News trading uses analysis of economic reports and events to predict market prices. Using the news for trading is a versatile strategy that can be applied to all market types, though specific events to look out for will vary between assets.
Whether you’re considering news trading forex, stocks or oil, read our guide to find out how you can benefit from today’s wealth of news sources to predict prices. We’ll walk through an example news trading strategy, as well as explaining how you can use algorithmic bots to capitalise on the release of economic data.
Trading Brokers
Investing involves risk. Asset prices can move rapidly and you may lose some or all money invested. Never invest more than you can afford to lose.Advertising disclosure
Our picks at a glance
- 1 Pepperstone Top score: Platforms 4.8 Info Visit Pepperstone
- 2 XTB Top score: Trust 4.8 Info Visit XTB
- 3 Spreadex Top score: Mobile 4.5 Info Visit Spreadex
- 4 Interactive Brokers Top score: Trust 4.6 Info Visit Interactive Brokers
- 5 IG Top score: Fees 4.5 Info Visit IG
- 6 Trade Nation Top score: Support 4.4 Info Visit Trade Nation
- 7 Eightcap Top score: Mobile 4.6 Info Visit Eightcap
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Our top pick
Founded in Australia in 2010, Pepperstone is a leading forex and CFD broker serving over 830,000 clients globally. It provides access to 1,400+ instruments through MT4, MT5, cTrader and TradingView, with low, transparent pricing. Regulated by the FCA, ASIC and CySEC, Pepperstone offers a secure trading environment for all experience levels.
- Instruments
- CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto CFDs (only Pro clients), Spread Betting
- Regulator
- FCA, ASIC, CySEC, BaFin, DFSA, SCA, SCB, CMA-Kenya
- Platforms
- Pepperstone Trading Platform, MT4, MT5, cTrader, TradingView
- Min. Deposit
- $0
- Min. Trade
- 0.01 Lots
- Leverage
- 1:30 (Retail - UK, EU, Australia), 1:500 (Pro), 1:200 (Offshore), 1:400 (Kenya)
CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. 73-89% of retail investor accounts lose money when trading CFDs.
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Established in Poland in 2002, XTB caters to over a million clients worldwide. This forex and CFD broker offers a robust regulatory framework, a diverse range of assets, and prioritises trader satisfaction. It provides an intuitive proprietary platform equipped with excellent tools to support aspiring traders.
- Instruments
- CFDs on shares, Indices, ETFs, Raw Materials, Forex currencies, cryptocurrencies, Real shares, Real ETFs
- Regulator
- FCA, CySEC, KNF, DFSA, FSC, SCA, CMF, Bappebti
- Platforms
- xStation
- Min. Deposit
- $0
- Min. Trade
- 0.01 Lots
- Leverage
- 1:30
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money
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Spreadex, regulated by the FCA, provides spread betting across 10,000+ CFD instruments, including 60 forex pairs. Traders have the option to engage in short-term positions on sporting events as well. With a history exceeding 20 years, the company has earned numerous accolades.
- Instruments
- Forex, CFDs, Indices, Commodities, Stocks, Crypto, Bonds, Interest Rates, ETFs, Options, Spread Betting
- Regulator
- FCA
- Platforms
- Spreadex Platform, TradingView, AutoChartist
- Min. Deposit
- £0 (but £5 minimum for standard payment methods)
- Min. Trade
- £0.01
- Leverage
- 1:30
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Interactive Brokers (IBKR) stands as a leading brokerage, offering access to 170+ markets in 40 nations alongside extensive investment services. With 40+ years in finance, this Nasdaq-listed entity complies with regulations from the SEC, FCA, CIRO, and SFC, ensuring global trustworthiness in trading.
- Instruments
- Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, Cryptocurrencies, CFDs
- Regulator
- SEC, FINRA, CFTC, NFA, CIRO, FCA, CBI, ASIC, SFC, SEBI, JFSA, MAS
- Platforms
- Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower
- Min. Deposit
- $0
- Min. Trade
- $1
- Leverage
- 1:30
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Established in 1974, IG is a unit of IG Group Holdings Plc, listed on the LSE as IGG. It provides access to over 17,000 markets through intuitive platforms and apps. For half a century, IG has remained an industry leader, excelling in all vital aspects for traders.
