Executive of MultiBank Group explains the flaws in Forex EA trading

September 24, 2019, | AtoZ Markets - From self-driving cars joining the travel space to online bots booking restaurant reservations. A.I. technology is proving itself time and time again in our everyday lives. Hence, it's probably no surprise that these incredibly powerful Forex EA robots are now being widely used as auto trading robots in the FX market.

The Forex Expert Advisors are known as expert advisors (EA) by the forex trading community. Trading with EA advisors is now taking all of the work out of working from home. But are Expert Advisors (EAs) automated tool good? Some of the best FX EA designers believe that their bots trade better than humans. Would you seriously be comfortable with a robot trading forex using your funds? Let’s find out here with the AtoZMarkets' exclusive interview with MultiBank Group.

Mahmoud Kazma, Head of International Sales, MultiBank Group elaborated more on this matter.

  • What kind of Forex broker are you?

Mr. Mahmoud Kazma: MultiBank Group is one of the largest online financial derivative providers globally. Our Group is regulated in more than 7 jurisdictions around the world, and we offer a wide variety of financial products (FX, Spot Metals, Commodities, Shares, Indices and Cryptos). Within the industry, we offer some of the lowest spreads through our pure ECN processing, which has direct access to over 20 interbank liquidity.

  • Do you allow clients to use Expert Advisors (EAs) automated tool on your trading platform?

Mr. Mahmoud Kazma: Yes, we allow clients to trade using Expert Advisors.

  • Is there any risk involved in using EAs?

Mr. Mahmoud Kazma: EAs are generally used for executing high volumes. If the trader fails to notice an issue with their strategy or program, the losses can be significantly greater than those if you trade manually. These risks are well documented, and even high-end bots that are deployed by the large financial institutions have a greater risk of computer failure that could result in systemic market volatility or interruption. There have been countless stories surrounding erroneous orders and staggering losses as a result of these types of automated software.

  • Do you think automated trading using EAs have the potential to replace traditional trading method?

Mr. Mahmoud Kazma: I think there will always be people who prefer traditional trading to automated trading, and that won’t be going away anytime soon. Many articles have been written about high frequency traders in recent times with many news outlets and financial experts openly condemning them as they drown out local retail traders who simply cannot compete. These expensive, hugely powerful trading machines are designed to jump ahead of the queue to buy or sell derivatives before others can. Often trading robots are situated really close to local exchanges and connected to a high-speed internet connection giving the owner or these ‘bots’ a split-second edge on the masses.

  • Which account type is best for EA trading?

Mr. Mahmoud Kazma: Usually, the account type is related to the strategy that is programmed in the EA. There are more than 5,000 EAs accessible online starting from USD 100 to USD 10,000 and beyond. All of this depends on the testing of the EA and its performance.

If the EA will be running scalping trades on news release, then the ECN spread will be their best choice. If a client is doing the Martingale strategy, our retail MultiBankPro platform is the best. These two platforms have predominantly been the platform of choice for our EA traders.

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