Fusion Markets

In the fast-paced world of forex trading, having access to a reliable and efficient trading platform is paramount to your trading success. Among the titans of the forex trading platform world, two names stand out: cTrader and MetaTrader 4/5 (MT4 and MT5). These platforms have amassed an extensive user base and earned their loyal followings.

In this article, we'll delve into the intricacies of each platform, comparing their features, advantages, and limitations, to help you determine which platform is right for you.

Contents 

Genesis

User Interface and Customisation

Charting and Technical Analysis

Order Types and Placement

Algorithmic Trading and Expert Advisors

Mobile Trading

The Genesis of cTrader and MetaTrader

MetaTrader is the brainchild of MetaQuotes Software. The company introduced the first version, MetaTrader 4 (MT4), in 2005. Its successor, MetaTrader 5 (MT5), followed in 2010, bringing a host of new features and capabilities to the table.

cTrader was launched by Spotware Systems Ltd. in 2011, aiming to provide traders with a platform that offers a user-friendly interface and advanced functionalities. cTrader's main focus is on creating a seamless trading experience for both beginner and experienced traders alike.

User Interface and Customisation

One of the most significant factors in a trading platform's popularity is its user interface (UI). Despite MT4 being somewhat outdated compared to cTrader's modern design, both offer clean and intuitive interfaces, making them relatively easy for traders to navigate. However, they have different approaches when it comes to customisation.

cTrader takes the lead in UI customisation, allowing traders to personalise their workspace extensively. Users can arrange and resize various windows, add or remove trading indicators, and set up multiple charts on a single screen. This level of flexibility empowers traders to create an environment tailored to their specific trading needs.

On the other hand, MetaTrader, especially MT4, has a more rigid UI, with limited customisation options. While MT5 improved in this aspect, it still lags behind cTrader's superior customisation features. 

Charting and Technical Analysis

In terms of charting and technical analysis, both platforms deliver robust solutions. Traders can access a wide range of chart types, timeframes, and drawing tools on both cTrader and MetaTrader.

cTrader stands out with its intuitive charting package, providing more than 70 pre-installed indicators and a smooth drawing experience. It also offers Level II pricing data with its 3 depth of market (DoM) types (Standard, Price, VWAP), giving traders a greater insight into market depth and liquidity.

MetaTrader, however, remains a popular choice for technical analysis enthusiasts, thanks to its massive library of third-party indicators and analytical tools. This vibrant community-driven ecosystem ensures that traders have access to an extensive arsenal of tools to refine their strategies.

Let's dive into the specifics:

MetaTrader 4

Chart Types: MetaTrader 4 supports three fundamental chart types, namely Bar, Line, and Candlestick.

Timeframes: Nine distinct timeframes, spanning from 1 minute to 1 month.

Analytical Objects: 24 analytical objects, including lines, channels, shapes, arrows, and essential Gann and Fibonacci tools.

Technical Indicators: 30 built-in technical indicators. Furthermore, traders can explore over 2,000 free custom indicators and access 700 premium indicators available in the Code Base.

Chart Views: The platform allows traders to open an unlimited number of charts simultaneously. Moreover, traders can personalize their charts by creating templates that define specific attributes such as color schemes, chart types, scales, line studies, and applied indicators.

cTrader

Chart Types: cTrader comes with 8 chart types, but also includes additional variations such as tick and pip charts. These chart types include Bar, Line, Candlestick, Heikin-Ashi, HLC, Dot, Tick (configurable with 27 settings), Renko (with 19 settings), and Range-based charts (with 22 settings).

Timeframes: cTrader features 26 timeframes with the standard chart and over 50 timeframes and six zoom levels across all chart types (including tick and pip charts).

Analytical Objects: The platform boasts 33 analytical objects. 

Technical Indicators: cTrader offers 70 built-in technical indicators.

Chart Views: cTrader introduces Chart Views, allowing traders to detach charts and use them as separate tradable desktop applications across multiple screens. Additionally, ChartShot enables traders to share trading examples and strategies relatively easily.

