Best Algorithmic Trading Platforms

Automated trading can turn hours of your trading work into minutes. But not all platforms fit your needs. Read this to find out the best one for you.

Automated trading is an efficient way to potentially earn from assets without all the manual work. But where do you start?

Do you need to learn to code? Do all assets and brokerages allow automation? How do you know which trading software to use?

In this guide, you'll get answers to your questions and you'll learn which automated trading platform is best for you. Read on.

Best Automated Trading Platforms

This list includes in-house automation tools offered by brokers to third-party trading bots. Check out which platform best fits your trading needs.

CAPITALISE.AI - BEST OVERALL

Capitalise.ai is the best automation platform for traders of all levels. You can build, test, and automate your strategies using everyday English. No coding is required!

You can also get Capitalise.ai for free if you use their partner brokers and exchanges (e.g., Binance, IBKR, Forex.com, etc.).

So, how does Capitalise.ai allow you to create a bot in plain English? Here's an example:

Say you want to buy $10,000 worth of Netflix stock if its price breaches its previous day's low. Then exit when profit reaches 10%. If not, exit at least at 3% profit for as long as the price is going in your favor.

• To enter, type "Buy 10K NFLX if NFLX crosses below the 24-hour low"
  
• To exit, type "Close position at trailing take profit (10%, 3%)"

After typing that, the bot will monitor the charts and execute the orders 24/7 for you. You can automate TradingView alerts as well through webhooks at Capitalise.ai.

A crowd favorite among retail traders is its great customer support. You can schedule an online discussion with their team if you need a walk-through or if you have any questions.

Pros + Cons

Tradestation - Best For Experienced Traders

TradeStation enables you to backtest, simulate, and automate strategies within its platform. Experienced traders can also opt to improve the default strategies through its easy-to-use syntax called EasyLanguage®.

You can automate your strategy in two ways:

• No Coding: Select from over 120 built-in templates
  
• With Coding: Write the logic with EasyLanguage®

After that, you can test your trading plan without risking money through its trading simulator. Then, review if it's profitable with its Strategy Performance Report (SPR).

Having over 100 performance metrics in the SPR is such a steal. You can break down the data, get insights, and discover your edge.

Pros + Cons

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Interactive Brokers (Ibkr) - Best For Programmers

Interactive Brokers (IBKR) requires skills in programming languages to automate. But you can easily enjoy its advanced trading tools once you've become familiar with it.

You can trade any asset from its 150 global markets. Plus, you get access to its wide range of trading technologies. Some of the best features you can use include:

• Free comprehensive, worldwide fundamentals data
  
• Stock screener to find undervalued stocks
  
• API automation through Python, C++, Java, etc.
  
• 100+ built-in order types and algorithms

Interactive Brokers has two pricing plans: IBKR Lite and IBKR Pro. However, IBKR API is only available for IBKR Pro users^[7].

Lastly, IBKR Campus's in-depth training materials are great for those who are new to trading.

Pros + Cons

Forex.Com - Best For Forex Trading

Forex.com's exclusive algo trading features make it the best forex broker. It includes all you need to automate and improve your forex trading routine.

Its partnership with Capitalise.ai enables you to automate your trades for free. Forex.com is the only US forex broker with this easy-to-use automation tool.

Their algorithm-based trading signals (called SMART signals) can show you potential trade setups. It suggests what currency pair to trade and what take-profit and stop-loss to set. It's not fully automated, but it does the analysis for you.

TIP: Forex is one of the riskiest assets to trade. Try the 90-day demo account first. Trade with no risk before deciding to deposit your capital.

Pros + Cons

Cryptohopper - Best For Cryptocurrency Trading

Cryptohopper provides crypto traders with an all-in-one automation platform. You can use free templates, build your own, or purchase strategies.

Copy bots enable you to mimic a pro trader's portfolio. While trading bots execute orders automatically for you. And in the marketplace, you can buy strategies from pro traders.

If you want a custom strategy, you can create it through the Strategy Builder. You can also use TradingView alerts as signals for your bot. Or train your own AI to trade for you.

Although it doesn't require coding, it's not simple to create your custom strategy. The lack of tutorials doesn't help either. But it's still better than writing code from scratch.

TIP: Use the Paper Trading Bot to analyze how your strategy does for each coin.

Pros + Cons

Trendspider - Best For Technical Analysts

TrendSpider cleverly assists you in discovering your trading edge using algorithms. You can build, test, and refine your strategies through its Strategy Tester. No coding is required.

