low cost, leveraged products at HYCM.
Demo Account.
Regulated By.
FCA, DFSA, CIMA, CySEC.
MT4 Integration.
Min. Deposit.
FXOpen.
FXOpen is a highly regulated FX and CFD broker offering multiple trading platforms and spreads from 0.0 pips.
Demo Account.
Regulated By.
FCA, CySEC, ASIC.
MT4 Integration.
Min. Deposit.
Infinox.
Infinox is a UK-based broker offering MT4 trading with tight spreads.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
Hantec Markets.
Hantec Markets is a multi-regulated online FX broker offering MT4 and a tailored service providing flexibility to suit any trader.
Demo Account.
Regulated By.
FCA, ASIC, FSC, FMA, FSA, CGSE, VSFC, JSC.
MT4 Integration.
Min. Deposit.
Fondex.
Fondex is an award-winning forex and CFD broker with industry low trading costs.
76.80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
LiteForex Europe.
LiteForex Europe is an FX and CFD broker offering sophisticated trading tools.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
ZacksTrade.
Zacks Trade is a US based brokerage, built for the active trader. Trade stocks, ETFs, bonds, mutual funds and more on a proprietary trading platform.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
Binarycent.
Deposit and trade with a Bitcoin funded account. BinaryCent offers binary options, FX and CFD trading. 1:100 leverage is also available.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
Trading212.
Trading 212 offer a mobile trading experience with copy trading functionality and a range of investing assets.
Demo Account.
Regulated By.
FCA, CySEC, FSC.
MT4 Integration.
Min. Deposit.
Trade Nation.
Trade Nation is a top FX and CFD broker regulated in multiple jurisdictions including the UK and Australia. The firm offers tight spreads and no minimum deposit.
Demo Account.
Regulated By.
FCA, ASIC, FSCA, SCB.
MT4 Integration.
Min. Deposit.
TP Global FX.
TP Global FX is an offshore forex & CFD brokers offering trading opportunities on 200+ instruments. Access MT4 & MT5 platforms, plus copy trading services with spreads from 0.2 pips.
Demo Account.
Regulated By.
SVGFSA, VFSC, CAMA.
MT4 Integration.
Min. Deposit.
eToro.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 79% of retail CFDaccounts lose money.
79% of retail investor accounts lose money when trading with this provider. You should consider whether you can afford to take the high risk of losing your money.
Demo Account.
Regulated By.
FCA, CySEC, ASIC, FSA.
MT4 Integration.
Min. Deposit.
Just2Trade.
Just2Trade offer high tech trading on stocks and options with some of the lowest prices in the industry.
Demo Account.
Regulated By.
CySEC, NFA, FINRA, Bank of Russia.
MT4 Integration.
Min. Deposit.
ZuluTrade.
Zulutrade provide multiple automation and copy trading options across forex, indices, stocks, cryptocurrency and commodities markets.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
Broker choice dependent but balance on ZuluTrade should exceed $100.
Exinity.
Exinity provides flexible low-cost trading in FX, commodities, indices and equities alongside unique education and support provided by teams located across the world. Now operating in the Middle East, through regulation from the Financial Services Regulatory Authority in Abu Dhabi and the Financial Services Commission of Mauritius, Exinity provides a range of services to traders and investors looking for new opportunities in the financial markets.
Demo Account.
Regulated By.
FSRA, FCA, FSC, CMA.
MT4 Integration.
Min. Deposit.
Trader Pro: $10,000; Trader: $100; World: $20.
FXTM.
FXTM is a top-rated forex and CFD broker. Offering 1000+ markets and three account types, they cater to all levels of trader.
Demo Account.
Regulated By.
CySEC, FCA, FSCA, FSC.
MT4 Integration.
Min. Deposit.
Alpari.
Alpari offer forex, CFD and binary options trading across a big range of markets with low spreads and a range of account types that deliver for every level of trader from beginner to professional.
