InsideBitcoins.com

AI Trading For Beginners – Best AI Trading Bots in 2020

Read our guide below to find the best AI trading bots and platforms.
Avatar
Author: Kane Pepi
Last Updated: 27 March 2020

Whether it’s forex, stocks and shares, cryptocurrencies, commodities or CFDs – the online trading space is now home to hundreds of Artificial Intelligence trading sites.

While this is good for you as a trader, knowing which site to sign up with is no easy feat. In this guide, we unravel the best AI trading sites of 2020 and explain what to look for when selecting a site.

Best AI Trading Software of 2020

An AI trading site is an online platform that allows you to buy and sell assets autonomously. In other words, the underlying software will place trades on your behalf – which is perfect if you have little experience in the online investment arena.

Below, we present the very best AI trading sites of 2020 which you can use to make automated investments.

CFD Trader: Best AI trading site for newbies

If you're looking to use an AI trading site because you have virtually no knowledge of buying and selling assets, it might be worth exploring the merits of CFD Trader.

As the name suggests, the website focuses exclusively on CFD products. This means that you will be exposed to dozens of different asset classes - include stocks and shares, commodities, and indices. Crucially, everything at CFD Trader is executed in an autonomous manner, so you simply need to get to grips with the underlying software, and then you're good to go.

The AI provider requires a minimum deposit of $250, and you will get a one-on-one coaching session when you first sign up. On top of this, CFD Trader offers a personal mentoring session 7 days after getting started, as well as a newbie training kit to help you along the way. Finally - and perhaps most importantly, CFD Trader allows you to withdraw your balance as and when you see fit.

If offers this because it is confident the results of the AI trading software speaks for itself.

Assets: CFDs in the form of stocks, indices, cryptocurrencies, metals, energies, and more.

Demo Account: No

Educational Material: Start kit, one-on-one coaching session, mentoring session

Fees: No fees

Minimum deposit: $250

MT4/MT5: No

Special Features: Fully automated service

Regulation: Not a broker per-say, so no trading license required

Payment methods: Multiple payment methods depending on location

  • Fully automated AI site
  • Free one-on-one coaching session
  • Mentoring session and start kit included
  • Newly launched site
  • Minimum deposit $250

eToro: Best all-round trading site for U.S. customers

As a US resident or citizen, you'll know first-hand just how limited your options are when it comes to trading online. With that said, we would suggest checking out US-friendly broker eToro. The site offers traditional stocks and shares from heaps of popular exchanges - including the NYSE, NASDAQ, and LSE.

Crucially, as long as you don't apply leverage or short-sell the stocks, you will own them 100% outright. This means that you will be entitled to dividends, which eToro will pay directly into your account as and when they are distributed.

On top of stocks and shares, eToro also allows you to trade thousands of CFD products. This includes everything from gold, silver, oil, natural gas, indices, and more. If forex is more your thing, you'll also find dozens of currencies listed from the majors, minors, and exotic pairings.

In terms of the fundamentals, eToro does not charge any trading fees or commissions other than the spread. Not only are deposits free, but you can choose from a debit/credit card payment, bank transfer, and even PayPal or Skrill. One of the best features offered by eToro is that of its copy trading service. This is perfect for newbie traders, as it allows you to mirror trades like-for-like from other investors at the site.

Assets: Cryptocurrencies, Stocks, CFD, Forex, ETFs, Commodities

Demo Account: Yes

Educational Material: Great educational material for both beginners and advanced traders

Fees: $5 Withdrawal Fee, $5 Inactivity Fee, No Account Fee, No Deposit Fee

Minimum deposit: $200

MT4/MT5: No

Special Features: Copy Trading and social trading site

Regulation: CySEC, FCA, ASIC, MiFID

Payment methods: Credit/debit card, Paypal, Sofort, Rapid transfer, Skrill, Wire transfer, Neteller, WebMoney, UnionPay

OUR RATING

  • Social trading leader
  • Best mobile trading site
  • Paypal accepted
  • Limited technical analysis tools
  • Not well-suited for the more advanced investor
  • $25 withdrawal fee
75% of retail investors lose money when trading CFDs with this provider

Forex.com : Best AI forex site for U.S. traders

If you're based in the US and looking for a trading site that specializes in forex, look no further than Forex.com. The trading site lists more than 90 different currency pairs, which covers all majors, as well as a number of minors and exotics.

