What is algorithmic trading? Here’s everything you need to know…

Computers can do in a microsecond what would take humans hours to do manually. Beginning with the U.S. equities market more than 15 years ago, algorithmic trading has become common in major financial markets – and has penetrated the foreign-exchange market in a big way in recent years.

IBFX algo.jpg

FX algorithmic trading infographic courtesy of Interbank FX

Like what you've read?
Join over 40,000 other traders who get our newsletter. Tutorials, EAs, chart setups, free forex trading systems, and more!
  • tansi

    So, how do we take advantage of this type of trading to make money?

    • Fitzhardinge

      The fact of this techniques existence is important by itself — it’s kind of like knowing that your enemy has an atomic arsenal at his disposal.

      People interested in this topic might want to look at this Wikipedia article:


    • Michel Espinoza

      You can develop your own strategy and code it as an algorithm or get consulting http://www.fxcteam.com

  • Raghee Horner

    Thanks Fitzhardinge, I couldn’t have said it better myself!

  • Bullish


    The algorithm will only be as good as the trader who wrote it. A safer way to start is to use the algorithm of the more experienced. 

    I found this, which is pretty informative:http://forex-algorithmic-syste

    check it out if you want.

    • Fitzhardinge

      You are confusing institutional algorithmic trading with personal trading robots (MT4 calls them Expert Advisers).

      And that link leads to an advertisement rather than an informational resource.  For shame!

  • Learn Day Trading

    It’s really interesting and knowledgeable. And I totally amazed to see the extreme information about algorithmic trading. The each of concept and features of this one are really looking knowledgeable and classy. Thanks for sharing.

  • Krishan Nagpal

    Algorithmic trading is all about controlling the execution of big order in order to limit the market impact. Read : http://www.comparebroker.com/e