Digital innovation has revolutionised how retail stock, contracts for differences (CFDs), foreign exchange, commodities, and crypto are traded. Part of the innovation has come in the form of automatic (auto) trading, which uses computer algorithms to execute trades in financial markets automatically. The process is based on pre-programmed rules and parameters.
Autotrading is an excellent way for beginners or more experienced traders to capitalize on market opportunities in real time.
There are myriad service providers and tailored or off-the-shelf platforms to assist you as you embark on your autotrading journey.
TheBull.com.au has reviewed some of the best automated trading platforms Australia has available to users.
Top Australian Brokers
Types of Autotrading
There are several types of automatic trading, including algorithmic trading, which uses mathematical models to execute trades; high-frequency trading, which involves completing a large number of trades in a short period; and social (copy) trading, which allows traders to copy the trades of successful traders.
Factors to consider before choosing an autotrading platform in Australia
- Security: look for a platform with robust security measures to protect your data and funds from cyber threats.
- Reliability: ensure the platform has a proven track record of reliable performance and minimal downtime.
- User interface: choose a user-friendly platform with a clean and intuitive interface that suits your trading style and preferences.
- Trading instruments: ensure the platform offers a variety of financial instruments that match your trading needs and strategies.
- Fees: compare the fees and commissions charged by different platforms to choose the most cost-effective option.
- Customer support: look for a platform that offers reliable customer support, including phone, email, or live chat, to help you address any issues or concerns.
- Regulation: choose a platform regulated by a reputable authority, such as the Australian Securities and Investments Commission (ASIC), to ensure compliance with relevant laws and regulations.
The benefits of copy trading include learning from experienced traders, potentially generating profits without needing extensive market knowledge or experience and saving time otherwise spent conducting research and analysis.
The best copy trading platforms also offer various customisation options, including the ability to set limits on risk, portfolio diversification, and selecting traders to copy based on their past performance
eToro – Best for Copy Trading
eToro is a leading social trading platform well-known for its copy trading feature. With over 2.7 million registered users globally, eToro offers a diverse range of financial instruments, including forex, stocks, cryptocurrencies, and more.
eToro’s copy trading allows users to automatically replicate the trades of successful traders, providing an opportunity for novice traders to learn from the best. eToro offers a user-friendly interface and a wide range of educational resources to help users understand the markets and develop their trading strategies.
In addition, eToro offers a unique feature called the “CopyPortfolios,” which enables users to invest in a diversified portfolio of assets managed by professional traders. With eToro’s copy trading feature, users can generate profits without extensive market knowledge or experience. To start copy trading with eToro, sign up using the CTA button below
eToro AUS Capital Limited ACN 612 791 803 AFSL 491139. Social trading. eToro does not approve or endorse any of the trading accounts customers may choose to copy or follow. Assets held in your name. Capital at risk. See PDS and TMD
MetaTrader 4 (MT4) is a popular platform for automated trading. It is widely used by traders globally. MT4 offers a range of charting and technical analysis tools, making it customisable and adaptable to different trading strategies.
One of the key features of MT4 is Expert Advisors (EAs), which are automated trading algorithms that execute trades based on pre-set rules and conditions.
EAs can be programmed using the MQL4 programming language, enabling traders to customise their trading strategies and test them on historical data. EAs can also be backtested and optimised, allowing traders to fine-tune their strategy for optimal performance.
MT4’s user-friendly interface, the broad range of analytical tools, and the vast community of developers and traders make it an excellent platform for automated trading.
IC Markets – Best for MetaTrader 4
IC Markets is one of Australia’s best auto trading platforms and is a leading forex broker that offers its clients the popular MetaTrader 4 (MT4) platform.
With 3,583 tradable instruments, including forex, commodities, indices, and cryptocurrencies, across its international entities, IC Markets provides a diverse range of trading opportunities.
IC Markets’ MT4 platform has fast execution speeds, low latency, and no dealing desk intervention, making it an excellent choice for automated trading.
IC Markets also offers a range of educational resources and trading tools to help clients improve their trading skills and strategies. Additionally, IC Markets allows traders access to VPS hosting, allowing for faster execution and more reliable connectivity.
MetaTrader 5 (MT5) is a multi-asset platform designed for both manual and automated trading. MT5 features an advanced set of charting tools, indicators, and analytical objects, making it a versatile platform for different trading styles and strategies.
MT5 also has an improved strategy tester, enabling traders to backtest and optimise their automated trading strategies.
One of the main differences between MT5 and its predecessor, MT4, is that MT5 supports more asset classes, including stocks, futures, options, forex and commodities.
MT5 has a more sophisticated programming language than MT4, MQL5, which enables traders to develop more complex and advanced automated trading algorithms.
AvaTrade – Best for MetaTrader 5
AvaTrade is a well-established forex and CFD broker providing its clients with the MetaTrader 5 (MT5) platform. MT5 has an expanded instruments list of over 1,000 assets compared to the average of 250 on MT4.
