Fortunly's Guide
Advertiser Disclosure

Best Algorithmic Trading Platforms for Successful Traders in February 2024

Written By
Julija A.
Updated
January 11,2024
Some or all of the products/services listed on this page are from our affiliate partners from which we receive commissions. This, however, does not influence the evaluations in our reviews. Learn more by reading our Advertiser Disclosure.

Algorithmic trading, also known as algo trading, uses computer programs to execute trades automatically. Its main benefit is that it eliminates recklessness from the trading process by automatically executing trades based on pre-determined criteria. This takes the guesswork out of decisions and allows traders to focus on other aspects of their strategy.

When algorithmic trading first gained popularity, only a handful of platforms were available. However, there are dozens of algo trading software products to choose from these days. So how do you find the best algo trading platform? Well, you can start with our top picks:

Show More...

eToro CopyTrader Logo

eToro CopyTrader

5 stars Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Visit eToro
Risk Warning: eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation.
PRICE: Standard trading fees apply
MOBILE APP: Android and iOS
FREE PLAN: Free Demo Account ($100,000)
KEY FACTS
REVIEW
PROS & CONS
  • The largest network of users
  • 0% commission trades
  • Trade assets like stocks, cryptocurrencies, indices, commodities, ETFs, and currencies
  • No additional charge for copying another trader or traders
Pionex Logo

Pionex

5 stars Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Visit Pionex
Price: 0.05% per trade
Mobile App: Yes
Free Plan: Yes
KEY FACTS
REVIEW
PROS & CONS
  • 16 trading bots 
  • Small fees per trade
  • Free account
Pluto Logo

Pluto

4 stars Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Visit Pluto.fi
Price $8/Month
Mobile App No
Free Plan Yes
Key Facts
Review
Pros & Cons
  • Powered by GPT - 4
  • No coding required for automation
  • Data aggreggation via AI
QuantConnect Logo

QuantConnect

4.5 stars Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Visit QuantConnect
Price: Starts at $8 per user per month
Mobile App: No
Free Plan: Yes
KEY FACTS
REVIEW
PROS & CONS
  • Free for students 
  • Designed for engineers and programmers
  • Allows coding in multiple languages
Zen Trading Strategies Logo

Zen Trading Strategies

4.5 stars Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Visit Zen Trading Strategies
Price: Starts at $67 per month (per indicator or per strategy)
Mobile App: No
Free Plan: Free trial
KEY FACTS
REVIEW
PROS & CONS
  • Modern Tradingview dashboard 
  • Free course to learn algo trading
  • Four trading strategies
Interactive Brokers Logo

Interactive Brokers

4.5 stars Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Visit Interactive Brokers
Price: Starts at $0.005 per share (IBKR Pro)
Mobile App: Yes
Free Plan: Yes
KEY FACTS
REVIEW
PROS & CONS
  • Access to 150 international markets
  • $0 account minimum
  • Dozens of algo strategies
Coinrule Logo

Coinrule

4.5 stars Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

Visit Coinrule
Price: Starts at $29.99 per month
Mobile App: No
Free Plan: Yes
KEY FACTS
REVIEW
PROS & CONS
  • Over 150 trading rules 
  • Modern UI
  • Integration with 10+ crypto exchanges
Quick Breakdown:

Best Algorithmic Trading Platforms for 2024:

  • eToro CopyTrader - Best overall

  • Pionex - Best for low trading fees

  • QuantConnect - Best for engineers and developers 

  • Zen Trading Strategies - Best free trial

  • Interactive Brokers - Best for experienced algo traders 

  • Coinrule - Best for crypto trading 

The Advantages of Algorithmic Trading

Algorithmic trading gained huge popularity because of its advantages compared to traditional trading. In algorithmic trading, computers are programmed to follow a defined set of instructions (an algorithm) to buy or sell a security at a specific time.

