Automated Forex Trading: Get the most out of your trades 

Why forex trading?  

If you are a beginner investor and haven’t delved into the exciting opportunities available in the financial markets, you are likely wondering if forex trading is the right investment vehicle for you.   

In truth, there are hundreds of financial assets available to traders and speculators, and forex or currency trading isn’t exactly considered beginner-friendly especially compared to other asset classes such as stocks.   

However, currency trading or foreign exchange trading offers a unique set of advantages and the profit potential for retail traders is virtually limitless.   

Forex trading advantages  

• Higher trading volume  
• Deep liquidity, which prevents price manipulation  

• Traders can profit from both rising and falling prices  
• The forex market is open around the clock besides weekends  
• Relatively high volatility with multiple intraday trading opportunities  

The forex market enjoys the highest trading volume than any other financial market combined. The forex market exceeds $5 trillion daily turnover, which greatly surpasses the $200 billion daily trading volume of the stock market.    

This massive daily trading volume is one of the great advantages of the forex market since it provides for nearly instant order execution and much higher profitability.   

Here are the daily averages of turnover on the Forex market for the last 13 years, according to the Triennial Central Bank Survey of the BIS (Bank for International Settlements:  

• $6.6 trillion (2019)  
• $5.1 trillion (2016)  
• $5.4 trillion (2013)  
• $4.0 trillion (2010)  

• $3.3 trillion (2007)  

From the figures alone, you will notice that the average trend of Forex turnover is increasing. It is estimated to reach as high as 15 trillion dollars within the next 8 to 10 years if the number of traders around the world continues to rise. Everyone has a chance of taking advantage of the increased profit potential available in the forex market, especially with the latest advances of fintech technology, which gave rise to algorithmic trading more commonly known as automated trading with trading robots or expert advisors.  

Automated forex trading advantages  

The concept of automation has been introduced to financial investments fairly recently and programmers have managed to train algorithms to spot favorable trading opportunities in the market even before they arise.   

There are several benefits that a Forex trader can derive from automated forex trading. Here are some of the benefits that will help you realize why forex trading as well as other investment vehicles (futures and commodities) favor automation.  

Through automated trading, transactions can now be done in real-time. Although manual systems have existed for quite some time now, it is difficult to match the speed and precision of a trading robot and the wide range of advantages it can offer to traders.   

Hundreds of trades can be executed within a few milliseconds, which can maximize potential returns without requiring much time investment to succeed in online trading.  

There are various issues that are addressed by utilizing forex trading robots or expert advisors especially when it comes to diversification.  

With automated Forex trading, you will have a much greater diversification. This is because the program can monitor a wide range of financial markets in different time zones at the same time.   

You can execute trades with traders from Singapore or London even it is already midnight in the United States. This benefit allows you to take advantage of opportunities that are not available to a human trader.  

Also, trading robots can be customized to trade according to your risk profile and investment targets. This means that you will be able to adjust your risk exposure any time you wish and enjoy a more conservative or aggressive approach to trading the markets.   

As previously mentioned, the forex market is unique because of its tremendous liquidity. This liquidity is extremely beneficial to automated trading, which relies on fast order execution. Therefore, risk management challenges can be surmounted with automated forex trading.   

If you sign up for a forex trading account and download the trading platform, you will be able to find multiple trading robots available to try out for free or on a subscription basis. However, it’s always recommended that you first ask your broker if automated trading is supported.   

Relevant news