Which is the Safer Alternative to Robots in Forex Trading?

Forex trading is versatile due to the various trading styles, systems, and strategies that a trader can implement. There are traders of all competence levels in the Forex world, and each trader type will possess a different working method. One of the more prominent features of Forex is the split between forex traders who want to trade manually and those who wish to take advantage of automated trading. This article focuses on automated trading through robots for forex and any possibly safer alternative.

What Are Forex Trading Robots?

Automated trading requires heavy research to find the ideal software that performs trades accordingly. Most upcoming traders will find it easy and tempting to sit back and let an automated device perform the hard work for you. It is here that robots for forex trading come into question.

A forex robot is a computer program based on a set of forex trading signals helping you to determine whether to buy or sell any particular currency at any given time. A forex trading automated robot is available throughout to forex traders, and you can easily buy one over the internet.

Are Robots for Trading Safe?

Please note that no precise trading system guarantees you a 100% success rate regardless of the type they belong to and irrespective of your location. The questions traders ask mainly include, “do forex trading robots work?” Is it just another scam? And if so, what is a safer alternative to robots for forex trading?

Forex trading robots can be safe and dangerous, depending on your approach. It takes a great deal of research to find the program that places your trades correctly.

The profitability of forex trading robot algorithms solely depends on the program you use. As a matter of speaking, these software programs rely on the analyses of exchange rates. A forex trading automated robot generates trading signals based on the current market conditions.

The robot’s algorithms take past and present exchange rates and price fluctuation statistics into account. It then places a trade once all conditions are fulfilled.

Forex trading automated robots can be dangerous if you pick the wrong software. A problem can arise when you choose an inappropriate program for your trading style. For example, if you are into day trading and you select one designed for scalping, you may overlook returns.

No forex trading robot can cater to all your requirements. Robots are also susceptible to failure at some point. What are the alternatives?

Alternatives to Forex Trading Robots

There are three safe and workable schemes to make forex trading income. These include;

• Copy-trading
• Managed accounts
• Automated trading by forex robots

1. Copy Trading

Copy trading is one of the safest alternatives to robots for forex traders. It is a way to utilize an expert’s skill and knowledge in forex trading based on the social trading platform. As an ordinary forex trader, you can automatically follow and copy one or more traders. As such, it is 100% passive income forex trading and reduces risks.

You choose traders to copy in copy trading, whether by copying their entire trading strategy or copying their individual trades. Consequently, you can assign a percentage of your account balance to follow several traders or a specific trader simultaneously.

As long as you copy a trader, all trades that they open are then replicated by a copy trade in your account. The result is you don’t have to participate in any Forex trading courses. You also don’t need to study complicated strategies but pick a top trader in the social trading communities.

Social Trading Network

A social trading network is a glue that links all traders and their followers, just like Facebook. Some of the most established platforms including Allmarketstrading and eToro. You can view and analyze real-live traders’ performances.

Previously, these social trading networks focused on the idea-sharing between traders by creating profiles that included trading performances and strategies to connect like-minded traders globally. This made the networks provide real-time trading feeds from the traders.

How Safe is Copy Trading?

There are many reasons some forex traders will opt for copy trading that forex trading robots. Copy trading is one of the safest forex trading strategies.

It is not a Pooled Fund, meaning your money never leaves your Forex broker account. Moreover, there is no human intervention and no direct connection between your account and traders.

A professional trader does not touch your money. You do your independent trading, which replicates the same trading of the expert trader you copy. As such, it is a Ponzi-free safe trading system.

The selection of traders to copy is a key success factor in forex copy trading.

2. Forex Managed Account

It is an alternative investment a money manager trades on a client’s behalf at a charge. Managed Trading Account comprises a portfolio of securities owned by an investor. Ideally, as the main investor, you own the account, but you choose and hire a professional money manager to trade on your behalf.

However, in this case, a money manager can manage the trade via discretionary trading or automated trading. Such automated techniques can include trading robots that eliminate emotional decisions.

Your money does not leave from your hand in managed accounts and is kept in your brokerage account under your details. You grant permission to the expert traders to access your account and trade on your behalf. These expert traders cannot steal your money since it tends to be fire-walled by brokerage houses to avoid theft.

Automation (Copy Trading) Vs. Robot Trading

With copy trading, you can implement a wide variety of trading strategies, including sentimental, fundamental, and technical analysis. Forex robots take the workload off your shoulders without involving emotional decisions. While this seems like a brilliant idea, at some level, emotional analysis helps forex traders reduce their risks.

There is current competition in the market with forex robots being offered to traders.

Final Thoughts

Forex trading robots are an easy way to trade since they take months of research off your hands. They make decisions based on facts and thorough analysis. However, just like any system, they are prone to risks. On the other hand, copy trading uses the expertise of established traders in the market to help ease your burden. Allmarketstrading.com provides automated trading software/ copy trading for beginners and experts in the most liquid markets.