Order Types and Placement

Now that we've got a comprehensive view of the differences in charting, let's delve into the nuances of order placement in MetaTrader and cTrader, highlighting their distinct approaches and functionalities:

Order Placement in cTrader

• Weekend Order Placement: Traders using cTrader have the unique advantage of placing waiting orders during weekends, even when the markets are closed. This feature facilitates meticulous planning and analysis, allowing traders to prepare for the trading week ahead.
  
  
• Specialized Order Types: cTrader goes a step further by introducing specialized order types like Buy or Sell Limit, adding an additional layer of risk management and trading versatility to the platform.
  
  
• Click-and-Drag: Waiting orders, such as Buy Limit or Sell Stop, can be placed by selecting the order type and adjusting its position through an intuitive click-and-drag action directly on the chart.
  
  
• Specialised Stop-Out features: Smart Stop-Out (partial closure while retaining entry) and Fair Stop-Out (full closure to maximize margin for active positions) give traders better risk management tools.

Order Placement in MetaTrader

• Traditional Approach: MetaTrader employs traditional methods for order placement, necessitating traders to click directly on the desired spot in the chart to execute waiting orders.
  
  
• Limited Specialized Order Types: MetaTrader has all the necessary order types needed for trading but lacks some of the more advanced features like cTrader's smart stop out.

Algorithmic Trading and Expert Advisors

The next significant aspect we need to consider is automated trading. In MetaTrader applications, both MT4 and MT5, traders can utilise Expert Advisors (EAs), which are manually coded programs designed for automated tasks, such as technical analysis of price data and executing positions on specific instruments.

When comparing MT4 to MT5, the primary difference between their Expert Advisors lies in the programming language they employ. Since MQL4 has been in use for a longer time than MQL5, there is a more extensive collection of pre-written scripts and codes available for traders to create their personal Expert Advisors, even if they lack programming knowledge. On the other hand, MQL5 is a simpler programming language, making it easier for traders to create new scripts themselves.

Regarding cTrader, it also offers similar programs known as cBots, which function similarly to Expert Advisors. As mentioned earlier, cTrader uses the widely recognised C# programming language, theoretically making it the most versatile among the three languages (MQL4, MQL5, and C#) with a larger consumer base. 

However, in reality, cBots are less popular than Expert Advisors (EAs), and the reason for this is that the online trading community supporting EAs is much larger than that of cBots. Consequently, there are more pre-existing templates available for MT4/MT5 compared to cTrader. 

Mobile Trading

Mobile trading has become an integral part of the modern trading experience. Both platforms offer mobile applications for iOS and Android devices, enabling traders to stay connected to the markets on the go.

cTrader's mobile app is widely acclaimed for its user-friendly design and seamless functionality. It provides real-time quotes, interactive charts, and order execution capabilities, giving traders full control over their portfolios from the palm of their hand.

MetaTrader's mobile app, too, is highly regarded and offers a range of features for on-the-go trading. It allows traders to access their accounts, execute trades, and monitor markets in real time.

Conclusion

In conclusion, both cTrader and MetaTrader are powerful trading platforms, each with its own set of unique features and strengths. cTrader shines in its user-friendly interface, extensive customisation options, and array of features. On the other hand, MetaTrader's widespread popularity gives traders a great pool of resources to draw on and stronger community support, while having all the tools needed to be successful in the markets.

Ultimately, the choice between cTrader and MetaTrader depends on individual preferences, trading styles, and specific needs. Traders should consider their asset preferences, technical analysis requirements, and whether they prefer a larger community-driven ecosystem or a more user-friendly interface with more features. Regardless of the choice, both platforms have significantly contributed to enhancing the trading experience for millions of traders worldwide.

Ready to Start Trading?

1. Sign Up for Fusion Markets, Australia's Lowest Cost Forex Provider*
   
   
2. Create Your cTrader or MetaTrader 4 or 5 Account.
   
   
3. Download Your Preferred Version of cTrader (Desktop, Mobile - iOS and Android), MetaTrader 4 (Desktop, Mobile - iOS and Android) or MetaTrader 5.
   Or
   Trade With Your Browser with cTrader WebTrader, MetaTrader 4 WebTrader or MetaTrader 5 WebTrader.
   
