Page Summary
This guide helps users find the best UAE platforms for algorithmic trading. Various online brokers in the UAE allow the implementation of algorithms for automated trade execution. Due to the numerous reliable and unreliable brokers, separating the “wheat from the chaff” can be hard when choosing the ideal platform for traders’ needs and goals.
Proper research, comparison, and background check on different brokers can save traders from selecting a platform with high fees, limited trading tools, low leverage, or poor customer support.
This guide assesses 33 online brokers in UAE for users to evaluate and find the ideal platform for their needs. To help them make an informed decision, a list of the best algorithmic trading platforms in UAE is shared below.
Top 5 Algorithmic Trading Platforms in UAE
- Interactive Brokers – Best For Stocks and ETFs
- Capital.com – Ideal For Mobile Trading
- IG Trading – Top Platform for Day Traders
- TradeStation – Optimal for active traders
- AVAtrade – Best For Forex and CFDs
Best Algorithmic Trading Platforms in UAE Reviewed
Online brokers with the highest rated platforms in UAE for algorithmic trading are reviewed below.
1. Interactive Brokers – Best For Stocks and ETFs
Min Deposit: $0
Fees: 4.9
Assets available: 4.9
Total Fees:
All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.
Interactive Brokers is a highly trusted global broker with a well-rounded offer of tradable markets, great educational content and sophisticated order type configuration. It is a high trusted and well capitalize company with an industry leading trading platform, a competitive fee structure and great global market access. Their low entry level and the Global Trader platform, which is intuitive and easy to use trading station, make this broker s great choice for beginners and advanced forex traders.
Professional and seasoned traders will appreciate the great selection of advanced trading tools and order type configurations available on their proprietary Trader Workstation desktop platform (TWS).
Pros
- Fast and reliable order execution, industry leading performance
- Algorithmic trading is available via APIs
- Supports trading applications written in C++, C#, Java, Python, ActiveX, RTD or DDE
Cons
- Only offers proprietary APIs (no generic platform), trading apps written for IBKR incompatible with other brokers
Key features
- Margin loan rates on stocks of 1.3%
- Access to 135+ global markets
- Advanced order types, tools and features
- Access to frictional shares
- Lowest commissions in the industry
All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.
2. Capital.com – Best Mobile trading platform
Min Deposit: $20
Fees: 4.8
Assets available: 4.7
Total Fees:
Capital.com is a top choice for traders looking for a discount broker with great educational content and resources, advanced research tools and a premium trading interface. They offer a wide range of tradable assets including CFDs on cryptos, stocks, indices, commodities and forex pairs.
Founded in 2016, Capital.com is an international fintech company which has group of entities authorised and regulated by the Financial Conduct Authority (“FCA”), the Australian Securities and Investments Commission (“ASIC”), the Cyprus Securities and Exchange Commission (“CySEC”), and the Financial Services Authority of Seychelles (“FSA”). It does not operate a bank and is not publicly traded.
Choose Capital.com if you are looking for a great mobile trading experience, professional web trading interface, day trading features. Beginner traders will like the low minimum deposit ($20), industry leading commission structure, and award winning education section
Pros
- Algorithmic trading available with MetaTrader 4 (The most popular one), TradingView and with APIs
- Good order execution
- Backtesting (on historical data) features
Cons
- Doesn’t offer VPS service
Key features
- Access to 6.000 tradable symbols and 477 cryptocurrency CFDs
- High quality research and educational content
- Patented AI trade bias system
- $20 minimum deposit
- No inactivity fees
79.17% of retail CFD accounts lose money
3. IG Trading – Best for day traders and beginners
Min Deposit: $5500
Fees: 3.7
Assets available: 4.5
Total Fees:
IG is one of the largest and most popular regulated forex and CFD brokers globally. Traders can trade thousands of markets using IGs trading platforms like L2 Dealer and ProRealTime or connect their IG brokerage account with MetaTrader 4.
IG offers educational material, daily market update videos, and both technical and fundamental analysis case studies. If you are new to online trading, you can practice with IG’s free demo paper trading account first. For experienced traders IG offers spread rebates and access to more advanced financial instruments like digital options.
