This article is designed to help the beginner starting out in automated forex trading, by giving some general information and understanding of the forex market, and an insight into the use of Forex EA robots.
EAs which are short for Expert Advisors, are basically a software programme that will do all your trading for you while you sit back and watch the profits come rolling in. Once set up there are very simple to understand and control, all you need is some basic knowledge of how they work.
EAs work by trading currencies on the foreign currency exchange which is the biggest money market in the world, worth around 3 trillion dollars, and it can be a good source of income if you have the right robot and settings. Yes i know currency trading can be risky, but with forex EA robots you decide and control how much of a risk you want to take. Low risk settings will not make you a millionaire, but will give you a steady percentage growth on your investment, a lot better than you will get in any high street bank. High risk settings will either make you or break you, your choice.
Before you can do any trading you will need a trading broker, a broker will handle all your trading orders, and all your trading orders will be placed by your forex EA robot. Most trading brokers are quiet similar, only difference being that they offer different types of accounts. Most brokers will let you trade on a demo account with no risk to your capital, this is most advisable as it will give you the experience you need before you trade live with your own capital. For those who wish to trade only with a small amount of capital look for a broker that will let you trade on a micro or mini account, this is best if you only have less than 500 USD. Some brokers will let you trade with as little as 100 dollars on a micro account. They is no charge to you for using the broker, the brokers make they money by other means.
One thing to note is that a recent change in the NFA rules means that if you trade by hedging, then you will need to trade with a non-US broker.
Choosing a forex ea robot is probably going to be the hardest part of setting up your automated trading. At present the internet is swamped with them and all promising to make you vast amounts of money. You will need to do some research to find out which are genuine, which are scams, and which ones are just a money making rackets for the programme developers. Most will charge about 70 to 200 USD, but there are some free forex ea robots about if you know where to look. Follow my links on this site and they will lead you to genuine websites that will guide you on the best performing robots, the scams, and the waste of time robots. Be sure to get an automated EA robot, some systems are not robots but work by giving you signals of when you should trade manually.
Once you have your trading broker for your forex ea robot the next step is to download your trading platform, this will generally be available to download from your brokers website. Your robot will need to be loaded onto your trading platform for it to function. This is where your robot will place and cancel all your trading orders, almost within seconds, or if you wish trades can be ordered manually by you. The most used and available trading platform is the metatrader MT4 platform that can be downloaded for free and is the most popular trading platform for almost all trading brokers. Some brokers do have they own trading platforms but will also have MT4 has an option.