Automated Forex Trading Software Development – A Complete Guide

Updated on Mar 21st, 2024

Automated Forex Trading Software-Development A Complete Guide

If you are looking for an intelligent, sharp-eyed, and streamlined trading enterprise solution that offers automation and granular data analysis, your ultimate destination is most likely to be automated forex trading software. Because why not? The job is to be observant of the most profitable trades and execute them within an instant of identifying the right opportunity. With automated forex trading solutions, you can leverage all the key characteristics of an ideal trader.  

So, what is automated forex trading software? How can it help your business? And how to build one?  

We will try to answer all these questions and more in this article.

  • Automated forex trading software analyzes price trends and assists traders in making buying and selling decisions. 
  • Less emotional influence on trading behaviors, guidance in planning and strategizing, and effective execution are some of the major advantages of automated trading solutions. 
  • Traders have an easy time creating a strategy with a logical and insightful focus using the automated foreign exchange software.
  • The must-have features of automated forex trading solutions include forex trading, regular updates, deposits & withdrawals and trading history.

What is Automated Forex Trading Software?  

Automated forex trading software is a unique breed of stock market enterprise solutions that provides a platform that can be leveraged to trade in a variety of markets, including, stocks, cryptocurrencies, commodities, and more. The software analyzes the market and launches a trade automatically, thus preventing the users from carrying it out manually.   

In simpler words, automated trading software makes it easy for you to turn on the trading terminal, activate your program, and then let the software do the trading for you while you’re away.  

Automated forex trading systems have a slew of advantages to offer to the users. This software is devised in a way that functions without the need of the trader. It does the work by examining the market to find the profitable currency trades, incorporating either pre-set parameters or parameters that are programmed into the system by the user.  

While guiding the traders toward strategic decision-making, the automated forex trading software integrates with the user’s banking software, ERP systems, accounting software, and more. Traders can track their forex payables as well as receivable transactions while it provides automated update exchange rates for currencies and supports currency services, along with many other forms of ease.   

How Does Automated Forex Trading Software Work? 

Automated forex trading software works using a computer program involving a set of rules and guidelines for analysis that help determine the ideal time to buy or sell the stocks. It assists in making sound decisions and supports waiting for the indication before generating an actual currency pair buy and sell order.   

The software detects the signals including price trends, spread discrepancies, and also, the news that may influence the market which helps determine the profitable currency pair trades.  

Gone are the days when forex trading systems had to be implemented manually. More and more traders are traversing the sound-good opportunities with automated systems which are based on computer code. In this segment, there is no room for emotion and one can efficiently execute trades.  

Automated Forex Trading Software Development

Essential Features of Forex Trading Software

Features of Forex Trading Software

Automated forex trading software acts as a platform for traders, investors, and institutes to seamlessly speculate the moves of various markets around the globe and make more informed decisions related to buying and selling. This software works on programs that scrutinize ongoing price charts and other market activities across different timelines and brings off in-depth analytics.   

Like most enterprise solutions, automated forex trading solutions also need an assortment of useful features. Given below are some of the key features every automated forex trading software should have. 

Automated Trading

Automated forex trading software solutions allow your users to stay active in trading practices with a wide range of options that help traders in buying and selling activities effectively. Automated software identifies the market fluctuations which alerts the traders. They can leverage this feature to improve their strategies and be more agile to navigate evolving market conditions.  

Regular Market Updates

With API-integrated forex trading software, you can help your users to stay tuned to every nook and cranny of the market and price levels.  

Streamlined Buying and Selling

The option to buy or sell simplifies the trading activity for users and makes it more effective. Using this feature, traders can actively engage in buying, selling and limiting orders instantly.  


You can help your users deposit their assets whenever they want, maintaining the liquidity in the business at the optimum level. Besides, you can also offer them the option to carry out fast and secure asset withdrawal whenever they want by incorporating the relevant functions to the easiest accessibility.  

Trading History 

The software provides each trader with the history of traders which allows them to create a strategy for their future investments and gauge the next market move for improved returns.  