- Instruments
- CFDs (not in US), Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting (UK only)
- Regulator
- CFTC, NFA, FCA, BaFin, ASIC, FINMA, MAS, JFSA, FMA, DFSA, BMA, CONSOB
- Platforms
- Web, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral, ProRealTime
- Min. Deposit
- $0
- Min. Trade
- 0.01 Lots
- Leverage
- 1:30 (Retail), 1:222 (Pro)
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
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Trade Nation is a leading FX and CFD broker regulated in the UK and Australia, among other places. The company provides competitively priced fixed and variable spreads on over 1,000 assets. Traders benefit from advanced platforms and comprehensive training materials. Additionally, the Signal Centre offers valuable trade ideas.
- Instruments
- CFDs, Forex, Indices, Shares, Commodities, Futures, Bonds, Spread Betting (UK and Ireland only), Cryptos (Bahamas entity only)
- Regulator
- FCA, ASIC, CMVM , FSCA, SCB, FSA
- Platforms
- TN Trader, MT4, TradingView
- Min. Deposit
- $0
- Min. Trade
- 0.1 Lots
- Leverage
- 1:30
67.3% of retail investor accounts lose money when trading CFDs with this provider.
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Eightcap, an acclaimed broker regulated by the FCA, offers exceptionally low trading costs. Recognised as the top-rated brand by TradingView's vast user base of 100 million, traders can directly access the platform. UK traders can open a live account with a minimum deposit of just £100.
- Instruments
- CFDs in Forex, Stocks, Indices, Commodities
- Regulator
- FCA, ASIC, CySEC, FSC, SCB, FSA
- Platforms
- MT4, MT5, TradingView, TradeLocker
- Min. Deposit
- £100
- Min. Trade
- 0.01 Lots
- Leverage
- 1:30
Services are provided subject to applicable laws and regulations. Certain products, services, instruments, platforms or payment methods may not be available to residents of certain jurisdictions.
Compare
Safety Comparison
Compare how safe the News Trading are and what features they offer to protect traders.
| Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
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4.6 | ||||
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4.6 | ||||
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4.0 | ||||
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4.7 | ||||
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4.4 | ||||
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4.3 | ||||
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4.3 |
Payments Comparison
Compare which popular payment methods the News Trading support and whether they have trading accounts denominated in British Pounds (GBP).
| Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
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Mobile Trading Comparison
How good are the News Trading at mobile trading using apps or other mobile interfaces.
| Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
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iOS & Android | 4.4 | 4.1 | |
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iOS & Android | 4.7 | 4.1 | |
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iOS & Android | 4.5 | 4.5 | |
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iOS & Android | 4.3 | 4.5 | |
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iOS & Android | 4.6 | 4.0 | |
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iOS & Android | 4.5 | 4.5 | |
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iOS & Android | 4.8 | 4.4 |
Beginners Comparison
Are the News Trading good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?
| Broker | Demo Account | Minimum Deposit | Minimum Trade | Support Rating | Education Rating |
|---|---|---|---|---|---|
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$0 | 0.01 Lots | 4.6 | 4.0 | |
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$0 | 0.01 Lots | 4.3 | 3.8 | |
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£0 (but £5 minimum for standard payment methods) | £0.01 | 4.3 | 4.0 | |
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$0 | $1 | 3.0 | 4.3 | |
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$0 | 0.01 Lots | 4.5 | 4.8 | |
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$0 | 0.1 Lots | 4.9 | 4.2 | |
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£100 | 0.01 Lots | 4.0 | 3.5 |
Advanced Trading Comparison
Do the News Trading offer features that allow for more advanced trading strategies?
| Broker | Automated Trading | Pro Account | Leverage | VPS | AI | Low Latency | Extended Hours |
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Expert Advisors (EAs) on MetaTrader, cBots on cTrader | 1:30 (Retail - UK, EU, Australia), 1:500 (Pro), 1:200 (Offshore), 1:400 (Kenya) | |||||
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1:30 | ||||||
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TWS API | 1:30 | |||||
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Expert Advisors (EAs) on MetaTrader, build your own on ProRealTime | 1:30 (Retail), 1:222 (Pro) | |||||
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Expert Advisors (EAs) on MetaTrader | 1:30 | |||||
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TradingView Bots | 1:30 |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the News Trading.
| Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
|---|---|---|---|---|---|---|---|---|---|
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4.6 | 4.8 | 4.3 | 4.6 | 4.5 | 4.0 | 4.6 | 4.3 | 4.0 |
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4.6 | 4.0 | 4.4 | 4.6 | 3.9 | 4.0 | 4.3 | 4.1 | 3.8 |
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4.0 | 4.3 | 4.5 | 4.5 | 4.0 | 3.8 | 4.3 | 4.3 | 4.0 |
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4.7 | 3.9 | 4.4 | 4.7 | 4.3 | 3.9 | 3.0 | 4.7 | 4.3 |
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4.4 | 4.8 | 4.3 | 4.5 | 5.0 | 4.0 | 4.5 | 4.9 | 4.8 |
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4.3 | 3.9 | 4.5 | 3.7 | 4.3 | 4.2 | 4.9 | 3.9 | 4.2 |
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4.3 | 4.3 | 4.6 | 3.6 | 3.8 | 4.0 | 4.0 | 3.5 | 3.5 |
Our Take On Pepperstone
Pepperstone excels in trading with tight spreads, swift execution, and advanced charting for seasoned traders. Beginners enjoy zero minimum deposit, comprehensive educational materials, and outstanding 24/5 support, including 18-hour weekend assistance.
Tobias Robinson Reviewer
Pros
- Support for top-tier charting platforms such as MT4, MT5, TradingView, and cTrader. These tools accommodate different short-term trading methods, including algorithmic trading.
- Pepperstone offers pre-IPO perpetual futures, adding Anthropic in October 2026, enabling 24/7 speculation on expected share prices through cash-settled CFDs.
- In recent years, Pepperstone has significantly enhanced the deposit and withdrawal process. By 2025, clients can use Apple Pay and Google Pay, while 2024 saw the introduction of PIX and SPEI for customers in Brazil and Mexico.
Cons
- Overnight holding fees exceed those of some Market Maker brokers (typically Benchmark + 2.5%). Pepperstone suits traders and forex scalpers well but is less ideal for swing traders who keep positions open overnight.
- Execution might not appear as dependable in rapid markets as headline speeds imply. Our tests showed swift execution at targeted prices. However, community feedback highlights concerns over slippage, stop-loss fills, and order triggers sensitive to spreads amid volatility.
- Although the market range has expanded, crypto CFD options remain somewhat restricted, especially when compared to specialised brokers like Eightcap. Additionally, there is no facility to invest in actual cryptocurrencies.
73-89% of retail investor accounts lose money when trading CFDs
Our Take On XTB
XTB excels for novice traders with its superb xStation platform, minimal trading costs, no required deposit, and outstanding educational resources, many of which are fully integrated into the platform.
William Berg Reviewer
Pros
- In 2026, XTB expanded its asset offerings and markets. It introduced options trading in Spain and Germany, launched spot cryptocurrencies in select regions, and unveiled Investment Plans 2.0. These enhanced plans now feature more pre-built options, including sectors like Defence, a user-friendly interface, and increased flexibility to mix stocks and ETFs within individual plans.
- The xStation platform stands out with its user-friendly design and intuitive tools, such as adaptable news feeds, sentiment heatmaps, and a trader calculator. These features streamline the learning process for new traders.
- XTB offers a superb array of educational resources, such as training videos and articles, embedded within the platform to assist traders of all experience levels.
Cons
- XTB lacks a raw spread account, a feature increasingly offered by competitors such as Pepperstone. This omission might not satisfy traders seeking the most competitive spreads.
- The demo account lasts only four weeks, posing a challenge for traders wanting to fully explore the xStation platform and refine short-term strategies before investing actual money.
- XTB has stopped supporting MT4, restricting traders to its own platform, xStation. This decision may discourage experienced traders accustomed to using the MetaTrader suite.
74% of accounts lose money when trading CFDs with this provider.
Our Take On Spreadex
Spreadex attracts UK traders keen on spread betting in financial markets and traditional sports wagers. It offers low fees for short trades, and spread bet profits are tax-free. With a robust charting platform and no minimum deposit, it's easy to begin.
Tobias Robinson Reviewer
Pros
- Spreadex has integrated Autochartist-powered trading signals into its desktop platform. This offers real-time, pattern-based insights aimed at assisting active traders in spotting potential opportunities.
- During live trials near London, Spreadex exhibited 120–200ms round-trip latency across over 50 FTSE and EUR/USD trades. There were no requotes, and slippage remained largely controlled under normal market conditions.
- Over 10,000 instruments and superior access to AIM small-caps are available, including exclusive offerings not found with larger brokers. This provides UK-centric traders with enhanced opportunities in niche small-cap configurations.
