Best Forex Brokers with Algorithmic Trading 2023
For this list, we have found and tested several forex brokers with algorithmic trading.
To select the best forex brokers with algorithmic trading we opened real accounts with deposits between $4,000 and $8,000, then placed real trades in each popular market to get the full picture. We also contacted the customer support team to evaluate the services they provide.
We picked out the best forex brokers with algorithmic trading based on our trading data and experience as a trader.
What is Algorithmic Forex Trading Software?
Algorithmic trading software is a trading platform that uses a method of executing trade orders via an automated pre-programmed set of algorithmic instructions. These algorithms are built to make a decision on buying or selling securities by analyzing market parameters like price, time, and volume.
The trades are generated at a speed and frequency impossible to reach by human traders. Algorithmic trading software is built by a special software interface called API (Application Programming Interface). The API is a piece of code that builds a bridge between algorithms of automated trading and a broker. Read our article on API
The common programming languages used to write trading software include MatLab, Python, C++, JAVA, C#, and Perl.
The reasons behind why algo trading gains its momentum is due to its advantages of speed, accuracy, and reduced costs. Also, it eliminates human oversight. However, faulty software may be the reason for huge losses. Hence, make sure that the software you are trading with is reliable.
Here are some of the most popular algorithmic trading platforms:
|Trading Platform||Programming Language|
|🖥 MetaTrader 4 (MT4)||MLQ4|
|💻 MetaTrader 5 (MT5)||MLQ5|
|📱 NinjaTrader 8||C#|
Best Brokers with Algorithmic Trading
To come up with this list, we have reviewed and tested several forex brokers with algorithmic trading. We have opened live accounts with real money deposited. Then we placed real trades to evaluate spreads, offerings, and trading conditions.
- Forex.com – Best Overall Forex Broker with Algo Trading
- IG Markets – Best Algo Trading Broker for Beginners
- Interactive Brokers – Best Broker with Algo Trading Platform
- IC Markets – Best Broker with Algo Trading and Low Spreads
Make sure the brokers are properly regulated with applicable law across all jurisdictions.
Best Broker for Algo Trading Overall
We chose Forex.com as the best overall among forex brokers with algorithmic trading.
Established in the UK in 2001, Forex.com is a part of GAIN Capital Holdings – a UK-registered public company – ensuring that the broker is safe. It has an extensive array of offerings from CFD to spread betting across all major class assets, although their availability is subject to regional regulations. Forex.com is best known for its exceptional Algo trading conditions implemented through the MT4 platform; its REST API provides access to live streaming prices, trade execution, advanced order types, and access to over 80 of the world’s most traded markets.
Best Forex Broker for Algo Trading for Beginners
We picked out IG Markets among the best forex brokers with algorithmic trading.
Founded in 1974, IG Group is a global CFD provider with over 178,000 clients across 5 continents, offering clients access to an extensive range of offerings that spans multiple asset classes like forex, indices, stocks, commodities, shares, cryptocurrencies, bonds, ETFs, options, industry sectors, and interest rates. Its competitive spreads, thousands of trading and research instruments with the-state-of-art “IG Academy” educational portal makes it the best fit for beginner trades who seek a broker that will help them to upgrade their trading skills.
Best Forex Algo Trading Platform
We handpicked Interactive Brokers from the best forex brokers with algorithmic trading platform.
Founded in 1993, Interactive Brokers has the largest range of class assets across the industry offering options, futures, bonds, forex, stocks, and funds on 135 markets from a single integrated account. Its comprehensive IB SmartRouting platform looks for the best firm stock, option, and combination prices available at the very time of your order and seeks to immediately execute your order electronically.
Note that algo trading is not available for IBKR Lite clients. In order to get access to algo trading, you need to become a PRO client.
Best Low Spread Forex Broker using fix connection API
We picked IC Markets from the best forex brokers with algorithmic trading offering the lowest spreads.