   
4. Fund Your Account
   
   
5. Start Trading!

The forex symbol USD/BRL indicates the exchange rate value between the USD (US dollar) and the BRL (Brazilian Real)

Currency background

USD (US dollar)

The USD dollar is the United States of America’s official currency. Each dollar is made up of 100 cents. It is represented by US$ when differentiating it from other countries’ dollar currencies. However, they are more often just marked as $.

This currency has become the benchmark for other currencies because it is the most popularly used one. Even territories beyond the US have commonly used it as an unofficial currency.

Because it is often at the core of foreign-exchange trades, it has its own index – the USDX. It is regarded as the world’s most stable currency.

Brazilian Real (BRL)

The Brazilian Real (BRL) is Brazil’s official currency. Each Brazilian real is made up of 100 centavos. It is represented by the R$ symbol.

It was first used as the country’s official currency in July 1994. It replaced the cruzeiro real. The exchange ratio between the former and the current currencies are not 1:1, either. 1 real is equals to 2,750 cruzeiro real.

From 1994 to 1999, BRL was pegged to the USD as an attempt to maintain stability. As the largest Latin American economy, it is worth looking into. It is also the 9th largest in the world.

If you’re considering taking the USD/BRL pair, here are the things to consider:

Economic Conditions

Currency values depend on the economic conditions and public reception of their country’s stability.

Since the mid-twentieth century, the USD dollar has established itself as a powerhouse in the global economy. However, because it is a fiat currency, it is also affected by the United States’ economic outlook and activity.

Its strength may be good for the country itself. It can also be good for those who may be relying on its general strength to earn in foreign exchanges.

However, a powerful USD can be detrimental to countries relying on exports from the United States.

While the USD is obviously strong throughout, much can be said about Brazil’s economy as well. It is believed to be one of the strongest emerging economies due to its rich natural resources.

Its diversity in economy has spurred foreign investment to pour in. With an estimated $200 billion of direct investments, Brazil’s currency is doing great.

It wasn’t always the case. The currency faced several currency crises such as the Mexican currency one from 1994 to 1995, and the one with Asia and Russia in 1997 and 1999. Investors then didn’t want to have anything to do with the Brazilian real.

Supply and Demand

When the US exports more products, it triggers more demand for its currency because customers must change their money to dollars to be able to pay for the goods.

The US government and top American corporations may also issue bonds that can be purchased only with the US Dollar. Foreign investors must buy dollars to buy those financial instruments.

Because of the overall reliability and strength of the US dollar, a lot of investors will still buy the currency as a reserve.

Perception

Currencies depend on perception or market sentiment. For example, if people have been watching the news, finding out about a weakened US economy or increased unemployment, the tendency is to buy back their local currency. This will lower the value of the dollar.

The same goes with the BRL, but even worse since it is a less popular currency. While its economy is doing well and has it placed up there among emerging markets, political corruption could be its downfall.

Geopolitical Conditions and Global Risks

One of the factors that affect perception is geopolitical conditions. How are the politics in the country?

USD is a dominant global reserve. It may experience some lows, but it is always generally high in value. Recent events have this fiat currency on the rise, too. On the other hand, Brazil also started strong this year and has been pulling from Russian assets.

What can provide some volatility in the USD/BRL pair is Lula’s recent election as the President of Brazil.

How to trade USD/BRL

Now that you know the strength of the individual currencies, how do you trade the USD/BRL pair?

The value you get will depend on the exchange rate between the two.

While USD is a stable currency, Brazilian real is the currency of an emerging market. It means that Brazil’s GDP has been steadily growing from 2000. A similar trend is expected to continue.

You will earn a profit because an emerging market’s GDP tends to grow rapidly. However, you must be vigilant because it is also at risk of being negatively impacted by political instability and currency fluctuations. Weigh risks against rewards.

Pick the right time frame

Trade when the USD/BRL is at its busiest, and potentially at its most volatile. The 8:00 to 12:00 Eastern Time frame is also the time when USD details are more readily available.

It is when significant chunks of data have been released that a currency pair’s volatility increases. Be watchful at this time because you will have increased opportunities for profitable trades.

Conclusion

USD/BRL is useful if you want to diversify your foreign exchange portfolio. Your portfolio may see increased gains/losses when one of the fiat currencies in your portfolio is an emerging one.

Why?

