5 Best Algorithmic Trading Platforms & Software in December 2024

Navigating the financial markets is no easy feat. As a result, a growing number of trading platforms are offering algorithmic trading services that conduct analysis and execute trades on behalf of users. These platforms can be used to automate the trading process and improve your trading strategy. In this article, we take a look at the best algorithmic trading platforms including the cheapest platforms to use in 2024.

What is Algorithmic Trading?

Algorithmic trading is the process of using pre-programmed software to conduct transactions based on pre-defined trading signals or specific criteria set by a human user. Algorithmic trading is also sometimes referred to as ‘automated trading‘ due to the fact that trades can be placed passively without the account owner having to intervene.

However, not all algorithmic trading is automated. For example, algo signals can be used to guide manual trading whereby traders use signals to spot potential opportunities and then conduct their own research and analysis before placing the trade.

Algorithmic trading tools can assist traders with efficiently navigating the market. Algorithms are typically able to scan for potential trading opportunities on a much faster scale than human traders which allows users to take advantage of all opportunities and minimize the risk of missing out on a profitable trade.

Different Types of Algorithmic Trading Software

There are a number of different types of algo trading tools that can be used to facilitate algorithmic trading. Here is an overview of the most popular types of software.

Bots

A bot is a program that is designed to automatically execute trades based on a set of parameters supplied by a human trader. Among the various variables that make up these parameters are the following:

• A signal to purchase and sell.
• The maximum size of a position.
• A price that serves as a point to stop and exit the trade

The advantage of a bot is that it can execute trades objectively by following a strategy, removing the psychological and emotional aspects of trading that can affect even the most experienced players’ performance.

Signal Bots

Signals are a type of trading alert that notify traders of profitable opportunities. These signals are often provided by algorithmic software that scans the market for potential trades and then notifies users.

Despite the fact that signals are closely linked to the usage of automated bots, algo trading techniques can also rely on external or third-party signals that aren’t always tied to a specific technical configuration.

One example would be to trade relevant indices after the release of a major economic report if the report falls short of the consensus forecast. Level II market data, such as bid/ask spreads, buy and sell order volumes, and other related variables could also provide trading signals.

In essence, everything that has the ability to alter the price of a specific financial instrument can be regarded as a variable to trade on, and a signal is an occurrence in which there is an exploitable relationship between the variable and the price of an index, in one direction or the other.

Third-party services that give signals for algorithmic trading are also available. A newsletter, RSS feed, or even a Telegram message can be used to deliver these messages. The bot will receive the signal and process it promptly in order to complete the transaction.

Copy Trading

Copy trading is a form of automated trading that involves mirroring the trades of a more experienced trader. Although the strategy itself is not based on an algorithm (unless the trader used algorithmic trading themselves), the process of placing trades could be classed as algorithmic.

Algorithms work to monitor the trades of the trader that you choose to copy and make changes to your portfolio accordingly.

Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

Best Algorithmic Software & Trading Platforms Reviewed

In the following section, we take a closer look at the top algo trading platforms to consider in 2024. We reviewed each platform to find out their key features, pros and cons and fees.

1. eToro: The best platform for algorithmic trading via copy trading

eToro is a reputable platform that offers algorithmic trading through its innovative copy trading feature. The global broker is regulated by a number of financial bodies and has over 21 million users around the world. Furthermore, eToro provides access to a diverse range of markets including cryptocurrencies, stocks, ETFs, commodities and index funds. It is also worth noting that eToro provides a free demo trading account that can be used by all traders.

Copy trading involves copying the trades of more experienced traders to take advantage of their research process and strategy. There are a collection of different ‘expert’ traders available to copy on eToro and the platform provides an overview of each trader’s profile to help you better understand the kinds of trades that they might place.

It is possible to adjust the amount that you put into each position and it is also possible to copy more than one trader at a time. Once you have chosen to copy a trader, the platform will automatically execute trades whenever the trader that you copy places a trade.

Each portfolio comes with a risk score that is developed by taking several metrics into account. The higher the risk, the more chances there are of losing funds. This is very useful when deicidng which portfolio to copy.

eToro fees

Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

Note: Only cryptocurrencies eToro customers in the United States will be able to trade on the platform will be Bitcoin, Bitcoin Cash, and Ethereum.

2. Dash 2 Trade: Best algorithmic trading platform for cryptocurrency in 2024

Crypto assets are among the most popular assets to trade with an algorithmic trading platform. The high volatility of the market makes it difficult to manually make trading decisions so many investors and traders choose to use algorithmic tools to help them.