You can include the statistics feature in your automated forex trading software development plan to make your tool more efficient. This feature helps keep an eye on trading stats for placing orders. It shows the win rate as well as the average profit/ loss made on the closed trades.  

Market Analysis

The analytical tools in the forex trading software solutions help examine the market conditions in great detail. With forex trading software development, you get a robust tool that shows the capabilities/ scope for traders to act on their strategies. The technical analysis considers parameters such as trend detectors, and averages to reveal useful insights.  


With an enterprise solution like automated forex trading software, you can offer a systematic way of trading with an integrated accounting modules that let you monitor every record and compose references seamlessly.  

Ability to Manage Multiple Accounts  

Ideal forex trading tools are capable of managing multiple accounts, given the number of records and data they gather from the market. Different types of accounts such as full accounts, managed accounts, and mini accounts are available in the common place. Traders take help from a broker to look after trading or do it on their own.  

Uncompromising Security Measures 

Calling tight security a feature might be a little unfair, mostly because for enterprise solutions like forex trading software, where a lot of money is at stake, security is a downright necessity. An ideal forex trading solution should maintain user data security by restricting third-party visitors from accessing their information or exploiting it for malicious reasons.  

Advantages of Automated Forex Trading Solution

Advantages of Automated Forex Trading Solution

Let’s look at the topmost benefits of automated forex trading software: 

Easy to Access 

Automated trading is a platform that does not restrict unskilled traders to try their hands on this practice. It does not entertain bias towards one trader over the other while deciding on something. A good automated forex trading software usually offers a demo that enables users to understand how it works and get some handson experience before making the final purchase 

Logical Trading 

One of the major challenges obstructing manual trading is the door to emotions that is always open. But when it comes to automated trading, one does not have to bother about human emotions disturbing the process. The automated forex trading software works on set programs for tasks to enter and exit the currency markets after achieving certain set criteria.   

This process paves the way for traders to trade with the emotional factor like fear out of sight. Additionally, manual trading welcomes more emotional reactions to a loss which results in overtrading, and divergence from the plan owing to the eyes only on the prize. On the other hand, automation ensures discipline since there are no emotions involved in the process.  

Diverse Insights 

Automated forex trading systems allow forex traders to trade in different markets and a variety of accounts while using different trading strategies simultaneously. Such diversified set of features and options allows enterprise solution like automated forex software to give to the trades the ability to trade with a level-head and not take and impulsive decisions. 


Forex traders can back-test the forex automation solution to get information about the historical price data of the criteria set by the system. Before implementing the automated solution in a real-time environment, traders can improve their trading strategies using this data and comprehend the anticipated system risks, and rewards in a better way.  

Improved Entry Speed

We all know the fleet-footed pace the market is always on. Considering that, it is a great idea to make an entry or exit at a fast speed. The pace matters a lot here. Automated forex trading software, unlike manual trading, places orders by reverting immediately after a good-to-go predestined criteria. 

Read More: How to Develop a Forex Trading Bot?

How to Build an Automated Forex Trading Software

How to Build an Automated Forex Trading Software

Have you decided to develop automated forex trading software of your own? Great! We have brought you a step-by-step guide to building an automated forex trading software that will help you make sure that you are crossing each essential off the list.  

There are two primary ways you can go about developing your automated forex trading solution: developing your solution in-house or hiring a software development company to do so for you. While many companies opt for in-house development since they like the idea of having more control over the overall development process, in-house development is not a good fit for people who are tight on the budget. From hiring people to providing them adequate infrastructure and tools, you will be responsible for everything. All these expenses, when added on a monthly basis, combine to create a jarring sum which not many businesses can afford.  

That is why, businesses on a strict budge should hire an experienced enterprise software development company, like Matellio. With your development taken care of by your technology partner, you can focus on your core business. 

But if you still want to develop your automated trading software in-house, then you should consider teaming up with an IT staff augmentation company like Matellio. Your core development team can be made up of full-time talent but you can hire people for additional support on an hourly basis, thanks to our cost-effective services.     

