8 Best Algorithmic Trading Platforms & Brokers in 2023 | CoinCodex (2024)

Algorithmic trading has really taken off in the past couple of years, allowing investors to benefit from automated strategies when trading stocks, futures and options, CFDs, cryptocurrencies, and other financial instruments. However, with the massive number of algorithmic trading platforms available today, it can be challenging to decide which might be the best for you.

In this article, we are going to examine the best algorithmic trading platforms, review their key features and pricing plans, and compare them head to head.

Here is the list of the best algorithmic trading platforms in 2023:

  1. Interactive Brokers – The best algorithmic trading platform overall
  2. TradeStation – An algorithm trading system with a proprietary programming language
  3. QuantConnect – Powerful algorithmic trading software
  4. OANDA – Automated trading algorithm with no minimum deposit
  5. Cryptohopper – A feature-rich crypto trading platform
  6. AvaTrade – A variety of automated trading software tools
  7. MetaTrader 5 – A popular trading platform for forex and exchange markets
  8. Coinrule – A streamlined platform for crypto algorithmic trading

The 8 best algorithmic trading platforms: Examining top automated trading options for 2023

In the sections that follow, we are going to review the best algorithmic trading platforms available in the market today based on key features, trading fees, pricing plans, and other criteria. Do note that the ranking is ultimately subjective and that it doesn’t mean that one platform is necessarily better than the other.

1. Interactive Brokers – The best algorithmic trading platform overall

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Interactive Brokers is one of the leading online trading platforms, allowing users to tap into stocks, ETFs, CFDs, options, bonds, commodities, and other markets. The platform allows users to use a number of different algo orders, which can make trading more efficient and simple. Users can use the adaptive algo, close price, TWAP, and more than a dozen other algorithms.

To make the journey into algorithmic trading more accessible for beginners, Interactive Brokers offers in-depth descriptions of each algorithm and a video overview of its main benefits and disadvantages. It is worth noting that Interactive Brokers is not only widely considered as one of the best brokers for algorithmic trading, but also one of the top CFD trading platforms.

Key features:

  • The Interactive Brokers ScaleTrader algorithm can be used for stocks, options, ETFs, bonds, futures, forex, and other products. other than mutual funds
  • In addition to advanced trading orders, Interactive Brokers offers 13 algorithmic trading orders in total
  • Third-party algos like Dark Sweep and Fox Alpha are supported as well
  • Offers to global markets, including stocks, ETFs, CFDs, options, bonds, commodities, and others
  • Interactive Brokers' Trader Workstation platform is a bit complex for beginners, but it is highly customizable and offers a wide range of features for experienced traders
Founded1978
Trading Fees$0.0005 to $0.005 per share, depending on the commission structure
Pricing PlansIBKR Lite (for retail investors), IBKR Pro (lower commission)
Minimum Deposit$0

Visit Interactive Brokers

2. TradeStation – An algorithm trading system with a proprietary programming language

8 Best Algorithmic Trading Platforms & Brokers in 2023 | CoinCodex (2)

TradeStation is a well-known and widely-used algorithmic trading platform that provides traders and investors with a range of tools and features to develop, test, and execute automated trading strategies. The platform is widely regarded as one of the best commodity trading platforms thanks to its wide range of available trading tools and financial instruments.

TradeStation is known for its powerful backtesting and strategy development capabilities. It is generally more expensive than Interactive Brokers, which is featured first on our list, but it also offers a wider range of features and tools, especially for those dealing with high-frequency trading.

Key features:

  • Uses EasyLanguage, a proprietary programming language that can be used to create trading indicators, strategies, and custom trading applications
  • The platform offers access to extensive real-time market data, making algorithmic trading strategies more efficient
  • Supports stocks, ETFs, CFDs, and other traditional financial instruments in addition to cryptocurrency trading
  • RadarScreen is TradeStation’s native opportunity scanner, allowing traders to scan financial markets for market conditions based on predetermined parameters
Founded1982
Trading FeesStarting at $0.60 per options contract, $0.50 per micro futures
Pricing PlansNo recurring fee
Minimum Deposit$0

Visit TradeStation

3. QuantConnect – Powerful algorithmic trading software

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QuantConnect is an open-source, cloud-based algorithmic trading platform for equities, FX, futures, options, derivatives, and cryptocurrencies. It offers a variety of features and tools for developing, backtesting, and deploying algorithmic trading strategies.

QuantConnect is popular among both beginners and experienced algo traders. It is relatively easy to use, but it also offers a wide range of features and tools for experienced traders.