Emerging currencies are more likely to display greater volatility. They have also been steadily rising since 2000. Though the previous formation is not a guarantee of future performance, the current strength of currencies like the Brazilian Real is reassuring.

Of course, you will be dealing with two currencies that can give you a lot of value. The USD is always strong. Meanwhile, BRL performs well because of the resources and commodities that Brazil can export. Exports can strengthen both currencies because they prompt investors to buy them.

Read Time 7 Minutes.

If you’ve hung around the Internet in the past five years, you’ve probably heard of the term “Bitcoin” or “cryptocurrency” being thrown about.

But what is cryptocurrency, and how does it work? How is it any different from the money we’ve grown used to over the past century? And how does cryptocurrency trading work?

People are talking about getting rich or blowing away their savings on this new technology, and it’s safe to say that cryptocurrency has taken the finance and tech industries by storm.

If you’re a little unfamiliar with cryptocurrency and you want to see what the hype has been all about, read on to get answers to your questions about cryptocurrency and cryptocurrency trading.

What is cryptocurrency?

In simple terms, cryptocurrency is a digital currency. It doesn’t exist in physical form and exists only in the digital world.

The main uses for cryptocurrency are “store of value,” currency, and as a traded item.

Cryptocurrency as a store of value is a fairly simple concept: you buy it and hold on to it while its value increases. This kind of use is why phrases like “investing in cryptocurrency” have popped up.

Since, for some people, the value of cryptocurrency will only increase as it becomes more widely accepted, they see cryptocurrency as more of a speculative investment than a commodity.

Whether or not cryptocurrency is a good investment will remain to be seen in the future, but it’s definitely true that the value of Bitcoin, the most popular cryptocurrency, has skyrocketed in the past years. Although with much volatility along the way to say the least.

As a currency, it works fairly like money, where you can use it to buy goods and services. A decade ago, you could use it to buy things only in the niche areas of the Internet. However, the acceptance of cryptocurrency is spreading more and more, and in some countries like El Salvador, Bitcoin has even become legal tender.

Like our typical currency (called fiat), the value of cryptocurrency also changes constantly. This is why there are markets for cryptocurrency trading available, and we’ll talk about that more later on.

What are the most popular cryptocurrencies to trade?

There are plenty of digital currencies around, and the most popular one, Bitcoin, is just one of many. There’s also Ethereum, Stellar, Ripple XRP, and Litecoin, which are some of the most traded cryptocurrencies around.

In more recent news, you’ve probably heard of Dogecoin as well. It’s a more niche meme that has gotten a lot of attention (Thanks, Elon!) as a cryptocurrency for trading, mostly because it saw a sudden increase in trading volume.

There are thousands of different cryptocurrencies out there, which just shows how versatile cryptocurrency is. If you want to trade cryptocurrencies, you can easily do so on platforms like Fusion Markets. These work very similarly to forex markets, where people buy and sell cryptocurrency regularly.

However, if you’re looking to trade cryptocurrency, it’s always important to do your research on which ones are good and which ones are not.

Benefits of cryptocurrency trading

For most traders, the biggest benefit of cryptocurrency trading is its novelty. Since cryptocurrency is still in its relative infancy, it has plenty of room to grow, and as it does, many believe that the value will only go higher and higher.

Another benefit is the fact that the cryptocurrency trading market is 24/7. Unlike trading individual stocks between 10am and 4pm (like in Australia), or even 24/5 like Forex, Crypto runs 24/7.

As long as people are willing to buy and willing to sell, the market will always run. This means that you don’t have to wait for market hours if you want to make a trade.

One more thing to note is the volatility. Cryptocurrency is volatile, much more volatile than forex and stocks. The prices of cryptocurrency can rise and plunge in a matter of seconds for seemingly no good reason, and for a lot of people, this volatility brings in a lot of excitement yet is not for the faint hearted.

Risk management

Of course, the things that make cryptocurrency trading the most exciting are also the biggest risks.

The volatility of cryptocurrency means that it can plunge just as easily as it rose. In fact, if you look at a price chart of Bitcoin, you’ll see that there have been multiple plunges that caused people to think that it was the end of crypto.

Additionally, the fact that the markets are open 24/7 means that the price can change significantly while you’re away, much like forex trading. It’s on you to make sure that you can trade while maintaining a good work/life balance.

