Expert Investor
4,3 8 7,6 8 4
Investors served since 2012
Author: Alan Applegate
Investment Broker
Alan Applegate

Automated Trading Software

If you think that the concept of automated stock trading is a relatively new one, you are completely wrong. The idea originally took shape as far back as 1949 when Richard Donchian started using a set of very specific rules for buying and selling commodities. If you care to Google him, you will see that the rules he set out are still in use today.

Anyone who uses automated trading software will know that it is based on complex mathematical algorithms and as with many things, the age of technology inevitably started turning these and similar strategies into a piece of software. These ‘robots’ as we tend to call them today became available to retail traders in the late 2000s, some 60 years after Donchian first publicised his trading system.

In the modern world of retail stock trading, there are some excellent trading platforms available to online stock traders and when combined with a strong automated strategy, it can become a winning combination. You will find that some brokers have robots available to use, whilst others allow you to import your own. One way we can help you is by finding you the best brokers and software currently available.

Top Rated Stocks Sites

#1 - Pocket Option: Best Overall

Pocket Option Logo
9.8
Superb
Bonus Up-to $2000 Assets 130+
Min. Trade $1 *Payout % 92.76%
Over 130+ assets to trade now
Instant access to social trading
Single account option, for everyone
Tournament with prize of $50,000
IFMRRC is not an official regulator
Limited account funding methods
Deposit Methods
Visa AMEX Klarna Neteller
170 visited this site today
Pocket Option Review

Editors Summary

Pocket Option offers many excellent features to new and existing traders. When you check-out the various account types, you will see that they work with traders of any level – newbie, beginner, experienced, master etc. This site is so easy to use, and while CySEC does not license them, they have good feedback online and tick all of the boxes of a trusted broker. We love the ease of use and no-frills approach which is replicated with a great user experience.

#2 - IQcent: Best Free Demo

IQcent Logo
9.3
Excellent
Bonus Up-to $1600 Assets 150+
Min. Trade $1 *Payout % 91.48%
Over 150+ assets to trade now
Account options for every trader
Trading available 7 days a week
Super-fast 1 day withdrawals
Demo account has less features
UK-based, but licensed offshore
Deposit Methods
Visa PaySafeCard MasterCard Neteller
88 visited this site today

Editors Summary

It is clear to see that IQcent mean business and that their all-around offering to traders is making them a serious competitor in the digital options market place. From their easy to use trading platform to the fact that they offer such good withdrawal terms, you can't help but feel that this broker is going to capture the market, quickly. With a base in London, reputable licensing, an acceptance of US customers they tick all the boxes when it comes what traders want.

#3 - Raceoption: Best Mobile App

Raceoption Logo
9.1
Very Good
Bonus Up-to $1000 Assets 140+
Min. Trade $1 *Payout % 89.72%
Over 140+ assets to trade now
Bespoke platform for PC and mobile
Low min deposit of $0.10 per trade
Great support in multiple languages
Platform not suited to pro traders
No free demo account option
Deposit Methods
Visa PayPal PaySafeCard Neteller
31 visited this site today
Raceoption Review

Editors Summary

Raceoption, while a relatively new broker, tick all of the boxes when it comes to trading. They are competitive and offer all of the things that you would expect. Benefits include an excellent mobile trading platform, welcome and deposit bonuses and a good support system. There are phone numbers available in many languages, alternatively, you can send a message with your details, and someone will get back to you.

Risk Warning / Ad Disclosure

Risk Warning: The products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never risk money that you cannot afford to lose.

Ad Disclosure: Some of the links that you will find on this website are advertisements for which we do receive financial gain for referring new customers.

How Stock Trading Robots Help

Robots

Those of you that have decided to trade in stocks are particularly favoured where automated software is concerned. The robots available to you are generally more advanced than those available for other types of trading and there are even some highly reliable AI versions on offer.

Efficient And Effective

One of the biggest advantages of robot trading is the sheer efficiency and effectiveness with which they can operate. However, that does not come about without some human input, they are not a ‘plug and play’ type of item. You will still have to take time to plan your trading strategy, program the software to follow your rules and be prepared to change them frequently.

Round The Clock Trading

World time differences mean that on weekdays, trading takes place 24 hours per day and human traders cannot physically maintain constant attention for that length of time. No matter who you are, you need to eat, sleep and no doubt deal with other interruptions. However, your robot does not suffer from any of these confines; it will just carry on regardless as if you were operating your trading platform and never miss a great trading opportunity.

More Trust in The Robot

You need to feel comfortable with your robot, so it is very important to select the automated software which not only suits your trading needs but also allows you a level of control you feel happy with. Expect a period of adjustment during which you can observe, keep records and make changes to your rules. It could take several months before you reach that happy stage of fully trusting the robot.

Higher Success Rates

This is the part that every trader strives for and we are sure you already know that there is a very fine line between success and failure, or a profit versus a loss. Robots do not guarantee a 100% profit, but they do contribute to more profitable trades. This is because they are more logical and able to work at a rate that a mere mortal cannot possibly match.