Key features:

  • QuantConnect offers a free tier for backtesting, which is a great way to get started with algorithmic trading
  • The platform is cloud-based, so you can access it from anywhere with an internet connection
  • Supports a wide range of markets, including equities, FX, futures, options, derivatives, and cryptocurrencies
  • A large and active community of users, which means that there is a lot of support available if you need help
Founded2011
Trading FeesThe base fee is $0.85/contract, and the exchange fee is $1.60/contract
Pricing PlansStarting at $8/month
Minimum Deposit$0

Visit QuantConnect

4. OANDA – Automated trading algorithm with no minimum deposit

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OANDA is a popular online trading platform that offers a variety of features and tools for algorithmic trading. It is known for its user-friendly interface and its powerful backtesting capabilities. One of the key benefits of OANDA for algorithmic trading is its support for custom APIs. This allows you to develop your own algorithmic trading strategies and connect them to the OANDA platform. OANDA also offers a variety of pre-built algorithmic trading strategies that you can use or customize.

Another key benefit of OANDA for algorithmic trading is its VPS (virtual private server) hosting service. This allows you to run your algorithmic trading strategies 24/7/365 without having to worry about your computer being turned off or losing your internet connection.

Key features:

  • Support for custom APIs, VPS hosting, advanced charting, technical indicators, and risk management tools
  • A variety of advanced charting features can be used to develop and backtest algorithmic trading strategies
  • Risk management tools that can be used to protect your account from losses
  • Variety of educational tools and materials
Founded1982
Trading FeesMargins from 5%
Pricing PlansNo recurring fee
Minimum Deposit$0

Visit OANDA

5. Cryptohopper – A feature-rich crypto trading platform

8 Best Algorithmic Trading Platforms & Brokers in 2023 | CoinCodex (5)

Cryothopper is a powerful trading platform aimed at cryptocurrency users. It can be connected to virtually all of the top crypto exchanges, including Binance, KuCoin, Coinbase, Kraken, and others. Cryptohopper allows users to execute manual trading orders, or set up predetermined trading parameters wish are automatically executed once the conditions are met.

Cryptohopper’s crypto arbitrage scanner monitors the market conditions and can notify users about potentially lucrative market opportunities, like arbitrage opportunities that can arise between different markets. Users can test out their algorithmic trading strategies against historical data, which allows users to refine their strategies without risking real money.

Key features:

  • Crypto exchange accounts can be managed through a unified trading terminal
  • AI-powered trading bots
  • Scan markets with up to 75 trading bots
  • Copy trading and trading templates
  • Dollar-cost averaging, market-making, short selling, and arbitrage options
Founded2017
Trading FeesStarting from 0.1% per trade
Pricing PlansStarting at $16.58/month
Minimum Deposit$0

Visit Cryptohopper

6. AvaTrade – A variety of automated trading software tools

8 Best Algorithmic Trading Platforms & Brokers in 2023 | CoinCodex (6)

AvaTrade is an online trading trading platform that focuses primarily on forex but supports other financial instruments, including commodities, stocks, ETFs, and even crypto assets. AvaTrade is a particularly good option for beginner traders thanks to a wide range of educational material, ranging from helpful videos to in-depth guides.

One of the key benefits of AvaTrade for algorithmic trading is its support for the MetaTrader 5 (MT5) trading platform. MT5 is a popular platform for algorithmic trading, and it offers a wide range of features and tools for developing, backtesting, and deploying algorithmic trading strategies.

Key features:

  • Supports the MetaTrader 5 trading platform, which is a popular platform for algorithmic trading
  • A variety of technical indicators that can be used to develop and backtest algorithmic trading strategies
  • AvaTradeGO allows users to monitor social trends from the AvaTrade traders community
  • Supports Duplitrade, an MT4 compatible platform, which allows traders to automatically follow more experienced traders’ signals and strategies in real time
Founded2006
Trading FeesOvernight fee, inactivity fee ($50), administration fee ($100)
Pricing PlansNo recurring fee
Minimum Deposit$100

Visit AvaTrade

7. MetaTrader 5 – A popular trading platform for forex and exchange markets

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MetaTrader 5 (MT5) is a popular trading platform for forex, stocks, and other markets, which connects to other exchange platforms like AvaTrade and eToro. It is known for its user-friendly interface, its powerful backtesting capabilities, and its wide range of supported markets. MetaTrader allows users to create their own trading bots to leverage the power of algo trading. These robots can analyze quotes of financial instruments and execute orders on users’ behalf.

MetaTrader is known for Expert Advisors (EAs), which are automated trading programs that can be used to trade on behalf of the trader. MT5 supports a wide range of EAs that can be developed and backtested using the MQL5 programming language.

