Exploring Arbitrage Trading Software: A Professional Trader’s Review

Alex K. for bestarbitragesoftware.com

As a professional trader with extensive experience working at an investment company (whose name I can’t disclose), I’ve seen firsthand how critical the right tools are in the world of arbitrage trading. In this article, I’ll be sharing my insights into several arbitrage trading programs, providing a comprehensive review of their capabilities, strengths, and weaknesses. My goal is to help experienced traders identify the best tools for their strategies and potentially discover new opportunities for growth in their trading practices.

Initial Outreach and Product Selection: NewHope vs SharpTrader vs HFT Arbitrage Platform vs WesternPips

To start my review, I reached out to several developers for demos of their arbitrage trading software. My aim was to evaluate these programs based on real-world scenarios and determine which ones are most effective. Here’s a look at the programs I tested:

1. NewHope Arbitrage Software:
   I initially faced challenges accessing NewHope’s site, as it was down at the time. I contacted their support via email, as the program has mixed reviews online. Despite the site issues, I decided to test NewHope based on some positive feedback I found, though their refusal to provide a demo and instead offer a $500 monthly trial did raise concerns.
2. HFT Arbitrage Platform:
   This platform allows for purchasing a full demo directly from their site, with reasonable pricing for the complete version at $2,605. The platform’s straightforward access and the ability to skip support interaction made it an attractive option to start with.
3. BJF Trading Group – SharpTrader:
   Known for reliable support, BJF Trading Group promptly sent me a demo version after I reached out. SharpTrader has a robust reputation in the industry, and my initial impressions were positive regarding its accessibility and functionality.
4. WesternPips:
   WesternPips responded to my demo request by offering a 50% discount, although there was no money-back guarantee. The prices for WesternPips’ packages were on the higher end, with options including Classic and Hedge Arbitrage at $2,500 per month and a Gold package at $3,750. Despite the high cost, I purchased the Gold package for a comprehensive review.

Key Review Parameters

For each product, I focused on several critical parameters that are essential for effective arbitrage trading:

• Latency:
  The time required to send and receive information from my device to the broker is paramount. Lower latency means quicker trades, which is a core requirement for arbitrage.
• Order Speed:
  The speed at which orders are executed is another key factor. In arbitrage trading, milliseconds can make the difference between profit and loss, making this an essential feature.
• Broker and API Compatibility:
  The ability to work seamlessly with multiple brokers, various API protocols, and multiple feeds is crucial for a flexible trading setup. A strong arbitrage platform should support a wide range of brokers to maximize trading opportunities.
• Stability and Reliability:
  A stable program is vital, especially when managing multiple accounts simultaneously. It needs to handle errors gracefully, log alerts, and ensure that trades are executed without technical failures that could lead to financial losses.
• Versatility in Strategies:
  Since arbitrage trading is evolving, it’s important for the software to support various strategies, including lock or hedge arbitrage across multiple accounts. This versatility allows traders to adapt to changing market conditions.
• Developer Support:
  While I have a strong understanding of these programs, good developer support is critical, especially for new users. Poor support can deter traders, so this is an important consideration in my evaluations.

Forex Arbitrage Software – Demo Outreach Results and Testing

Here’s how each of the companies responded to my demo requests and the initial findings from my tests:

• BJF Trading Group (SharpTrader):
  They provided a detailed tutorial along with the demo. SharpTrader’s interface is user-friendly, and I found the setup process smooth. The program’s ability to manage various strategies and its extensive customization options stood out. I appreciated how it allowed for detailed strategy configuration, including the use of FIX API connectors and access to numerous brokers.
• NewHope Arbitrage Software:
  Although they didn’t provide a demo, I went ahead with their $500 monthly trial. The setup was a bit cumbersome due to initial website issues, but the program’s latency and execution speed were decent during my preliminary tests. However, the overall cost for continued use seemed high compared to other options.
• WesternPips:
  Despite the high price, I tested WesternPips with their Gold package. The software includes features like MT4 Protocol, Classic Arbitrage, and Hedge Arbitrage, but I found some limitations, particularly with the Classic Arbitrage feature due to broker detection issues. The program also required manual adjustments that could be complex for newer traders.

Forex Arbitrage Software Pricing Comparison

To break down the costs in more detail:

• HFT Arbitrage Platform:
  Priced at $2,605 for the full package, this is the most affordable among the tested platforms. It offers a demo version and comes with a good range of features suitable for traders looking for a cost-effective option.
• SharpTrader (BJF Trading Group):
  SharpTrader is on the pricier side, but frequent sales and demo options make it accessible for those who want a high-performance platform with extensive support.
• NewHope:
  The monthly trial at $500 seemed steep, especially without a demo option. For traders looking for short-term solutions, this might not be the best value for money.
• WesternPips:
  With the Gold package priced at $3,750, WesternPips is the most expensive, but it includes advanced features that could justify the cost for high-volume traders. The lack of a refund policy, however, is a drawback.

VPS and Account Setup

For testing purposes, I used the UltraFX VPS, known for its reliable servers in London and New York. Given my broker’s London base, I opted for the London server, which costs £75 per month—a reasonable rate for the performance offered. I staggered the setup of two accounts on each program to evaluate settings, accessibility, and flexibility across the tested platforms.

HFT Arbitrage Platform and SharpTrader Testing Results and Insights

HFT Arbitrage Platform:
This platform yielded a 475% profit in one week, a result that underscores the high-risk nature of such trading. My usual trading approach aims for 10-20% monthly returns, and with a drawdown of 9%, the platform performed well, especially given the trading volume of 0.5 lots on a $5,000 deposit.

SharpTrader (BJF Trading Group):
SharpTrader showed similar results with a 471% profit over the same period. Notably, SharpTrader has a slight edge in order management, holding trades longer than the HFT Arbitrage Platform, which aids in better masking arbitrage activities. This advantage was clear when switching between testing the two platforms.

Summary and Recommendations

From the detailed tests and comparisons, SharpTrader stands out for its comprehensive interface, extensive analysis capabilities, and strong support, making it my preferred choice over the HFT Arbitrage Platform. However, if budget constraints are a significant concern, HFT Arbitrage Platform remains a solid, more affordable alternative.

Both platforms have their strengths, and the choice ultimately depends on your specific trading needs and budget. If you’re ready to take on high-risk, high-reward arbitrage strategies, either of these platforms could serve you well, provided you understand the risks involved.

What’s Next?

In my next video, I plan to delve into the results of trading with Western Pips. I encourage you to subscribe to my channel so you can stay updated on my ongoing reviews of arbitrage trading robots and tools. Your support helps me continue exploring and testing these products to provide you with the most informed recommendations.

Thank you for following along, and I look forward to sharing more insights in the next installment!