Main differences between crypto and forex/fiat

While cryptocurrency is a digital currency, it doesn’t mean it’s the same as the money you have on a wallet such as PayPal.

Fiat currency like the US Dollar or the Euro is backed by physical currency. This means that for every dollar you have on your online account, there’s an equivalent physical form stored somewhere.

In contrast, cryptocurrency is purely digital. There’s no withdrawing it for cash, and the closest you can get is putting it in cold storage wallets instead of keeping it at an exchange, but that’s about it.

One more thing to note is that fiat currency is centralized finance, meaning that it’s regulated by the government that issues it. The US Government regulates and prints the US Dollar, for instance.

On the other hand, cryptocurrency is decentralized finance or “defi.” There’s no particular institution that regulates it. Instead, every single computer that’s on the network, or the “blockchain,” works to validate every transaction that takes place.

Basically, all computers monitor everything instead of trusting one institution (like a government) to do it for everybody. This aspect of cryptocurrency is the most appealing for many people because of its libertarian aspects since it’s free from government or bank control.

Additionally, the decentralized nature of the blockchain makes it so that it’s harder to commit fraud. Since all computers monitor the ledger of transactions, anyone who would want to make a fraudulent transaction would have to defraud all the computers on the blockchain.

That’s a lot of computers across the world.

There’s so much more to cryptocurrency, and we’ve barely scratched the surface of the technology behind it. We are witnessing a digital revolution in the making, so if this article has gotten you interested, and if you want to dip your toes in, it’s always best to do a lot of research and practice on a demo account first before spending your hard-earned money.

Read Time: 11 Minutes.

Sleepless nights are a common predicament for most traders. It is the only time you are not consciously screening the markets. As stressful as it can be to sleep with volatile open positions, it is extremely important that you beat the urge to make impulsive moves and that you give your brain some rest.

Since the forex markets run 24/5, most people barely get enough sleep while the markets are open. But this kind of lifestyle will ultimately lead you to make sub-optimal biased trading decisions.

Depending on which part of the world you’re in, the markets might move the most while you should be asleep. For those here in Australia, we are sleeping while the US is in their trading day, which, when you have large open positions active in the market, can make it even more difficult to get a good sleep.

But here’s the thing most traders are not thinking about. Getting a good night’s sleep every day is just as crucial as your fundamental and technical knowledge. Still, many of us tend to overlook a good rest, thinking we can survive on far less than we need. Let’s look at why sleep is essential for forex trading and how to cultivate a good sleep routine.

Why is sleep important for traders?

Sleep plays a big part in our mental wellness, which then affects our decision-making for the day.When you’re placing trades that involve vast amounts of money along with prices that change every second, you want the part of your brain that makes decisions (the pre-frontal cortex, if we’re being precise) to be in tiptop shape.

Ask any elite athlete what one of the most essential tools they have for recovery is, and it’s often sleep. Lebron James, for example, reportedly sleeps as much as 10 hours a night. Now I know what you’re thinking, “Well, I’m not an elite athlete and I’m certainly not Lebron”. But you are trying to obtain peak (trading) performance, right?

Trading involves competent risk management. Before you execute those trades, you want to have a clear picture of the risks and benefits so that you can make calculated and well-informed decisions. When you don’t allow your body and mind to rest well, your practical decision-making is overshadowed by restless behavior patterns.

Basically, good sleep keeps you sharp and productive. On the other hand, studies show that lack of sleep tends to impair decision-making involving complex factors and unexpected occurrences, which occurs quite a lot when the markets are open. By having good sleep regularly, you allow your brain to make unimpaired decisions compared to when you are sleep-deprived.

And speaking of the brain…  

What’s the science behind it?

First, let’s look at what goes on in your brain when you sleep.

Throughout the day, when you’re awake, the brain accumulates metabolic waste. You don’t even have to exercise or move around to accumulate it. Your body already expends energy by just keeping your basic functions running, like breathing and pumping blood.

In using energy, metabolic waste builds up in various parts of your body, your brain included. In time, the buildup can interfere with the peak functions of your brain. When you sleep, your brain sees the perfect opportunity to do some house cleaning. The brain has a built-in waste removal system which is called the glymphatic system.

