Forex robots stem from the unorthodox marriage between computer science and economics. With the use of algorithms to determine if the market winds are blowing in your favor, these automated systems have garnered plenty of interest in the forex community from aspiring greenhorns and battle-scarred forex traders alike.

However, most of these systems available in the market are ineffective programs wrapped in a persuasive sales hype – they might sound promising and look good, but these system will often diminish your profits.

So, how can you find the best forex robots available to help improve your profits? How could you look past the veil of deceit from the sales page, and sieve out the best automated systems?

Are the claims based upon back-tested or live data?

Are the outcomes of the robot based on back-testing (the use of historical market movements to test the strength of a trading strategy or robot)? If they are, stay away from them! The best trading system could have live data to support their claims. Back-testing omits certain factors in live markets, including slippages, and only live testing can be the authenticity of the robots’ profitability.

Is the robot tested over a sufficiently long period?

The best forex robots are tested over very long periods of live trading. This proves that they’re able to stand up to the ebb and flow of the market forces. Beware of systems which declare that they’ve got 100% winning trades – this is simply not possible! The much more likely scenario is the robot had a lucky streak for the period tested. Consistent earnings are the key when finding the best forex robots.

People behind the robot

Is the robot made by just one programmer that has no trading background whatsoever, or possibly is it dutifully developed by a team of dedicated forex traders? The best forex robots are all created by forex traders since these traders comprehend the mechanics that drive the markets. So, the systems they create are more likely to survive the market compared to one that is made by a programmer who’s never dabbled in forex before.

Although these factors are important in determining the best Forex robots, the profitability of your trades ultimately depends on you. Market conditions change very quickly, which is up to you to decide whether your forex robot would work for the current market. Understand how to use manage for automated trading effectively, and you will soon find your capital increasing every month.

Not long ago I presented before 300 people at a forex trading seminar in Sydney,  at the end of it I had a number of people try to find out which type of forex broker do i need to trade with, a market maker, STP, DMA or ECN broker. To the majority of individuals these acronyms are difficult to grasp, so in this short post I’ll spend some time describing the types of forex brokers and the way they make their money, I’ll then go over the forex broker that I make use of and why I favor IC Markets more than any other forex broker.

A lot of people get rather confused due to the acronyms used in the forex world but when you think about the letters you quickly understand what all of the acronyms signifies. Hence let’s begin with touching on the four kinds of forex brokers.

Market – Maker Broker

A forex broker that is a market – maker, is doing exactly what the words state, “making a market”. Basically such type of forex broker rates clients prices that are derived from the interbank market but may not always correctly echo the actual market. Normally market maker brokers go ahead and take other part of the client’s trade and profit from client losses, often this kind of forex broker will also re-quote you if they not wish to accept your order.

STP or Straight Through Processing Broker

An STP broker operates in an identical way as a market – maker broker for the reason that they cash in on client loss, nevertheless the key difference here is that STP broker will not re-quote you and can in most conditions approve your order, for this reason they are referred to as straight through processing (STP) brokers.

DMA or Direct Markets Access Broker

DMA broker’s offer traders direct access to the interbank market, often DMA brokers have a relationship with the investment bank that they move your orders to directly. DMA brokers don’t take on client positions and benefit from client loss like market markers but pass them on straight to an investment bank. Often DMA brokers will charge a commission rather than a spread because this is normally the same way they’re charged by the investment bank they send your orders to.

ECN or Electronic Communications Network Broker

An ECN broker requires a variety of bank price feeds,sums them and passes them onto you. Your orders are put into the liquidity in the ECN environment, you are essentially taking part in the interbank market in exactly the same way as you would when placing an order to purchase shares on the stock market. When investing with an ECN broker you can rest assured that you will always receive the best prices available from the interbank market. ECN brokers will invariably charge a commission for each trade. 

As a professional trader I generally advocate investing with an ECN broker since you are usually guaranteed to get the best possible costs and execution with the extra benefit of knowing that your broker is dealing with the other side of the trade and benefiting from the losses that you might incur.

I have traded with a variety of brokers around the world and have had a number of unique experiences but I can confidently say that undoubtedly the best forex broker which i have worked with is IC Markets. I am trading on IC Markets Metatrader 4 ECN trading platform for over a year now and the experience has been perfect, free of any issues, moreover their customer service is unrivalled, being a VIP client they have taken me to the Monaco Grand Prix and US Open tennis I don’t think you can find anything better. I recommend IC Markets to any individual who takes their trading seriously