Forex, or foreign exchange, trading is a decentralised global market where all the world’s currencies trade. It is the largest and most liquid financial market globally, with an average daily turnover of $5 trillion.

There are many ways to make money from forex trading. Some people choose to trade manually, while others choose automated forex trading. If you would like a low-stress way to make money from the forex market, then automated forex trading may be a good choice for you.

What is automated forex trading?

Automated forex trading is when trades are placed automatically based on predetermined criteria. This can be done manually by inputting specific rules into the software, or it can be done automatically by using algorithms that analyse price charts and indicators to generate signals. Trades can then be placed automatically according to these signals.

How to begin automated forex trading?

To begin automated forex trading in Singapore, an individual must have access to a computer with an Internet connection and a brokerage account.

Brokerage Account

Before an individual can use the software, they will need either Metatrader4 (MT 4) or MetaTrader5 (MT5) platform, depending on the brokerages chosen. The MT4 is more common and is used by many brokers, but the MT5 is becoming more popular because it has more features.

Once you have a brokerage account, you will be able to download the software onto your computer. Most brokerages provide this service for free, but always check to be sure. It is important that you use a reputable and well-known brokerage firm like Saxo Bank when trading forex. Automated forex trading can be a great way to make money, but it’s also important to protect yourself from possible scams or illegal activities.

Choosing a Robot

When looking for a robot to help with your automated forex trading in Singapore, you must find one that has an excellent track record of success. Some robots will promise to make you money but end up stealing your funds instead. If a robot is free and provides a money-back guarantee, it’s more likely to be a legitimate company.

Once you have selected an automated forex trading robot, open an account with the same broker as the robot owner (if possible). This should be pretty simple if both accounts are held at the same brokerage firm. Once you have an account opened with the same broker as the owner of your chosen robot, then all other processes should go smoothly.

Why use automated forex trading?

There are several reasons why traders might want to use automated forex trading, including:

A lack of time.

Even though forex trading can be very enjoyable, it is a time-consuming process that requires a great deal of dedication and effort. Automated trading allows traders to take much more control over the actual trade execution aspects and get rid of much of the busy work involved in making trades manually.

Less room for human error.

When using automated forex trading, there is no need to constantly monitor the positions being opened by the software, which increases the chances of human error, such as entering an incorrect amount or price.

Diversification of risk.

Sometimes even experienced traders will enter into a trade manually, which turns out to be unprofitable, but for some reason, it is still held onto in the hopes that it may turn around later on. This can result in significant losses and sometimes even force traders to close their accounts. Since automated trading allows trades to be closed according to specific criteria (such as profit-taking), it minimises the risk of significant losses occurring.

In conclusion

There are some disadvantages associated with automated forex trading that must be considered when determining whether or not utilising it is the best course of action for any particular trader. On the other hand, many traders, like Saxo forex broker, have found that these programs can offer several key benefits that make them worth considering. Beginner traders who want to know what a currency pair is or how to trade forex are advised to contact an online broker from Saxo Bank.