Pros
- Algorithmic trading available with MetaTrader 4 (The most popular one) and ProRealTime (PRT) trading platforms; and APIs
- Supports coding trading algorithms using APIs in any programming language supported by HTTP protocol (Java, .NET)
- Connect APIs with PRT trading platform
Cons
- Doesn’t offer VPS service
Key features
- Trade over 17,000 markets with a broker that has been in business since 1974
- Access to Turbo24s, and CFDs and options on forex, indices, crypto, stocks, and commodities
- Unlimited free demo paper trading account
- Advanced research and analysis tools like L2 Dealer and ProRealTime
- Access to APIs to set up Expert Advisors and other automated trading software
- Receive trading signals and alerts to find excellent entry and exit points
75% of retail CFD accounts lose money
4. TradeStation – Best for active traders and for futures
Min Deposit: $0 ($2000 – Margin account; $25000 – Day Trading account; $5000 – Futures account)
Fees: 4.8
Assets available: 5.0
Total Fees:
Tradestation is a reputable online broker known for its technology-leading trading platforms, great selection of tools and zero commission stock and ETF trading. Their industry leading trading platform suite combines a desktop, web and mobile version which are all performing above industry average. Tradestation offers a great selection of most popular asset classes including stocks, cryptos, options, futures, ETFs and IRAs.
Their trading fees vary based on account selection. Pricing is below industry average on the most used accounts (select and GO). Minimum deposit is $2000 and there are no monthly charges.
Pros
- Fast order execution, industry leading performance
- Automated trading available with APIs
- Code trading algorithms in C#, C++, Python, PHP, and Ruby
Cons
- No generic trading platform for automated trading (MT4, MT%, cTrader…)
Key features
- Access to over 20,000 stocks, ETFs, options, futures, mutual funds, bonds, and other financial instruments.
- Early-access to newly listed securities via TradeStation’s IPO trading platform
- Broad range of research and analysis tools for advanced traders like FuturesPlus, TSCrypto, Discover, and Insights
- Fully paid stock lending and margin trading available
- Low floating spreads, commissions, and other trading fees
- Perfect for both beginner and advanced traders
5. AVAtrade – Best For Forex and CFDs
Min Deposit: $100
Fees: 4.9
Assets available: 4.9
Total Fees: 0.9 pip
AVAtrade is a well trusted global online broker for forex and CFD trading. Their multi-asset trading platform and mobile trading app enable traders to access 1365+ tradable symbols overall, including 1200+ CFD’s, major currency pairs with low forex spreads and premium options.
Beside their proprietary platform AVAtradeGo and MetaTrader, AVAtrade has great selection of copy trading solutions including ZuluTrade, DupliTrade and AVAsocial.
Account opening is fast, deposits and withdrawals are free of charge. The minimum deposit is $100.
Choose AVAtrade if you are a beginner or semi advanced forex trader, looking to trade major forex currency pairs, options or CFDs as stocks, cryptos, indices or commodities with premium services. Read the full review of AVAtrade here.
Pros
- Algotithmic trading available with MetaTrader 4 (MT4) (The most popular platform overall) and MetaTrader 5 (MT5) trading platforms
- Good trade execution
- VPS service
Cons
- Only Forex and CFDs available for algorithmic trading
Key features
- Access to 1250 CFDs and 44 forex options
- Excellent copy trading features
- Advanced mobile trading app (AvaOptions)
- Industry average pricing
- Perfect for casual and advanced traders
- Access to the full meta trader suite
71% of retail CFD accounts lose money
How To Find The Ideal Algorithmic Trading Platform in UAE?
Criteria that need to be considered to select the best suited platforms for algorithmic trading are listed below.
- Assets: Algorithmic traders need access to a wide range of trading assets. The brokers in the UAE offer traders: ETFs, indices, mutual funds, forex, bonds, commodities, options, cryptos swaps, and futures.
