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Forex Trading Robot – Worth it?

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forex trading robot determines whether to buy or sell currency pairs based on a set of forex market signals during a given point in time. Automated forex trading platforms and online brokers are often integrated into such systems.

A forex trading robot is a program that uses automated software to generate trading signals for currency markets. In other words, forex robots are designed to remove the psychological elements of trading, which can cause loss.

Although forex trading robots advertise the possibility of profits, they must remember that their capabilities are limited and cannot be guaranteed to work.

What are forex trading robots?

Robot business concept market analysis graph,robot hand pressing computer keyboard enter

If you’re unfamiliar, a forex trading robot helps you determine entry and exit positions by supplying a range of forex trading signals.

Essentially, they automate every aspect of your trading. They are often created with MetaTrader and the MQL scripting language to generate trade signals, place orders, and execute Forex trades.

By pushing a button, the forex robot executes automated Forex trades based on historical data. Whether you are asleep or browsing the web, this process is automated.

In the case of buying GBP/USD, you can program the forex robot to enter and exit at special prices and times.

Understanding how Forex robots work?

A forex trading robot is a software program that generates trading signals automatically. The robots are typically created using MetaTrader’s MQL scripting language, which allows professional traders to place orders and generate trading signals.

In trading, there is a psychological element, which can be detrimental, and forex robots are designed to remove that psychological element.

Online traders have access to automated forex trading robots, but they should take caution when buying systems this way.

It is not uncommon for companies to pop up overnight, offering money-back guarantees for Forex robot trading systems before disappearing a few weeks later.

It is possible for traders to cherry-pick successful trades as the most likely outcomes for a trade or to use curve-fitting to improve the backtesting results. Still, these are not real risk and opportunity assessment methods.

The performance of forex trading robots over the long term is mixed, as they generate profits over the short term but not over the long term.

In this case, it is primarily because they are automatically programmed to follow trends and move within specified ranges. Therefore, sudden price movements can wipe out short-term profits.

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What are the main types of Forex bots?

As we discussed earlier, there is no such thing as a universal forex bot. The term “forex bot” refers to a collection of algorithmic functions designed to execute transactions in the forex market. Here are some of the most common types of forex bots.

Expert advisors (EA)

Expert advisors are forex bots programmed to trade with specific parameters and conditions. Using these criteria and conditions will ensure that only trades are made based on your predetermined criteria, which makes you the advisor. Most EA forex bots are written in MQL, a proprietary coding language developed by MetaQuotes.

Arbitrage Forex robot

The purpose of arbitrage forex bots is to exploit inefficiencies in the foreign exchange market. Arbitrage forex bots, for example, buy on cheaper forex brokers and sell on expensive ones if the same currency pair has a price difference.

Moving average Forex robot

Moving average forex bots trade using a crossover Forex trading strategy based on moving averages. These signals buy and sell conditions using two moving averages with different periods.

For example, a crossing of the 50-period moving average above the 200-period moving average might signal the onset of an uptrend and prompt a buy order.

Scalping Forex robot

Forex scalping bots aim to make small profits by scalping the market. In this case, multiple trades are opened and closed over a day, with tight stop-losses and take-profits.

A scalp trader’s life is saved using a bot that automates the process rather than manually.

News trading Forex robot

A forex bot that trades economic news releases is referred to as a news trading forex bot. The forex bots are usually equipped with an in-built news calendar to keep track of economic news releases.

Forex bots decide whether to open or close trades when they detect an impending news release.

What are the important functions of a forex robot?

Order placement: 

Your trades’ profitability depends on the timely entry and exit of trades. Therefore, a reliable forex trader should pinpoint the lowest price to enter trades and the highest price to liquidate positions.

To determine a forex robot’s profitability, verify its reliability, and order execution speeds before choosing it.

Trade recognition: 

A market analysis is conducted with complex or simplistic criteria to identify the ideal entry or exit points in a trade.

These robots are usually powered by technical analysis tools and indicators such as support and resistance levels, order flows, and RSI or MACD indicators.

For this reason, choosing an Algo trading robot with more than one indicator is essential because it often improves accuracy.