Cons
- Spreadex requires real funds initially, offering no demo accounts. Few spread betting brokers neglect to accommodate new traders in this manner.
- CFDs, financial spread bets, sports, and casino activities are combined in one account balance. For serious traders, this means non-trading losses can immediately decrease the margin for trading positions.
- Execution is satisfactory, though not top-tier. Tests showed 0.2–0.4 pip slippage in stable liquid markets, but news-induced volatility increased some fills to around 1 pip. Thinner AIM stocks often experienced 2–4 point slippage.
Our Take On Interactive Brokers
Interactive Brokers ranks highly for seasoned traders due to its robust charting platforms, live data, and bespoke layouts via the new IBKR Desktop app. Its competitive pricing and sophisticated order choices appeal to traders, and its wide equity options are industry-leading.
Tobias Robinson Reviewer
Pros
- IBKR is a highly respected brokerage, regulated by top-tier authorities, ensuring the integrity and security of your trading account.
- Interactive Brokers has introduced a single platform linking prediction markets on Kalshi, CME Group, and ForecastEx. Users can trade yes/no contracts on political, economic, and climate events, with fixed $1 payouts. Enjoy 24/6 market access and earn interest on eligible positions.
- The TWS platform is tailored for intermediate and advanced traders, featuring over 100 order types and a dependable real-time market data feed with exceptional uptime.
Cons
- TWS has a steep learning curve, making it difficult for newcomers to navigate and grasp its features.
- IBKR offers a variety of research tools, but their inconsistent placement across trading platforms and the 'Account Management' webpage creates a confusing experience for users.
- Support can be sluggish and frustrating. Tests reveal that you may face challenges reaching customer service quickly, which could result in delays in issue resolution.
Our Take On IG
IG offers a complete package: an easy-to-use web platform, top-tier beginner education, enhanced charting via TradingView, up-to-date data, and strong trade execution for seasoned traders.
Tobias Robinson Reviewer
Pros
- IG excels with its diverse instruments, offering stocks, forex, indices, commodities, and cryptocurrencies. Additionally, it provides US-listed futures, options, and an AI Index, ensuring varied diversification opportunities.
- IG is aiming to expand its market roster with prediction markets covering politics, sports and entertainment in the UK (subject to it being granted a UK gambling license), with other regions potentially to follow.
- IG secured a crypto asset license from the FCA, enabling its return to the UK market. It now offers buying, selling, and storage services for over 55 digital tokens with fees starting at 1.49%, all under FCA regulation.
Cons
- Beginners may find IG's fees complicated, as they vary depending on the trades or services. This could cause confusion and unexpected costs.
- IG has ended its swap-free account, diminishing its attractiveness to Islamic traders.
- IG imposes a monthly inactivity fee of $12 to $18 after two years, discouraging occasional investors.
70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Our Take On Trade Nation
Trade Nation caters to discretionary traders aiming to speculate on major indices like the US 500 or liquid FX pairs, with the certainty of fixed spreads. Our tests revealed the TN Trader's fixed spreads to be advantageous, especially during economic announcements, thanks to its dependable charting and capped spreads.
Tobias Robinson Reviewer
Pros
- Trade Nation's 2026 alliance with Volt has streamlined payments for Australian traders, enabling instant deposits and withdrawals via PayID. Faster payout features are also anticipated for UK and EU clients.
- The broker expanded into Europe with regulated online trading services after securing authorization from Portugal's CMVM boosting its safety protections for European residents.
- During tests of the TN Trader account in standard market conditions, fixed spreads remained stable. Major forex pairs experienced prompt order fills, albeit with slight entry level drift as prices fluctuated between click and execution.
Cons
- Offshore SCB and FSA firms offer retail investors leverage up to 1:200 and 1:500. In contrast, regions like the UK, Europe, and Australia cap leverage at 1:30. Thus, an FSA client can access 16 times more exposure than a UK retail client on identical trades. However, this comes with reduced oversight and no compensation schemes.
- The FCA, CMVM, and ASIC clients are ineligible for the 2–20% rebate scheme. Consequently, active traders in these areas cannot receive transaction rebates.
- There is no raw or ECN pricing tier, often favoured by traders. Regardless of your deposit or trading volume, you receive the same fixed (or variable on MT4) pricing as novices, rendering it particularly unsuitable for scalpers.
67.3% of retail investor accounts lose money when trading CFDs with this provider.