Demo Account.
Regulated By.
FSC of Maritius, SEBI, JFSA.
MT4 Integration.
Min. Deposit.
InstaForex.
InstaForex is a CFD broker providing access to forex, stocks, cryptocurrencies, commodities, energies, indices, and more. With competitive fees and a huge range of available assets, the brand offers safe and reliable trading.
Demo Account.
Regulated By.
MT4 Integration.
Min. Deposit.
AGEA.
AGEA is a regulated forex & CFD broker offering multiple trading platforms and account types.
Demo Account.
Regulated By.
Commission for Capital Markets.
MT4 Integration.
Min. Deposit.
Expand to Show All ↓
Automated Trading Explained.
The simple definition: an investment strategy where clients set up a program of parameters like price and amount, which if met will trigger the execution of a specific trade.
For example, a trader could instruct the system to enter a long position of 50 lots of EUR/USD if it rises above 1.500, or to buy Google shares if the price falls lower than the 20-day moving average. In theory, automated trading results in a strategy based on data and not emotional sentiment, meaning that earnings may increase for both beginners and experienced investors. Systems are also able to monitor market volatility much more broadly, so can detect changes and respond more rapidly than a human.
Automated systems include Expert Advisors (EAs) and trading robots. Robots automatically place market orders based on the set algorithms discussed above. EAs offer the client trading signals, which are alerts about a potential order opportunity, that a user can manually act on or have the EA place automatically depending on their set-up. Copy trading is another form of automated investing that allows users to replicate the strategies and positions of successful traders.
To get started at home, clients should select an online broker that allows order execution with robots.
Markets.
Algorithmic strategies can be used across the majority of markets that offer manual trading. It is particularly popular with forex brokers and in futures markets, though bots are also used with cryptocurrency exchanges, hedge funds, ETFs, CFDs, and for options and commodities. Automated stock and gold trading systems are also utilised at high volume, for example buying and selling on the ASX or NSE stock exchanges.
How To Create An Automated Trading Bot.
Building an automated trading system requires coding knowledge, whether you start from scratch or use a program to help you. Robot software is readily available in the UK and many of those with positive reviews offer free trial periods. Artificial intelligence (AI) is also becoming widely used in automated trading software. You may also decide to hire a developer to create the program, which could match your requirements more closely but might carry extra expense compared to buying a robot directly.
An automated trading robot, or bot, can be created in any programming language – some users prefer Python as it can eventually allow your bot to use machine learning. However some platforms require the program to be written in a specific language, for example MetaTrader systems must use MQL.
Users should then pick a broker for automated trading, a choice which depends on the assets you wish to buy/sell and on whether they have an open-source API – this is critical for your bot to be functional. After selecting a host server for the bot, e.g. a cloud or even a Raspberry Pi, you are ready to start creating an automated trading system.
Automated Trading With Python.
Many users choose to create their automated trading bot using Python. This language is prevalent in the algorithmic space as it gives access to excellent frameworks for using machine and reinforcement learning in the future. Programmers can usually find API documentation, e.g. for stock trading, using Python on Github.
Other languages like R and Java are popular in the development of bots. MATLAB and artificial neural networks have also been applied to generate these systems, and they can even be created from Excel.
Best Automated Trading Software & Brokers.
Automated trading is now offered by a wide range of brokers and companies. Below we cover some popular choices.
MT4.
Automated trading in the MetaTrader4 (MT4) platform, as well as the updated MetaTrader 5 (MT5) solution, is performed using Expert Advisors (EAs). Clients can either buy EAs directly from the platforms marketplace or can opt to program their own bots using the system’s programming language, MQL4. Reviews for this software are generally excellent, and it often appears in top five lists for automated investing systems. Traders can find many tutorials and forums online to get started.
Potential users may also be interested in MultiCharts, a similar offering to MT4 that was created with algorithmic strategies in mind.
NinjaTrader.
