Best Algorithmic Trading Platform – Cheapest Online Brokers Revealed

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 the behalf of users. These platforms can be used to automated 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 2023.

Best Algorithmic Trading Platforms List

Some of the top algorithmic trading platforms that you can use in order to trade have been listed below:

1. eToro: The Best Overall Algorithmic Trading Platform
2. Dash 2 Trade: Revolutionary Crypto Analytics and Social Trading Platform
3. The Uncharted– The Best NFT Based Algorithmic Trading Project
4. Skilling – The Best Algorithmic Trading Platform for Low Fees
5. Webull – The Best Platform for Multiple Algorithmic Trading Platforms
6. ETrade – The Best Algorithmic Trading Platform for Beginners

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Rating

5

5

Mobile App

10/10

9/10

Bill

Min.Deposit

$10

N/A

Leverage max

Maximum 1:30, minimum 1:2

1:2

Operating margin

Yes

Yes

No. of shares

3000+

N/A

ETFS

300+

N/A

Account From

$10

$0

Deposit Fees

$0

$0

Trading Fees

$0

None

Rates

Bonds

N/A

N/A

CFDS

Spread – Currency from 1 PIP, commodities from 2 PIPS, indices from 0,75 points, stocks and ETFs from 0,15 %

N/A

Fixed commissions per operation

N/A

$0.02

Price per month

N/A

N/A

Copy Portfolio

0%

N/A

Cryptocurrencies

1%

$0

DAX

0.01%

N/A

ETFS

No commission

$0

CFD Overnight Positions

Yes, depending on the market that you trade

N/A

Funds

N/A

N/A

Robo Advisor

N/A

N/A

Savings Plan

N/A

N/A

Payment methods

Bank Transfer

Credit Card

Giropay

Neteller

Paypal

Sepa Transfer

Skrill

Sofort

Best Algorithmic Trading Platforms Reviewed

1. eToro: The Best Overall Algorithmic Trading Platform

eToro is a reputable platform that offers algorithmic trading through its innovative copy trading feature. The global broker i 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 trade 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

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2. Dash 2 Trade- Revolutionary Crypto Social Trading and Analytics Platform

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 one of these tools that is set to be the next best platform for cryptocurrency enthusiasts who want to profit from the market. 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 will be supported by D2T- an ERC-20 utility token with a deflationary supply. The token will be 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.

The D2T token presale has been ongoing since October and is expected to end very soon. This gives you just a few days to invest early before the price of the token is set to rise. After the presale, D2T will be listed on exchanges. The token is 100% tax-free which makes it a great investment opportunity for 2023.

Your money is at risk.

3. The Uncharted  - The Best NFT-based Algorithmic Trading Project

The Uncharted may be the most unique algorithmic trading project on this list as it’s one that has NFTs at its core. The project’s NFTs are linked to the XETA Capital Fund (XCF) High-Frequency Trading fund. The fund itself is underpinned by complex and secure HFT algorithms, which have a strong history.

As such, holders of the NFTs can expect to gain up to 400% annually. There are 21,000 NFTs where the sales revenue is put in the aforementioned fund. This compounds over a 36-month investment period, with there also being a quarterly distribution of profits to holders. The 3-year term is not a strict lock-in, as users can exit by selling their NFTs on OpenSea.

The identities behind The Uncharted team are known, and they have decades of experience in the financial world. The team has repeatedly mentioned that it is keen on bridging the gap between traditional finance and decentralized finance, which shows in the design of the project.

By holding an NFT, users will benefit from the HFT, which has a historical performance of generating 20% per month. At the end of the 3-year term, the fund will be split between NFT holders and The Uncharted LTD.

The project is also collaborating with Xeta Capital, another successful DeFi entity that has raised $3.2 million. The Uncharted NFT collection is expected to release in Q1 2023.

