Many investors are looking to make good profits but don’t have time to be watching the market all day. This is where algorithmic trading software may be able to give you an edge when trading equities.
The 5 Best Algorithmic Trading Software Options
- TradingView: Best Comprehensive Option
- eToro: Best Option Overall
- Forex.com: Best for Trading Forex
- NinjaTrader: Best for Advanced Traders
- Botsfolio: Best for Beginners
In this guide we will cover what you need to know about algorithmic, or also known as, automated trading software. Along with reviews of our top 5 algorithmic trading software recommendations.
TradingView
TradingView is a powerful trading tool for investors of all levels. With a comprehensive list of tools along with its algorithmic trading services, TradingView will surely have all of the resources an investor needs day to day.
Along with algorithmic trading, TradingView also offers charting tools, screeners, alerts, a social community for traders, scripts, technical indicators, and more.
Standout Features:
- Along with default indicators, TradingView allows users to develop their own custom indicators through PineScripts
- Get access to a public library of automated trading strategies that you can even edit and customize for yourself
- Fairly simply to use even without coding knowledge
Benefits:
- Offers educational resources to guide less experienced traders
- Social community on the platform offers additional support to users
- Commission free trading
Disadvantages:
- Not all authors in the public library of automated trading strategies can be trusted as anyone can make their scripts public
- Deeper backtesting is limited on the software
- Limited broker & customer service support
Pricing: There is a 4 tier pricing structure
- Basic – free
- Pro – $14.95/month
- Pro+ – $29.95/month
- Premium – $59.95/month
eToro
eToro serves over 20 million customers as an online brokerage and social trading platform. With a vast amount of asset classes available, this platform can surely provide to any type of trader.
This innovative platform makes it easy for users to follow or “copy” the trades of other users and acts as one of leaders in social trading platforms. Along with copy trading, the strong reputation and safety of eToro along with their asset diversity and ease of use, this platform will surely be a great tool for any investor to have.
Standout Features:
- Automated stock, forex, and crypto trading
- 100% commission free stock trading & extremely competitive fees structure on other assets
- Copy trading feature to follow & copy the trades of verified traders
Benefits:
- Trade stocks, index funds, ETFs, crypto, forex, and more all on one platform
- FCA, ASIC, and CySEC regulated
- Strong mobile platform
Disadvantages:
- Currently in the U.S. assets are limited to just crypto
- Not as suitable for advanced technical traders
- Customer support is limited and will cost additional fees to receive customer support live chat
Pricing: Opening an account is free! However there a small account minimums that need to be met depending on the asset class you are trading.
Forex.com
As per the name, Forex.com is top brokerage and automated trading platform for those trading forex.
Standout Features:
- Over 80 forex pairs
- Offers 20 forex EAs (expert advisors) that are also fully customizable
- Fully supports MT4 (MetaTrader 4) meaning automated trading files can be installed easily
Benefits:
- Trading robo is operational 24/7
- Access and track your trades through the MT4 app
- Gain access to over 80 FX markets
Disadvantages:
- Limited to forex, crypto, and CFDs
- Not as user friendly for beginners and some may say the design is outdated
- Fundamental data is not accessible through this platform
Pricing: There are a few account types:
- Standard account: spreads range from .06-3.3
- Forex.com account or metatrader account
- Commission account: $5 commission per 100K traded and tight spreads
- MetaTrader 4 FX Trading Platform: ultra tight spreads
- STP Pro Trading Account: pay no Forex.com spread and receive volume discounts
NinjaTrader
NinjaTrader provides users with one of the most extensive automated trading software options out on the market. The extensive list of capabilities makes this the ideal platform for more advanced traders and programmers looking to build their trading robots from the ground up.
And if you don’t necessarily want to start from scratch, NinjaTrader offers 100+ automated strategies through their NinjaTrader Ecosystem.
Standout Features:
- 1,000+ add ons for trading software
- Many top online and live trading platforms can be fully integrated
- Lots of technical analysis tools like charting, real time analysis, technical indicators, and more
Benefits:
- Access to diverse markets including equities, options on futures, and more
- Offers both partial and full automation of strategies
- This software offers guides to the platform, a video library, as well as daily webinars
Disadvantages:
- You will need to pay more to access all features of the software
- Desktop only
- High withdrawal fees
Pricing: 3 pricing & subscription tiers
- Free: no fees
- Lease: $720 annually, $425 semi-annually, $225 quarterly
- Own: $1099 single payment, 4 payments of $329
Botsfolio
This is a great platform for those who are just starting out in the automated trading world of crypto. With no coding skills or trading skills necessary, this is the ideal platform to jumpstart your investment journey.
