♦ Best Binary Option Robots ♦

The binary option robot has helped thousands of people to invest more efficiently. In this page, I will go through the main features of this trading software, and tell why both novice and experienced investors can benefit from using it. I will reveal the ten best tips (that every investor should use) for making more money with binary options. In addition, I will also answer to the most frequently asked questions and share my own experiences with the best binary robots. If you want to take advantage of an opportunity to earn money by trading binary options at home, please follow my instructions and see how great the results will be.

Click Here To See What The Robot Can Do

Table of Content:

  • Binary option robot introduction and demo video
  • Ten tips for making more money with binary options trading
  • More in-depth look (the reasons why you should use trading software)
  • Testimonials and success stories
  • Frequently asked questions (FAQ)
  • What is the best binary robot and why?
  • What is the option robot and why it is almost as good as the binary option robot?
  • History of automated trading systems
  • References and recommended reading

Our professional traders are here to help you free of charge; if you give them an opportunity to do so, you will be completely satisfied with the results. See from below what kind of result some of our traders have achieved with the robot.


binary option robot results*

Binary Robot For Free | Limited Number of Spots

Only One Free Copy Per Person!

Regular price $ 99, Our Price $ 0!

make money while you sleep

Claim your free robot and learn how a passive income stream enables you to make money while you sleep!*

Vital Statistics:

  • $350 per hour (The amount usually charged for investment advice by our main author Michael Allen. However, he will describe his best tips and strategies free of charge on this website.)
  • 72% (Of the visitors of this website have registered Binary Option Robot after their first visit.)
  • 92% (Of these visitors are very pleased with the robot and would happily recommend it to their friends.)
  • (Job offers that our main author Michael Allen has received from major Wall Street firms over the last year. However, he has instead chosen to start writing articles on this website.)
  • 95% (Of the visitors of this website thought that investing is difficult before they started using the Binary Option Robot.)
  • 86% (Of the same visitors now think that investing is easy or very easy, considering they already tried the robot.)
  • 96% (Of these visitors – who have not used the robot after their first visit, but freely registered it afterwards – are confident that they lost money because they hesitated to start using the robot immediately.)

Video Instructions 

Guide to Make Profits

With this excellent software, you have the opportunity to earn money at home*, in ways that you never thought was possible. Please read our systematic instructions below and begin your journey to a more prosperous life today.

Ten Best Tips for Making More Money with Binary Options

In order for these instructions to work correctly, you need to open accounts through our links. We have negotiated the best exclusive deals for our readers; these deals cannot be obtained through other sites. So if you have opened an account through another website, please stop reading for a moment, open a new account through our links, and then continue with the steps below:

  1. Invest with binary option software. Especially if you are a novice investor, the robot is a great help for you when you’re not completely sure whether some investment is lucrative or not.
  2. Open an account for more than one broker site. I personally, use twelve different investment accounts at the same time. This way, I am able to take advantage of all the best offers that we have negotiated.
  3. Invest only through trusted broker sites. If you only invest through the broker sites that we recommend, you can be sure that your money will remain safe.
  4. Take advantage of every free binary trading software. If you get free software, you do not lose anything by trying it. I recommend you to use all the existing trading applications (that we recommend) at the same time. Some of these are better than others. If you feel that it is too difficult to use all, try out which one works best for you and stop using the worst ones after that.
  5. Take advantage of all the special offers that we have on our site. We have done all the hard work for you and negotiated the best possible deals. Most of these deals are unprofitable for the brokers. They are trying to attract new customers with these and are willing to pay a little for it. For you as an investor, this is a great opportunity to make money.
  6. Always compare which broker site is offering the best possible return for your investment. There is always some differences on return rates. It may not seem huge in individual investments, but if you are going to start to invest in binary options for a long term, these really add up.
  7. Start investing with smaller amounts. IQ Option lets you start investing with $1. Even if you could afford to invest larger amounts of money right at the beginning, it is much better to start carefully and increase the amounts only when more experience has been gained. This only applies to investments made independently. With the robot, you can also start with larger sums of money because it works 100% automatically.
  8. Do not take losses personally. Even the most successful investors lose sometimes. However, they will learn from every loss, while the worse investors will get depressed.
  9. Study something new every day. Make a habit to visit our website every day, read our articles and follow our advice. This way, you will become a better and faster investor.
  10. Do not wait any longer; start investing immediately. Time is your worst enemy. So do not wait any longer, get the best signal provider binary option robot, for free by clicking on the button below and open an account in more than one broker site

Do you want to have a free binary software that was able to win over 80% of the trades in our test?* Click the button below and find out how this is possible.