• Pros:

  • High-profit potential with its link to an HFT fund
  • No strict lock-in period
  • Lowers the barrier of entry for investors
  • Investment benefits from high-quality trading algorithms
  • 20% per month payable quarterly

  Cons:

  • A new project that may need time to get off the ground

Your money is at risk.

3. Skilling - The Best Algorithmic Trading Platform for Low Fees

Despite the fact that Skilling is a new platform, it has swiftly gained popularity due to the huge leverage it provides to all traders. It provides forex and CFD products with leverage up to 500x for major currency pairs and 200x for minor currency pairs, which is significantly more than most other high leverage forex brokers. It allows traders to trade currency pairings as well as commodities (with 100x leverage), gold, and other precious metals (with 200x leverage). While it also offers stock and cryptocurrency trading, the leverage on these is significantly smaller, at 10x and 5x, respectively.

The platform is CySEC-regulated and does not charge any fees or charges on trades. They offer duplicate trading as well as very tight spreads.

Skilling fees

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3. Webull - The Best Platform for Multiple Algorithmic Trading Platforms

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 is currently running an excellent sign up offer through which traders can receive free stocks when they deposit funds into their account.

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

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4. ETrade - The Best Algorithmic Trading Platform for Beginners

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.

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Algorithmic Trading Platforms - Fee Comparison

Algorithmic Trading Apps Assets & Software Comparison

Algorithmic Trading Meaning

Algorithmic trading entails the use of pre-programmed bots and other similar software to conduct transactions based on pre-defined trading signals or specific criteria set by a human user.

To engage in algorithmic trading, various types of trading algorithms and software can be employed. The following is a list of the most well-known.

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

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

The copier's copy-trading features are automated, but the source is not. As a result, they can be classified as a type of algorithmic trading because a copy portfolio will be updated as soon as the source portfolio is changed.

Copy trading services have been established by several platforms to make the process of establishing a portfolio easier for beginners who would rather rely on the experience of more experienced market participants than do it alone.

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Algorithmic Trading Strategies

The first step in algorithmic trading is to learn how to utilize a bot. Following the selection of the best algorithmic trading software or platform, the trader must define the parameters that the bot will use to either issue an alert or conduct a series of trades. These are some of the most commonly used algorithmic trading strategies.

Arbitrage Trading

Arbitrage is a strategy for profiting on modest, transient price differences in an asset between many brokers at the same time. Arbitrageurs benefit by purchasing an asset at the lowest ask price on one broker and then selling it at a profit through another broker with a higher bid price.

This algorithmic trading method works best for illiquid securities since their bid/ask gaps are typically wider, making it easier to spot possible arbitrage opportunities.

For forex or Bitcoin algorithmic trading, an arbitrage algorithmic method might be utilized. Due to a large number of cryptocurrency exchanges now available, this latter asset in particular is a popular target for arbitrageurs.

Signal Trading

Signal trading entails searching for and recognizing specific trading signals that are set by a trader as the parameters which the bot follows when they are spotted. Signals can be acquired from a third-party service that is constantly searching the market for these setups, or they can be recognized by completing a technical study of numerous instruments.

Signals can be obtained from price action or volume-related indicators like the accumulation/distribution chart, MACD, RDI, and Bollinger Bands in technical analysis.

How to Choose the Best Algorithmic Trading Platform for You

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.

Regulation and Safety

Does the platform provide any user protection or adhere to any regulatory requirements? The regulation and safety of an algorithmic trading platform is one of the most important aspects to consider before signing up.

In general, it is best to choose a regulated broker. This is because regulated brokers must adhere to safety protocols that will help to keep you and your money safe. Also, the use of an unregulated broker for algorithmic trading in the US is illegal. Regulated  brokers are required to report prices correctly, offer capital protection and make sure that users are not taking part in any dicey trading practices. While some unregulated algorithmic trading platforms are legit, there have been reports of fraudulent platforms that report false prices to make gains for themselves. Similarly, your funds may not be protected on an unregulated platform.