There is no need to create your own investment strategies or need to manage your investments, this platform basically let’s you sit back and handles almost everything for you.
Standout Features:
- Very user friendly with zero background knowledge required to start
- Risk management tools & scalper bot to offer traders investment advice
- Effective mobile app
Benefits:
- Supports Coinbase Pro, Binance, and FTX
- Hands off trading experience
- Botsfolio develops a personal trading strategy for each user based on a questionnaire
Disadvantages:
- Lacks advanced tools for seasoned traders like backtesting
- Exchanges that’re supported by the platform are still quite limited
- $1000 minimum deposit
Pricing: Pricing will be dependent on the value of your portfolio:
- $1k – $3k – $5/month
- $3k – $10k – $10/month
- $10k – $50k – $15/month
- $50k – $100k – $20/month
What Is Algorithmic Trading?
Algorithmic trading is the process of using computer algorithms or “bots” to automatically trade different financial assets. Automated trading can either be fully customized to your investment strategies or you can find preset trading algorithms that you can work with.
Regardless of whether you are building your own trading algorithm or utilizing a premade one, the computer will do most of the work for you. After installing or presetting the algorithm of your choice, the computer will follow your preset conditions and trade your assets accordingly.
How Does Algorithmic Trading Software Work?
Algorithmic trading software utilizes a computer program that will follow that algorithm’s set of defined instructions. When those defined conditions are met, a trade is automatically triggered and placed.
This allows traders to have peace of mind when stepping away from watching financial markets and provides added flexibility to their schedules. An added plus is that most of these algorithms can run 24/7 meaning you will never miss an opportunity with automated trading.
What to Consider With Algorithmic Trading Software
Before subscribing to an algorithmic trading software platform, here are a few things to consider.
Efficiency
Efficiency is key in algorithmic trading as one of the main benefits of automated trading is that you should ultimately never miss a profitable opportunity. You’ll want to ensure that your automated system is continuously scanning the market and analyzing data for you so that you never miss the chance of making a profit.
Backtesting
Finding a platform that offers backtesting can be a huge plus to traders, especially those who are programming their own algorithms. Backtesting allows traders to run simulations and test their strategies before actually risking their assets at stake.
This feature can help avoid human errors in self programmed algorithms as well as give investors a better idea of how their strategy could actually play out.
Types of Auto Trading Offered
Before joining an automated trading platform, make sure they offer the types of automated trading you prefer. For example some of the most common options you’ll see are, fully automated trading, semi automated trading, and automated trading robots.
Different options will be better suited for different investor needs ranging from beginners to more advanced traders.
Assets Available
Automated trading can be utilized on almost all financial instruments. To get the most out of your trading platform, ensure that the assets you want to trade are available.
Depending on the asset class you are trying to trade will affect which platform you will want to use.
Fees
Fees and commission can quickly erode profits. There are several low fee or even zero commission fee platforms, so shop around to ensure you are getting the best possible deal on your trades.
Automate And Algorithmic Trading Software Can Give You an Edge
Overall, algorithmic trading is an excellent option for those looking to take a step back, remove the emotions attached to making trades, and trade purely off of either technical or fundamental indicators. Automated trading can bring a lot of freedom to a traders day to day life and can even give them a leg up as algorithms can scan data much faster and more completely than the human eye alone.
Still unsure what to do? Always feel free to reach out to a financial advisor to answer any additional questions you may have.
Frequently Asked Questions
There are many great algorithmic trading softwares available and some will be better suited for different individuals. Overall though, it seems eToro is a common favorite for many.
While using algorithms to trade will not automatically make someone rich, it can generate profits at a frequency that is impossible for humans to achieve manually.
Oftentimes algorithmic trading is more profitable than traditional trading that is done manually. Not only is it much faster and can trade at higher frequencies, it removes much of the emotional decision making that many will lose profits too.