Different Types of Robot

Todays Top Traders
Trader Broker Asset Profit

If you are not familiar with robots, one thing you do need to be aware of is that there is no single solution for all types of trading. Each software program features a unique algorithm developed to fulfil specific tasks, you cannot use the same robot successfully for penny stocks, Forex and stock trading, for example.

Luckily for those of you who are stock traders, the automated software available to you is much more advanced than any available to those who trade in alternative markets. On the other side of the coin, it has much more complexity, so a higher level of market knowledge is essential. The additional complexity also extends to the setup process, where you must add the appropriate technical indicators, rules for entry and exit and financial constraints.

One very positive and interesting thing for stock traders is the current trend towards AI robots, which ‘learn’ as they trade and constantly add new information to their databases. Some developers have even gone as far as giving their robot software a unique named persona with a surprisingly high level of interactivity. Despite the high price tag, the uptake of this type of service has been phenomenal.

Robot Trading Pros and Cons

This is the point where we say we could write a book on the subject and perhaps we could, but even before it was published there would already be bigger, better and faster robots on the market – which bears witness to the speed of modern technological advancement.

As with the majority of great advances, there are pros and cons to automated trading, but here are some of the positive benefits of automated trading systems:

  • Robots can trade far more effectively and efficiently than any human
  • Monitoring multiple trades, across multiple platforms simultaneously
  • Consistent trading – robots always adhere to the rules you set for them
  • Order entry achieved in seconds
  • Instant reaction to stock market fluctuations
  • Completely unemotional trading

These are very generalised examples and the quality of the automated trading software available to retail traders does vary enormously. You will find some excellent free versions offered as incentives by brokers as well as some that are marketed as ‘top of the range’ but have proven rather mediocre under test conditions.

Conversely, there are a few negative aspects to robots, but not too many. As a human, you could find it difficult to ‘let go of the reins’ and relinquish control of your trading to automated software. You must develop a sufficiently robust trading strategy which works before you let a robot loose with it. There are also unfortunate physical aspects that can affect your robot’s performance including power loss, a poor Internet connection or a device crashing.

One very positive and interesting thing for stock traders is the current trend towards AI robots.

How to Find Legit Software

Unfortunately, it is all too easy to fall into the trap of paying for useless software, or worse still, downloading a program or app which contains malware of some sort. Having been in this business for a long time, we have encountered almost every trick in the scammer’s book, but there is always a new one just around the corner. Sometimes it may seem easier just to do everything yourself, but that comes at a high cost in terms of your valuable time.

One way to avoid such issues is to find a software service which is backed by either a well-known and trustworthy company or possibly a broker service. In itself, that is a time-consuming and potentially daunting task, but take heart, this is where we can help you. We have a team of expert reviewers who are a step ahead and have already done a lot of the leg work on your behalf.

Our reviewers concentrate on two different aspects where robots are concerned. Primarily, on finding reliable brokers that offer automated stock trading opportunities to clients. We also review reputable companies that develop the algorithmic software itself, who tend to work with a limited list of brokers. Either way, you can rest assured that any broker or software which has made onto our recommended list has been thoroughly vetted and has proven trustworthy and reliable.

Our Review Rating System (More Info)

10% 10% 10% 15% 15% 20% 20% Pie Core
  • Account Types
  • Banking & Payouts
  • Bonuses & Promotions
  • Mobile Trading
  • Trade Types
  • Special Features
  • Customer Support
Expert Reviews

Frequently Asked Questions

FAQ

Is automated software trustworthy and reliable?

Unfortunately. human nature dictates that there are ‘scams’, as well as plenty of useless software on the market. We always recommend that you only download this software from trusted sources.

Can they predict the right decisions to make?

The algorithm used by robot software bases the likelihood of a successful trade on past market analysis, not on predictions of what the market will do, so it is not infallible.

Will I need to pay money for decent software?

There are some very good free versions and also some very expensive mediocre ones. Selecting the right software is often achieved by finding the one that suits your needs, rather than by setting a budget.

What if my trading software gets it wrong?

Your robot will be programmed to follow the rules you give it. If you see a greater average pattern of losses, then you will need to rethink your trading strategy and make appropriate changes.

How do I find the best services to use?

We have two suggestions. Either select a broker which allows robots and run a trial using a demo account, or you could download a platform from a developer’s website where there is usually a bigger selection of automated software to try.

Top Rated Stocks Site

#1 - Pocket Option: Best Overall

Pocket Option Logo
9.8
Superb
Bonus Up-to $2000 Assets 130+
Min. Trade $1 *Payout % 92.76%
Over 130+ assets to trade now
Instant access to social trading
Single account option, for everyone
Tournament with prize of $50,000
IFMRRC is not an official regulator
Limited account funding methods
Deposit Methods
Bitcoin PaySafeCard MasterCard Neteller
163 visited this site today
Pocket Option Review
Risk Warning / Ad Disclosure

Risk Warning: The products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never risk money that you cannot afford to lose.

Ad Disclosure: Some of the links that you will find on this website are advertisements for which we do receive financial gain for referring new customers.

Meet The Author
Alan Applegate
Alan Applegate
Investment Broker

Alan has worked as an investment broker who helps businesses find investors to fund their projects and operations. He’s now joined our team as an author for the site, and we believe his 25 years experience will be priceless to our readers.

Related Pages