HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
Exness information and reviews
Exness
86%

Benefits and risks of automated trading


Forex traders around the world use the MetaTrader 4 (MT4) platform to trade forex and to analyse international financial markets. Developed in 2005, MT4 is arguably the most popular trading platform globally today. This is largely due to the advanced tools it offers and also its powerful automated trading capabilities. In this article, we’ll look at what automated trading is and the benefits and risks associated with this form of trading. We’ll also take a small dive into what makes MT4 so appealing to all types of traders. 

What is automated trading?

Automated trading (also known as algorithmic trading) is one of MT4’s most powerful features. It involves the use of computer programs to automatically execute trades on your behalf in the forex market. This type of trading has become increasingly popular as technological advances make it easier for almost anyone to access the market.

Expert Advisors (EAs)

Using automation, traders can develop and apply EAs, also known as trading robots, as well as technical indicators. An EA is a program that opens or exits positions based on pre-established instructions. Practically any trading strategy can be executed as a trading robot, optimising trading and market analysis where required. This removes the emotion of trading since trades are placed once the instructions have been met, mitigating adverse trading decisions.

Benefits of automated trading

Algorithmic trading offers several benefits to traders. Let’s discuss some of the most popular:

Risks associated with automated trading

While automated trading offers key benefits, some risks may be incurred.

In conclusion

Automated trading offers many benefits to a trader. This includes speed, efficiency and the removal of emotional biases from trading decisions. However, this form of trading does come with risks such as mechanical or software failures, over-optimisation, lack of rationale, and other general market risks. Traders must properly understand these factors and carefully assess the suitability of automated trading for their specific individual needs.

More on the Metatrader 4 platform

The MT4 platform is renowned the world over for its innovative capabilities that simplify the complexities of forex trading. It delivers a flexible trading system to millions of traders worldwide, regardless of expertise. MT4 offers a high level of convenience because it is user-friendly, customisable and allows for quick and easy execution of trades. In addition, MetaTrader4 offers:

Become a T4Trade trader

T4Trade gives traders access to more than 300 tradeable instruments across 6 asset classes like forex, metals, futures, indices, and commodities. Traders can choose from a range of innovative accounts best suited to their trading style and expertise. Traders can also benefit from flexible leverage, tight spreads, mobile trading, in-depth market and news analysis, and other exclusive trading tools.’s T4Trade’s MT4 trading platform allows traders to test their trading strategies, using many of the platform’s useful features.

Boost your trading skills with T4Trade

Become a skilled forex trader and widen your scope of knowledge about trading through a comprehensive pool of educational resources on the T4Trade website. Access a range of useful videos, articles, webinars, podcasts and LIVE TV through the T4Trade Academy. Consult the broker’s FAQ page for tips on becoming a better trader.

#source


RELATED

Using leverage safely in Forex trading

The use of leverage is undeniably popular in the forex space. This is largely due to its ability to increase a trader’s potential return on investment...

Predicting a Forex Market Direction

Forex market is changing, and changing cyclically. It means that usually there are such situations on Forex when the price behaviour becomes as predictable...

Forex Trade Ideas: Start Learning About Forex

If you have just started trading, then you must have started getting acquainted with the basics of trading forex and online forex trading techniques. The more you learn, the more you will understand...

Deep Dive into the Dynamics of Forex Currency Pair Volatility

In the dynamic ecosystem of the Forex market, volatility reigns supreme. By grasping the nature and triggers of currency pair volatility, investors unlock the potential to navigate the market strategically...

A Guide to Portfolio Diversification: Don’t Put All Your Eggs in One Basket

Most of us have heard of the saying "Don’t put all your eggs in one basket". In essence, this phrase warns us not to invest all our capital into a single trade, market, or product because we...

Why traders shouldn’t underestimate an Economic Calendar

Brace yourselves for the ultimate weapon in your trading arsenal - an Economic Calendar, revealing the future of financial markets. So, why should you care?

A Complete Guide to Social Trading

Social trading has been rising in popularity among young traders due to the transparency that comes with this option. Like its name suggests, social trading can be thought...

How Much Money Do You Need To Start Trading?

Understandably, novice traders ask numerous questions at the beginning of their careers, and this approach cannot be called wrong. First of all, newbies to the market are usually interested in how much money...

Stock Buybacks: Why Do Companies Buy Back Shares?

In recent years, buyback programs have become one of the growth drivers of U.S. stock markets, creating demand and reducing supply. Corporations have proved to be quite prominent buyers...

Things Football Can Teach Traders

As the 2022 FIFA World Cup countdown is fast approaching, football fans from around the globe are picking up the pace to gear up for the world’s most popular game...

Innovations in Forex Trading Technology

Read this article to learn about advancements in trading technology, such as AI-driven trading bots and advanced charting tools.

Factors affecting the Forex Market

There are several external factors that affect Forex currency trading. These factors include trade reports, GDP, unemployment, international trade, manufacturing etc...

What Is The Best Way To Invest Money When You Don't Have A Lot?

As we know, trading is impossible without starting capital as with 0 on the trading account, your profit will equal zero too. So, what can be done if a trader doesn’t have a sufficient amount to start investing...

Portfolio Diversification: What Benefits Can a Forex Trader Get by Using it?

Collect as many eggs as you can, and don't put them all in one basket - a fundamental principle of a wise trader. Trading is a big road where you can face sharp turns and bumps...

Federal Funds Rate vs Discount Rate

In 1913 the USA government passed a law, according to which...

Account takeover is on the rise: how to protect yourself

Everyone has a friend who has been subject to account takeover attack. With 24 billion exposed accounts available online, this type of identity theft is now rampant in the digital domain..

Why traders shouldn’t underestimate an Economic Calendar

Brace yourselves for the ultimate weapon in your trading arsenal - an Economic Calendar, revealing the future of financial markets. So, why should you care?

Future of banking in cryptocurrency world

What is the future of banking, central banking and financial intermediation in a world in which cryptocurrency is dominant? Let�s speculate a bit...

Deepening the Understanding of Forex Trading and Its Learning Curve

Forex trading has seen a substantial surge in interest, evolving as an avenue for achieving financial freedom and diversification of investment portfolios. For prospective traders, the journey to mastering forex trading may seem daunting...

Long Position Vs. Short Position: What's The Difference?

The tried and true formula for successful sales, "buy low, sell high," applies equally to financial markets. Traders use various types of transactions to achieve this, including short positions...

FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%
Riverquode information and reviews
Riverquode
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.