Which prop firms allow EAs?

Expert Advisors or EAs are automated trading robots on the MetaTrader 4 and MetaTrader 5 platforms. Some prop firms restrict using EAs while some allow and even offer support to algorithmic traders. Traders who want to automate trading processes and who also want to start funded trading should check if their firm allows EAs or not. Below we will talk about EAs in prop trading and will list some of the best firms that allow robots.

Our platform has a dedicated in-house research methodology for reviewing prop firms and puts special emphasis on firm safety and reliability. Our list, below, consists of reliable prop firms that allow automated trading robots on their funded accounts. Read our reviews to find top prop firms for EA trading below.

Understanding prop firm EA trading

EAs are widely used by traders on MT4 and MT5 platforms, and there are thousands of free and paid EAs available online. If you are planning to use EAs on the funded account, ensure the firm allows automated trading robots. Some prop firms prohibit EAs and using them may result in a termination of the funded account. EAs can fully automate the trading process, allowing traders to do other things while the robot executes trading positions following the preprogrammed rules. However, there are some risks involved when using EAs for prop trading. Prop firms usually have mandatory stop loss, daily loss, and maximum loss limit rules. So, the EA should not break any of these rules to be successful. Another important thing is if the prop firm’s partner broker offers any of the trading platforms that allow EAs. The majority of popular advanced platforms support some kind of trade automation, with MT4, MT5 EAs, and cTrader cBots being the most popular. Prop firms that allow bots often are partnered with brokers that offer any of these platforms. If the prop firm’s partner broker does not offer any of the advanced platforms then traders might have to develop a dedicated 3rd party software which requires time and is costly.

Our top rated prop

Trader5

Our rating

Licences:

N/A

Currencies:

EUR

Trading Platforms:

Custom

Year founded:

2024

Promo Code:

N/A

Min Account size:

10,000 EUR

Trader5 Forex is a relatively new reliable firm with a 90% profit split and fast payouts. Enjoy 78-day payouts and starting fee of less than 100 EUR.

Sign Up Read Review

Recommended

Blue Guardian

Our rating

Licences:

N/A

Currencies:

USD

Trading Platforms:

MT4

Year founded:

2019

Promo Code:

N/A

Min Account size:

10,000 USD

Blue Guardian offers $0 withdrawal fees, access to MetaTrader 4, no profit target after the audition, up to 85% profit split, and very low fees starting from $87.

Sign Up Read Review

Funded Trading Plus

Our rating

Licences:

N/A

Currencies:

USD

Trading Platforms:

MT4, MT5

Year founded:

2013

Promo Code:

N/A

Min Account size:

5,000 USD (229 USD on Instant funded account)

Funded Trading Plus Forex prop firm is a solid player in the space. The firm offers funding for Forex trading from 5,000 to 250,000 USD and a scaling plan up to 2,500,000 USD.

Sign Up Read Review

The best prop firms that allow EA trading

Below is the best selection of prop firms that allow EAs.

High-Frequency Trading Bots Explained

High Frequency Trading or HFT is an algorithmic trading method where trades are executed at extreme speeds which are impossible for the human to react to. HFT are expensive algorithms that require high-speed internet and the lowest ping possible. HFT is an expensive endeavor, as it requires trading algorithm servers to be closer to the financial exchanges. Since some traders might have capital and be willing to use HFT EAs for funded trading, we are going to list the most reliable prop firms below. Prop firm EA trading with HFT may be even more costly, adding fees for funded accounts to existing costs.

Top prop firms that allow HFT EA

Pros and Cons of prop firms that allow EA trading

It is important to know both the advantages and disadvantages of automated trading before using them on a live funded account. The one prominent advantage of using EAs on funded accounts is that traders have access to a large capital that can be very useful for trading bots to make big profits. The best EA prop firms offer several benefits to Algo traders.