Binary Options Robot Reviews 2016

Who Should Use This Software?

  • Investors who are frustrated because their investments are not profiting as much as they would like
  • People are interested in the latest technology and want to be among the first to try out exciting new discoveries
  • Investors who are already making money by trading binary options, but would you like to earn even more
  • People who are just starting investing and want the best possible tools for their use

We  will go through the best binary option robots, describe their main features and our own experiences while using them, so that you can easily choose the best possible robot tool for your investments.

Read also these related articles:

  • IQ Option Review (The best binary option broker site. In this article, I will reveal the secret methods to earn money, which only the best professional investors know about.)
  • 24 Option Review ( Extremely trustworthy broker site, official partner of Juventus soccer team)
  • Binary Options Hack Strategies (How to double your earnings with these simple hacks.)
  • Binary Options vs. Forex (A comprehensive comparison; which one you should choose and why one is clearly better than the other.)
  • Binary Options Gurus (Are those so-called gurus trustworthy or scammers? The shocking truth revealed for the first time.)
  • Mike’s Auto Trader Review (An excellent, free auto trader from Michael Freeman, who is maybe the most popular guru in the binary options world. Mike has a few incredible tips for you, so read our article and find out what these are.)

binary option robot reviews
What is a Binary Option Robot?

A binary option robot is an automatic pre-built software tool that does not exist in any other form of investment. It offers you one of a kind opportunity to increase your earnings from the binary options to the whole new heights. Start trading with a binary option robot today and see how great its results will be.

We only recommend robots that are reliable and trustworthy. In our reviews, we will go through the best automated applications on the market, and tell you all their pros and cons. When you read our reviews, you can be 100% sure that you will quickly and easily find the best binary option robots.

Trading with binary option robot is really easy and fun

Trading with the binary option robot is really easy and fun

Binary Options Success Stories

Deidra L. 31 years old, Housewife from San Antonio Texas, USA.*


“I had never invested even in shares before I tried the robot, so I did not have much prior expectations at all. After using it for almost a year, I’m really pleased with the results. With the help of the robot, I have earned significant sums of money, which is a huge help for paying living costs for me and my children.”

Otis G. 24 years old, Professional Poker Player from Las Vegas Nevada, USA*


“I’ve had extra money for a couple of years now, and I have thought to start investing, but really haven’t had enough time to study the right methods. But when I found the robot, I realized that I actually might not need to study at all. The robot does the work for me and makes even reasonable good returns on the side.”

Gerard K. 52 years old, Shop Owner from London, UK.*


“Managing my store takes me 14 hours a day, six days a week. So I want to use a little free time I have with my friends and relatives. But at the same time, I have always been interested in new technology and opportunities to earn money on areas that most people have not discovered yet; so when I found the robot I did not hesitate to try it. And afterwards I must say that I am really pleased that I had the courage; the results have been incredibly good”

Jacob S. 42 years old,  Stock Trader from Chicago Illinois, USA.*


“As an experienced investor I was a bit sceptical about the robot’s capabilities at the beginning. But a few months after using it, I have to admit that I was wrong, as it has become an invaluable help. I recommend fully using the binary option robot for beginners and also for more experienced investors who want to have better results and more free time.”

Binary Options Robot Test. How Does It Work?

Trading software takes advantages of pre-programmed algorithms to give optimal results to the investor. It uses the very same principle that huge investment banks use in their High-Frequency Trading. The greatest difference is that highly skilled professionals have not yet found out the whole potential of binary option robot trading, so as an early entry, you have a great opportunity to benefit of this tool before everyone else discovers out how effective it is.