- Mobile Trading: Brokers have online trading platforms so you can trade from anywhere with an internet connection. Mobile platforms that don’t work with APIs, make algorithmic trading impossible.
- Fees: Fees impact high-frequency algorithmic trading, so make sure the broker you choose has a fee structure that works with the kind of trading you do. A broker with 0% trading fees will help.
- Trading platforms: The trading platform your broker uses must work with the algorithmic trading platform you choose. Make sure there is an API that works with your trading tools.
- Deposit & Withdrawal: Brokers should offer low cost deposits and withdrawals regardless of how you fund your account. Make sure the broker you choose offers transfers in a payment method that works for you.
- Regulation: Regulations by the FCA, CySEC, and the ASIC are effective. Only work with a broker that complies with regulations in a top-tier market.
- Research & education: Providing research and educational assets is the job of a broker. Algorithmic trading tools require access to a lot of data, so choose a broker that gives you the data you need. You also need access to information about how the API works, so make sure the broker has the info you need before funding an account.
- Customer support: Deal with problems in algorithmic trading tools immediately. Your broker should have 24/7 support for automated trading systems, and communicate in a language you understand.
Top Brokers For Algorithmic Trading Compared
Key features of the top rated broker for algorithmic trading are compared in the table below.
| Broker | Assets | Speed of Trade Execution | API Integration | Access to Historical and Real-Time Market Data | Fees | Server Uptime and Reliability | Low Slippage | Risk Management Tools |
|---|---|---|---|---|---|---|---|---|
| Interactive Brokers | Stocks, Options, Futures, Forex, Bonds, ETFs, Mutual Funds | High-speed execution | Multiple APIs | Yes, offers both historical and real-time data | Below average fees | Highly reliable | Yes | Risk navigator, stop-loss and take-profit orders |
| Capital.com | Stocks, Forex, Indices, Commodities, Cryptocurrencies | High-speed execution | Multiple APIs | Yes, provides access to both historical and real-time data | Low fees | Highly reliable | Yes | Stop-loss and take-profit orders |
| IG Trading | Forex, Indices, Shares, Commodities, Cryptocurrencies, Options, ETFs, Sectors, Interest Rates, Bonds | High-speed execution | Multiple APIs | Yes, offers both historical and real-time data | Competitive spreads | Highly reliable | Yes | Stop-loss, guaranteed stops, limit orders, built-in risk protection, Negative balance protection, price alerts |
| TradeStation | Stocks, ETFs, Options, Futures, Cryptocurrencies | High-speed execution | Multiple APIs | Yes, offers both historical and real-time data | Low fees | Highly reliable | Yes | Negative balance protection, price alerts, Stop-loss, take-profits |
| AvaTrade | Forex, Commodities, Indices, Stocks, Bonds, ETFs, Cryptocurrencies, Options | High-speed execution | API trading via MetaTrader | Yes, offers both historical and real-time data | Low fees | Highly reliable | Yes | Negative balance protection, price alerts, Stop-loss, take-profits and limit orders |
What Is Algorithmic Trading?
Algorithmic trading uses formulas to make trades, or takes trading data from other traders to place the same trades. In both cases the process is automatic, and a trader can profit without operating a terminal.
The trading systems that an algorithmic trading model uses come in a variety of forms. Algorithmic trading models must have access to market data, and can be back-tested using historical data.
For example, an algorithmic trading model sells a stock when the 100 day moving average crosses the 200 day moving average. This strategy can be back tested across a range of shares and ETFs, and the algorithm trades the best shares in the market when conditions are correct.
High-frequency trading (HFT) uses algorithmic trading because the trades move faster than a human. Market makers use HFT algorithms to smooth market movements, and also to make profits.
Copy trading is another form of automated trading that traders use to save time and make profits. With copy trading, an experienced trader publishes their trades to a copy trading platform, and other traders make the same trades.
A trader who copy trades selects the amount of money dedicated to trades, and who they follow when copy trading.
Pros and Cons of Algorithmic Trading?