Dash 2 Trade is a new tool that is set to be the next best platform for cryptocurrency enthusiasts who want to take advantage of algorithmic trading strategies. The Dash 2 Trade platform offers absolutely everything that you may need to navigate the market, make informed trading decisions and automate your crypto trading. This includes accurate trading signals, social trading features, token listing alerts, token ranking and an advanced strategy builder.

The team behind this innovative new trading tool is made up from experts from the Learn 2 Trade Project- a successful trading education platform that is highly rated and has helped thousands of traders worldwide. The team want to provide crypto traders with everything that they need to trade with confidence. This will make the platform stand out from others that don't offer everything under one roof.

Dash 2 Trade Tokenomics

The Dash 2 Trade platform is supported by D2T- an ERC-20 utility token that has a deflationary supply. The token is used by subscribers to pay for platform subscriptions, unlock advanced features and enter trading competitions. The token will also be given to users as a reward for making successful trades.

To access the platform and start using the tools to place informed trades, you can by D2T from DEX with ETH tokens.

The price or value of cryptocurrencies can rapidly increase or decrease at any time. You must be satisfied that this crypto offering is suitable for you in light of your financial circumstances and attitude towards risk.

3. Webull - Leading trading app that supports multiple algorithmic trading tools

Webull is a commission-free platform that provides access to MetaTrader 4, MetaTrader 5 and a range of other advanced charting tools. This makes the platform an excellent option for traders who are looking to conduct thorough technical analysis.

As a whole, the Webull platform has an intuitive design that makes it easy to navigate. What's more, the platform offers interest on uninvested cash which makes it possible to earn even without investing or trading.

The advanced tools offered by Webull are appealing to algorithmic traders. However, the platform also has some drawbacks including a limited variety of assets available and limited payment/withdrawal methods.

Nevertheless, Webull is still a good option to consider. The MetaTrader platforms are considered amongst the best for algorithmic trading because they support APIs and allow traders to personalize the strategies.

Webull fees

There is no guarantee that you will make money with this provider. Proceed at your own risk..

4. ETrade : User-friendly platform for algorithmic trading

When looking for a beginner trading site, you might initially have trouble navigating the world of algorithmic trading, and this is primarily due to the jargon and the technical terms that surround the industry.

ETrade makes the process easier, since it offers you the ability to easily learn how to trade using algorithmic strategies. For example, ETrade has a vast library of educational resources that you can use in order to learn different strategies, their suitability, and the different circumstances under which they can be used.

As well as it's market-leading algorithmic features, ETrade has a number of other great features that make it worth considering.

Firstly, the platform provides commission-free trading on stocks, options and ETFs. There is also a mobile app available that makes it easy to manage your trades on the go. We found the mobile app to be advanced compared to other applications that are available but is easy-to-use and navigate.

However, the same can't be said for the website version of the platform which is more difficult to navigate, especially as a less-experienced trader.

There is no guarantee that you will make money with this provider. Proceed at your own risk..

Algorithmic Trading Apps Assets & Software Comparison

Key Features of an Algorithmic Trading Platform

The platforms that we have looked at in this article all offer slightly different features that will appeal to different traders. Ensuring that you choose the right trading platform for your individual strategy is the key to successful algorithmic trading. Here are a few things to consider before choosing a platform.

✔️ Trading Tools & Features

Algorithmic trading requires thorough analysis. Therefore, it is important that platforms offer a range of advanced tools that can be used to make price predictions, spot emerging trends and highlight potential trading opportunities. There are a number of different tools and features that could be used in algorithmic trading. Below, we will explain a few of the more important to look out for.

Automated Trading

Automated trading involves using AI and ML to passively execute trades on your behalf. It is a common misconception that automated trading and algorithmic trading go hand in hand however, this is not the case.

Most automated trading platforms will use algorithms to place trades however, not all algorithmic platforms are automated. Some algorithmic trading platforms require traders to formulate the strategies themselves and then deploy these using an API. This is not ideal for less-experienced traders. Therefore, it is important to check that platforms offers automated trading features that will execute algorithmic trading on your behalf.

Research and Analysis Tools

All traders must perform research and analysis alongside using algorithmic trading systems. Understanding the market that you are trading could help you to spot potential trading opportunities, better understand the algorithmic software that you are using and to spot unsuccessful trades so that you can exit the trade before making a large loss.

