How AI-Backed Software is Transforming CFD Trading



Senior editor

Parul Saxena

Chief editor

Last updated: November 27, 2019

Artificial intelligence (AI) is changing the face of every business sector. For those that trade in contracts for difference (CFD), the potential for AI seems almost limitless. AI-driven software is helping consumers and brands interact in real-time, reduces human error across every department, and allows for more impressive adoption of automation. As an industry that only continues to grow, there are up to $5.3 trillion worth of trades made every single day. It is an attractive option to consider for investors, as it offers potentially low costs, high profits, is easy to enter, and there remains no central regulatory body.

However, understanding the industry is vital, and traders are increasingly making use of AI to minimize risks and boost profits. AI is the forex revolution that you need to pay close attention to.

How AI-Backed Software helping to Transform CFD Trading

  • Predictive Analysis

The main advantage of using AI-driven software is that predictive analysis becomes much faster, easier, and more accurate. By making use of existing trade data and historical algorithms for improved market analysis, a vast leap is being made between human ability and what is now a very tangible reality. 

Software Powered by AI makes fewer mistakes than human traders and can analyze incredibly large data sets much faster than any human is capable of. 

Those traders that are focusing on CFD trading and using AI with the latest software are much better positioned to make trading strategy decisions that will yield the maximum profit. Having the right AI software in place can exponentially improve your predictions based on real-world data, and the results are proving very profitable for those traders that are already making use of AI tools.

  • User Focus and Millenial Demand

Forex trading is like any other industry in that it needs to have a positive user experience. When up to half of all forex traders are millennials, that means keeping pace with the tech demands of a generation has grown up and surrounded by the latest digital upgrades. That means that they are using multiple devices to find and use the right brokers, and forex traders don’t position where other traders exist are going to miss out on profitable opportunities. 

As mobile trading looks set for continued growth, AI is becoming even more vital. 

The speed of machine learning means that it is possible to keep up with those that trade on the go and to become faster at recognizing when a high-profit trade becomes possible. As younger generations continue to make their presence felt in the forex sector, you must start looking closer at how AI and the right software can keep you moving at the same speed as those that are equally as keen on making a profit.

  • Short Term Market Movements

CFD trading continues to grow, and that means increasing amounts of data that need to be analyzed and used. Forex analytics systems are always reliant on information, and advanced neural networks can produce much more accuracy when it comes to short term market movements. AI and machine learning are disrupting many industries, but for forex and CFD traders, it is proving to be the key to improved stability. 

The high accuracy rates mean that investors and traders are better able to make profitable decisions based on real-world data and analysis. 

All traders would like to have unlimited information, but the problem has always been finding ways to effectively use that data. Now, the software can streamline analysis of vast volumes of both historical and real-time information, collating the results into easy to read and use reports that can have a dramatic and positive effect on your trading decisions.

  • Trading Bots

Trading bots may not be the most reliable tool for successful traders, but as AI and software continue to boost each other, trading bots could be the next big thing in CFD trading. Trading bots are software programs that make trades automatically, based on triggers and parameters that you set. Because AI is based on rule-based systems, trading bots have limited flexibility, but they are slowly having an impact on the trading markets. 

Of course, no existing trading bot is as adept at making decisions like a human. Still, although they are currently reliant on the intervention and parameter setup designed by the trader, once in place, they can become a steady source of profit. 

As trading bot developers move into the open-source field, you should expect to see much more widespread adoption of this kind of AI-powered software. They may be struggling to scale for high-volume traders. Still, as machine learning continues to improve, trading bots could soon be the number one way of ensuring profit generation over both short and long-term investment periods.


The financial sector was one of the first to develop an interest in artificial intelligence, and it continues to invest. When the markets are so complex and the volumes of data so bewildering, it makes sense that the right software combined with the latest in AI is a recipe for success in the digital age. If you want to improve the future of your CFD trading, then dismissing AI could be a mistake that you will regret.

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