Once you've finalized your strategy, you can launch it as a trading bot. This trading bot can either send you alerts or directly execute a trade through SignalStack webhooks.

TrendSpider can also automate charting for you. Its Smart Charts™ can detect various technical indicators in one click, such as:

• Fibonacci sequences
  
• Trendlines
  
• Candlestick patterns
  
• Chart patterns
  
• Support and resistance

Plus, there are alternative data sources like Crypto Fear and Greed Index, Wall Street Bets, Dark Pool Volume, and many more.

TIP: Its monthly subscription fees can be costly, so try the 7-day free trial first.

Pros + Cons

Etoro (Copy Trading) - Best Alternative

eToro is a great alternative for those who are reluctant to trade. They pioneered CopyTrader™, which enables anyone to trade like a pro.

If you copy a trader in eToro, you will mimic their portfolio. So every time they make a trade, you do too.

Choose any trader you want to copy based on their detailed portfolio. If you don't have a preferred trader, you can use the investor matching feature. This pairs investors with popular investors based on their risk profile.

Virtual Portfolio is their version of paper trading. With this, you can test copying traders for free.

Pros + Cons

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What Is Automated Trading?

Automated trading platforms simplify the manual act of buying and selling assets by traders with the help of algorithmic functions or AI.

And it's not just limited to order execution. It can also help you automatically backtest and simulate various combinations of trading indicators. No need to manually test through Excel!

There are two ways to automate. First, when you write your own code like what experienced traders do. And second, when you use a "no coding required" platform which is ideal for beginners.

Should You Use an Automated Trading Platform?

Automated trading should help solve the limitations of human beings. It should not create more work for you.

YES IF:

• You want to find your profitable trading edge easily
  
• Your emotions negatively affect your trading performance
  
• You miss manually plotted trends and patterns
  
• You're a day trader using a complex strategy
  
• You're a skilled programmer interested in making your trading bot

NO IF:

• You already have a simple and profitable trading strategy
  
• You think trading will give you a guaranteed profit
  
• You don't have experience with managing trading psychology yet
  
• You don't know how the strategy works if traded manually
  
• You do not backtest and simulate your strategy

How to Choose the Right Automated Trading Platform for You?

Choosing an automated platform depends on your trading needs. Here are some factors to consider:

Fees
Whether you're earning or not, some platforms will still charge you monthly. If you don't have a profitable plan yet, you might want to use free platforms first.

Demo Option
For paid platforms, does it offer demo accounts? If yes, does it give you full access to its features? A great demo should not look different than the live trading platform.

Broker and Exchanges
Does your broker or exchange offer built-in automation? If not, do they at least support integration with third-party automation tools? Check the connectivity first before proceeding.

Assets You Trade
Can the asset you are trading be automated? Does your broker specialize in the assets you trade? Specialized platforms usually have a better trading environment.

Available Strategies
How many built-in strategies does the platform have? Is it easy to customize your strategy without coding? A good platform should efficiently guide you in discovering your trading edge.

Strategy Metrics
Do you know the winning rate and risk-to-reward ratio of your strategy? Your platform should, at a minimum, provide these insights during backtesting and simulation.

Ease of Navigation
Is it easy for you to navigate the automation functions of the platform? If you think it's too complex, choose a simple one. If you think it's too simple, choose a comprehensive one.

Regulatory Licenses
Brokers on our list are licensed with their respective regulatory entities, except cryptocurrency exchanges. Make sure you understand the risks of trading crypto.

Training Materials and Customer Support
You will be self-studying most of the time so there must be enough written and video tutorials to guide you. Responsive customer support will also be helpful if you encounter bugs and errors.

How We Came Up With the Best Automated Trading Platforms

To find the best automated trading platforms, we considered the different skill levels of traders. Some are just starting out, while some have been in the industry for years. So it's important to find platforms that match their experience.

First, we checked if each platform allows traders to customize their strategy. Template strategies are great to help beginners familiarize themselves with trading. But, we don't want it to be a limiting experience for advanced traders.

Then, we checked if they offer a free trial with complete access so that traders can test each platform without spending any money.

Finally, we verified its reliability. We chose brokers that are already established in the industry. And automation tools that received good feedback from retail traders themselves.

Bottom Line

Automated trading platforms can be helpful and profitable, especially if you have done your research well.

But each trader has different needs, so first define what you are looking for. From there, check if the platform matches your expectations. If you think it meets your standards, only then should you deposit real money.

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