The binary options robot has a number of uses. You can program it to do business according to predetermined parameters or you can program it to do business when you do not have time to do it yourself. You can even leave all work to it, freeing your schedule to concentrate on what is most important in your life.

Making money has never been simpler. Firstly, you should make yourself a little groundwork, as studying what are the most important things for a successful binary option investor. After that, you can practically leave everything to carry out for the robot.

Forex chart analysis is one of the most popular uses of the robot

Forex chart analysis is one of the most popular uses of the robot.

Four Simple Steps. Best Settings for Binary Option Robot.

1) Redeem the robot free or charge by clicking the button at the top or bottom of this page

2) Register in the service

3) Select a broker

4) Deposit money, start trading with the automatic binary option robot, and enjoy making money  even when you are in sleep!

Binary option robot platform

After you have money in your trading account, please follow these steps: 1. Choose the daily stop-loss limit if you like. 2. Choose the trade amount 3. Choose the amount of maximum daily trades. 4. Choose the assets you want to trade (for example: DOW, GOLD and EUR/GBP; I prefer currencies, but the best setting always depends on the prevailing market conditions) 5. Choose daily, weekly and/or monthly expiry times 6. If you have a VIP, you can choose to use VIPsignals. 7. Put active trading on, and the robot will be ready to go!

binary award

An average return rate over 80% in our test,which is clearly superior to any other trading software currently on the market. The Real Robot is an award winning 100% auto trading software.

All brokers are 100% reliable and honest. But our number one, two and three recommendations with the robot are Exbino, Porter Finance and GOptions for US traders and Banc de Binary, Option FM and Interactive Option for EU traders

robot info logo2

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Why Trade With The Binary Option Robot?

By trading with a binary option robot, you can make trades that are impossible for human beings

The robot is able to make an unlimited number of rapid trades with its calculation power. Those kinds of trades are impossible for human beings to carry out manually. In the stock markets, short-term trades are almost completely dominated by high frequency trading, which is very similar to what a binary option robot does. Those who were the first to take advantage of high frequency trading are currently all very rich people because they were the first ones to enter the field.

You can focus on opportunities to make huge profit, and let the robot take care of trades that will only bring you small profits

You can concentrate on fully analyzing those events that make huge profits. You do not have to worry about smaller opportunities, as you can delegate these to the robot.

No more losses because of emotional mistakes. The binary option robot does not chase losses or make bad trades when it has lost previous trades

Even the best brokers cannot claim that the losses do not affect them mentally. Each of us loses money sometimes, but the difference between true winners and losers will be in how they are able to deal with these losses. When you use the binary option robot, you know that there are no emotional factors in play; it is always at the top of its game.

gold bullion

Are you interested in investing in gold, but interpreting gold charts seems too difficult? Don’t worry, the robot will take care of this difficult part, you just set the parameters according to what you want.

Who Can Benefit From Using This Kind Of Application?

  • Amateurs: who have not invested in binary options in the past, and want to start making good profitable investments.*
  • Experts: who do not have time to take advantage of all possible opportunities.
  • Frustrated investors: who have attempted binary option investing, but have always failed in the past because of emotional factors.
  • Pioneers: who are not afraid to show the way and to be at the forefront when one of a kind opportunities show up.
  • Eager learners: who always want to learn something new and interesting.
Investing guru's such as Warren Buffett has a

Investing gurus such as Warren Buffett have always been pioneers, and not afraid to try new revolutionary things before a large number of others realize their benefits

FAQ: Binary Options Software

Q: Do I need any prior knowledge about binary options or investing to use the robots?

A: You do not need any prior experience; it is enough that you recognize that there are risks involved. You should start using the robot carefully first, learn how to use it and how to get the best out of it.

Q: How quickly can I begin to earn money?

A: It depends on multiple things: your previous skill set, how much time you are willing to spend learning new things, if are you ready to lose a little bit at the beginning, so that you can win more later on, and last but not least, how lucky you are.

Q: Does the robot really earn me money without me having to do anything?

A: Once again, it all depends on the parameters that you program in to it. If you make money with binary options, you certainly make even more money with the robot. The robot is primarily programmed to reduce your workload; you may think it to be a free helper, to which you can leave all the boring tasks.