Regulated by the National Futures Association (NFA), NinjaTrader 8 is a dedicated platform for automated trading strategies. It allows clients to create or purchase systems, and then execute orders either with the NinjaTrader brokerage or another partner broker like TD Ameritrade. Traders can use the key aspects of NinjaTrader 8 free of charge, but may also choose to rent or own the platform to access more advanced features and lower commission rates.
Robinhood.
Robinhood is a platform where clients can trade stocks, ETFs, or options commission-free and with no account minimum. Building an automated trading system in this platform requires an API, which is available from the firm in Python via Github. Potential clients with little coding experience should note that automated trading on Robinhood appears to have no technical support from the firm, and may be better suited to advanced programmers.
Zerodha.
The Zerodha technology suite includes several trading platforms, which offer free equity delivery and mutual fund investments alongside stocks, futures and options. Fully automated trading using Zerodha is possible using the online Kite platform with the Kite Connect API, available on Github. The firm provides an in-depth video tutorial on their website. Traders can also install Zerodha Pi, the software platform offering, to access additional features.
Interactive Brokers.
Interactive Brokers is regulated by the Financial Conduct Authority (FCA) and advertises the lowest costs in the industry. The firm also offers its own desktop platform named Trader Workstation (TWS), and a trading app for iPhone and Android called IBKR Mobile.
Several programming languages including Java and DDE for Excel are supported on the TWS API, which is the connection that makes automated trading with Interactive Brokers possible. The broker also offers Capitalise.ai, a subscription that allows traders to generate algorithmic strategies without coding.
Thinkorswim.
Clients with TD Ameritrade can use the thinkorswim platform to make trades on a wide array of assets including stocks, options, and ETFs on a commission-free basis, plus futures, forex, and mutual funds. Automated trading is possible with the algorithm panel in thinkorswim, which is used for selecting trigger conditions, and more complex strategies can be achieved by writing manual code.
TradingView.
TradingView is a social trading network for stocks, futures, and forex markets. Clients can start automated trading on TradingView by creating a bot in the PineScript language, with a set of predefined conditions. The bot can then be automated with the Wunderbit Trading platform by connecting to the API and linking the bot with a TradingView signal.
Cryptocurrency Exchanges.
Automated trading robots and platforms for cryptocurrency such as Bitcoin and XRP are particularly popular, as the crypto asset market runs 24/7 and system bots can also operate round the clock. Automated Bitcoin trading in the UK is done on exchanges such as Binance, Coinbase Pro, and Kraken – clients have access to established bots like Cryptohopper or 3commas if they do not wish to create their own. These bots cost around $20 per month, often require no installation, and can even alter the automated trading strategy based on market news.
Other Brokers.
Many more brokers offer automated forex and stock trading with at least a public API – these include Oanda, Degiro, IQ option, IG, ZuluTrade, eToro, XTB, JForex, TradeStation, Trading 212, eTrade, Questrade, Fidelity, Zorro, Tradovate, and QuantShare. Brokers that offer useful tools such as a trading journal to keep track of algorithmic investments are beneficial.
Automated Trading Strategies.
Time-Series Momentum/Mean Reversion.
This concept, sometimes called trend-following, involves using the past price return of an asset to predict its future values. In time-series momentum, it is expected that the future price will follow the same trend as previously observed, and in mean-reversion it is anticipated to go in the opposite direction.
Dollar-Cost Averaging.
This strategy involves investing money into an asset bit by bit instead of all at once, to reduce the effect of volatility. By using smaller and similar amounts periodically, you could avoid investing all your capital at high price points.
Day Trading Automation.
Many day trading approaches can be automated, including popular systems like the gap-up momentum strategy. This idea is used when a financial instrument opens considerably higher or lower than it closed on the previous day, which generates momentum that can be exploited as not all instruments will keep rising.
Clients can evaluate the viability of their automated trading strategies using backtesting, which applies the set parameters to previous market data.
How To Start Automated Trading.