Pros of prop firms that allow EA trading

• Access to large capital – Prop firms typically offer access to significant trading capital, allowing traders to take larger positions and potentially higher profits than trading with one’s own money.
• Reduced capital risk – Traders are not financially eligible for any losses incurred during trading on funded accounts, reducing their risks significantly. Losses are typically limited to the trader’s profit share or a set drawdown limit. Prop firms usually have strict risk limits and rules protecting traders and firms from significant losses in case EA suddenly becomes unprofitable.
• Professional infrastructure – Prop firms often offer advanced trading platforms through their partner brokers. They also provide technology and support, which can help traders execute strategies effectively. Some firms also offer dedicated trading courses and coaching, which can be especially helpful.
• Reduced emotional impact – EAs do not require human interaction, eliminating emotional aspects from the trading, which can be very useful.
• 24/7 trading – EAs are not sleeping. While human traders need rest and can lose money when tired, EAs can maintain the same level of sharpness.

Cons of prop firms that allow EA trading

• Risk of malfunction – EAs can malfunction if there is a new condition in the market that was not programmed into the algorithm or code is not working properly. This can cause the bot to start losing money and since prop firms have strict risk limits, a trader might lose their funded account.
• Strict risk management – prop firms have strict daily and overall loss limits that can hinder EAs’ ability to make profits.
• Lack of adaptability – EAs are explicitly programmed to do certain actions according to conditions programmed in them. This can become very risky if market conditions start to change. In this case, EAs will start losing money most certainly.

How to select EA for prop trading

Selecting the best prop firm with EA can be easier than selecting the EA itself. This is true because prop firms have strict and sometimes hidden risk rules and require the trader to constantly monitor their losses.

Research prop firms

You need to know the exact risk parameters of the prop firm before using EAs. Some firms might have tighter risk rules than what your EA is capable of maintaining, potentially leading to a loss of a funded account.

Understand the firm’s EA policies

Ensure the firm you are opting for, allows EAs, or your account might get frozen or even terminated for breaking this rule. If there is no clear information on the website, check with the support to ensure they allow EAs.

Review EA performance metrics and client reviews

Check the historical performance of the EA if you are planning to purchase or download it. Backtest it on the historical data yourself to ensure it is profitable. Additionally, review comments online and see what other traders have to say about the EA. This way, you will ensure the EA is indeed profitable.

Risk management

This is the most crucial part of selecting the proper EA that can work within the accepted risk parameters of the firm. Some firms have stricter risk rules and if your EA has a higher drawdown it may end up in account termination. This step can be done together with the EA performance check research.

Customization and flexibility

If the EA allows it, try to adjust its risk parameters so that it aligns with the firm rules. Ensure EA has options to change settings for indicators, stop loss, and take profit. This is crucial as some firms might update their rules, and you do not want to lose your account because EA comes with unchangeable default settings.

Real-time monitoring

Backtesting is a crucial part, but constantly monitoring your EA has the same level of impact. Since markets are known to change, it is important to monitor EA’s performance and shut it down if it starts losing money.

Support and maintenance

If you have purchased EA from the market, ensure to receive news about updates and new settings to stay up to date about critical developments. It is always better to have the option to contact the support of the EA developers to ensure it works without errors. In case of issues, quickly contact developers and ask how to resolve them. In case you undeveloped your EA, try to monitor its every trade and see if the bot follows your programming. Periodically check and maintain your EA to exclude errors and unnecessary losses.

Why do some prop firms not allow EAs?

EAs are popular, but not all prop firms allow them. There are considerations and reasons why some firms are so strict towards algorithmic trading. Here are some key reasons why some firms restrict EAs:

• Risk management – Prop firms typically have strict risk management policies in place to protect their capital. EAs can trade automatically without human intervention, which may lead to excessive losses if the algorithm malfunctions or faces unusual market conditions.
• Lack of control – Prop firms often want their traders to have full control over their trading strategies. EAs can reduce the firm’s ability to monitor and manage trading activities effectively. EAs usually execute trades within milliseconds, and traders have little control over the trading strategy programmed into the robot.
• Accountability – Using EAs everything can be automated, which hinders traders’ ability to learn discipline and develop trading skills. Over-reliance on EAs can lead to poor trading skills.
• Strategy development – Most prop firms may prefer their traders to develop and execute their trading strategies manually, as this encourages a deeper understanding of the markets and trading principles. EAs can act as a shortcut to making profits without fostering the same level of learning and expertise as manual trading.
• Competitive advantage – In the case of prop firms that teach their strategies and methods, EAs may be prohibited from promoting in-house strategies that are well-tested and proven to be profitable.

FAQs on which prop firms allow EAs?