Q: Why did the robot’s developers made it public instead of earning money for themselves.

A: It is against the rules to open more than one account per person in a binary options broker. The upper limit that you can earn this way comes quickly. It is much more profitable for the developers to make it known, and possibly later sell the rights to some investor.

Q: If the robots are so excellent, why are they free?

A: Robots are still so new on the market that only a few people know about them. When the developers give them freely to people, they will get good publicity that is better than any other way. When users find how excellent addition the robot is for a binary option trading, more and more people will begin to use it. That which is free now provides no guarantee that it will always be free, so we recommend that you start using the robot immediately, now that this excellent opportunity is still available.

Q: Why do brokers allow auto-trading software on their website if they win money?

A: Trading software like the robot improve liquidity of binary option investing. They bring practically more capital to the binary options market and this allows brokers to have a wider range of assets to offer. They also bring more customers for brokers and increase the turnovers of the companies. It is also true that, if everyone used binary option robots, it would be considerably harder to win money with binary options. For this reason, it is completely possible that they will be prohibited at some stage. Therefore, we recommend that you start using the robot immediately.

Q: Is it possible to lose money even if I use a binary options robot as an aid for my investments?

A: As in all investment activities, including binary options investments, there is no guarantee that you will win money. Markets go up and down, and in every economic situation, there are winners and losers. You should be aware that binary options are a high-risk investment with which you can win or lose large sums of money in very short periods. For this reason, we recommend that you only invest an amount of money that you can afford to lose.

Q: Why are there no bigger amounts of professional investors using binary option robots?

A: Although it is possible to earn big sums of money with binary option robots*, those are still very small sums compared to the kind of money there is on stock markets. So why would they come from tens, or even hundreds of millions of investments, to a few thousand dollar investments?

Q: In the market, there seems to be a few types of binary option robots. How do I know what is the best one for me?

A: It is enough to follow our site and read our recommendations. We are going to go through all the robots and give them a rating. We will tell you their most important features and go through the pros and cons, so you do not need to do all this.

Q: I feel that the robot is a hoax and it gives intentionally losing advice.

A: I can assure you that this is not the case. But if you think you are sure about this, you should try reverse trading; when it is used, it always puts the opposite investments to what the signals suggest, so if signals are suggesting that you should bet “call” on USD/EUR, it makes the precise opposite of that and bets “put” on that investment. However, we highly recommend you not to use it, as you will lose a lot of money almost every time.

day trading charts

Interpretation of day trading charts can be difficult even for experienced traders. Now you can fully outsource this complex task to a binary option robot to handle.

Option Robot Auto Trading Software

There are binary options robots, and then there is Option Robot. This new auto trading robot is a revolutionary software that every trader who wants to make it big in binary options needs to try out. Apart from one of the highest winning rates among all brokers – it is among the three highest rated robots in this regard, it gives the trader more freedom than any other robot in terms of customizable features and selection of trading systems.

option robot auto trading

Trading Systems

As a trader using the Option Robot software, you will be able to choose the trading system you want your trades to be based on. There are three systems to choose from as shown below:

  • The Classic system which is the most common and traditional system and carries the least risks and consequently the least profit margins.
  • The Martingale System which is the most risky as it involves increasing the investment amount for every trade until a hit is achieved which mostly depends on luck. This system has the highest profit potential of the three.
  • The Fibonacci system which increases or reduces the investment amount after a win/loss based on the Fibonacci sequence. This is basically the most accurate and precise trading system with upfront profits and/or losses.


optionrobot settings

Option Robot generates its signals from one or all of the several indicators present. Basically, the indicators analyze market conditions to determine the option to place, whether Put or Call. The indicators include:

  • RSI
  • MACD
  • Stoch
  • Williams
  • Trend
  • CCI

The trader can choose one or several of these indicators as a source of trading signals. When only one is selected, the signal is generated and directly used by the robot to place trades for the trader, all without the trader even raising a finger. That’s the beauty of automated trading, and indeed automated everything.