The biggest banks in the world use algorithmic trading in markets, but it isn’t right for everyone, as banks and hedge funds have market access that retail traders can’t match. Because the trading happens automatically, losses are also automated. The results from algorithmic trading will only be as good as the algorithm and the hardware.
Pros
- Saves time for traders.
- Profitable for institutional traders.
- Removes emotion from trading.
- Inexpensive for retail traders who want help.
Cons
- Automates losses.
- Top-tier HFT systems are difficult for retail traders to access.
- Copy trading has no loss protections.
- Requires accounts in different markets for some strategies.
Which Are The Best Algorithmic Trading Strategies For UAE Traders?
- Trend-Following Strategies – Price level movements are the most common triggers for algorithmic trading strategies. These strategies include following trends in price and channel breakouts. Price level-based algos use technical indicators for trading.
- Index Fund Rebalancing – There are time periods when index funds change the contents of their portfolios, and algos frontrun these trades.
- Mathematical Model Strategies – Using proven math-based models to trade with algos in stocks and options is common. One of these strategies, called the delta neutral strategy, profits from numerous positions that have offsetting deltas.
- Mean Reversion – The idea that all assets revert to a mean price drives algos using mean reversion. These strategies buy an asset when it is high or low according to a model.
- Volume-Weighted Average Price (VWAP) – A VWAP strategy takes a large order and breaks it up into smaller ones, trying to match the historic VWAP of a specific stock. Using this strategy allows a trader to enter or exit a position without a big impact on the market price.
What markets are best for algo trading?
Markets for algorithmic trading must have high liquidity and rapid access to trading operations. Algorithmic trading also uses derivatives, like options, so algos must have multiple accounts in different markets. A good example is the NYSE, and the CBOE option exchange, as stock and option algo strategies use both markets.
Conclusion
The increasing number of online brokers with different platforms and features makes it hard to find the ideal option for individual needs. The research and analysis of different services can be stressful and requires time and knowledge.
This guide does the hard work for you by comparing and evaluating the top platforms for different types of algo traders and strategies. The results of our analysis of the best algorithmic trading platform in UAE are wrapped up in the table below.
| RANK | BROKER | OVERALL SCORE | BEST FOR | WEBSITE |
|---|---|---|---|---|
| #1 | Interactive Brokers | 4,9/5 | Stocks and ETFs | Official website |
| #2 | Capital.com | 4,8/5 | Mobile Trading | Official website |
| #3 | IG Trading | 4,8/5 | Day Traders | Official website |
| #4 | TradeStation | 4,5/5 | Active traders | Official website |
| #5 | AVAtrade | 4,4/5 | Forex and CFDs | Official website |
FAQ
Is algorithmic trading legal in the UAE?
Yes, algorithmic trading is a strategy that is allowed in the UAE and is therefore offered by local and offshore brokers.
Is algorithmic trading risky?
Algorithmic trading is generally considered a high risk trading strategy. Algorithmic models use historical data to establish trading risk parameters. If the market moves in a different way than predicted, this can cause lose of investments.
Is copy trading a good way to make money?
Copy trading makes it easy to trade many markets without a lot of experience. But, copy trading relies on another person to trade, so it can be risky.
Can algorithmic trading be used on all asset classes?
Yes, algorithmic trading can be used for all asset classes that are listed on markets with enough liquidity and electronic trading systems.
Is algorithmic trading recommended for beginners?
Algorithmic trading is an advanced trading strategy that requires understanding of complex systems, strategies and computer programming. It is usually not recommended for beginners without a background in these areas.
Disclaimer
eToro is a multi-asset investment platform. The value of your investments may go up or down. Leveraged and speculative product. Not suitable for all investors. You should consider whether you can afford to take the high risk of losing your money. Capital is at risk. Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision. Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk. Crypto assets are unregulated& highly speculative. No consumer protection. Capital at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
Stefan Grasic is the owner of Business24-7 and has considerable experience in the financial and investment niche, but also enjoys writing articles for the general readership. Stefan is an active stock, CFD, crypto and general investment researcher, advising blockchain companies such as Blockbird, GoCrypto, Hive Terminal at their start up level.