One of the reasons algorithmic trading systems are becoming more and more popular is because they take impulsivity out of the equation and execute trades based on pure data. In addition to reduced emotional impact, algo trading has several other advantages:

Increased Efficiency

Algorithmic trading can increase the speed and efficiency of trade execution, as well as reduce the costs associated with traditional methods.

Backtesting

Backtesting is testing a trading strategy on historical data to ensure its viability. Backtesting can be used on various time frames, from a single day to years of data. When backtesting, a trader essentially sees how the strategy would have performed in the past.

Objective Decision Making

Algorithmic trading can help remove subjectivity from decision-making, as trades are executed automatically according to pre-determined rules and conditions.

Overall, algorithmic trading platforms can provide many benefits and advantages over traditional trading methods. When used correctly, it can improve the accuracy of trade execution, while also reducing costs. Backtesting is also essential to put any algorithmic strategy through its paces before deploying it in live market conditions.

Evaluation Criteria

How We Evaluate Algorithmic Trading Platforms

There are a lot of factors to consider when choosing a broker for algorithmic trading, and it's important to find an offer best-compatible with your trading style and needs. Here are some things to keep in mind when choosing an algo trading broker:

Algorithm Trading Strategies

All good algorithmic trading brokers should offer a wide variety of trading strategies. The most common algo trading strategies are trend following, mean reversion, arbitrage, and market-making. You should also test strategies with historical data before putting real money on the line to determine if they’re profitable and avoid making costly mistakes.

Market Access

Access to your preferred markets is also important. Make sure the platform you choose offers access to the markets you want to trade. For example, if you plan to start trading forex, some platforms are perfect for this because they provide a rich list of forex pairs. Others are better for trading cryptocurrencies or stocks.

Programming Language

If you want to develop your own algorithm trading strategy,  it's important to choose an algorithmic trading program that supports the programming language you're comfortable with. C++, Java, and Python are the most popular languages for algorithmic trading.

Pricing

Make sure you understand the pricing structure before signing up. While some platforms are free, like MetaTrader 4, others charge monthly fees. Note, however, that commission fees also apply, depending on the broker you choose. The brokerage company can also charge additional fees, like an inactivity or monthly maintenance fee.

Customer Support

Finally, it's always a good idea to choose an algorithmic broker with excellent customer support. This is especially important if you're new to algorithmic trading and need help getting started. Good customer support can make a big difference in your trading experience.

FAQ

Is algo trading profitable?

+

While there's an opportunity for significant returns with algorithmic trading, it's paramount to recognize the inherent risks associated with this trading method. The success hinges on the strategy's robustness and the trader's expertise.

 

How do I start algorithmic trading?

+

The landscape of algorithmic trading is ever-evolving, making it challenging to pinpoint a singular starting point. Nevertheless, here's a foundational roadmap to begin:

  • Market Acumen: Familiarize yourself with the financial markets and the instruments you're interested in trading.
  • Strategy Formulation: Identify and develop a trading strategy based on historical data and market patterns.
  • Backtesting: Before live deployment, rigorously test your strategy against past market data to assess its viability.
  • Live Implementation: Once confident in the backtesting results, transition the strategy to a real-time trading scenario.
  • Risk Awareness: Always remain cognizant of the potential risks and the ever-changing market dynamics.

Is algo trading good for beginners?

+

Algo trading presents both opportunities and challenges for beginners. While it offers a systematic, emotion-free trading approach, the intricacies can be daunting for newcomers. Some believe that algo trading provides beginners an edge through automation, while others caution about its complexities. The decision ultimately rests with the individual. It's advisable for beginners to leverage educational resources, tutorials, and support that many top-tier algo trading platforms offer.

How hard is algo trading?

+

The intricacy of algo trading stems from the confluence of finance and technology. While the foundational concept is straightforward, its practical application demands a profound understanding of financial markets coupled with technical prowess. For those committed to mastering both the financial and technical facets, algo trading can indeed be a lucrative venture.