Furthermore, most of the forex pairs listed by the broker come with super-tight spreads, so you'll be able to keep your trading costs to a minimum. Although Forex.com is a specialist currency broker, the site also lists heaps of other asset classes.

This includes indices like the S&P 500 and Dow Jones, stocks and shares, and cryptocurrencies such as Bitcoin and Ethereum. This ensures that you do not need to open multiple brokerage accounts, as most assets can be traded in-house.

When it comes to regulation, Forex.com holds a trading license with the UK's FCA. The site was launched way back in 2001, so you have the added benefit of using a broker with a long-standing track-record of just under two decades.

Assets: Forex, Indices, Metals, Stock CFDs, Cryptocurrencies

Demo Account: Yes

Educational Material: Heaps of education materials - especially in the forex department

Fees: $0 Withdrawal Fee, Average Spread 1.3 Pips on EUR/USD, $15 Inactivity Fee Per Month

Minimum deposit: $200

MT4/MT5: MT4 Only

Special Features: Industry-Leading Spreads on CFD Stock Trades, Enhanced Forex Research

Regulation: FCA, CFTC, ASIC, FSA

Payment methods: Credit/debit cards, Bank Transfer, E-Wallets

OUR RATING

  • US-friendly
  • Specialist forex broker
  • Low fees
  • CFD trading is limited
  • $15 inactivity fee per month
  • Minor pair spreads could be higher

Bitcoin Trader: Best cryptocurrency auto-trading website

If you're looking to buy and sell cryptocurrencies like Bitcoin and Ethereum - but you have little experience or knowledge in the space, it might be worth trying an automated site. At the forefront of this is Bitcoin Trader. In its most basic form, the site offers a native software program that it claims trades at a success rate of above 90%.

While there is no guarantee that Bitcoin Trader will yield such an impressive profit rate, reviews in the public domain are positive. The process works by depositing funds into your Bitcoin Trader account, and then allowing the algorithm to trade on your behalf.

Take note, Bitcoin Trader is not a trading site per-say. On the contrary, it uses its proprietary automated software to place buy and sell orders at its partnered brokerage site.

Although there are no hidden fees or charges to be made aware of, we would suggest starting out with smaller amounts. This is to ensure that the software meets its claims of 90%+ profits.

Assets: Cryptocurrencies

Demo Account: Yes

Educational Material: No

Fees: $0

Minimum deposit: $250

MT4/MT5: No

Special Features: Automated trading, no trading experience required.

Regulation: Depends on the broker

Payment methods: Credit/debit card, Bank transfer

  • Low trading fees
  • Claims a consistent profit rate of 90%
  • No trading experience required
  • Not always accurate
  • Only cryptocurrencies available

Plus500: Best AI trading site for reputation and trust

If your main priority is finding an online trading site with a top-grade reputation, we would suggest exploring Plus500.

The UK-based broker was first launched in 2008, and it holds a range of regulatory licenses. This includes the UK's FCA, CySEC in Cyprus, and Australia's ASIC. Moreover, the parent company of Plus500 is publicly listed on the London Stock Exchange, which means it must report financial and trading results on a quarterly basis. In terms of the specifics, Plus500 is a multi-asset trading site that supports thousands of financial instruments.

This includes CFDs on most asset classes. Whether you're looking to trade stocks, commodities, indices, cryptocurrencies, or futures - you'll likely find a suitable market at Plus500. The site is also strong in the forex department, with heaps of currency pairs across the majors, minors, and exotics. What we also like about Plus500 is that it does not charge any trading fees or commissions.

