Why You Should Use Forex Automated Trading Systems?


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Just how important is an automated system to the your Forex trading? Before answering that question, let us first determine how large Forex market is. From there, we will realize the need for automated systems especially for those who just started out and do not like doing everything themselves or trusting brokers for their every trade.

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Why You Should Use Forex Automated Trading Systems?

  1. 1. Why You Should Use Forex AutomatedTrading Systems? Just how important is anautomated system to the your Forex trading? Before answering thatquestion, let us first determine how large Forex market is. Fromthere, we will realize the need for automated systems especially forthose who just started out and do not like doing everythingthemselves or trusting brokers for their every trade.While it is true that Forex is the largest market in the world interms of daily turnover and revenue, it is also where most peopletrade as the capital layout is much lower than other investments.Before I elaborated on the automated trading systems, let usexamine 5 big players of Forex and all other investments.1. BanksBanks are not just for us to deposit and save our money but also forproviding financial and investment services.Though we all know these, not many actually know they played apivotal role in Forex as well. However the fact is that they do caterboth speculative trading and daily commercial turnover.Well-established banks trade in billions of dollars worth of foreigncurrencies everyday. Some trades are undertaken on their clients’behalf while others are done through proprietary desks.2. Commerical Companies
  2. 2. Compared to banks, most commercial companies trade smallerquantities of foreign currencies. Hence their trades produce smalland short-term impact on the market rates.However, the trade flows from transactions made by commercialcompanies are essential factors with regards to the long-termdirection in regards to the exchange rate of a certain currency likeUS Dollars or British Pounds.3. Investment Management FirmsThese firms generally manage large accounts on behalf of theirclients such as endowment policies and pension funds.Other than those, they are also using the Forex market to facilitatetransactions specifically in foreign securities. For example, aninvestment manager bearing an international equity portfolio needsto purchase and sell several pairs of foreign currencies to pay forforeign securities purchases.4. Retail FX BrokersLike commercial companies, retail FX brokers handle smallquantities of Forex investments.Yet their sales volume is estimated to be around 25 to 50 billiondollars a day. That works out to about 2 per cent of total marketvolume.5. SpeculatorsThese refer to individuals who buy and sell foreign currencies.As opposed to popular methods such as interest and dividends, theystill profit from market fluctuations.With the rise of internet and technology, there is really a need inswitching from manual to automated Forex trading systems.
  3. 3. They certainly prove a huge advantage and eliminate all theinconveniences and problems people face in in traditional trading.Since they focus on the price fluctuations of what they trade toprofit, the real time data analysis the system provides help themtremendously in determining which trades give them the mostadvantage.There are various automated Forex trading systems available in themarket. Some are offered for free trial while others are offered aspart of their trading account acquired from their Forex brokers oragents.Such system packages are generally elementary trading systems. Butif you want more benefits, you need to invest more.There are essentially 2 types of automated Forex trading systemswhich are:1. Downloadable SoftwareThe first is the downloadable software. Through it, all forex data arestored on your PC hard drive.Unfortunately, this is unpopular with most traders because all dataare vulnerable to virus contamination and other security problems.Worse still, when the computer malfunctions, all essentialinformation might be lost and cannot be retrieved unless you haveyour own backup files like thumb-or-hard drives.2. Web-Based ApplicationAt first glance, this looks like a site but is protected by user nameand password.They are hosted on secured servers and much more convenient inthat downloading is not necessary. Best of all, most are compatiblewith both Windows and Apple Mac.
  4. 4. Best of all, they provide trading demos for you to try before decidingwhich system suits you best in terms of personality and preference.Discover how you can make money from Forex easily with thesetested and proven trading strategies in Trading Currency ForProfit.