Sure, the glymphatic system also works while you’re awake, but the cleanup process is at least twice as fast when you’re asleep. This is because your brain knows that there’s not much going on in your body, which allows it to focus on clearing up.

This is why you always feel refreshed and focused when you wake up after a good night’s sleep. And since mental wellness plays a huge part in your trading psychology and your trading mindset, you always want to be in this “clear” state whenever you’re trading. When you’re sleep-deprived, the part of your brain in charge of your fight or flight reactions — the amygdala — is far more stimulated than it would be when you’ve had a normal amount of sleep.

What does this mean for you as a trader?

Well, try to go back to the last time your fight or flight reaction (or amygdala hijack) got triggered. Maybe you were in a disagreement with a colleague or a friend, or you were in an emergency. Wasn’t it hard to stay focused because you felt like a thousand things were going on at once? Now think about how you feel when you’re sleep-deprived and a trade isn’t going your way and a new announcement means you need to think about the implications and what’s next for the market. Are you at your best cognitively at this point? Probably not.

A stimulated amygdala makes it hard to make logical decisions. It also cuts off access to your pre-frontal cortex, which is in charge of making logical decisions. And as forex traders, our trading mindset should always be governed by logical, not emotional, decisions.

Unfortunately, your brain is more likely to go into fight or flight mode with a lack of sleep. You aren’t thinking or seeing the market clearly. Maybe you’re paranoid about your trade, or you see things that aren’t there, or maybe you enter or exit the trade too early.
  

How does a good night’s sleep benefit your trading?

A good night’s sleep gives you good preparation for the trades you’ll be making the next day. Your brain is clearer, and your mind is sharper. When you look at the charts, you’ll be less likely to be influenced by sudden price fluctuations, which we know are all too common in financial markets, particularly in forex trading.

By consistently making good forex trading decisions, you’re more likely to see bigger gains in your trades.

In fact, one study  suggested that sleep-deprived forex traders had relatively lower returns because their decision-making skills were affected.

A good night’s sleep also promotes a healthy work-life balance. You may be a forex trader, but it’s also important to look into your personal health outside the financial markets. You feel more energized and alert when you are awake, allowing you to see new opportunities in the market that an otherwise tired trader might not. This could be your edge.  

Tips for sleeping better

Now that we’ve talked about why sleep is important, let’s talk about developing good sleeping habits.

First, reduce your screen exposure before bedtime. Blue light keeps our brains alert, and this is the kind of light that you usually see from your phones and your living room lights.

Put the phone down and shut off your computer. As hard as it is, that will mean trying to keep your eyes off the charts. Try having herbal tea (Peppermint, chamomile is best for relaxing), reading a physical book (to avoid more screentime), or doing something that relaxes you to get your brain ready for bed. If you really must check your phone or computer late at night, try using apps that make the screen appear “warmer,” giving it an orange tint or via “dark mode” starting from a couple of hours before your bedtime.

Orange lighting is less harsh compared to blue light, which makes it easier to eventually fall asleep.

Second, if you can afford it, separate your workspace from your bedroom. You want your brain to associate your bedroom with rest and relaxation so that as soon as you walk into the bedroom, your brain “gets” it and starts powering down. Playing on your phone or laptop in bed is likely confusing your brain.

Third, keep your room to a cool temperature. Ideally, between 18-20 degrees Celsius.

Finally, one of the worst things you can do is get up and check your phone or computer for what’s happening in the market. The screentime on your eyes, the adrenaline rush, and more will only cause you to make an emotional decision.

If it makes you feel better, a stop-loss or a take profit takes a lot of the unknowns out of the equation. Your trade will either have one of three things happen: It’s still open, it’s been closed with profit, or closed with a loss. By leaving the outcome to the market, you are more likely to think too heavily about it all through the night.

Forex trading is not all about the technical and analytical aspects. A sound body complements a sound mind. You should take care of both aspects to make sure you are at your best. In our view, a well-rested trader will likely exceed a sleep-deprived trader that’s not at peak cognitive performance.

Read Time: 9 Minutes. 

If you are a regular trader and you’ve realized that trading is taking up way too much of your time, you might want to look into automated trading.