Position management: 

Hard-coding, reliable forex robots are equipped with features that facilitate quick and efficient handling of open trades.

Among them are tools such as the hard stop loss feature, trailing stop loss feature, and take profit feature that protect your bottom line or help you maximise profits.

Thus, in exceptionally experienced traders, forex enthusiasts should avoid robots whose position management tools cannot be guaranteed effective.

Strategies utilised by forex robots.

Automated trading tools such as robots and EAs can be used to trade forex based on market trends; some of the most popular strategies are as follows;

Day Trading

Day trading is one of the most popular strategies because of its characteristics. Traders who prefer to hold trades for a short period typically employ this strategy.

Forex traders commonly open and close their Buy/Sell positions on the same day.

However, investing in short-term trades like these requires flexible automation tools, which ensure you do not miss the opportunity that only comes around every once in a while.

Position Trading

Like day trading, position trading involves holding a moderate-sized trade for an extended period, from a few days to a few weeks and even months, to accumulate a sizable profit.

Technical analysis plays a more significant role in position trading than fundamental analysis. By automating, traders can take advantage of several free macroeconomic data tools, according to some reviews of best forex robots.

This strategy can be highly profitable or unprofitable, depending on how and what you trade.

Swing Trading

Using this strategy, you repeatedly return to catch a particularly profitable market trend that has been in place for a more extended period.

Swing trading attracts traders knowledgeable of all technical indicators and spot patterns by studying daily charts.

This strategy focuses on spotting market trends to then enter a position to profit from them before they weaken.

The basis for this strategy is technical analysis. Anyone lacking technical expertise should avoid this strategy due to potential risks.

A forex robot that makes the right decisions can make or break your investments, but there’s no way to know if you don’t keep one active.

How do forex robots stop working?

Conditions frequently change in the market. Most strategies and algorithms break as a result. The following are conditions that cause Forex trading strategies to fail:

  • Whenever high-impact economic news is released, we see a variety of changes. There is an extra cost, so different accounts can be used for various trades.
  • During the entry and exit of each trade, slippage may occur. That adds to the final cost.
  • Trading sequences can be broken for many reasons when a trade is missed.
  • Prices differ among brokers (in many cases, even among other accounts). This results in separate entry and exit trading signals generated for different accounts with the same trading strategy.
  • Every Forex trader needs to be aware of the robustness tests for each of these issues.
  • You must have these things if you are a Forex robot trader. It is like driving a car without seeing the road ahead when doing automated trading without knowing your system’s robustness test results.
  • Test your Forex robot’s robustness multiple times to ensure it can withstand the changes in the market and remain profitable for longer.

What is the important way to choose a trading robot provider?

Regarding the last disadvantage, we decided to assist you in choosing a trading tool provider that will be most beneficial to you.

Ensuring that the trading platform reflects your trading goals and the provider’s legitimacy is essential.

First, you should evaluate the Forex robot’s win rate to produce more winning trades than losing ones. In general, you will find that robot providers tend to make a lot of noise in their advertisements to attract a wide range of customers, but some might overreact.

Although they advertise high winning rates, the average is 80 percent. While it’s not bad, it doesn’t guarantee success 100% of the time.

As you might have understood, the advertised win rate needs to be verified somehow.

Checking the provider on a third-party platform is the best way to do this.

A second benefit of the best robots is that they provide 100% automated trading. The robot will trade for you all the time without any interruption. The popularity of this service comes from the fact that you do not have to sit in front of the computer and do manual trading.

Some people still require some control, so consider using signals if that is the case. Then, if something happens, the program will notify you and handle it.

Additionally, seasoned forex traders use a variety of strategies, some of which are more popular than others. Some examples are swing trading and day trading. There are no two strategies, so it is essential to differentiate them.

Do they adopt a low-risk strategy that targets small gains, or do they adopt a gung-ho strategy to make larger profits?

5 tips for finding the best Forex trading bot to use

Forex bots can provide profitable trading advantages but cause more harm than good for your trades. Nevertheless, if you choose your bots wisely and use powerful Forex virtual private servers, these risks won’t be a concern.