Key features:

  • MetaTrader Market features hundreds of different algorithmic trading applications, which can be tested before purchasing or renting
  • Bots and indicators can be downloaded for free from the MQL5 Code Base
  • The MQL5 Freelance program allows users to task programmers with building custom trading bots
  • Supports dozens of online trading platforms, including AvaTrade, IG, OANDA, Swissquote, and more
Founded2000 (the year MetaTrader’s parent company MetaQuotes was established)
Trading FeesTrading costs charged by your broker
Pricing PlansNo recurring fee
Minimum Deposit$100

Visit MetaTrader

8. Coinrule – A streamlined platform for crypto algorithmic trading

8 Best Algorithmic Trading Platforms & Brokers in 2023 | CoinCodex (8)

Coinrule is another crypto-centric platform on our list, which allows users to automate trading decisions and benefit from the use of templates and other premade trading strategies. It supports all major digital exchanges, including Coinbase, Binance, Kraken, Crypto.com, and several others.

Coinrule boasts an easy-to-use interface, which makes it easy for beginners to take advantage of automated trading strategies. The strategies are based on simple "if this, then that" logic, where users can specify certain events or market conditions that trigger specific actions, such as buying, selling, or executing other trade orders. For an overview of other competing platforms, check the list of Coinrule alternatives.

Key features:

  • Up to 10,000 executions per rule
  • Up to 50 live trading rules
  • Create rules based on popular indicators (RSI, SMA, etc.)
  • Unlimited template trading strategies (limited to the “Pro” plan)
Founded2019
Trading FeesStarting from 0.01%
Pricing Plans$29.99/month
Minimum Deposit$100

Visit Coinrule

Algorithmic trading FAQs

What is algorithmic trading?

Algorithmic trading, also known as automated trading or black-box trading, is the use of computer programs to execute trades on behalf of traders. Algorithmic trading programs are based on pre-defined rules and instructions, which can be based on technical analysis, fundamental analysis, or a combination of both.

While algorithmic trading might sound a bit intimidating at first, it can be really simple in practice. Here are some examples of potential algorithmic trading strategies:

  • Buy an asset when its price crosses above its moving average and sell the asset when its price crosses below its moving average.
  • Sell 15 shares after the price crosses a predetermined level (for example, sell 15 shares of Apple stock when the price falls below $100).

It is important to note that these are just simple examples of an algorithmic trading strategy. There are many other algorithmic trading strategies that can be used, and some of them are more complex than others.

What is an algorithmic trading platform?

An algorithmic trading platform is a software application that allows traders to develop, backtest, and deploy algorithmic trading strategies. Algorithmic trading platforms can be used to trade a variety of financial instruments, including stocks, bonds, currencies, commodities, derivatives, and cryptocurrencies.

Which platform is best for algo trading?

The best platform for algo trading, according to our research, is Interactive Brokers. It offers a proprietary ScaleTrader algorithm that can be used for stocks, options, ETFs, bonds, futures, and forex. In addition, the platform provides access to more than a dozen algorithmic orders natively.

Is algorithmic trading illegal?

No, algorithmic trading is not illegal by itself. However, depending on where you live, the regulations involving trading various financial instruments can be subject to regulation.

Is algo trading for beginners?

Algo trading has become accessible to beginners in recent years. There is a lot of educational material out there that makes algo trading suitable for beginners. However, we wouldn’t recommend jumping right into algo trading for real money. Instead, test your trading strategies with backtesting or paper trading options before you get started.

Is algo trading better than manual?

Algo trading is not necessarily better than manual trading. It can be beneficial for making high-frequency trades, or developing strategies that are automatically executed upon predetermined conditions are met.

Is algo trading really profitable?

Algo trading can be profitable if the predetermined parameters are well thought out and sound. One aspect that can make algo trading more lucrative than manual trading is the ability to automatically execute a series of trades when predetermined conditions are met.

How successful is algo trading?

The success of algo trading is completely dependent on the quality of the underlying trading strategy. If the strategy used for algorithmic trading is not well thought out, then algo trading cannot be financially successful.

The bottom line: Algorithmic trading can help you leverage the power of automated trading strategies

Algorithmic trading has become increasingly prevalent in financial markets, with many institutional traders, hedge funds, and even retail investors relying on automated strategies. It offers the potential for efficiency, precision, and the ability to execute complex trading strategies that would be challenging for human traders to implement manually. However, it also comes with risks, including the possibility of technical glitches and the need for robust risk management.

The platforms presented in this article offer a variety of tools and educational content that should help you on your algo trading journey. However, to make algo trading a success, you’ll ultimately need to decide which assets to trade. If you are considering employing algorithmic trading strategies to trade stocks, we suggest that you check out our selection of the best stocks to invest in for 2023. If you’d like to explore stocks with dividend potential, then feel free to explore the list of top long-term dividend stocks.

