RoboforexVisit Roboforex61.41% of retail CFD accounts lose money
IC MarketsVisit IC Markets74-89% of retail CFD accounts lose money
PepperstoneVisit Pepperstone74-89% of retail investor accounts lose money when trading CFDs
AvaTradeVisit AvaTrade76% of retail investor accounts lose money
IG MarketsVisit IG Markets68% of retail CFD accounts lose money
AdmiralsVisit Admirals76% of retail investor accounts lose money
TickmillVisit Tickmill73% of retail investor accounts lose money
Interactive BrokersVisit Interactive Brokers74-89% of retail CFD accounts lose money
VantageVisit Vantage74-89% of retail CFD accounts lose money
FP MarketsVisit FP Markets74-89% of retail CFD accounts lose money
AI forex trading brokers refer to forex (Foreing Exchange) brokerage firms that provide clients with the ability to trade foreign currencies using artificial intelligence (AI) technologies.
When a Forex brokerage allows AI trading, it means that they provide or accommodate automated trading systems. These systems, often called trading bots or algorithms, are designed to carry out trades on behalf of the trader based on predetermined conditions. They can analyze large volumes of data at incredible speed and execute trades based on the parameters set by the trader.
In this top ten we have collected the best forex brokers that are at the forefront of AI trading for retail traders.
For each broker you will find:
- If AI trading is allowed
- The trading platforms available
- If backtesting functions are available
- If VPS services are provided
What are the best AI forex trading brokers?
Below our curated list of the best AI forex trading brokers and platforms, with details of features and characteristics.
How to choose an AI forex broker
Forex trading with the aid of AI (Artificial Intelligence) is becoming increasingly popular. By leveraging machine learning and data-driven insights, AI can potentially provide a competitive edge in the forex market. Choosing the right broker to facilitate this advanced technology, however, is crucial. Here’s a guide on how to make the right choice:
- Regulation should be at the forefront of your considerations when choosing any forex broker. Trading with a regulated broker ensures that your investment is protected by the framework set by the regulatory body. The top regulations you should look out for are FCA, ASIC and NFA.
- Consider the broker’s features as your trading strategies, especially if they are AI-driven, may require certain features to be supported by your broker. Some of these include VPS and API availability.
- Consider what you want to do, understanding your end-goal is pivotal. If you aim to trade with AI, focus primarily on the broker’s credibility, regulation adherence, cost-effectiveness, and the minimum deposit required. On the other hand, if your goal is to sell AI to third parties, platforms with larger user bases, such as MT4 (MetaTrader 4), might be more appealing as they offer a wider audience.
AI forex trading broker alternatives
For forex traders and others, the main alternatives are robo advisors and copy trading.
Robo advisors are services that automate trading strategy. These trading strategies are trading robots backed by humans constantly calibrating the trading portfolios and the algorithms behind them.
Copy trading allows traders to copy in real-time the trading decisions of other traders. No AI or forex trading robot is involved whatsoever.
What is AI forex trading?
An AI for forex trading is an algorithm that uses machine learning so that it self-corrects and self-calibrates over time. These algorithms can be used both to open and close positions automatically, but also to analyze the market in order to generate trading signals.
A specific broker is not required to implement them; a forex broker that allows the implementation of EAs and Custom Algorithms is sufficient.
This is why in most cases a good forex broker is enough. AI for forex trading can in fact be either programmed from scratch but this requires extremely advanced knowledge not only of programming languages but also of the world of machine learning.
In the world of Machine Learning, one of the most vibrant communities is that of the MQL5 Forum. If you do not have the knowledge to create an AI from scratch, you can always buy one and install it inside your computer or a VPS.
What are the most common coding languages for forex AI?
The most common coding languages for forex AI are:
MQL4 is the most common coding language used by AI forex programmers, due to the fact that the MetaTrader 4 trading platform (the only one compatible with MQL4) is the most popular among traders of all kinds.
The MQL5 language, although it works on the MetaTrader 5, is not compatible with the MetaTrader 4 platform. The MQL 5 language has some peculiarities, such as the fact that (as opposed to MQL4) it integrates libraries to call variables such as those referring to the economic calendar.
In contrast, the cAlgo language is used on the cTrader platform, a favorite of scalpers. The cAlgo language is very similar to C#, and is not compatible with either MQL4 or MQL5.
Finally, Pinescript is the programming language for the Tradingview platform, which is a platform used primarily to analyze chart trends. For this reason, Pinescript is mainly used by those who wish to perform backtesting on their AIs.
Coding an AI is not easy, so you can still buy one. However, if you still want to code one from scratch but you do not have enough coding experience, you can take a look at Roboforex, which offers a trading platform that makes coding more accessible for everyone.
Code a fx robot with Roboforex
(74-89% of retail CFD accounts lose money)
Can an AI for forex guarantee results?
AIs for forex do not guarantee results. They follow strategies that were successful if tested in the past, but past performances are not a guarantee of future results. AIs are tested and calibrated using past data. If they are successful with a backtesting benchmark, you may not get the same result in the future.
While AI systems base their strategies on patterns that have shown success in the past, it’s a fundamental tenet of trading that past performances do not guarantee future outcomes. Markets evolve, external factors change, and what worked once might not work again.
AI systems undergo rigorous backtesting using historical data. This means their strategies are refined and calibrated based on past market behaviors. However, achieving a high success rate in backtesting does not automatically translate to future success. There are countless variables in the real market that may not be present or accounted for in historical data.
It’s also essential to understand that while AI can adapt and learn, it doesn’t foresee the future. It makes decisions based on patterns and data it has been fed, making it reactive rather than prophetic.
Pros and cons of using AI in forex
- Available 24/7
- Remove the psychological aspect and the anxiety which may come with trading
- You can monitor many orders at the same time
- Backtesting available
- Machine learning to tweak themselves
- Algorithms are based on past data
- You need to know programming language
- May be expensive to buy
- Very hard to code
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