Traders who use algorithmic trading place their hard-earned money in the hands of their trading software. As a result, the suitable piece of computer software is required to enable the effective and exact execution of trading orders. On the other hand, bad software—or software without the necessary features—can result in massive losses, especially in the lightning-fast realm of algorithmic trading.
Large trading firms, such as hedge funds, investment banks, and proprietary trading organisations, dominate algorithmic trading. Given their vast scale and abundance of resources, such organisations typically develop their own algorithmic trading systems trading software, including big trading platforms with dedicated data centres and support staff.
This guide will recommend the best algorithmic trading software and what individual traders should look out for.
What is Algorithmic trading?
Algorithmic trading is the process of making a trade order using a computer programme that follows a predefined set of instructions. The goal of an algorithmic trading programme is to dynamically find advantageous opportunities and conduct trades in order to earn profits at a pace and frequency that a human trader cannot match. Trading operations based on computer algorithms have grown in popularity due to the benefits of increased precision, high frequency trading and lightning-fast execution speed.
All trading algorithms are programmed to respond to real-time market data and price quotes. A few algorithms are also tailored to take into consideration firm fundamentals like earnings and P/E ratios. A real-time market data feed, as well as a corporate data feed, should be included in any algorithmic trading software. It should be built into the system or have the ability to be readily integrated from external sources.
How Much Does Algorithmic Trading Software Cost?
The complexity and functionality of the algorithmic trading programme, the kind of licence (monthly or yearly), as well as any other services that may be included, all affect the price. In general, a single live account licence for basic algorithmic trading software can start at roughly $1,000. Pricing for an annual licence for more complicated systems with many accounts and more sophisticated features like back testing capabilities can range from $2,000 to $10,000.
The final price of algorithmic trading software will differ based on the particular features and services needed. Before selecting a choice, it is crucial to weigh your options and make sure you are receiving the best value for your money.
5 of the best automated algorithmic trading software platforms
- Specialist Algorithmic Trader Programme
Those looking to begin a career as financed proprietary algorithmic traders can enrol in an Algorithmic Trader Programme, which is an intensive and structured vocational training programme. A solid introduction to financial theory, trading algorithms, automated trading systems, and pertinent developing technologies is provided through the algorithmic trading platform.
This online course combines hands-on practice, a virtual classroom, live trading experience on a professional trading platform, in-depth video content, interactive webinars, expert mentorship, and algorithmic trading strategies development and deployment.
- eToro Copy Trading
Over 25 million people use the leading investment app and international online trading platform eToro. It has one of the broadest portfolios of financial markets, with equities, ETFs, indexes, metals, agricultural goods, and other commodities among its many market offerings. With the help of this broker, you can trade FX currency pairs or invest in more than 60 cryptocurrencies.
The copy trading option on eToro is one of its most praised features. Simply said, this tool enables you to benefit from other traders’ experience by mimicking positions that others open and close. Additionally, the transactions will be immediately mirrored in your own portfolio because the procedure is completely automated.
- Bitcoin Era
Another Algorithmic trading programme that enables you to make predictions about the bitcoin market is Bitcoin Era. It includes automatic software that makes it easier for you to locate winning deals in the erratic cryptocurrency market.
While creating an account is simple, registration spots are distributed via lottery. As a result, it can take some time before you can register on this platform.
According to Bitcoin Era, you can use the demo trading account as a training tool to become comfortable with the platform. Additionally, you have the option to implement original trading conditions and techniques.
- Immediate edge
A well-known algorithmic cryptocurrency trading platform, called “Immediate Edge,” claims cutting-edge tools for investing automation. It works with cryptocurrency CFDs and supports a lot of the common digital assets that are now offered.
The trading technology on the site is blazingly quick and can execute up to 15 deals per minute. The Immediate Edge website states that when using this platform for crypto Algorithmic trading, you can also get leverage of up to 5000:1.
You can define your own criteria for when automated trading should be triggered using Immediate Edge. When you do this, the app immediately searches the market for suitable trading opportunities and takes action on them.
- Ava Mirror Trader
You can access a wide range of markets using the top trading platform AvaTrade. With the help of this platform, you can trade CFDs for forex, stocks, ETFs, and cryptocurrencies. Notably, it has a tonne of features, such as automated trading software that streamlines the investment process.
It currently uses two different kinds of algorithmic trading systems. The MT4-compatible software DupliTrade enables you to follow the signals and trading plans of other seasoned traders in real-time.
Learn to become and Algorithmic Trader with our specialist Algorithmic Trader Programme
In conclusion, buying the right algorithmic trading software provides rapid and timely access, and creating your own gives you complete freedom to tailor it to your needs. However, you need to be well familiar with the fundamental features of the trading software before engaging in algorithmic trading with actual money.
With Alphachain Academy you can learn to become an Algorithmic Trader with a CPD accredited programme and begin your trading journey with a $20k live account.
You will receive direction and mentoring both during and after the programme to assist you in creating a solid, successful trading strategy.
If you’d like to find out more about becoming a trader Contact us today
Algorithmic trading software FAQs
What is the difference between an automated trading system and algorithmic trading?
Given that some individuals combine the phrases automated trading and algorithmic trading, it can be difficult to define the differences between the two. Having said that, automated trading typically refers to the automation of manual trading through stops and limits, which will automatically close out your positions when they reach a set level, whether or not you are at your trading platform.
Contrarily, algorithmic trading typically refers to the process by which a trader creates and improves their own codes and formulas to scan the markets and enter or exit trades based on the state of the market.
What are the benefits of algorithmic trading?
Trading using algorithms has several advantages. The main benefit of adopting algorithms is that they take emotion out of trading because they can react to predetermined levels and access global market data even when you are not at your trading platform.
The time they save you, the ability to react to price changes more quickly than manual trading, which ensures you receive the best price, and the back testing and redefinition, which help to guarantee that your algorithms are operating at their best, are further advantages.
What is the best algorithmic trading strategy?
There are numerous algorithmic trading approaches available. The majority of traders will decide between price action and technical analysis strategies, however others will combine the two.
When certain price points are reached again in the future, a price action strategy uses price data from the market’s prior open, close, high, and low levels to place trades. Technical indicators are used in a technical analysis technique to analyse charts, and algorithms respond based on what the indicators suggest, such as high or low market volatility.