For the uninitiated, automated trading involves inputting a set of commands that will automatically execute when certain conditions are met.

You can set your buying price and selling price in advance. When the stock or currency price meets the price you’ve set beforehand, trading software (like MetaTrader) will automatically execute your trade. For the more seasoned traders, you can also base the buying and selling points on conditions like moving averages or convergences. You can even go more complex with algorithmic trading, using complicated algorithms you write yourself to execute trades. This is where trading robots come in, and they can be pretty good at what they do.

The best thing about automated trading is that you don’t have to spend hours upon hours monitoring graphs and charts, waiting for the best time to trade. This is wonderful for forex trading, where the markets are open 24/5.

Additionally, automated trading gives you (or at least, your trading robot) the power to scan millions of different charts at a speed that no human ever could.

There are even features like Fusion+ copy trading, where you can set the program to automatically copy a trader’s actions. If there’s a forex trader you really trust, for example, then you can save yourself the hassle and just set the software to copy all their trades.

Of course, automated trading takes a little learning to get into, which is why we are providing this beginner’s guide to automated trading.

1)     Buy off the shelf to start

There are a number of platforms that offer automated trading software. There’s no need to build a trading robot from scratch, especially if you’re just starting out.

Trading platforms like MetaTrader4 — the most popular forex trading platform — have tools that allow you to get into automated forex trading. You can check out the “Market” tab in your trade terminal section within the platform and have a browse of a wide range of EAs/robots to purchase to get started.

Their platform lets you use trading robots built by others (there are paid and free versions) and if you want to start off with a small amount of capital just to see how it feels, this is the place to do it.

2)     Know the difference between a good robot and a bad robot

As with any software you plan to download and use, you should know if the robot you’re planning to use is a good one. After all, real money is involved here.

In forex trading, where markets run 24/7, you don’t want to waste your money on a trading robot that gives you losses.

First, you can consider the track record of the trading robot. This can be as easy as looking at the robot’s reviews on the website itself or looking it up on forex trading forums where you’re bound to find forex traders who regularly use robots.

Second, just look at the website itself. If it looks unprofessional or promises unrealistic returns, you’ll want to stay away. One of the primary rules in forex trading is that if a deal is too good to be true, it probably is.

Third, look at the price itself. Trading robots are complicated software that took a lot of work to make. You’ll be hard-pressed to find good robots that are cheap or even free. If you see a trading robot that’s a little too cheap for you, keep looking.

Finally, you can find plenty of third-party websites such as Myfxbook.com, Forex Peace Army, or the MetaTrader Market that let you find the most popular robots, reviews from real traders that have used the EAs. We recommend doing a lot of research on the sites above before you dive straight in.

3)     If building your own, know what’s involved.

As we said, trading robots are complicated software that run on immense lines of code. If you want to build your own, you’ll need the necessary coding and programming skills.

It can take months to build a successful trading robot, and it will take a lot of trial and error, along with plenty of frustration.

If you have an idea for what you want but want someone else to build your automated trading robot without getting into too many complications, you can look at possible vendors like TradingCoders or Robotmaker that can build them for you.

Automatic trading robot builders give you a clean interface where you can build and edit your trading robot without learning complicated programming from scratch.

Regardless of how you choose to build your robot, you’ll still need a lot of market and technical analysis skills to succeed, especially if you are entrusting others to build something for you. Study well beforehand and know exactly what you’re getting into.

4)     You’re going to need a virtual private server.

Again, the markets in forex trading are open 24/5. Good trading opportunities come and go in the blink of an eye. The last thing you want to happen is missing a good trade because you suddenly had connectivity issues.

By using a virtual private server like the vendors from Fusion Markets Sponsored VPS (Virtual Private Server), your trading terminal can be connected 24/7 on a virtual machine. You’re basically using a constantly connected server to give you more reliable connectivity so that you are always online and not missing out on trades.

A good VPS will give you not only consistent connectivity but also low latency and fast executions. In forex trading and algorithmic trading, every millisecond counts, so you might as well use the best available tools out there.

Automated trading can be a lot of work at first. Still, it can also be very rewarding once you’ve established your own system. Hopefully, we’ve given you enough information to get you started on your very own automated forex trading journey.