Since the emergence of online trading platforms, the market has split into several subsections with different service providers looking to capitalize on advances in technology.

One of the most popular services in the market is the provision of trading software and robots. These robots are designed to automatically identify potentially profitable trades and effectively execute them accordingly.

Trading robots are now being developed for a variety of markets including Forex trading, CFD trading, Spread betting, and Binary Options. Most of these providers have no legal obligation to demonstrate fairness and due diligence to their customers.

This means that besides the obvious trading risks involved in instruments like forex and binary options, a trader takes an extra risk in choosing to pay for the services provided. As such, it is paramount that traders conduct extensive research before finally making the decision to pay for trading robot software.

So what are the most crucial items to look at when conducting the background checks?

Check available reviews: The first thing is to check out what people are saying about the binary options robot you intend to use. This information can be found on various trading software review sites which offer an objective opinion on reviewed products.

For instance, if you are engaged in binary options trading and you intend to use a binary options robot to trade various assets, legalbinaryrobots.com can be a good source of information on the type of trading software you are looking for.

Alternatively, traders can check for an interactive opinion on a particular binary options robot software provider on the several binary options trading forums available on the web.

Check Proof of results: Many trading robot software providers claim to average a certain return over a given period of time. However, only a few are able to back their claims with real results. For Forex trading and CFDs, traders can always perform a backtest check to confirm results, by running it backwards for a given period. This is similar to backtesting a strategy in stock investing.

However, for binary options, it is imperative that the provider displays past results on a timely basis. Some actually have this kind of information updated on a daily basis on their websites, which is a good thing towards demonstrating transparency.

The rate of return: ideally, the software you are about to pay for must be better than you. Otherwise, why pay for it? In addition, for certain instruments such as binary options, a certain win-rate is required to achieve profitability.

Since binary options provide a fixed payout, which mostly ranges from 70%-85%, it is imperative that the binary options robot software you purchase demonstrates at least 65% win-rate in order to stand any chance of being profitable.

Flexibility: This is very important in the sense that traders must be able to adjust their trading frequency, instruments, and timing to avoid trading during unpredictable market periods.

Since trading robots rely on technical indicators and some custom-made algorithmic systems, it is important to ensure that traders have the ability to practically switch the system on and off, as well as, filter for trading requirements based on market conditions.

For instance, if USD/EUR is likely to be highly volatile and thus unpredictable in the next few hours, you should be able to mute trading activity on that currency pair over the period stated.

Dedicated support: There is no point purchasing trading software that does not come bundled with dedicated support for a lifetime. Anything can go wrong starting as early as during installation, and in such cases, you need the developers of the software to be easily accessible and willing to help.

This also means that contact options are well stated and are varied in form, language, and timeframes.

Conclusion

In summary, the financial trading marketplace is now attracting all types of traders. It’s no longer a corporate playground.

Novice and highly inexperienced traders are joining to try their luck in the market, but without the necessary knowledge, tools like financial trading robots come in handy.

As such, you need to conduct the necessary investigation of your targeted financial trading robot before committing your finances.