A large part of the process is spending time monitoring the shifts in the forex market movements. Not to mention keeping up with global news and the economy.
Some investors make a full-time living from trading and may devote 8 hours a day to research and movements within the market. On the other hand, some people have never traded Forex before.
Others simply lack the time to learn the ins and outs of charts and keep up to date with the latest news. This is where forex robots come into play. After all, we live in a fast-paced and busy world - so automated systems are becoming increasingly popular.
More and more forex traders in exness fx are using these sophisticated systems, as they are able to execute a forex trade from start to finish without you having to do anything.
All you have to do is provide the money by making a deposit, and you can go about your daily routine. Your forex robot has everything under control.
How do forex robots work?
In a nutshell, a forex robot is essentially a trading tool that uses algorithms as well as technical analysis. The robot scans the forex market for potentially profitable trades. As mentioned earlier, this can be based on a preset trading strategies or can be semi-automated for experienced Forex traders. As we will discuss a bit later, one of the obvious advantages of using a forex robot for trading is the lack of trading emotions and the ability to be on the ball 24/7.
How much do forex robots cost?
The answer to this question is not simple, as the prices of forex trading robots vary significantly. Some of these systems work on a commission basis. This means that the platform in question receives a set percentage of each successful trade made on your behalf.
For example, imagine that the platform you choose has a fixed commission rate of 12%:
- Let's say you invest $3,000 in the forex robot.
- 100 trades are made during the month
- The ROI is 15%, which equals 450 USD
- Now the platform receives its commission of 12%, which is 54 USD
- You receive profits in the amount of 396 USD
One of the best things about this type of commission model is that the provider only makes money when things are going well.
This means that it is in the best interest of the provider to try and increase your ROI by making careful trades for you. The higher the profit the robot provider makes for you, the more they stand to gain themselves.
In other cases, you have to pay a flat fee to get the forex robot. You then need to install the robot on a third-party trading platform such as MT4 or MT5. There are no ongoing fees or commissions since you have already purchased the underlying software.
The main disadvantage here is that you do not benefit from ongoing maintenance. That is, the forex markets can change quickly, which means that the best forex providers continuously update the underlying code.