Tech
What are the Differences Between Free and Paid Trade Robots?
Forex trade robots are programs that traders install on the MT platform to run automated trading activities. They rely on preset algorithms to buy, sell, or hold trades. The market offers different types of trading robots.
Some are offered for free, while others are paid for. Traders choose the type of robot they want to use, which determines the results they get.
Both free and premium robots are automated expert advisors, but they work differently based on their features.
Features
When you visit the Forexstore, you get the option to either download a free or paid robot. You will get undivided customer support to use each, but you will notice they are different. One of the obvious differences is the features.
Free robots have fewer features compared to premium robots. For instance, free robots work with only one currency pair.
That means your trading will be limited to the currency pair coded in the robot. Free robots come with only basic features.
If you want to have a more robust trading experience, your option will be to download a paid robot. It will work with multiple currency pairs and provide more features.
Cost
Free forex robots are called free because it costs you nothing to obtain them. All that you need to do is visit a forex store, identify your free robot, create an account, and download it.
Take note that what does not cost you is obtaining the robot. You must spend money to trade with it. The amount of money you spend depends on the broker you choose.
Paid robots are different because you must pay a purchase price before you own one. Their prices differ and can have a difference of more than $500.
What dictates the paid robot that you get is your budget. Just like the free robot, you need another budget to invest in forex trading and begin generating profits.
Programming
Free robots are developed as open-source software, which means other developers can add codes to them.
Although the robot is free to download, you might spend an extra fee to use certain features if they are not from the original developer.
Being open-source means, you can customize the robot by adding codes to fit your trading needs. If you are not an expert in coding, you need experienced developers to help you.
Paid robots are different because they are closed-source applications. It is only the original developer who can add codes to them to improve them.
In most cases, the developer or vendor helps you with the technical processes, such as installation and updating of the software.
Users
Free robots are usually developed for beginners in the forex market who require time to learn the rules of trading.
Since it costs them nothing to acquire it, they save on purchase costs and use the money to start learning the trade. Once the trader develops effective struggles, they move on to paid robots for an enhanced experience.
Paid robots can be used by both beginner and experienced traders. They, however, fit better with experienced traders who do not require time to learn the rules. Once they buy them, they begin trading immediately.
Drawdown time
Since they are loaded with fewer features, free robots are likely to make more losses. Their drawdown time is high and could sometimes hit nearly 50%.
Although traders obtain them for free, they are likely to experience sudden losses from their trading capital. Premium robots record lesser drawdown time which means they make lesser losses to traders.
They come loaded with advanced features that make generating losses harder. Some stop trades if they predict the probability of making losses.
Their market predictions are more accurate, which means they are focused on maximum profit generation. Their vendors offer 24/7 support, and their developers keep improving them as the market changes to offer traders greater advantages.
Conclusion
Forex robot developers create free and paid robots. Free robots come with fewer features for predicting the market to maximize profit generation.
Paid robots come with advanced features that offer many advantages to traders. They record minimum drawdowns and are more predictable in trading.
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