Best Automated Trading Software

It has been estimated that over 80% of all trading on U.S. stock exchanges is done by computerized algorithms, many of them executing trades within milliseconds. In the past decade, institutions and hedge funds primarily used high-frequency trading algorithms.

These days, big data makes trade automation convenient for retail investors. In addition, data analysis has become more manageable, and data models are available via drag-and-drop wizards and strategy builders.

The number of data points is more extensive than ever, from time-based to tick-by-tick data. As a result, retail traders and investors can access those data points for low cost and create their trading strategies and systems.

This article will provide insights into whether you should use automated trading systems in your investing strategy, explains the pros and cons, and illustrates how it can help grow your wealth.

best automated trading software

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Best Automated Trading Software

  • Trade Ideas: Best Automated Trading Software for U.S. Stocks
  • TrendSpider: Best Trading Bot Platform with Technical Analysis
  • Coinrule: Best Automated Trading Software for Trading Crypto With Bots
  • Interactive Brokers: Best Automated Trading Platform Broker API
  • NinjaTrader: Best Automated Trading Robot for Futures Trading

1. Trade Ideas – Best Automated Trading Software for U.S. Stocks

trade ideas

Trade automation can be done using the API connection of a stock scanner like Trader Ideas to route artificial intelligence based trading signals directly to a direct access broker like Interactive Brokers and E-Trade. The best automated trading platforms enable users to trade fully automated based on pre-defined conditions and criteria. Once the trading robot identifies the trade setup, the order can be routed automatically to the broker to execute it fast.

Real time streaming stock prices, extensive backtest capabilities, and the freely configurable stock screener settings make Trade Ideas one of the best automated trading software solutions for day traders. It is easy to define a new trading system, even without coding knowledge.

Costs: Automated trading requires a Trade Ideas Premium subscription, which costs $167 per month or $1,999 per year. The premium subscription includes all features like automated trading, backtesting, risk assessment, chart-based button trading, price alerts, streaming real time data, access to the trading room and the real time simulated trading account.

Best Offer: 15% discount on all Trade Ideas Pro subscriptions with coupon code DAYTRADINGZ.


2. TrendSpider – Best Trading Bot Platform with Technical Analysis

trendspider

TrendSpider is a high-end stock analysis platform with extensive capabilities for technical analysis and fundamental research. Up to 16 charts can be monitored at the same time, hundreds of trading indicators are available, and manual and automated drawing tools help to visualize trends, support and resistance zones.

The integrated trading bots feature enables traders and investors to automate strategies without writing code. Users can turn every trading strategy into a fully automated trading system. Trading signals can be streamed to a discord server or Twitter, or for routing trading bot buy and sell signals directly to the broker to place trades in a brokerage account.

The integrated stock screener helps to find better trade setups faster. Evaluated setups and strategies can be tested using the reliable TrendSpider backtesting engine. In addition, TrendSpider supports the Federal Reserve Economic Data (FRED) with thousands of economic data metrics. The history of economic data can be plotted below a chart to evaluate correlations between economic data and financial markets.

Costs: Automated trading bots are available with TrendSpider Elite for $29 per month or $348 per year and alternatively with the TrendSpider Advanced for $48 per month or $576 per year.

Best Offer: Here, you can test TrendSpider for 14 days for free. In addition, you get a 15% discount if you start your subscription now.


3. Interactive Brokers – Best Automated Trading Platform Broker API

interactive brokers review

The Interactive Brokers API is one of the most robust brokerage solutions for automated trading systems. Developers use the API to build custom trading apps, develop commercial finance and trading software, and integrate trading functionalities into their existing front-ends and apps.

The API is so popular that many market-leading trading tools have already integrated connections to Interactive Brokers. The benefit is that trading tools, SAAS solutions and self-developed trading system front-ends can transmit the buy and sell orders directly from the external platform via API to Interactive Brokers for the order handling routines.