Algorithmic trading has gained significant popularity in recent years, allowing investors to benefit from automated strategies when trading various financial instruments. There are numerous algorithmic trading platforms available in the market, each with its own set of features and pricing plans. In this article, we will examine some of the best algorithmic trading platforms in 2023 and review their key features, trading fees, and other criteria.

Interactive Brokers

Interactive Brokers is considered one of the leading online trading platforms and is widely regarded as one of the best brokers for algorithmic trading. It offers access to a wide range of markets, including stocks, ETFs, CFDs, options, bonds, commodities, and more. Interactive Brokers provides users with a variety of algorithmic trading orders, such as adaptive algo, close price, TWAP, and others. The platform also offers in-depth descriptions and video overviews of each algorithm to make algorithmic trading more accessible for beginners [[1]].

TradeStation

TradeStation is a well-known algorithmic trading platform that provides traders and investors with a range of tools and features to develop, test, and execute automated trading strategies. It is particularly popular for commodity trading and offers powerful backtesting and strategy development capabilities. TradeStation uses EasyLanguage, a proprietary programming language, to create trading indicators, strategies, and custom trading applications. The platform also offers access to extensive real-time market data and supports stocks, ETFs, CFDs, and other financial instruments [[2]].

QuantConnect

QuantConnect is an open-source, cloud-based algorithmic trading platform that supports equities, FX, futures, options, derivatives, and cryptocurrencies. It offers a variety of features and tools for developing, backtesting, and deploying algorithmic trading strategies. QuantConnect is known for its free tier for backtesting, making it a great option for beginners. The platform is cloud-based, allowing users to access it from anywhere with an internet connection. It also has a large and active community of users, providing ample support for those who need help [[3]].

OANDA

OANDA is a popular online trading platform that offers a variety of features and tools for algorithmic trading. It is known for its user-friendly interface and powerful backtesting capabilities. OANDA supports custom APIs, allowing users to develop their own algorithmic trading strategies and connect them to the platform. The platform also offers VPS hosting, enabling users to run their algorithmic trading strategies 24/7 without interruption. OANDA supports a variety of financial instruments and provides risk management tools to protect user accounts [[4]].

Cryptohopper

Cryptohopper is a feature-rich trading platform specifically designed for cryptocurrency users. It can be connected to major crypto exchanges like Binance, KuCoin, Coinbase, and Kraken. Cryptohopper allows users to execute manual trading orders or set up predetermined trading parameters that are automatically executed when conditions are met. The platform's crypto arbitrage scanner monitors market conditions and notifies users about potentially lucrative opportunities. Users can also test their algorithmic trading strategies against historical data to refine their strategies without risking real money [[5]].

AvaTrade

AvaTrade is an online trading platform primarily focused on forex but also supports other financial instruments such as commodities, stocks, ETFs, and cryptocurrencies. It offers a variety of automated trading software tools and is particularly suitable for beginner traders due to its extensive educational material. AvaTrade supports the popular MetaTrader 5 (MT5) trading platform, which provides a wide range of features and tools for developing, backtesting, and deploying algorithmic trading strategies. The platform also offers a variety of technical indicators and social trend monitoring features [[6]].

MetaTrader 5

MetaTrader 5 (MT5) is a popular trading platform for forex, stocks, and other markets. It is known for its user-friendly interface, powerful backtesting capabilities, and support for algorithmic trading. MetaTrader 5 allows users to create their own trading bots using the MQL5 programming language. The platform features the MetaTrader Market, which offers a wide range of algorithmic trading applications that can be tested before purchasing or renting. MetaTrader 5 supports numerous online trading platforms, including AvaTrade, IG, OANDA, Swissquote, and more [[7]].

Coinrule

Coinrule is a streamlined platform specifically designed for crypto algorithmic trading. It supports major digital exchanges like Coinbase, Binance, Kraken, and Crypto.com. Coinrule offers an easy-to-use interface that allows users to automate trading decisions using simple "if this, then that" logic. Users can specify events or market conditions that trigger specific actions, such as buying, selling, or executing other trade orders. The platform also provides features like up to 10,000 executions per rule, template trading strategies, and popular indicator-based rules [[8]].

In conclusion, algorithmic trading platforms offer a range of tools and features to develop, backtest, and deploy automated trading strategies. The platforms mentioned in this article provide different options for traders and investors, catering to various financial instruments and trading preferences. It is important to consider factors such as key features, trading fees, and pricing plans when choosing an algorithmic trading platform that suits your needs.

8 Best Algorithmic Trading Platforms & Brokers in 2023 | CoinCodex (2024)

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