The craze of Forex robots among the Forex traders is at all time high. This piece of computer software is readily available in the market just for $ 200 or so. Forex robot makers claim a lot and attract the traders telling them that the robot will trade automatically and trader just has to turn it on.  Further, they say that the Forex robots have the track record of Forex trade success and it never fails. However, the traders need to wonder that if the robots are so equipped and intelligent then why it is available only a few dollars. If the robots never fail then why 95 percent of the traders lose the Forex trades.

The reality behind the story of Forex robot is very simple. Many investors are heading towards the Forex trading and that is why it is the biggest industry today. The software developers have seen the potential of the online Forex trading and that is why they have developed the applications like Forex robots. This software is just a money making machine, not for the traders but for the developers that made it. Actually, a Forex robot is simply eating up the investments of the traders and nothing else.

Further more, most of investors are attracted towards the low price tag of the automated Forex trading system and buy them. Such systems claim the proven record and it is publicized on the internet. However, the proven record is usually when the market is in most stable state or either the system has been used with a demo account. During the software testing phase, the system is traded with the paper money but never exposed to the real Forex market. Simply, in such controlled environment the results would certainly be 100 percent successful.

When the automated trading system is exposed to the real world, then of course it will have to bear the consequences of the slow market. It can not movement by itself and hence loses will certainly come its way. We have already discussed that most Forex robots claims that traders need to no knowledge of the Forex trading and still they can make money. However, Forex trading demands discipline whether you are trading with a Forex robot or a traditional platform and discipline only comes when you understand the market’s flow. Therefore even for using the robot, a trader need to have sound knowledge of forex trading.

Most traders jump to the Forex robot in the crucial times thinking it will save them from the phase. However it never happens and in reality the robot trade continually and ultimately the account gets empty.

You need to be really cautious while choosing your forex robots. It is not that all automatic trading systems are bad but you need to be wise and smart before buying a robot.