In the case of two or more indicators being selected, they will all have to generate identical signals for the robot to actually place trades based on them. What this means is that, for the robot to place a Put trade, all the indicators will have to produce Put signals. If they generate contrasting signals, say Call and Put, no trade is made. This is surely a great way of ensuring the signals so produced are the real thing.

Compatible Brokers

optionrobot brokers

To ensure your money is safe and to keep you free from unnecessary worries, the developers behind this software have partnered with only the best and most established binary options brokers in the market who you can trust with your money. Thousands of people do.

After signing up with Option Robot, you will have to open an account with a broker from the list provided on the site. The list includes world renowned brokers like Banc de Binary, Tradorax, StockPair and CherryTrade etc who are all regulated by CySEC which is the best at what it does.

All your funds and winnings will be on the broker’s account and as we have seen, not many of these brokers are to be trusted. The fact that Option Robot have gone for the very best is a clear indication of their commitment to making your trading experience simple, fun and secure.

Why you should go for Option Robot

Option Robot has the typical benefits you would expect from an auto trading system but with a difference in terms of a more personalized and advanced interface with more flexibility than any other in the industry. Here are the benefits or advantages Option Robot offers you:

  1. High quality signals with certified hit rates of above 80%.
  2. It helps save the time and energy you would have spent going over market news and analysis. The system does all that, and more.
  3. You don’t need to have any experience or knowledge of financial markets to win big in binary options, Option Robot has enough experience for everyone!
  4. It offers a great alternative of getting returns in particular to traders who have been making consistent losses and want a change.
  5. Traders with busy schedules and plenty of commitments are able to participate in trading and actually earn from it, as they go about their daily businesses.
  6. Option Robot allows you, the trader to select the type of trading system or indicator(s) that best suits your trading habits and financial ability.
  7. It insures your financial protection, sort of, by allowing you to choose one among the several brokers who are simply the best and most popular in the industry. There are absolutely no scams with Option Robot.

There you have it. Option Robot offers more than any other Robot does and then some and its star is set to rise even further in the coming days and the services and signals keep getting better.

Get the Option Robot auto trading software for free by clicking on the button below!

The Real  Robot

Next, we will go through the features of the real robot. This robot is currently our number two trading software recommendation for all binary options investors.

Read The Full Review Here: Binary Option Robot – The Real Robot Scam Investigation (How to avoid the most common trading scams. Michael Allen tells his personal opinion and experiences about binary option robot)

The Robot Features:

It is completely free

You do not have to pay anything to use the binary option robot. The only thing that is required is that you sign up through our website.

It is extremely safe and secure

You do not have to worry about accidentally losing your money. You can set automatic stop-loss limits, so it is entirely up to you to decide how large amounts of money you want to risk.

It is fully automated

The robot is completely automatic, whether you are at home sleeping or shopping in the city, you can put the robot to trade within pre-programmed parameters. You do not even need to keep your internet connection on. The robot operates completely independently after it is turned on.

You do not need to download anything to your computer

The robot must be turned on only once. You do not have to waste your precious time downloading and installing software. Everything is pre-programmed and made extremely easy and simple.

It is fully compatible with smartphones

You can easily track your results, change settings and start trading via smartphones.

Installation of binary option robot is extremely easy, even for complete beginner

Installation of the binary option robot is extremely easy, even for complete beginners.

Additional Information about the Robot’s Capabilities

The robot is able to make a return in situations in which a human being is unable to react quickly enough to take advantage. It uses a large amount collected data in its trading, allowing it to analyze patterns and certain repetitive movements on a market, which the human mind is unable to do or does not have time to take advantage.

To use this trading software, you do not need to have any prior knowledge about stock trading or binary option investing. The application is also great for experienced traders; you will have more time to analyze future events when the robot takes care of the trading in investments that would normally take your whole time.

Binary Option Robot Results

When we actually tried the binary option robot for the first time, we were positively surprised by how easy it is to use. It was easy to set up and the robot operated perfectly under given parameters. We wondered whether this could be because we have extensive knowledge about a variety of robots and that is why we know exactly what to do.