Clients should start by selecting a broker, and taking into account how much automation they want readily available. For example, Interactive Brokers clients can create automated strategies without involving any code, whereas traders with brokers like Robinhood would have to be experienced in programming languages to use algorithmic methods.
After signing up with the chosen broker and depositing funds, your strategies can be operational straight away. Beginners might first consider copy trading, which is an automated form of execution that copies the orders of other investors with a successful track record. This does not require the more complex set up of a trading robot and may make clients more comfortable with the risk associated with an automated process.
It’s also worth checking out the multiple books and online courses available to get a boosting approach to automated trading.
Pros Of Automated Trading.
Reduces emotional impact – where humans may become hesitant after losing trades or over-confident after winning, bots simply adhere to the predetermined criteria and execute orders when these are met Faster and simultaneous order execution – bots can place trades more rapidly than humans, operate 24/7 and execute multiple orders at once which is critical in fast-moving markets Backtesting – applying the strategy you have developed to historical data allows you to assess the validity of the set parameters, which can help to improve profits by fixing issues before trading with real funds Diverse portfolio – as bots can monitor several assets, markets, and strategies at once it encourages the traders’ portfolio to widen and also mitigates risk as capital is spread over many instruments Legal – UK laws do not prohibit the use of automated trading strategies.
Cons Of Automated Trading.
Monitoring still required – automated systems are vulnerable to IT issues like internet crashes just as a computer operating manual trading would be, and as such should be monitored so any problems can be rectified swiftly Needs technical knowledge and experience – automation requires considerable trading and programming expertise, and it is best to consider especially as a beginner whether it would be beneficial compared to manual strategies Perfecting strategies in backtesting – testing your automated system and adjusting it to be entirely profitable based on previous market data is not a guarantee that it will fare well as a live strategy, and so initial automated trades should always be relatively small.
Final Word On Automated Trading.
Automated trading systems, or bots, work by adhering to a pre-programmed set of parameters and will execute orders if the parameters are met. Markets like cryptocurrency and forex are popular with these algorithm bots, alongside platforms such as MT4. Bots can be created from scratch using languages like Python or can be purchased and optimised using software. Although these strategies remove the human emotional aspects of trading and can execute orders simultaneously 24/7, they require a lot of technical expertise, and orders must still be checked frequently.
FAQs.
How Does Automated Trading Work?
Algorithms follow pre-defined instructions to scan the financial markets and execute trades based on specific criteria. This allows for the automatic opening and closing of trades in line with a trader’s specific strategy. Online systems still need careful development and monitoring.
What Types Of Automated Trading Systems Exist?
Automated trading algorithms can follow different strategies, from following detailed technical analysis to acting upon major news events. Copy trading is also a form of automated trading that will see the positions and strategies of successful investors automatically followed.
Is Automated Trading Legit?
Yes, automated trading is a legitimate way to invest in the financial markets. In fact, up to 80% of certain markets, such as FX, are thought to be automated. Institutional investors, in particular, use sophisticated algorithms to approach the markets. Retail traders are quickly realising its potential too.
How Do I Start Automated Trading?
To get started automated trading, you’ll first need to sign up with a broker that offers auto trading. You can then buy pre-built expert advisors or trading bots. Alternatively, you can use software, such as MT4 and MT5, to build, test and deploy your own trading algorithms.
Will Automated Trading Make Me Money?
Automated trading is no shortcut to profits. Algorithms still require careful development and monitoring. The bots are only as good as the humans that have designed them. Left to their own devices without the proper supervision, trading bots can accumulate losses. It’s therefore important to have a careful risk management strategy with alerts and halts in place.
Should I Start Using Automated Trading?
Automated trading isn’t for everyone. However, for those with established manual strategies that want to automate to save time and increase volumes, it could work. Buying established trading bots may also suit beginners who don’t have time to analyse the markets and want to see how successful strategies operate and perform on the forex market, for example.