Our Take On Eightcap
Eightcap excels for traders, offering diverse charting platforms, educational Labs, and AI tools. With over 120 crypto CFDs, it stands out in crypto trading and has won our 'Best Crypto Broker' award twice consecutively.
William Berg Reviewer
Pros
- Eightcap has excelled in all essential trading areas, surpassing all rivals to clinch our 'Best Overall Broker' award for 2024. It also earned the titles of 'Best Crypto Broker' and 'Best TradingView Broker' for 2025.
- In 2026, Eightcap integrated TradeLocker in select areas, establishing itself as the premier regulated broker for this platform. It continues to offer ultra-fast execution and competitive fees for active traders using the charting software.
- Eightcap has launched GOLD247, offering 24/7 gold/USD CFD trading with up to 1:20 leverage, 0.01-lot minimums and zero commission for weekend gold traders.
Cons
- Despite the growing range of tools available, Eightcap lacks popular industry resources such as Autochartist and Trading Central. These provide advanced charting analytics, live news, and essential market insights for traders focused on short-term strategies.
- Eightcap must enhance its range of over 800 instruments to rival top competitors like Blackbull Markets, which offers 26,000+ assets, especially improving its limited commodities selection.
- The demo account is available for 30 days, after which it requires a request for extension. This is less convenient than XM's offering, which provides an unlimited demo mode.
71.28% of retail traders lose money when trading CFDs
What Is News Trading?
Trading on the news is based on analysis of economic news and events, unlike technical analysis which uses charts and indicators to predict patterns. However, technical analysis can be used in combination with news-driven trading to confirm any predicted trends. News trading involves reacting to events that are both scheduled and unscheduled.
Scheduled news trading uses reports from recurring or one-off events with predictable timings, such as company announcements or general elections. Day traders take advantage of the volatility that often surrounds stocks just before and after an announcement, unlike longer-term investors who will be interested in whether the overall trend is likely to reverse. Speculation can be just as important, if not more important, than the reported figures themselves. The most successful scheduled trading will come from traders who have carried out in-depth research of the company, asset or market they are trading.
Unscheduled events are ‘one-off’ occurrences. These are the unpredictable events such as the 2008 financial crisis or Covid-19 pandemic, that a trader will likely be unprepared for. However, the potentially significant impact of these events means there can be high profits to be made.
News Trading Markets
News affects everything and can therefore be applied to all markets including forex, stocks cryptos, oil, futures, and gold, though certain news events will have a stronger effect on specific market directions.
Forex
When trading news on forex now, central bank announcements and political news can have large influences on price. UK news traders should consider the effect of a general election or Bank of England online announcements on the FTSE100 and USD/GBP when developing indices and forex news trading strategies. The EU referendum result in 2016 saw a strong breakout of EUR/GBP, for example.
Stocks
Company share price is likely to be impacted by periodic company announcements and annual reports. Stock news trading strategies can be developed based on patterns seen around these news releases.
Cryptos
Cryptos are primarily affected by supply and demand and are not influenced by monetary policy. News reports about trading regulation and competing altcoins are significant when news trading cryptocurrency.
Commodities
Gold news traders should keep on top of updates regarding inflation, deflation and supply and demand. Supply and demand are also extremely influential on the price of oil and gas, along with any news relating to OPEC (Organisation of the Petroleum Exporting Countries).
How To Trade On The News
Trading on the news involves three key steps: find a suitable broker, conduct research and establish a trading strategy.
Choosing A Broker
First, you’ll need to decide on a broker to execute your trades. Basic checks include whether they offer access to the market you are interested in, the associated spreads and fees, and if they are regulated. The FCA is a reputable regulator in the UK, which ensures protection of funds up to £85,000 through the FSCS.
The tools offered by the broker should also be a deciding factor. In particular, review their trading platform, which might be proprietary or a popular third-party platform such as MetaTrader. Either way, an easily accessible economic news calendar and the ability to place pending orders to lock profit and minimise losses is crucial. Check if the broker has an app so you can keep up-to-date with news and execute trades on the go.
Many brokers offer demo accounts which allow traders to practice using virtual funds first. Practising with yesterday’s trending news is a great way to get familiar with news trading.
Though Trading 212 is an FCA regulated broker, its mobile app ratings are poor. Pepperstone is a great FCA regulated broker which excels in its platform choices, offering 11 types including MetaTrader and cTrader. OctaFX, which is regulated by CySEC, is also a good option for news traders looking to use the MetaTrader platforms.
