Trading Robots Guide: The Beginner’s Guide to Forex and Stock Trading Bots 2020

A legit trading robot have the power to generate massive returns from a capital investment of less than $500. Through technologies such as Artificial Intelligence (AI) and Machine Learning (ML), these bots can perform trading with a supposed accuracy of above 90%. Moreover, they can conduct research and place trades within a microsecond.

Auto trading robots are better than manual trading given the high accuracy and speed. Moreover, they eliminate human emotions from trading hence preventing compromised decision making. But are all forex and stock trading robots legit?

This guide presents all that you need to know before trading with forex, stock or binary option robots. We will also provide a list of tested and proven auto-trading robots and those that are confirmed to be a scam.

Best forex robots for 2020

The following are our top FX trading picks for 2020. These robots have been tested and proven to be easy to use and to have superior performance.

What is a forex trading robot?

A forex trading robot is a piece of software that automatically conducts forex trading on behalf of its users. This means that users do not need to conduct trading research or execute trades manually. In robot trading, the software does all the research and trading automatically. However, there are semi-auto trading bots which give the user the ability to determine what trading insights they want to be implemented in their accounts.

The fully auto robots are however the most recommended for those with no prior trading experience. You do not need to master trading systems such as the MT4 or the cTrader when using a trading robot. The bot embeds with these systems in the background and presents users a highly intuitive and easy to understand interface.

FX trading robots are usually provided through specialized brokers. The roles of these brokers include executing trades as instructed by the bot and facilitating deposits and withdrawals. When choosing a trading robot, it is crucial to ensure that it works with regulated brokers.

There is a tendency among beginner traders to confuse FX auto-trading robots with those that trade binaries. We will discuss Binary option trading robots later in this review.

How does a forex trading robot work?

A forex trading robot relies on computer algorithms that are designed out of proven trading techniques. These techniques include short-selling strategies to ensure that the bot can bet on falling prices or what is known as the bear market. For instance, if all fundamentals and technical show that a certain asset price will fall the bot takes a short-selling position.

Short-selling involves borrowing an asset from a broker and selling it when the prices are high and then buying it when the prices fall and returning it to the broker. The profit is the difference between the buying and selling price minus the interest paid to the broker. As mentioned in the introduction, beginner traders do not have to worry about the lingo used in this review since they won’t need it in auto-trading.

Forex trading robots also apply a technique known as High-Frequency-Trading (HFT). This technique is characterized by powerful algorithms transacting a large number of orders in a split of a second. The speed at which the HFT algorithm run make it possible to beat the markets nearly 99% of the time. This explains the high alleged profitability.

Pros and Cons of Forex Trading Robots

Forex trading robots have their own advantages and disadvantages. It is important to understand them well before signing up with any robot.

Tested Forex Robots updated list 2020

Legit forex trading robots are not easy to identify given the many scam bots out there. We have made the research easier for you by presenting a list of tested and proven robots for 2020. You can read an in-depth review of each by clicking on it.

Scam Forex Robots updated list 2020

At least 90% of all auto-trading robots out there are a scam. Here is a list of some of the most notorious scam forex robots out there.

 

How to use a forex trading robot

Trading with full auto or semi-auto robot is a walk in the park. As mentioned previously, no skill is required to use the fully auto FX robots. The semi-auto ones, on the other hand, require basic trading skills. Most forex trading robots follow the same account opening and trading process. Follow the steps below to get started.

STEP ONE: Register an account

Visit the FX robot’s homepage and click the signup button. Submit the required details through the registration form and click submit.

Most robots will ask you to verify your email address and phone number to proceed. A good forex robot should have measures in place to safeguard users’ information.

The scam ones often harvest this data and sell it in the black market. It is therefore paramount to ensure that you share your information with the legit ones. All the FX bots in our legit least are compliant to data protection regulations such as the GDPR.

STEP TWO: Verify Identity

As explained earlier, FX robots operate in partnership with select forex brokers. It is now a legal requirement for all brokers to verify the identity of their users. You will be asked to take photos of both sides of your ID and upload them for verification. The process also involves residence verification where users are asked to upload a photo of a recent bank statement or utility bill with the address clearly displayed on top.

You should embrace the verification process since it is for your own safety. A broker that does not request for ID verification is likely to be a scam. The verification process should not take more than 12 hours.

STEP THREE: Deposit

Most FX robots accept deposits via Wire Transfer, Western Union, major debit and credit cards, and e-wallets such as WebMoney, Skrill, and Neteller.  There are a few that accept crypto wallets. It is important to note that any money deposited through an auto-trading robot goes to the underlying broker.

