July 25, 2019, | AtoZ Markets - The global algorithmic trading in the forex market is expected to grow significantly in the future. We see a lot of changes in the way traders use highly sophisticated tools to make good profits, attributing this to that the cloud-based services for algorithmic trading will start to emerge in the markets sooner or later.
Nowadays, the use of machine learning and Artificial Intelligence could place trades and manage portfolios efficiently, with minimal manual supervision.
As we, at AtoZ Markets, believe this is a topic of great importance, we decided to reach out to the specialists to expand more what "new" colors the future of forex sounds to like.
Squared Direct's Head of Brokerage, Michael Kopanakis elaborated more on this matter.
What kind of Forex broker are you?
Until recently, Squared Direct was a True STP Broker. A few months ago, we also got the license for Dealing on own account. This new addition to our business model will not affect the trading experience of our clients. We are trying to manage our risk the best possible way without affecting our clients or manipulating prices; we do not intend to operate on old fashioned market maker models.
There are ways to benefit from a profitable trader. SquaredDirect aims at helping good traders maintain their good results because this is a win-win situation for both the trader and the broker. The longer a trader survives and keeps trading with SquaredDirect the more commissions we will get out of his trading, so everybody is happy.
Do you allow clients to use Expert Advisors (EAs) automated tool on your trading platform?
Yes, we do allow EAs on our platform. We strongly believe that Algo-trading is the present and the future.
Is there any risk involved in using EAs?
Of course, there are risks involved with EAs, everything in life has risks. You just need to calculate the risk and decide whether you are willing to take it or not.
One of the major risks involved with EAs is that many traders trust EAs blindly. Before trusting an EA you should do a comprehensive/ thorough back-test and live-test with real market conditions and monitor the EA at all times in case there is a system glitch.
Do you think automated trading using EAs has the potential to replace traditional trading methods?
As mentioned above, Algo-trading, in general, is the present and the future of trading. Algos/EAs are detached from human feelings and psychology-the greatest contributing factors to losing trades- and could help to lead a trader towards beating the market. On the other hand, the point of view of a healthy trader (not affected by his emotions/psychology) could be used to develop and/or optimize any EA.
To conclude, I strongly believe that Algo-trading is the future of trading, but Algos are a combination of machine learning with some great ideas coming from traders with a specific point of view.
Which account type is best for EA trading?
All our accounts treat traders in the same way. So, in terms of execution, our traders will have the same experience no matter which account type they will choose.
In general, the fewer fees you pay to enter the market the best your performance is, so I would say that the Premium account is very competitive, which mirrors how we pay our Liquidity Providers, with a mark-up on top
(Total commission for 100K USD traded =3.5 USD).
We are also open to meet and discuss the needs of Algo-traders to find the best possible scenario for both sides and try to give them the best trading conditions according to their respective needs.