Research Markets
Taking the time to conduct in-depth research is essential for news-based trading. Books provide the framework for news trading strategies, while subscribing to a trading newspaper, newsletter or podcast will keep you up to date with today’s trading news around the world.
The top websites for news trading include Bloomberg (which also has a radio channel) and Reuters, covering events that impact various markets from brent crude oil to gold. They are also great sources of international news, including US NFP reports and stock exchange information about Nasdaq, ASX, DAX and NSE. The TradingView news feed provides a great free source of events and analysis today, while Telegram has a host of trading channels to pick up tips.
For forex specific trading news releases and updates this week, check out websites such as IG. YouTube is a rich source of information for the best forex secrets and insider tips, which also provides live demos of news trading.
Crude Oil News Trading Strategy Example
The latest crude oil price crash of 2014 was a combination of multiple factors that could have been predicted using news trading. Here, we discuss the specific events to look out for when oil news trading, in addition to how technical analysis can be used to confirm price predictions.
A range of economic news sources provided indications of the oil price decline in 2014:
- GDP reports – Countries such as China, which had pushed up oil prices due to increasing demand in the lead up to the financial crisis of 2008, had weakening economies. This could be observed in their GDP reporting from 2008 onwards.
- Forex analysis – The US Dollar is also important when news trading oil, due to its correlation with oil commodities which are generally traded in USD. Forex analysis shows the US dollar was strong in 2013, encouraging oil production.
- Supply and demand reports – An extended period of high oil prices resulted in overproduction, as captured in the International Oil Agency report which details oil supply and demand.
- OPEC news – The overproduction led the price of oil to drop, subsequently raising the question about whether OPEC would cut production in response. By following OPEC news, traders would have been made aware of the announcement in November that Saudi Arabia were to maintain their oil production levels, leading to a further decline in oil price.
These news reports are backed up by technical analysis including Moving Average (MA) indicators and the Relative Strength Index (RSI). A longer-term MA with a 200 day period can be used in combination with a shorter-term MA with a 20 day period. The shorter-term MA (blue line) crossing below the longer-term MA (green line) is an indication that the trend is moving downwards and is therefore a sell signal. The RSI (purple graph) indicates whether an asset is oversold or overbought, using a scale of 0 to 100. A reading above 80 is considered to be overbought, further confirming the sell signal.
Algorithmic News Trading
Robots can be used to automate news trading, enabling quicker trading reactions based on vast sources of information. However, training the bot to distinguish which news is relevant can be difficult and may require more complex artificial intelligence methods. Reacting to news announcements such as interest rates at high speed is one example of a simple way to get value from using software algorithms for news trading.
Example news trading robots include Expert Advisors (EAs) and indicators which are available on MetaTrader platforms such as MT4. Many are available for free download from the MetaTrader code library, while traders can also develop bespoke news trading bots using the MQL programming language. News based trading algorithms can be designed to simply set alerts, apply pending orders or carry out more specific trades based on signals. Developers of bespoke bots can use APIs to connect their algorithms to a broker platform, enabling tracking of real-time prices.
Final Word On News Trading
News trading is a popular strategy based on the research of economic events to predict asset prices, across all markets. With traders able to access more news sources than ever, in-depth research of relevant reporting is key. Algorithmic bots can provide the trader with an advantage over manual trading methods, by enabling analysis of vast amounts of economic news data and reacting to events extremely quickly.
FAQ
What Is News Trading Vs Technical Trading?
News trading decisions are based on economic news and events, unlike technical analysis which uses charts and indicators to predict patterns. Technical analysis can be used in combination with news driven trading to confirm predicted trends.
What Is News Based Day Trading?
Day traders can take advantage of the short-term volatility surrounding markets just before and after economic events, such as central bank reports and company announcements.
Which UK Broker Is The Best For News Trading?
Pepperstone is one of the best UK broker choices for news trading. As well as being FCA regulated, it offers a huge range of platform options including MetaTrader and cTrader.
Where Can I Find Trading News Now?
The top news trading websites include Bloomberg and Reuters, covering events that impact various markets including forex. A series of other websites, such as Zerodha, have breaking news pages for traders looking to find information on assets such as gold and oil right now.
What Is a News Trading Forex Strategy?
News trading forex strategies should prepare for the impact of events such as central bank announcements and political news, including general elections. In the UK, these are likely to have the largest impact on USD/GBP and EUR/GBP forex pairs.