Legit robots only partner with adequately regulated brokers. With a regulated broker, traders have a guarantee that their money is safe. Regulators require brokers to insure deposits and ensure that they are used for the intended purpose only.

STEP FIVE: Demo and live trading

For the fully auto trading robots, live trading happens at the click of the “trade now” button. However, semi-auto trading requires the user to wait for the bot to generate the tradable signals after which they manually chose those that they want to be applied.

Most MT4-robots are semi-auto and hence traders must be conversant with the trading system. Others are independent of the MT4 but still require some trading skills. Cryptovibes recommends that beginner traders use fully auto FX trading robots.

Do Forex Trading Robots Really Work?

Forex trading robots do work but not all are trustworthy. That’s why we recommend that you read our comprehensive reviews before registering with any robot. If your robot of choice is not in our list, you can suggest that we review it in the comment section below.

Most people are sceptical of forex trading robots due to their alleged profitability. However the technologies they apply and the trading conditions offered by their partner brokers justify their earning potential.

For instance, those that rely on HFT techniques and Artificial Intelligence have proven to have the power to beat the markets. Some can even be engineered to crash the markets. A good example is a technique used by a high-frequency scalper known as Navinder Sarao back in 2010. He is said to have applied powerful computer algorithms to cause a flash crash in the US stock market.

Following his trading activities, the stock market lost nearly $1 trillion in 30 minutes but recovered in less than one hour. Sarao made over 80 million in profit but he had lawsuits waiting for him given that market spoofing is illegal.

Forex auto-trading strategies

Forex bots trade automatically but this does not mean that you can’t improve your chances of getting the most out of them. Here are some great FX robot trading tips to get you started.

Demo trading

Demo trading involves backtesting on historical but real market data. This means that you are able to get a clear picture of what to expect with the robot. Most FX robots come with a trading guide to help users practice and trade.

Don’t invest more than you can afford

Deposit what you can afford to lose only. Trading with huge amounts of money causes anxiety and hence compromises decision making. A deposit of $250 is the best amount to start with when trading with free robots.

Do not interrupt trading sessions

Let the robot run uninterrupted for at least 8 hours per day. Forex markets tend to be highly volatile and hence rising and falling of profitability is expected.

How to select a legit forex robot?

Legit forex trading robots are hard to identify for the untrained eye. This explains why we recommend that you rely on expert reviews like this one when choosing a trading robot. Here are some of the questions you should ask yourself before settling on a robot.

1. Reputation – Is the robot reputable and is it easy to use?
2. Track record – Does it have a proven track record?
3. Regulation – Are its partner brokers regulated?
4. Technology – Does it rely on legit trading technologies?
5. Funds required – How much do I need to trade with the robot?

Our comprehensive FX robot reviews provide answers to all these questions.

Best stock trading robots

 

Stock trading robots are not different from the FX ones in terms of the technologies and trading strategies used. However, they are customized for stock trading only and hence can’t be used for any other asset. Stock robots mostly speculate on stock CFDs rather than buying and selling stocks directly. Here are the best stock trading bots in the market today.

Best binary option robots

Binary Options robots also apply the same technologies to trade binary options. This trading asset is traded on an exchange known as Nadex. You are therefore highly likely to hear binary options bots being referred to as Nadex Trading robots. For the record, a binary option is a financial product that allows traders to make a “yes” or a “no” choice on a trade.

In other words, the trader is given a statement about the asset in question and required to make a choice. A correct choice means that they generate a profit. Here are the top binary options trading robots.

Conclusion

Forex trading robots present a great opportunity to make a passive online income. The best FX, stock and binaries bots can allegedly turn a small investment of $250 to more than a hundred thousand in a few months. Moreover, they require no expertise to use and hence anyone can trade with them.

However, trading robots come at a risk and should, therefore, be used with caution. Whether in forex, crypto, or robot trading, it is always prudent to deposit what you can afford to lose. Forex and stock trading robots trade on high leverage which means that they can result in huge earnings or enormous losses.

There are a lot of stories out there about people who lost their entire savings to robots. Always remember that high earning potential also means that there is a significant risk.

FAQs

Are forex trading robots legit?

Some forex robots are legit and others are a scam. This review presents a list of tested and proven trading robots.

Do binary options robots work?

Yes! The best binary options robots have the potential to earn users good returns. However, they can also result in catastrophic losses. When trading with any robot, it is always prudent to deposit what you can stomach to lose.

How do forex robots work?

Forex trading robots apply complex computer algorithms to conduct market research and execute trades. The best are engineered out of the trading strategies of well-known expert forex traders.

Can I withdraw profits from a forex robot?

Most forex robots are in partnership with well-regulated brokers. These brokers are required by law to provide a seamless withdrawal process. Moreover, they are required to show accountability on all users deposits.