IC Markets, founded in 2007, is a global CFD broker using fix connection API. The offerings include forex, indices, stocks, commodities, and cryptocurrencies. Our test revealed that spreads charged on trades were all below the industry standards, especially on indices (1.1 pips) and cryptocurrencies (39.24 pips)
Best Brokers for Algo Trading List
Apart from the forex brokers with algorithmic trading above, here’s a full list of the best forex brokers with algorithmic trading.
|Forex Broker||Trading Platforms||Broker Review|
|FxPro||MT4, MT5, cTrader, FxPro EDGE||FxPro Review|
|Admiral Markets||MT4, MT5||Admiral Markets Review|
|BlackBull Markets||MT4, MT5||BlackBull Markets Review|
|GO Markets||MT4, MT5||Go Markets Review|
|XM||MT4, MT5||XM Review|
|FXTM||MT4, MT5, FXTM Trader||FXTM Review|
|ICM Capital||MT4, MT5, cTrader||ICM Capital Review|
|XTB||MT4, xStation 5, xStation Mobile||XTB Review|
|RoboMarkets (RoboForex)||MT4, MT5, R Trader||RoboMarkets (RoboForex) Review|
|Pepperstone||MT4, MT5, cTrader||Pepperstone Review|
|FBS||MT4, MT5, FBS Trader||FBS Review|
|GKFX||MT4, MT5||GKFX Review|
|Darwinex||MT4, MT5||Darwinex Review|
|IC Markets||MT4, MT5, cTrader||IC Markets Review|
|ThinkMarkets||MT4, MT5, ThinkTrader||ThinkMarkets Review|
|FP Markets||MT4, MT5, IRESS||FP Markets Review|
|Amana Capital||MT4, MT5||Amana Capital Review|
|CMC Markets||MT4, Next Generation Platform||CMC Markets Review|
|Vantage FX||MT4, MT5||Vantage FX Review|
|INFINOX||MT4, MT5||INFINOX Review|
|Axi (AxiTrader)||MT4||Axi (AxiTrader) Review|
FAQ and More on Online Forex Trading API
Traders usually have many questions related to generic trading-related queries. We tried to pick and answer some of the most important queries related to forex brokers with algorithmic trading.
Algorithmic Trading Strategies
Algorithmic Trading requires a well-considered strategy that will be profitable and lead you towards gains and cost savings. Many of them fall under the category of high-frequency trading (HFT), characterized by high turnover and high speeds. Here are some of the most common strategies used in algo trading:
- Trend following – this includes algorithms that monitor the market for indicators to execute trades using technical analysis with chart patterns to make a decision.
- Arbitrage – the practice of buying stocks at a lower cost in one market and simultaneously selling them at a higher cost in another market.
- Mean Reversion – a mathematical methodology mostly used for investments with idea that high and low asset prices are temporary; and that a stock has an average price over time. Identifying the average price and utilizing computed algorithms allow to place trades when the price of the asset goes up or down.
- Delta-neutral strategy – an investment strategy that combines positions with offsetting positive and negative deltas. Such portfolios contain options and corresponding securities so that positive and neutral delta offset, making the portfolio’s value stable and insensitive to changes in the value of securities.
To learn more strategies visit Wikipedia
Best Algorithmic Trading Software
Picking the right automated trading software for you is essential to ensure the effective and safe execution of trade orders. Traders should decide on the best forex broker with algorithmic trading based on their trading needs, strategies, and instruments used.
Some of the best algo trading software are:
- IG Group
US Brokers for Algorithmic Trading
There are a lot of forex brokers with algorithmic trading in the US with different offerings. For, this review, we have reviewed and tested several forex brokers with algorithmic trading in the US. Read more about the best forex brokers in the US
Based on our test we chose the following forex brokers with algorithmic trading:
- Interactive Brokers
Author of this review
By George Rossi
Author of this review
I am a well-rounded financial services professional experienced in fundamental and technical analysis, global macroeconomic research, foreign exchange and commodity markets and an independent trader.
Now I am passionate about reviewing and comparing forex brokers.
Everything you find on BrokerTested is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology