Forex software comes in many different varieties, and choosing the right program can be difficult. What’s right for you will depend not only on your skill level, but on what you are looking to accomplish.
Automated Forex Software
If you are looking for a set it and forget it program that will do your trading for you, then automated forex software (or forex robots) might be the thing for you.
Forex robots, also known as ‘expert advisors’, are just one of the many forex software options available to private forex traders. Aside from the profit potential, some traders are drawn to using forex robots because the difficulty and complexity of having to learn the market themselves can be a bit daunting.
Forex robots are automated programs, designed to run on the popular Metatrader 4 platform. They automatically carry out every aspect of forex trading on a trader’s behalf, from the analytical work to actually initiating the trade, watching over it, and closing it out. One of the benefits of using a robot is that human emotions such as fear and greed, which cause many traders to fail, don’t even enter the equation when an automated program is used.
Forex robots are built not only to automate trading operations, but also to generate profits while doing so, and are becoming an increasingly popular way to trade. They can trade breakouts, news announcements only, or they can be scalping robots which aim to secure small profits as soon as they are available.
Forex robots are seen and promoted as an easy way to make Forex profits – simply pay a few hundred dollars, plug them in, and presto you have an income for life with no effort! This is the myth – unfortunately the reality is often losses.
While forex robots are currently extremely popular amongst the forex community, there is no ‘one size fits all’. What’s good for one trader may not be suitable for another. In addition, there are literally hundreds of forex robots available, making it difficult to know which one to choose, and particularly which ones actually work.
Doing your due diligence before purchasing any robot is absolutely critical. A good starting place would be to read our report on The 5 Biggest Problems With Forex Robots and How to Protect Yourself. You can also visit our Forex Robot Reviews page for honest reviews on some of the best forex robots that we have found, after researching the hundreds that are available.
Forex Signal Software
On the other hand, if you prefer to have control over the placement and management of your trades, but would like a software program to do the analysis for you and provide you with alerts when certain trade criteria is met, then signal generating forex software might be a better choice for you.
Forex signal software does not trade automatically for you. It therefore, requires a certain degree of experience in order for it to be used successfully.
An advantage of having manual control over the placement of a trade is that spread changes are able to be observed. In addition, with signal generating software, suggested stop loss and take profit levels are usually provided and a trader can appropriately manage any losses or gains on any positions taken, based on signals generated by the software.
Like with the forex robots, however, it’s important to do your due diligence before purchasing any signal software. Many of the signal software programs available are scams and even if they are not, they don’t live up to the promises they make in the sales pitch. Visit our Forex Signal Software Reviews page for some honest reviews on the only Forex Signal Software programs that we found were even worth mentioning on this site.
There is no magic bullet…
While forex software can be a valuable tool in any trader’s arsenal, there is no proven software that is designed to work without fault. If there were, there would be a whole lot more trading millionaires around. Forex trading requires years of training, persistence and determination; and as you gain more experience, you will find that your forex software needs will change.