In order to test this belief, we gave the robot to a new employee for experiment. He did not have any previous experience about binary options investments and certainly not about robots. When we returned an hour later to inquire him if our original believes was right, he quickly confirmed our perception. The software was easy to set up, even for a person who has never previously been familiar with binary options. Even our inexperienced employee was able to achieve an incredible high win rate of 82% with this automated trading software.*

Is It Really 100% Automated Trading Software?

We were a little skeptical about this argument at the beginning. Many robot developers promise the software to be 100% automated, but in reality, they require that an internet connection is on and that someone supervises its activities in case non-programmed events occur.

In this case, we were pleased to see that the claim was 100% correct. The robot was indeed fully automatic and did not require the user to have any additional measures since the beginning.

Preferences are also extremely easy to change if necessary. The only bad thing was that it is not possible to try the robot with a demo account; you have to open a real account to use it. However, this is an extremely fast and easy process, as you just have to fill a few fields of personal information and that’s it.

VIP Account

The binary option robot also has an unique VIP account possibility. In contrast to a normal account is that as a VIP account holder you can set your own level of risk. You can choose the level of risk of the signals you want to use. Riskier signals tend to have bigger returns. In addition, other additional features are planned for the VIP account holders. Currently, there is no option to buy a VIP account, but if you sign up through our site, you will get VIP account access for one month, also completely free of charge. After you have opened an account, please send an email to support@binaryoptionrobot.com with the subject “LP2015 VIP ACCESS” in order to get a VIP account free of charge.

Customer Support

Customer service is very fast and knowledgeable. In problematic situations, you can contact it via live chat or telephone. Although we asked difficult questions, the customer support always knew the answers almost immediately.

Binary Option Robot Brokers

The robot is fully compatible with best and most trusted broker sites, such as Cherry Trade, Porter Finance, Option FM, Banc de Binary, Bloombex Options and Goptions. All these brokers have years of experience in binary options and have hundreds of thousands of satisfied customers from all over the world. When you trade with the robot, you can be certain that your funds are in safe hands.

Binary Options Robot: Scam or Legit?

The binary option robot is definitely not a scam. In my investigation, I did not find any scam signals. The robot really is a great and profitable tool, which should be used by every investor who is serious about earning more money.

Overall Rating

This is undoubtedly the best binary option robot on the market. Its features are completely superior to its competitors, including the applications user-friendliness, which really impressed us. These reasons and many others influenced us to give it the rating of 5 out of 5 stars.

Binary Options Robot For Free + Deposit Now and Get FREE VIP!

VIP Preview Video

Our exclusive offer to our readers. Open a free account and make a deposit within 48 hours to get an unlimited 100% deposit bonus with Option FM. On top of that, you also get 3 months of FREE VIP. Open a free account by clicking on the picture below.

binary option robot bonus

The History of  Automated Trading Systems

To understand a little better why binary option robots have become so popular, let’s take a little closer look into the history of automated trading systems and stocks trading.

If you ask the man on the street what he knows about trading stocks and currencies, you will be answered with a knowing look and the mention of a few words like Wall Street, New York Stock Exchange and maybe the Dow Jones. For somebody who knows a little more, there will be additional technical terms like assets, forex, commodities, futures, binary options and so on. Ask the same people about the history of these trades and you will be met with a blank stare. Where did it all begin?

Ancient history

In the 14th century Venice, money lenders started trading debts among each other. You would find one moneylender getting uncomfortable with a certain debt which he would deem to be of high risk, and he would sell it to another money lender who would deem it to be of low risk to him. He might have bought it cheaply and thought that if he collects the debt himself, he will make a good profit. This done, he would hold the debt until he collected it or he finds a buyer for the same debt for a profit. This is where most authorities believe to be the birthplace of trading values.Among these traders, there were dealers who did or did not hold debt, but they knew who had a debt to sell and who had some money to buy a debt. These are the people you know as brokers today.

These two aspects of trade then spread all over Europe.

Fast-forward to 1531. The city is Antwerp, Belgium. An exchange of some sort existed here. Moneylenders and brokers would meet at a location to deal in debt, business and government bonds. These were bought and sold to the highest bidder and the brokers facilitated these trades for a small commission. This is the more likely ancestor to the stock exchange that we have today.

ancient money lenders

14th century moneylenders in Venice, Italy. When the moneylenders started to sell some of their debts, the first market for currencies were born.

