Why Do Singaporean Brokers Use Forex robots

Forex has an inherent risk. However, technology and research are improving as time progresses, brokerages are now emerging as a one-stop shop for all your commodity needs.

The most helpful tool in modern brokerage is Forex robots or expert advisors (EA). Robots aid brokers by executing trades on behalf of traders without them having to lift a finger. It frees up the workforce for customer support, which improves trader satisfaction.

As modern technologies improve further, the quality of robot platforms also increases exponentially. Singaporean brokers are leading this forefront with top-notch robotic platforms that offer traders better chances to succeed in this forex trading market while saving them valuable work hours.

What are forex robots?

Forex robots are automated trading software that helps traders make their decisions in the Forex market. They, therefore, do not require human control or intervention and can make trades on a set of parameters programmed by themselves depending on the situation (for example: when the RSI is low and about to reverse)

Forex brokers offer these for free for clients. It’s because they earn most of their profits from commissions rather than spread. Whether their client makes money or loses money doesn’t affect them; they still get paid either way. Thus they want as many people as possible to try it out – if their robot makes money, then great; if not, no harm done.

Forex robots are now becoming more intelligent, learning from the success and mistakes of traders. It results in better accuracy as time goes by, especially when there is a market with solid trends that robots can capitalize on.

Increased robotic trading platforms

Increased robotic trading platforms means increased competition among brokers to provide their clients with better services. Thanks to companies like Saxo Bank, Singaporean brokers are at the forefront of this trend.

What effect does the use of Forex robots have on currency prices?

On the one hand, as with any software or system, there is a possibility that the robot could malfunction and cause currency prices to shift in an undesired manner. But as price shifts due to technical reasons are generally very tiny, this would only occur if many people were using bots.

On the other hand, if enough people start using a specific bot, it won’t be long until everyone knows about it being profitable. It will lead to even more people trading on that bot – making it profitable for longer – until all those who want to trade this way are doing so, at which point the balance will shift back towards human trading (and away from bots). Forex brokers have incentives for their bots to be profitable, so they are likely to rig the system to ensure it is. The more people who use a specific bot, thus generating commissions for them, the more likely they want it to be profitable.

So do I still need my broker?

Yes – Forex robots are designed with simplicity in mind which means they are very restrictive on what one can trade and how one can trade as many such traders will prefer using their account with an experienced broker, instead of using something like this; which would lock them out of specific trades where it might not make sense.

It is essential these bots only be viewed as tools for getting started with currency trading or keeping your trading going. Bots should not be seen as a replacement for one’s own experienced and knowledgeable judgement and skills.

How can Forex robots benefit my forex trading?

As mentioned above, the primary benefit is that they serve as an excellent introduction to currency trading, especially if you don’t have much experience with this type of investment.

A second potential benefit is that it could help fill in some gaps during periods when you cannot trade yourself due to work or lack of expertise on some issues. It would help solve those shorter-term issues – but again, these bots should not be looked at as a tool for long term use.