As such, you only need to worry about the spread. The spreads are very competitive on major currencies and blue-chip stocks, although they can get somewhat expensive when trading less liquid assets.

Finally, customer support at Plus500 is highly rated, and you'll have the option of live chat, email, or telephone support.

Assets: CFDs

Demo Account: Yes

Educational Material: No

Fees: £10 Inactivity Fee, £0 withdrawal fees

Minimum deposit: £100

MT4/MT5: No

Special Features: 2,000 trading instruments

Regulation: CySEC, FCA, ASIC

Payment methods: Credit/debit card, Paypal, Skrill, Bank transfer

  • Minimum deposit of $100
  • Over 2,000 trading instruments
  • Mobile app available
  • No education material
  • An inactivity fee is charged
75% of retail investors lose money when trading CFDs with this provider.

What is AI trading?

In its most basic form, AI trading is the process of buying and selling assets in an automated manner. The phenomenon is based on the art of artificial intelligence, with the underlying algorithm placing trades via pre-programmed conditions. These conditions centre on ‘what/if’ scenarios, meaning that the AI bot will only buy or sell an asset if certain metrics are met.

How does AI trading work?

AI trading sites use underlying technology that can scan thousands of markets at any given time – with the view of looking for potential trading opportunities.

For example, a well-programmed AI website bot might base its trading decisions on the Relative Strength Index (RSI), and place buy orders when a certain asset triggers an RSI of 75 or more. In fact, the possibilities are virtually endless in the AI trading space.

Now that we outlined the definition of AI trading, let’s see how it might work in practice.

Example of an AI trade

Let’s say that the AI bot is programmed to place a buy order when GBP/USD hits 1.3145. Irrespective of market conditions, the bot will only place a buy order when the trigger price is met. Similarly, the bot might also be instructed to place an automated sell order at both 1.3190 and 1.3076, which covers both stop-loss and take-profit orders.

What are the benefits and risks of AI trading bots?

Benefits

  • Buy and sell assets from the comfort of your home
  • Hundreds of different AI trading sites active in the market
  • Thousands of financial instruments available to trade
  • Use everyday payment methods to deposit and withdraw funds
  • The best sites are regulated by stringent licensing bodies (like the FCA)
  • Trading fees and commissions are super-competitive

Risks

  • Newbie traders often lose money
  • Not all AI trading bots are credible
  • You will need to meet a minimum deposit amount

What assets can I trade on AI trading bots?

The specific assets that you can buy and sell in the online trading space will vary from broker-to-broker. This normally centres on currencies, CFDs, or traditional stocks and shares. To give you an idea of the types of assets that you can trade online, check out the list below.

Stocks and shares

The best AI trading robots offer thousands of equities from multiple markets. Before you make a deposit, you will need to explore whether your chosen site is selling stocks in the traditional sense, or via CFDs.

If it’s the former, you will be entitled to dividends as and when they are paid. If opting for CFD trading, then you are merely speculating on the future price of the shares, meaning you do not own the underlying asset.

Nevertheless, the most common stock exchanges that you can buy and sell stocks from at an online trading site are:

  • New York Stock Exchange (NYSE)
  • NASDAQ
  • London Stock Exchange (LSE)
  • Tokyo Stock Exchange (TSE)
  • Toronto Stock Exchange
  • Euronext

Forex

AI trading sites will also give you access to trading major pairs like GBP/USD, GBP/EUR, and USD/JPY – but also minors and exotics, a number of them without fees or commissions. Instead, the only fee that you pay is via spread – more on this later.

The main forex pair categories that AI trading providers allow you to buy and sell are outlined below:

  • Major Pairs: These are the most traded currencies globally. Think along the lines of the US dollar (USD), British pound sterling (GBP), Japanese yen (JPY), and the Euro (EUR). As major pairs are in strong demand, volumes are high, volatility is low, and spreads are super-tight.
  • Minor Pairs: Minors still consist of in-demand currencies, but one side of the pair will be represented by a less liquid currency. For example, in the case of AUD/USD – the US dollar is significantly stronger than its Australian counterpart. As such, spreads are slightly higher – as is volatility.
  • Exotics: Exotic pairs will consist of one major currency and a currency from an emerging economy. This might include JPY/NOK – which consists of the Japanese Yen and Norwegian Krone, or EUR/TRY – which is the Euro and Turkish Lira. Exotic pairs typically suffer from huge spreads, high volatility levels, and lower trading volumes.

