Automated trading software appeared on the market a few years ago, along with the increased popularity of binary options, CFD and forex trading. Sometimes they are also referred to as robots, as they act like assistants to traders who have no patience, will or time to do the research by themselves.
Basically, every software is based on specific algorithms that are researching the market instead of the trader. They find most popular or trades with great potential and deliver them directly to the dashboard. This means that the trader only has to accept or decline the trade (sometimes not even that, as everything takes place automatically), and can skip the learning process completely. While this is not always the smartest thing to do, it is definitely a very popular way of approaching financial markets.
However, it is quite sure that there are good and bad binary trading products on the market. The fact is, that different products with the same purpose are never made the same, and binary trading software is no different.
Here are 5 tips you should follow when looking for an auto trading software.
- Look for Good Reviews
Nothing is more relatable than experience by another user. There are many online reviews, and traders should take their time to research the robots they find interesting. This should be seen as an investment in the future as a good robot can save them a lot of money and time once they start trading. Instead of focusing only on the first trading software you found, take a look at the wider picture. There are many interesting products on the market, but also many scams that can take your money and disappear. IT is better to be safe than sorry.
- Research Features
Some trading software offers little to no customization possibilities, which means that the level of control for the trader will significantly decrease. Look for a robot with a plentiful of customization possibilities so you can select different assets, contract types, and tools that will personalize the trades delivered on your trading dashboard. Another good tip is to find so called semi-automated trading software that delivers trade, but you have to accept it manually. This means you will have the final word. This will give you more power over your trades. You are the one who should be in charge and have the final word.
- Ask, ask, ask
Binary software always claim to have superior customer support, but do they really. The easiest way to know something like that is to simply contact customer support by yourself. No review can measure with your own experience. Make sure to ask everything you want to know before making a deposit. If a customer support agent is avoiding answers and only forcing you to make a deposit immediately, keep in mind that there are other solutions on the market as well. Don’t rush or break under pressure. Ask for every explanation you need and don’t hesitate to ask the most uncomfortable questions related to online trading with their software.
- Check the Brokers
Most software operate as 3rd parties in trading. This means that you trade on the robot’s platform, but the balance is on the account you opened with the broker. Trading software should offer a variety of brokers, and they should be as reputable and popular as possible. You don’t want to trade with brokers who have a questionable reputation and are prone to scam.
- Take a Break
Auto trading is exciting, dynamic and interesting – many traders see no reason to take a break so they trade and trade while losing the overview of the entire trading process how much they made and how much they lost. This is something you should avoid as great traders are always mindful and careful. If possible, use features like trading history and opened trades, so you can easily follow what is going on and stop trading in case you are not happy with your results.