For example, traders can connect their Trade Ideas Pro platform to Interactive Brokers to execute stock trades on Nasdaq, NYSE and AMEX. Also, Trade Ideas A.I. algorithmic orders can be routed automatically to IB.

Costs: Interactive Brokers offers their clients two pricing tiers: IBKR Lite for U.S. residents and IBKR Pro for all users worldwide. IBKR Lite caters to retail investors that are residents in the United States looking for commission-free trades on US stocks and ETFs but without automated trading capabilities. In contrast, IBKR Pro is catered towards active traders looking worldwide to achieve the best price execution with each trade at a low cost with automated trading functionalities. In addition, IBKR Pro clients can choose between a tiered and fixed commission structure, where the commission on US stocks is USD 0.005 per share for fixed and between USD $0.0005 and $0.0035 per share for tiered commission plans.

Click here for more details and to get started with Interactive Brokers


4. Coinrule: Best Automated Trading Software for Trading Crypto With Bots

coinrule

Coinrule grants users access to the world’s leading crypto exchanges and empowers investors to develop their crypto strategy and smart trade bot quickly. Those trading bots can be used as an automated trading system for trading various strategies in different market phases.

With Coinrule, investors can automatically trade cryptocurrencies by using beneficial trading strategies to compete with other algorithmic traders. Coinrule comes with various

  • pre-defined strategy templates,
  • portfolio risk management features,
  • paper trading,
  • multiple trading pairs per rule,
  • notifications via text message and Telegram,
  • trading indicators,
  • dollar cost averaging,
  • access to a trader community and
  • support via email and chat.

Yet, only the Pro and Trader subscription plans include access to the beta testing program for new features and priority support.

Costs: Coinrules’ free starter plan can be used for up to $3,000 monthly trade volume. The paid subscription plans are the Hobbyist Plan ($39.99 per month or $359 per year) and the Trader Plan ($79.99 per month or $719 per year). In addition, there is the Pro Plan for heavy users, which costs $499.99 per month.

Best Offer: Here, you will find more details, a 25% discount on annual plans, insights into multiple crypto exchange connections, 14 simultaneous rules and access to 150+ new strategy templates.


5. NinjaTrader – Best Automated Trading Robot for Futures Trading

ninjatrader

NinjaTrader is a popular trading software that uses a version of C# called NinjaScript as the programming language. The automated trading platform requires an installation and can be installed on Windows.

It offers various charting and technical indicators that traders often use to determine trade signals and automated trading software tools such as Expert Advisors (EAs), the most popular A.I. tool for day traders in stocks indices, futures and forex.

NinjaTrader integrates with NinjaTrader Brokerage, forex. com, FXCM, Interactive Brokers, TD Ameritrade, Multibroker and CQG.

Costs: NinjaTrader is free as long it is used for developing and testing purposes. Live trading is only possible with the paid version. The lease model comes for $720 per year, while the lifetime license costs $1,099.


Best Automated Trading Software and Platforms: Conclusion

Automated trading systems are an excellent tool for retail traders looking to automate their trading. However, many factors must be considered before automating your trading systems and a few post-automated trades steps you should review during its use.

It is common knowledge that automated trading systems take advantage of market inefficiencies without human emotion and are easy to monitor. However, disadvantages need to be considered. Before trading with real money, starting with a trading simulator and extensive backtesting is essential.

Only a few trading platforms from leading brokerages are good enough for trading system development and automated trading system executions. Most auto trading software tools require a front-end tool with market data subscription and get connected via API to a brokerage trading platform for trade execution.

Retail traders use basic computer algorithms and automated software to improve their system trading, save time, and increase profitability. However, it should be noted that algorithmic trading is clearly the field of institutional investors with servers close to the stock exchange with ultra-low latencies. Therefore it will be challenging to compete with the institutions.

Any new trading strategy should be tested in a simulated environment before trading it with real money.

See Also:


Guide

How to Get Get Started

Investors and traders can use automated trading software to turn precise entry and exit rules into a series of buy and sell orders. This lets you design the right strategy for your investing needs, such as trading on margin or predicting market trends, without having to do any heavy lifting with the computer program.