CFDs

CFDs allow you to speculate on the future price of an asset without needing to own or store it. For example, let’s say that you wanted to invest in the future price of oil. Physically owning dozens of oil barrels would be beyond the realms of possibility. As such, by owning a CFD in oil, you can speculate on its future price at the click of a button.

Below we have listed some of the asset classes that AI trading providers typically support.

  •  Stocks and shares
  •  Precious metals (gold, silver, etc.)
  •  Energies (oil and natural gas)
  • Futures and Options
  • Agricultural assets (wheat, corn, etc.)
  • Indices (dow jones, s&p 500, etc.)
  • Penny stocks

What fees and commissions do AI trading providers charge?

So now that you know the types of assets that you can buy and sell online, we are now going to explore some of the AI trading fees you need to be aware of. 

Spreads

All AI trading platforms will charge an indirect fee known as the ‘spread’. The spread is the difference between the ‘buy’ price and ‘sell’ price of an asset. Although the specific buy/sell prices will change on a second-by-second basis, the spread will rarely deviate. The only exception to this rule is if you attempt to trade outside of standard market hours – where you will likely find the spread increases.

The main concept of assessing the spread is:

  • You want to use AI trading sites that offer tight spreads
  • The lower the spread, the less you are indirectly paying in fees
  • Similarly, the higher the spread, the more it is costing you to trade

In order to calculate the spread, it’s best to look at the percentage difference between the buy and sell price. In the case of forex, this is expressed in PIPs. However, to keep things simple, we’ll stick with percentages.

Example of the Spread

Let’s say that you are looking to trade natural gas at an online trading site.

  1. The ‘buy’ price of natural gas is $2.13
  2. The ‘sell’ price of natural gas is $2.10
  3. This means that the difference between the buy and sell price is 1.42%

As per the above, if you were to place a buy order at $2.13, and then immediately changed your mind – you would need to place a sell order at $2.10. In Layman’s Terms, this means that you would make a loss of 1.42%. As a result, you need your trade to increase/decrease by at the least the spread percentage – just to break even.

Trading commissions

On top of the spread – most AI trading sites will charge a commission every time you place a trade. We say “most” – as there are a number of brokers that now allow you to buy and sell assets without paying a fee. Nevertheless, if trading commissions are charged, you will need to pay a fee at both ends of the trade.

By this, we mean you’ll pay a fee when you purchase the asset, and then again when you sell it. In most cases, the fee is calculated as a percentage against the total size of your order.

Example of trading commissions

Let’s say that you are looking to trade Nike stocks at an online trading site. The site charges a 1% trading commission.

  1. You decide to buy $1,000 worth of Nike stocks
  2. At a trading commission of 1%, you pay a fee of $10 ($1,000 x 1%)
  3. A few days later, your Nike stocks are worth $1,200, so you decide to sell them
  4. At a trading commission of 1%, you pay a fee of $13 ($1,300 x 1%)

As per the above, you paid a 1% trading fee at both ends of the trade – taking your total fees to $23.

Other AI trading fees

On top of spreads and commissions, the trading site might charge fees in other areas, such as:

  • Deposit/Withdrawal Fees: A fee to fund your account, as well as make a withdrawal. The specific fee might vary depending on your chosen payment methods. For example, debit/credit cards are usually more expensive than bank transfers.
  • Minimum Trade Amount: A fee to be paid if you do not meet a minimum trade amount. For example, you might be charged $10 if you don’t make at least $10,000 worth of trades. 
  • Overnight Financing: Overnight financing fees will only apply if you decide to apply leverage to your trades. If you do – and you keep the trade open overnight, you will need to pay a fee. Leverage operates like a loan from the broker to the trader, so the fee is charged as a percentage of the amount you borrow.

