There are a lot of forex brokers in the forex market, with different ways of running trades for their clients. A lot of them are professional and efficient enough that they offer their clients additional trade aides in addition to their basic service as forex brokers. One of the things they may offer or recommend is a forex robot which they feel their clients may benefit from. What is a forex robot, and why should traders take up a broker’s recommendation for a robot?
WHAT IS A FOREX ROBOT?
Forex robots or FX bots are computer programs that make use of different trading signals in determining what currency pair to trade, and when to buy/sell it. So, it is a forex strategy (originally developed by a human trader) programmed to trade the forex market automatically, taking into considerations all the instructions in the program.
In the time past, traders have to sit behind their computer screens and speculate every bit of move that goes on in the forex market before they can make any trade decisions. This takes quite some time and energy, and can be frustrating to have to go through the same analysis over again in similar market conditions. It would save time and energy to have a machine run a similar market with a strategy proven to be successful that going through the process manually. This need was noted and a solution for it was developed; a forex robot. Now, a strategy can be developed and programmed run automatically with little or no human input.
WHY SHOULD TRADERS REGARD IT WHEN A BROKER RECOMMENDS A ROBOT?
The basic function of a forex broker is to provide traders with access to trade the forex market in the form of a trading platform. Like you may already know, the forex market is the largest market there is in the world, and the competition is tough. So, brokers are always up and doing trying to get more clients to sign up with them. One of the ways they do that is by offering extra services in addition to their basic services. Seeing as this is the case, it is not surprising that a forex broker may recommend a robot to their clients. Note that there are a lot of robots out there that are nothing but bad news; traders should be aware of that.
Now to answer the question; if a broker recommends a robot to you, find out the following
- How reputable the broker is
- The history of products recommended in the past by the broker
- Reviews of such product
If the answers to these questions are positive, then it might actually worth trying. However, trading with such robot is at the risk of the trader. It is important that traders take their time to be sure that the product is good enough before trading with it.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.