Automated trading systems are easy-to-use tools that make it possible for anyone with a basic understanding of programming language specifics and trading platform functionalities. Automated trading systems and algorithmic trading can be as simple or complex as demanded, with many offering charts and technical indicators alongside the platforms for visual confirmation.

With automation, you never miss a trading opportunity. The cases where other responsibilities take your attention away from the markets belong to the past. You also avoid human mistakes that can happen with traditional manual methods, such as forgetting to execute orders at urgent moments in time.

Automated Trading Requirements

Automated Trading systems typically require the use of a fast and reliable broker, a software-based trading platform and a computer.

Automated Trading systems can be either discretionary or systematic:

  • Discretionary traders rely on their own skills to make trade decisions while. In this case, the trading system generates the signal, but the trader finally decides whether to take the trade or not.
  • Systematic traders follow precise rules for both trade entries and exits that have been pre-programmed. The computer takes care of all entries and exits, and all orders are transmitted automatically.

Key Benefits of Automated Trader Software

The key benefits of automated trading systems are:

Efficiency via automation: Traders do not need watch charts all day long; they only need to allocate their time for strategy selection, backtesting and optimization instead of trading manually all day long.

Unbiased Trading: Automated trading systems are not subject to the emotional bias inherent in human decision-making, which can lead to costly errors as well as missing opportunities. Automation helps traders avoid the emotional tendency which is inherent in trading.

Ease of use: Automated trading systems are available for all levels of expertise and can be customized easily to suit individual needs.

Cost efficiency: Trade costs come down as there is no need to pay commissions or platform fees since the introduction of zero commissions across most United States brokerages.

Trade diversification: Trade diversification is a vital profitability factor and is complex to do when trades are executed manually. But trade automation can execute trades across various markets and exchanges automatically.

Higher returns: The increased diversification of automated trading systems leads to higher returns on investment due to market efficiency and reduced risk exposure.

Disadvantages of Automated Trading Systems

Automated trading systems have many advantages, but there are also some downsides traders should be aware of.

High slippage risk: Automated trading systems are subject to slippage, the difference in price between what is expected and what occurs when an order goes into the market. For example, if a trader predicts that Microsoft shares will trade at $50 per share but instead trades for $49.75 or less, they have experienced negative slippage of 25 cents. Trading systems typically trade more frequently, and the slippage can cumulate to a meaningful amount.

Computer outage: Automated trading systems are susceptible to downtime due to a breakdown, power outage or Internet connection failure.

Costs: Automated trading systems require fees for the service itself and also any third-party software that may be required in order for them to function correctly.

Hard to customize for beginners: Customizing an automated trading system requires hours of programming time by specialized programmers with knowledge about financial markets if systems get complex.

Speed: The speed of execution of an automated trading system can be a significant factor for traders.

What to Do Before You Start Automating Your Trading Systems?

Before you automate your trading systems, you must first have a clear understanding of the markets and trade setups that interest you.

What to do after automating your trading systems?

After an automated trader is set up for profitable trades, it should be monitored regularly to ensure its continued profitability. This can include adjusting parameters, reviewing backtesting results or adding new parameters.


FAQ

What is the best automated trading software?

The best automated trading software for U.S. stocks is Trade Ideas. It is possible to send trading signals to an E-Trade account for commission-free trading. Trade Ideas also has an integrated simulated account. For pricing and discounts, please continue reading our top 5 comparisons.

Do automated trading systems work?

Yes. Automated trading systems work. Combining high-end trading tools and reliable brokers makes it possible to trade fully automatically. The investor defines the trading signal criteria, and the trading system identifies the setups and sends the buy or sell order to the broker and then the broker to the exchange.

Updated: October 31, 2022

About the author: Alexander is the founder of daytradingz.com and has 20 years of experience in the financial markets. He aims to make trading and investing easy to understand for everybody, and has been quoted on Benzinga, Business Insider and GOBankingRates.