Business Finance

Automated VS Manual Forex Trading: Which One is Better?

Automated VS Manual Forex Trading


Forex trading has become more prevalent in this digital age while introducing more creative and exciting market trading methods.

New trading styles are introduced with a vast pool of traders trading in the Forex market. Two of the most prominent trading styles are automated trading and manual trading. Traders have been scratching their heads for a while now about whether automated trading is better than manual trading or vice versa.


Today’s article compares automated and manual trading and discusses which is better. We will also guide you in determining which Forex EA robot is the best for you.


So, let’s find out which one is better and why you should choose it to build a successful trading career. However, studies have found that the best Forex robot EAs in the market are highly recommended as compared to manual Forex trading which can be hectic at times as explained in this video:




Critical Analysis of Automated and Manual Trading 

We need to take a comparative approach to find which is best between automated and manual trading. Let’s compare them both to some critical factors.

  • Time Consumption 


Let’s start the comparisons with time consumption first.

It’s no secret that manual Forex trading takes more time than automated trading. Traders must sit for long hours in front of their systems to find a good trading opportunity, which can be stressful. Sitting long hours daily can deteriorate health and cause serious trouble. 

It’s also important to note that manual trading consumes a lot more time and still can’t compare to the profits of automated trading. It’s not wise to waste your precious time for little gain.

In contrast to this, automated trading is a lot more helpful. They provide more profitable results while saving traders time. You don’t need to dedicate long hours using Forex EAs. All you have to do is set your trading parameters and let it work.

Moving on to the second comparison factor:

  • Accuracy Rate

The accuracy rate comes second in comparison.

The accuracy of trades depends upon many factors, like the technical and fundamental analysis. When it comes to automated trading tools’ accuracy, you don’t need to worry about it. It will carry out all the complex calculations for you and find the perfect trading opportunity. 

However, in the case of manual trading, things are complicated. This is because for trades to be accurate in manual trading, they must focus on all the complexities themselves. Unlike software tools, humans can’t carry out repetitive tasks without errors. So there is always more risk involved in manual trading because all decisions are made based on your understanding.

Up next, we will talk about:

  • Learning Prerequisites 

Comparing automated trading to manual trading based on learning prerequisites.

The only prerequisite to automated trading is a good Forex EA and a trading account with a sufficient budget.

However, this is not the case with manual trading. For manual trading, you need to know some prerequisites. You should know how to use trading graphs and their plottings. Learning about indicators and their uses in manual trading would be best. Interestingly all these features are already built-in in automated trading tools. So you can get started with trading without learning them.

Moving forward, we will discuss the following:


  • Trading Options 

Another evaluating point is trading options between both trading styles.

Automated trading offers a bunch of exciting options for trading. Automated trading enables you to trade 24 hours which is impossible with manual trading because of mortal obligations.

In cases like market uncertainty, manual traders will need to stay vigilant all the time, or they will lose their investment. Those who prefer automated trading never need to worry about these catastrophic situations because stop loss is there to save the day.

The 5th point to compare both is subscriptions cost.


  • Subscriptions Cost


The one thing manual trading has the edge over automated trading is subscription cost. Manual trading doesn’t have any subscription cost. You need to learn it and trade with it.

However, it’s not the same with automated trading. A good Forex EA can have a heavy subscription cost attached to it. Not everyone can afford this amount, especially at the beginning of their trading journey. 

There is still a way for traders to use Forex EAs because some automated trading tools provide you with a trial version for free over a certain period of days. That’s where automated trading breaks even with manual trading.

Lastly, discussing the reliability of manual and automated trading is essential.


  • Reliability

The reliability of automated trading can be questioned concerning the reliability of manual Forex trading. It’s a fact that relying only on automated trading tools is not the right thing to do because they also lack in many situations. 

For example, if the market is influenced by factors other than technical aspects, automated tools cannot control it. You need something by your side that can help you out in uncontrollable situations through automated trading tools.

So it’s better to use automated trading along with manual trading. Use Forex EAs to find profitable trades and manual trading for fundamental analysis.


How to Find the Best Forex EA?


Finding a Forex EA can be a task in itself. We will assist you in finding the best Forex EA for your trading account. Look for the following in a Forex EA before considering it.

  1. An accuracy rate of more than 90 percent 
  2. Backed by the overwhelming majority of traders 
  3. Spot on customer service 
  4. Not expensive
  5. Provides a free trial version 


The Bottom Line


We have clarified our stance by comparing automated trading with manual trading. 

To help you decide between automated and manual trading, we have compared them on 6 crucial points. Automated trading is far better than manual trading because it’s fast and saves much time compared to manual trading.

However, with these perks, automated trading is not flawless. It lacks in many aspects, like the fundamental analysis. So it’s not wise to entirely rely on automated trading tools. Use automatic and manual trading tools together for the best results.

So which trading style do you prefer the most? Please share with us in the comments below.

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