What should I look for when selecting an AI trading site?

So now that you know the ins and outs of AI trading, let’s analyse the most important factors that you need to look out for when choosing a platform that meets your needs.

  • Regulation: If the trading site is not regulated by a top-tier licensing body – avoid it at all costs. Using a regulated trading site will ensure that the broker engages in ethical trading practices, complies with all respect laws on anti-money laundering and fraud, and keep client funds in segregated bank accounts.
  • Eligibility: You also need to ensure that you are eligible to join the trading site in question. For example, brokers will normally stipulate what countries it supports.
  • Asset classes: Be sure to check how many financial instruments it lists within your chosen asset class. For example, it’s all good and well if the broker offers stock market indices, but if it only lists the S&P 500 and you want to trade the Dow Jones, it’s not going to be suitable.
  • Payment methods: Don’t forget to check whether your chosen payment method is supported, comes with any fees or minimum deposit amounts and try to stick with AI trading sites that offer same-day withdrawals at no cost.
  • Spreads and commissions: Stick with cost-effective brokers, so select a site that offers tight spreads. Furthermore, it’s crucial that you have a firm understanding of whether or not the broker charges trading commissions, and if they do – at what price.
  • Leverage: While most AI trading sites allow you to trade on leverage, restrictions will apply. This might be based on whether you are a retail or professional trader. If you’re using a site that is based in Europe, you will have your leverage limits restricted – which is based on ESMA regulations. Make sure you check what leverage amounts are offered at the broker before signing up.
  • Research and technical analysis tools: To be successful at trading, you should carry out fundamental and technical analysis. Fundamental analysis relies on analysing real-world news events, and how the event will impact the value of a particular asset or industry. Technical analysis concerns using advanced charting tools to determine which way the markets are likely to go. Select an AI trading site that offers as many tools as possible to give you the best chances.
  • Customer support: Opt for a platform which provides good support, if possible on a 24/7 basis. The most convenient support channel is that of live chat, although some of you might prefer telephone support or email.
[/su_note]

Conclusion

The online investment arena is now home to hundreds of different AI trading sites, and as the space gets more and more competitive, brokers are uping the ante by offering low fees, heaps of payment methods, tight-spreads, top-grade customer support, and more.

However, knowing which trading site to sign up with is no easy feat. This is why we recommend you select an AI trading site by considering your trading needs and personal circumstances.

Finally, remember that trading comes with a risk, so always install the required stop-loss orders to mitigate your risks and do not invest more than you can afford.

FAQs

What is an AI online trading site?

An AI online trading site is a broker that allows you to buy and sell assets at the click of a button. This includes desktop devices, mobile trading, and downloadable software.

What assets do AI trading sites offer?

Most AI trading sites will support both forex and CFDs. This includes dozens of currency pairs like GBP/USD and EUR/GBP, and thousands of CFD products like stocks, energies, old, silver, indices, cryptocurrencies, and more.

Are commission-free AI trading sites really free?

Yes and no. While commission-free sites will not charge you any commissions to buy and sell assets, you will still need to pay an indirect fee via the spread. Some fee-free sites are known to offer wide spreads, so do bear this in mind.

What is the minimum deposit amount at AI trading sites?

This will vary from broker-to-broker. Some AI trading sites allow you to get started with as little as $5, while others will ask for $100 or more. You should check this before opening an account.

Are AI trading sites regulated?

The vast majority - including all of the sites that we recommend, are licensed by at least one licensing body. This might include the UK's FCA, CySEC in Cyprus, or ASIC of Australia.

 

Remember, all trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Kane holds academic qualifications in the finance and financial investigation fields. With a passion for all-things finance, he currently writes for a number of publications in the online space.

Leave a Reply

Your email address will not be published. Required fields are marked *