With the advent of Forex Expert Advisors, now not only can the wealthy afford a trading "robot", but also everybody who wants to trade currencies can jump into the excitement of trading forex.
Trading forex is not new, as the developed world has been trading currencies for decades now. What the new thing in forex trading is now, is the usage of expert advisors or forex trading robots. The most popular class of trading robots happen to use a framework called the "Automated Trading System", which is from Metatrader 4, a trading platform that many forex brokers happen to use.
Let's say that you are new, or well experienced to forex, but do not know what to look out for in a Forex Expert Advisor. Although there seems to be literally hundreds of expert advisor systems floating in the market, you will ultimately end up purchasing a few of them. Do not let the slick marketing tactics grab you, as some are insanely tempting, but let the facts engage you to a buying dec ision.
The following is what you need to consider in a forex expert advisor.
1. Forex Expert Advisors are not foolproof. Just because they are considered trading robots, they can cause drawdown issues and really wipe out your bank account if you are not careful. Read a review on a product, and check the sales page for a couple of backtests, as these will be the ultimate factor in seeing how well certain systems perform from historical data.
2. Excellent Customer Support. I cannot stress this enough! If the company has limited or really pathetic customer support, then just ask for a refund. If they cannot return emails at least within 24 hours from when you send an inquiry, then ask for a refund. It is your hard earned investment income, if they want to mess around, then they have something better to do than take care of the consumer. I would then ask for a refund.
3. Price. The average price range for a decent forex expert advisor ranges from $75 to $ 300+. Usually almost all expert advisor modules cost anywhere between $100-$150. Keep this in mind too that you are making a monetary investment in their software and your forex account.
4. What does the Expert Advisor trade with? Keep this in mind, because some software publishers do not publish information on what currency pairs they trade with, the minimum recommended trading account balances and the necessary leverage an account should have. If this information is not clear, then just ask customer support, and they should be more than happy to discuss with you the recommendations of their product. If they decide to keep it a secret, cross them off your list, and look elsewhere.
5. Compatibility with Brokers, Softwares, etc. Realize that not all brokers use Metatrader 4 as a trading platform, which means, that Expert Advisors are not compatible with every single forex broker out there. Expert Advisors only work when you have a Forex Broker that uses Metatrader 4 as their trading platform of choice!
Hope this information he lps you in looking for an expert advisor in the near future. Either your purchase is the first one, or your next expert advisor purchase.
Check out one of my software reviews of the Forex Funnel Trading Software [http://www.forexfunnel.info]. Thomas Howell is a forex community blogger at http://www.GoForexTrade.com and does recommendations on different forex softwares, brokers, and other cool things when it comes to the money game.
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