Read More: MVP Development for Startups 

Create a Trading Plan 

Since you are planning to make a winsome take on the market, it is best if you first develop a trading plan. Creating a detailed plan is crucial as it acts as a blueprint of the activities involving trading.  

The planning will make the way for you to define your goals and requirements. It will assist you with how your automated software will contribute to your success. At this stage, you must consider certain factors like:  

  • The market(s) across which you want the software to trade 
  • The risks involved in the process 
  • When you want your automated forex trading solution to start operating 

Reflecting on such questions will take you to your next big task – creating a strategy. Strategizing will help you work on every aspect of the automated forex trading software solution.  

Design Your Software 

Now that you have a plan and the strategy to employ the automated forex trading software development process, it is time to pay attention to the design factor. At this stage, you have to formulate ideas about how to work this out to accomplish your goals.  

It is imperative to conclude how your software will actually spot various trading opportunities. Moreover, you must also define what and how you want your software to do when it identifies the scope.   

You must also consider the options you have for the tools and indicators.  It’d be great to reflect on the ones that you use and the way you make the decision about when to place trades. It is to be noted that most automated trading solutions go with technical analysis. Thus, it is best to wrap your head around as much knowledge about it as you can.  

Choose Risk Management Tools 

When you are designing an enterprise solution like a automated forex trading system, make sure you are keeping the choice of risk management tools in consideration. Look closely at the type of risk management tool you will be using in the process.  

Risk management tools are important in thwarting and handling various . There are three types of stops that you can use, depending on the platform you are using:  

  • A basic stop lets you close your position, reaching as much as possible of the level of the price you specify. This stop has the chance of closing at a price lower than specified since it is subject to market gaps and slippage.  
  • A guaranteed stop is the one that will always close your position after reaching the level you specify even if the market is undergoing volatility.  
  • A trailing stop traces good price movements to get the profits. However, this stop level is not guaranteed which leaves room for the risk of market slippage.  

Note that you also have an option to set a limit to automatically close a trade in case the price takes a jump to a profitable level.  

Automated Forex Trading Solution

Develop Your Automated Forex Trading Solution 

After you have brought the complete design of your software to the description, your next move will be to translate it into code. Each platform implements a different coding language which means that you’ll need to design your solution for the specific platform that you are planning to utilize.  

It is crucial to understand what and what can be coded. But that should make you obliged to gain a big-fat book knowledge of coding. This is actually where you will be needing an automated forex trading software development company with a team of experienced developers who know how to do the job.  

Test, Refine (and Modify) Your Automated Forex Trading Software 

Once your automated forex trading software developers are through the process and your solution is built, you have the final and the most predominant step of all to implement – testing.   

This step entails back-testing your forex trading system to do which you need historical data. At this point, you also realize the areas that need refinement to achieve the metrics you are aiming for.  

Read More: Financial Software Development: A Complete Guide for Businesses

Get Started with Automated Forex Trading Software Development  

A lot has changed in the world of trading in recent years. The idea of using an automated forex trading software might sound tricky to you but once you have realized how it works and what it takes to build an automated forex trading solution, you can create your own system that trades while you deal with other crucial things.   

Do you want to develop your own auto foreign exchange trading software? If yes, then you can count on Matellio to leverage our years of expertise in the industry and the team of skilled and certified professionals to get your job done. We house a team of highly skilled of engineers, subject experts, designers, and QA engineers that can help you mature your idea and turn it into a reality. Our custom forex software development services are cost-effective, catering to businesses of all sizes. Our DevOps consulting services and development practices also allow us to speed up the development process without compromising on the quality or the security of the final outcome.  

Building foreign exchange software spans a complex path. The idea is to create one that aligns with the market’s ever-changing gestures, poses secure navigation and transaction, and keeps up with all the compliance and regulatory requirements. Matellio will help you with custom auto forex trading software development that crosses every requirement off the list and works out in the best favor of your brand. To find out how to contact us today. 

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