Advanced traders may use multiple tools at one time to accurately navigate the market. If you are less advanced, it is a good idea to pick a handful of tools an features that you could use and perfect your ability to use these before adding any others into your strategy.

The two types of analysis used by traders are fundamental and technical analysis. Each type of analysis will require different tools. Technical analysis tools are typically found within the charting feature of a trading platform. Common technical analysis tools include moving averages, trading volume, Bollinger bands, MACDs and EMAs.

Fundamental analysis tools are usually found on the main dashboard of a trading platform. These tools include market news, information about a project and expert price predictions.

✔️ Demo Account

Algorithmic trading is difficult to perfect and can be very risky. Therefore, it is a good idea to use a demo trading account to practice trading without putting any real money at risk. Demo trading platforms are simulated trading environments that use virtual (fake) money to create a realistic trading environment that you can practice in.

Most of the time, demo account will offer the same features as a live trading account which allows traders to practice using different strategies and tools. The best demo accounts are free to use and can be access at any time. This way, traders can switch between live and demo trading to practice new strategies and techniques. Use a demo account for as long as possible before live trading.

✔️ Mobile App

The ability to manage trades on the go is an appealing feature that shouldn't go over looked. The best algorithmic trading platforms should offer a mobile app that allows traders to manage their trades, conduct analysis and execute trades from anywhere. In a volatile market, it is important that you are able to exit a trade at anytime, in case the market direction turns and your trade becomes unsuccessful.

✔️ Payment Methods

Payments and withdrawal methods are another vital component to consider when choosing a platform. Some banks have placed restrictions on the amount of funds that can be deposited into trading platforms.

Therefore, it is useful to be able to choose from various alternative payment methods such as PayPal, Skrill and Neteller. Some platforms even offer crypto deposit options which are appealing to crypto investors.

✔️ Customer Service

Good customer service options make it easy to solve problems if they arise. It should be considered as a red flag if a platform does not provide good customer service because this could leave you with no way of getting any help or support.

The best platform will provide a variety of customer support options such as email, live chat and phone support. It may also be helpful to find a platform that offers a telegram group so that you can connect with other platform users who may be able to answer your queries.

How to Get Started with the Best Algorithmic Trading Platform - eToro

It is important to take all the above options into consideration when choosing the best algorithmic trading platform for your individual strategy and experience. However, for the purpose of this guide we will use eToro as an example. eToro is a great platform to consider and the registration process can be completed in less than 30 minutes.

Step 1: Create an account

Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

To start using eToro, you will need to complete the account registration form. The platform is regulated which means that it must collect KYC information. Therefore, all users must provide their names, addresses, mobile phone numbers and date of birth. All information is protected by eToro's enhanced security features.

Verify ID

As part of KYC protocol, all users must verify their ID before they can access the eToro trading platform. To do this, you will be asked to upload two ID documents. One must prove your ID and the other must prove your address. Acceptable documents including a passport, birth certificate, drivers license, utility bill and bank statement.

Deposit Funds

Once your ID has been verified by the platform, you will be able to deposit funds onto your account. The minimum deposit is just $20 and you can choose between a range of payment methods to deposit the funds. Payments methods available include PayPal, credit card, debit car, Skrill, Neteller and bank transfer.

It is important to note here that you do not need to deposit any funds into the account to use the demo trading feature. It is a good idea to practice with this first before putting any real money at risk.

Search for a Trading Market

Once you have spent time practicing with the demo account, you can go ahead and start looking for potential trading opportunities. The first step is to determine which type of asset you would like to trade and then explore the selection of copy trading portfolios that are include the asset class that you wish to trade.

Place an Algorithmic Trade

When you have identified which portfolio/trader you would like to copy, go ahead and copy the trades. You can choose the amount that you wish to trade with and then let the trades execute passively. However, it is a good idea to keep an eye on your portfolio and take any action necessary.

Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

Conclusion

Algorithmic trading is a relatively new type of trading that is rapidly gaining traction among investors. When trading with an algo trader, there are several key things to keep in mind, all of which have been mentioned. These include things like trading costs and the asset class list, as well as more general platform considerations. However, they also include the platform's trading tools, such as its analysis capabilities and the many order types that may be put through it.

Our review concludes that eToro is one of the best options to consider for algorithmic trading. The platform is heavily regulated and offers a variety of assets to trade. You can start trading with just $100 and the registration process takes less than 30 minutes to complete.

Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

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