It is also important to make sure that the platform you use is protected by encryption. This will prevent criminals from hacking into the software and taking your funds. Encrypted websites are usually protected with SSL encryption, which can be seen by checking for the lock symbol in the URL. Other safety protocols to look out for include KYC, 2FA and anti-money laundering policies.

Assets

Another important factor to consider before choosing a platform is the range of assets that it offers. First and foremost, it is important that the platform offers the assets that you would like to begin trading with. However, it is also important to consider potential diversification in the future. Diversification is the process of trading more than one asset class. This can be a great way to minimize risk and take advantage of multiple markets.

If you choose a platform that offers limited asset variety, it may be difficult to diversify further down the line. Therefore, it is a good idea to look for a platform that supports the trading of multiple assets such as stocks, forex, crypto assets, options and ETFs.

Fees

If you are looking to maxmize your trading profits, it is important to find a platform that offers low fees. Fees are the costs involved with using an algorithmic trading platform. There are many types of fees that can be charged including account management fees, deposit and withdrawal fees, inactivity fees and trading fees.

The best platforms should be transparent about the fees that they charge. However, you may have to dig deeper to find information about the fee structure on some platforms. The best fees for you will depend on your trading strategy. Long-term traders should look for low account management fees and low inactivity fees. Scalp traders on the other hand would benefit most from low trading fees because this strategy involves executing a large volume of trades each day.

The best way to decide whether a platform's fees are too high is to calculate the potential profits of using the platform. This can be done through paper trading. Ideally, you will find a platform that offers zero fees- this is the best option for all types of trader.

Trading Commission

Trading commissions are a type of fee that is charged each time you place a trade. Commissions are how brokers make money- they take a percentage of your trade whether it is profitable or not. Most platforms will be transparent about the commissions that they charge so it is possible to work out how much of each trade will be taken. Some platforms will charge a flat commission that stays the same for all trades whilst others will charge a varying commission that is dependent on the volume that you trade. In this case, the more your trade, the less you will pay.

Spreads

If a broker doesn't charge commissions, they may charged spreads instead. Spreads are the difference between the actual price of an asset and the asset that you purchase it for from the platform. The difference will be taken by the platform as a profit. Large spreads can make it difficult to make profitable trades so smaller spreads are ideal.

Other Trading Platform Fees

Spreads, trading fees and commissions are not the only costs that you should be aware of. Platforms will also charge for inactivity, withdrawals, deposits and account management. Some algorithmic trading platforms will also offer exclusive features which cost extra to use. These can be useful to advanced traders but aren't always necessary for less-experienced traders to use.

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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.

Fractional Ownership and Low Minimums

Fractional ownership involves purchasing just part of a share, for a lower price than the entire share is listed. This makes it possible to trade high market cap shares on a budget. For example, some platforms allow you to trade $1 worth of BTC. This makes it possible for anyone to trade big assets. This feature is appealing to traders who don't want to put much capital at risk. Fractional ownership means that traders with $10 in their account can still place trades in the market. Most trading platforms will offer this feature but it is worth double checking before signing up.

It is also a good idea to look for a platform that asks for a low minimum deposit. This makes it possible to put just a small amount of capital at risk whilst you get comfortable with algorithmic trading. Never trade with more capital than you can afford to lose!

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.

Orders

Platforms allow you to place various different types of orders. Market orders, limit orders, stop-limit orders, and stop-loss orders are examples of these. Furthermore, you can put a variety of timeframes on your orders, such as:

• Good-till-canceled (GTC)
• Day Order
• One week
• One month
• End of week
• End of month
• End of Year
• Good-till-date (GTD)
• Immediate or cancel (IOC)

It is critical that the broker you choose allows you to place such orders so that you can trade as efficiently as possible.

Research and Analysis

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

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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.

67% of retail investors lose money trading CFDs at this site

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 $20 and the registration process takes less than 30 minutes to complete.

eToro - Best Algorithmic Trading Platform With Competitive Spreads

67% of retail investors lose money trading CFDs at this site

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