AvaTrade’s MT5 platform has advanced charting tools, analytical objects, and a built-in economic calendar, making it an excellent manual and automated trading platform.
AvaTrade offers competitive spreads, fast execution speeds, and multiple account types to cater to different trading needs. It also gives clients access to educational resources and research tools to improve trading skills and strategies.
cTrader is a forex and CFD trading platform gaining popularity among traders, particularly for automated trading Australia. cTrader offers a range of advanced charting tools, indicators, and custom indicators, making it a customisable and adaptable platform for different trading strategies.
cTrader’s algorithmic trading features include cBots – automated trading robots that execute trades based on pre-set rules and conditions. cTrader also offers advanced backtesting and optimisation tools, enabling traders to test and fine-tune their trading strategies for optimal performance.
cTrader’s platform offers fast order execution, low latency, and a user-friendly interface, making it an excellent choice for automated trading.
Pepperstone – Best for cTrader
Pepperstone is a leading forex and CFD broker that offers the cTrader platform to its clients. With over 1,200 financial instruments, including forex, commodities, and indices, Pepperstone provides a diverse range of trading opportunities.
Pepperstone’s cTrader platform offers fast order execution speeds, advanced charting tools, and a range of algorithmic trading features, including cBots and backtesting tools.
Pepperstone offers low spreads and competitive pricing, making it an excellent choice for cost-conscious traders. Pepperstone also provides clients with access to educational resources and research tools to improve their trading skills and strategies.
AI technology is developing at breakneck speed and being applied to many different areas, including financial markets. AI trading takes algorithmic trading one step further by not simply following a predefined set of rules but adapting to changing market conditions and improving over time.
Much like an algorithmic trading robot such as an Expert Advisor, AI trading software will buy and sell stocks automatically on your behalf. The difference is AI trading software will change and improve its decision making process over time in order to increase profits, whereas an algorithmic trading bot will only trade according to the rules it is given.
Processes like machine learning and predictive analysis are used to process large amounts of data and optimise its trading decisions over time. AI trading software can process data much faster than any human could. This allows it to identify patterns and trends that may not be apparent to a human trader.
Capitalise.ai – Best for AI Trading
Capitalise.ai uses Natural Language Processing and Machine learning technology to analyse and monitor stocks, create and test trading strategies and automate them. There is also a library of automated trading strategies to choose from.
Capitalise.ai’s machine learning technology means their platform is constantly evolving and improving, and Natural Language Processing means there is no need to write any code in order to automate your trading strategy.
Currently Pepperstone customers can get free access to Capitalise.ai trading automation tools.
The digital innovation in retail stock, contracts for differences (CFDs), foreign exchange, commodities, and crypto has created automatic (auto) trading using computer algorithms to execute trades in financial markets.
Autotrading is an excellent way for beginners or more experienced traders to take some of the heat out of the learning curve and decision-making process. There are several types of automatic trading, including algorithmic trading, high-frequency trading, and social (copy) trading.
When choosing an autotrading platform in Australia, several factors must be considered, including security, reliability, user interface, trading instruments, fees, customer support, and regulation. TheBull.com.au has reviewed some of the best automated trading platforms Australia offers, including eToro for copy trading, IC Markets for MetaTrader 4, AvaTrade for MetaTrader 5, and Pepperstone for cTrader.
Traders should look for platforms with robust security measures to protect their data and funds from cyber threats. They should also have a proven track record of reliable performance and offer a user-friendly platform with a clean and intuitive interface that matches their trading style and preferences. They should also consider the variety of financial instruments available, fees and commissions charged, and look for reliable customer support, including phone, email, or live chat.
Finally, they should choose a platform regulated by a reputable authority, such as the Australian Securities and Investments Commission (ASIC), to ensure compliance with relevant laws and regulations.
What is automated trading?
Automated trading is a form of trading in which trading decisions are made by computer software using algorithms and pre-determined rules and parameters.
How does copy trading work?
Copy trading is a type of automated trading that allows you to copy the positions of a more experienced trader. An amount of money is assigned to a certain trader, then all of their trades are automatically copied
How do you use an Expert Advisor in MT4?
Once your chosen EA software has been downloaded and installed, select ‘Auto Trading’ from the menu and drag the desired Expert Advisor onto the chart.
How do you create a trading robot in MT4?
To create a trading robot in MT4, known as an Expert Advisor, you will need to know how to write code in Metatrader’s programming language MQL. You will need to set the rules and parameters for the trading robot based on your chosen strategy. Your bot will then need to be backtested against historical data to assess its performance
Can You Use ChatGPT for Trading Stocks?
ChatGPT can’t be used to pick stocks. The data it was trained on is from 2021 so it has no knowledge of current events, though ChatGPT could help with trading stocks in other ways. Potential trading related use-cases for ChatGPT include basic market research, writing scripts for trading robots and explaining trading concepts.