To help you choose a wise and worthy Forex trading bot for your FX trading, we invite you to look at the following list, in which you will find some tips for your consideration. Eventually, you’ll thank us.

Choose a bot with a low drawdown rate.

Investing drawdown refers to reducing the amount of money invested (or what Forex traders call Risk Capital).

You can make more money if you have a high drawdown rate, but you can also go broke if you have a low one.

Test bots thoroughly before using them

Ensure that a Forex bot’s functionality can be verified by viewing its backtesting before you purchase it.

Take a look at the bots that have been backtested.

Beware of unauthenticated reviews.

Since the developers of Forex bots are only interested in selling their products, they will only want positive reviews of their software.

Additionally, people who lost money using a particular Forex bot tend to critique it negatively because they made mistakes.

Become familiar with these matters and seek reviews from reputable sources, such as professional or expert traders.

Try a demo trading account for free.

If you plan to invest in a Forex trading bot, you should purchase a demo account and evaluate it before making any decisions.

It will allow you to see how the bot performs for you, which will allow you to make an informed decision. You should look for Forex bot developers who offer demo accounts to their customers.

Make sure the bot is safe.

When it comes to choosing a Forex trading bot by which to invest your hard-earned money, safety is the top priority.

Look for proof of the bot’s validity on its website, see if they offer performance records, and check social media.

The benefits of using a forex robot

Closeup of trader using tablet and working with candlestick chart. Papers lying on desk. Trading and FOREX concept. Cropped view.

  1. Using a robot, your trades are executed automatically, and you don’t have to do anything. It’s unnecessary for you to be familiar with the forex market to use the robot because it can discern short-term trends and opportunities across almost all major currencies.
  2. A robot can constantly trade when the market is open. It requires no rest and never gets tired of thinking. An individual cannot maintain this schedule without taking a break.
  3. Multiple forex trading accounts can be managed by a robot simultaneously. So rather than putting all your capital in one method, you can diversify it.
  4. You can increase your trading potential by using a trading system to split your funds.
  5. Whenever the robot makes a decision, it uses real-time information and patterns. As a result, human emotions are not inhibited, so your choices are not incorrectly influenced.

While robots seem to have many advantages, they also have some disadvantages. Let’s explore a few of them.

Cons of trading with forex robots

  1. For your computer to be susceptible to viral attacks, it must be online and connected 24 hours a day, seven days a week.
  2. You may be limited in options if your brokerage firm doesn’t allow robots to trade.
  3. A robot needs to be configured to perform at optimal efficiency, and you may cause it to malfunction while adjusting it to work to its fullest potential.
  4. However flexible it may be, a robot can only function within the boundaries you set. Any external force interrupting the trends will prevent the robot from executing the trade and may lose the trade.

Comparison of the best FX robots for 2022

How do we choose the best forex robot? Based on our review, we examined the following factors:

  1. The speed of order execution
  2. Currency trading volume
  3. Reliability and security
  4. Tools for managing risk
  5. Win rate and accuracy of trades
  6. Costs and commissions of subscriptions
  7. Development team expertise

Best Forex trading bots

The following robots are among our top picks for 2022.

You can download them instantly, and all of them work with most brokers, whether you are a beginner or an experienced trader.

Forex Fury

Our top pick for Forex robots is Forex Fury. One of the few EAs on the market with live Myfxbook trading accounts, this EA has been on the market for over 8 years.

There are several key advantages to using the Forex Fury robot, such as the free updates, settings files, and ease of use.

The Fury team tests its robot live on retail investor accounts as large as 50,000 or as small as 100, unlike most vendors who only show a demo account.

A robot review website that’s been serving the community for 14 years, Forex Robot Nation, is operated by Patrick Ryan (Trade with Pat). The robot has a full team of experts working on it daily.

With the system, clients can strategically place trades on their MT4 or MT5 account using moving averages and proprietary trading software. Traders can adjust different settings, such as take profit, stop loss, news filters, range filters, and more.

Traders can sign up for a lifetime membership for $229.99. Members will access the software, the member’s area, the guides, and the settings, along with free lifelong updates.

1000pip Climber system

The 1000pip Climber forex system is also the best Forex trading robot available. Unlike many Forex robots, a unique feature of this robot is the combination of a very advanced trading algorithm with an easy-to-use interface.

MyFXBook has independently verified the historical test performance, and has been outstanding. This provides an additional layer of confidence in the algorithm.

Traders without experience will benefit from the robot since it is very simple to install and use. Unlike many other robots, all complexity is kept internal, and the user can adjust very few settings.

Even beginners will understand the interface thanks to its clear and simple layout. Free Forex robot lifetime updates and 24/7 support are also available with this system.

For traders who desire high-performance robots that are easy to install and operate, a 1000pip Climber is a great option. You can now take advantage of a flash sale on the system, with the price reduced from $297 to $97.


Coinrule makes a great choice for beginners as well as more experienced traders, thanks to its simple, intuitive design.

To set trading rules, users do not need to be familiar with the code.

In addition to supporting some of the most commonly used exchanges, including BitMex and Coinbase Pro, Coinrule is a web-based cryptocurrency exchange.

Forex Gump

Using this forex robot, you can simultaneously monitor trends, prices, and news for nine currency pairs.

Depending on your trading preferences, you can set high, medium, or low risk – and the outcome of your trade will be impacted accordingly.

In addition to full instructions and support, it has a 30-day money-back guarantee.


ForexVPS provides trading servers exclusively. If you run Expert Advisors on platforms like MT4 or 5, a Virtual Private Server (VPS) offers continuous uptime with no downtime.

Using a Forex EA correctly requires the computer to be on all the time, so a malfunctioning internet connection or downed terminal could cost you money and opportunities.

With ultra-low latency, requiring as little as 1 millisecond, no sharing of resources, and 100% uptime guaranteed. Datacenters worldwide can be accessed remotely with a Remote Desktop application – all you need is a connection to the Internet.

There are three pricing levels for this service, the only difference being the amount of RAM and SSD you get for your money. With this service, you can ensure the best performance of your algorithms and robots, starting from just £26.31 per month for 1GB RAM, 1 CPU, and 80GB SSD.

A Forex broker can provide you with the mid-level package for free. It only costs a few dollars to use the VPS – you must deposit a minimum amount and trade the required volume each month. Your payment will only be for the missing volume if you do not make the monthly volume.

ForexVPS provides a latency tool you can use when testing your broker.

Forex robots: who needs them?

Beginners, as well as seasoned forex investors, can make use of a forex robot. When beginners learn how to trade, they often rely on robots to earn regular incomes.

Experienced traders often use the trading history of robots to perfect their already successful trading strategies.

What is the minimum investment to start trading with a forex robot?

Several factors affect the price and mode of acquisition. Your broker’s terms may also be a factor.

You will need $250 in your broker’s account to activate the EA to fund it if you choose the freely available BinBot.

Meanwhile, Hamster Scalping requires you to deposit $100 to your broker account.

However, to trade multiple currency pairs, you need to invest at least $0.1.

How can I use a forex robot if I don’t have forex trading experience?

There is nothing complicated about most of these forex robots. The software does not require prior trading experience or experience with other forex robots. Installation instructions are provided along with the software.

You can even contact 24/7 customer support by phone, social media, Skype, or email to help with installation and settings configuration.

Beginners, as well as seasoned forex investors, can make use of a forex robot. When beginners learn how to trade, they often rely on robots to earn regular incomes.

Experienced traders often use the trading history of robots to perfect their already successful trading strategies.

Do forex robots protect my investments in forex?

Furthermore, they will support the broker-initiated trading process and several risk management features.

In addition to the stop-loss order, a limit on how many trades you can execute, a limit on how many tradable currency pairs the robot can trade simultaneously, and a capital allocation per trade are some of the features included in these types of systems.

Many legitimate forex robots are very effective and outperform most forex traders. However, the return on Forex investments depends significantly on how you set up your trades, and there is no guarantee of how much you will make with a specific robot.

To maximise profit, you should use the recommended default settings.

What is a crypto trading robot?

In addition to Forex bots, a crypto trading robot is a computer program that enables advanced traders to trade their cryptocurrencies automatically and earn profits.

Most Forex robots allow cryptocurrency traders to trade on a 24×7 basis without missing a single opportunity.

We encourage you to read our other knowledge-base article about cryptocurrency trading bots to learn more about how they work.

If you’re interested in the forex and cryptocurrency signals, you should read any article about crypto bots and their related topics.

How does VPS help Forex Trading?

Along with the Forex trading bot, Forex VPS hosting is an additional modern technology that helps traders make money in the Forex market. For trading bots, many Forex traders purchase and use virtual private servers.

With little effort, Forex VPS services help traders keep an eye on the market 24/7.

Additionally, a VPS can reduce latency time and perform your transactions much faster than a computer because you will be able to execute your order much quicker. You will therefore experience fewer delays and slippages.

Slippage can cost you a lot of money, as we all know. As such, this is the best method for decreasing your losses and increasing your profits.

Some Forex VPS brokers are not as favorable as others. As you can imagine, each Forex VPS provider has different benefits.

Trading bot performance: how to boost it

By reading the instructions so far, you can make an educated choice for a Forex trading robot. It is important to remember that the Forex bot or EA platform significantly impacts the trading system’s performance and profitability.

Trading platforms like MetaTrader won’t get you the results you want if you run them on your PC and hope for the best.

To ensure your Forex trading robots perform well enough to make a real profit, it’s crucial to use a Forex VPS to mitigate latency and slippage.

However, not every Forex VPS will provide your Forex bots with all the necessary power. 1000pip Climber System minimizes latency and slippage by having many servers in the best locations worldwide. Additionally, their Forex VPS supports superior server hardware, including NVMe storage, DDR4 RAM, and 1 Gbps bandwidth.

With all that power, your Forex trading robots will be more efficient, and you’ll gain an edge over your competition.

Risks of trading with a Forex bot

There is a high degree of risk involved in forex trading, but there is also a high return. For inexperienced traders, it can be risky. The use of forex bots comes with certain risks.

Poorly performing algorithms

Perhaps the weak algorithms pose the greatest risk to a Forex robot trader. It is important to remember that all Forex trading bots are essentially algorithms, pieces of code developed by programmers. Quality standards are not fixed when it comes to software. Likewise, plenty of Forex trading robots have only their names in common with AAA games with budgets of millions. That’s why you should know which Forex bot you choose to run your trades.

Flash crashes

Despite good algorithms, Forex trading bots can cause massive losses for Forex robot traders in some cases. Your Forex bot may malfunction if you fail to set automatic stop-loss limits and configure it with them, leading to all your money being traded away. That’s why it’s called Flash Crash. When it happened the first time, Wall Street had to declare the trades for the whole day invalid since virtually all share values had fallen to zero within 2 minutes. For those who exclusively rely on Forex trading bots, a Flash Crash is more than a risk, and it’s almost a sure thing in high-liquidity, high-volatility Forex markets.


Forex bot developers may appear overnight to promise money-back guarantees and vanish a few weeks later once they have sold their trading systems.

The long-run ineffectiveness

Forex trading robots have also been criticized for their short-term gains, but their long-term performance has been mixed. This is partly because they follow automated trading patterns to move within certain ranges. Therefore, sudden price movements will wipe out profits in the long run.

Bottom line

The forex market is constantly evolving, so only experienced traders can predict the best time to enter the market. In addition, forex robots are available in many different forms – some are free, while others can cost thousands of dollars.

You may be tempted to think you can sit back and let the system do the work for you. However, Forex robot developers would make more money if they were using them instead of selling them if that were the case.

A forex robot might react inappropriately to false price spikes or inaccurate data that a human trader would likely ignore. It is impossible to accurately predict what might happen in the future forex market based solely on historical data (even for a robot).

Using a best Forex bot as part of your trading strategy may be helpful, but you shouldn’t solely rely on it. Traders need human insight and skill, which a robot can’t replace.

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