The East India Companies

At the height of exploration in the 1600s, exploration and trading charters were given to companies so that they would expand trade and be on the lookouts for these governments’ imperialistic desires in the East Indies and East Asia. The British, French and Dutch all gave these charters. The trouble with these trading voyages was that they were very risky ventures.  There were all the dangers of the sea which included shipwrecks, pirates, disease, unpredictable weather and mutinies. Spreading the risk was the best way to counter such such risks.

What the ship owners would do was to seek people to invest in the voyage with the agreement that they would get a share of the proceeds when the ship returned to Europe. This investment went into the preparation of the ships for the voyages and for employing the crew for the long trip. This is where shares and stocks originated from. This agreement was at first confined to each voyage and dissolution of these agreements was complete when the ships returned to their home harbors and the wealth they came was divided proportionally each according to the size of their contribution towards the voyage. When the next voyage was planned, the ship-owners looked for other investors for the new voyage. Then came the East India Companies.

The East India Companies changed completely the investment in individual voyages. Instead of seeking investors for each individual voyage, the companies started giving dividends to the investors who held stocks of the companies. This means that they would get a share of the proceeds of the voyage, but their contribution remained with the company. To make their voyages more profitable, they asked for more contributions in the form of stocks. These companies grew in size and opportunities to make fortunes increased.

Seeing that the people who were investing in voyages got a windfall when the ships returned, the stocks experienced a high demand and people started trading in them. Lacking a central place to meet and trade the shares, brokers’ scurried form coffee shop to coffee shop in London to carry out trades for people who have shares to sell and those who had money to buy the shares.

The East India Companies therefore became the first joint stock companies. This era was a golden one for traders in goods from overseas and the investors in East India Companies. This was to go on until the monopoly which was supported by royal charters came crashing down. What happened was that people got to notice the wealth that was being created by these voyages. People started organizing themselves to plan their own voyages quite separate from East India and its Royal Charter. Before the ships left Southampton for the voyages, the shares of such voyages had already exchanged hands several times for profit. The main competitor here was the South Seas Company.

Soon after this, more business people started selling shares for dubious voyages. Concern grew about these questionable ventures but it was not until the South Seas Company failed to issue dividends to its investors that the government banned the selling of shares for any venture. No more shares were sold again until 1825.

dutch east indian company

The shipyard of the Dutch East India Company in Amsterdam. 1726 engraving by Joseph Mulder. The Dutch East Indian Company was firs company to sell dividends to its investors.

The NYSE is born

The buying and selling of shares spread all over Europe and to the new world, United States and Canada. People started to see the benefits of shares when issued for legitimate business. When the issuing of shares was banned in Britain, the trading of these shares continued in the United States unabated. Though the London Stock Exchange opened its doors in 1773, its activities were stymied by the shares sales ban. Trading in an official exchange in the United States did not start at the New York Stock Exchange (NYSE) but at the Philadelphia Stock Exchange. This was not to last very long because the NYSE opened in 1792 and soon enough, it surpassed the Philadelphia Stock Exchange in terms of trade and influence. NYSE continued to grow and it was not until the Civil War and the Great Depression years that growth was slowed down.

The NYSE started off in very humble circumstances. Brokers started to meet under a tree in Manhattan to discuss their issues and to see who had what to trade. It was around here that the first offices were opened on Wall Street, the NYSE’s home to date. Sitting in the heart of Manhattan in New York, the NYSE could not be in a better place. This was because the harbor here was the entry of all the main trade ships to the United States. All major banks and trading companies had their main offices here too.

The growth of the NYSE at this time was phenomenal. This was attributed to increase in business and the perfect location. It also became a well-funded organization because it soon started charging fees for listing shares and for demanding. The volume of business filled its coffers and every trader had a booming time for many years to come.

In the years that followed well into the 1800s, the NYSE made tremendous leaps in terms of trading volumes and the fortunes being made there. Locally, competition was very low, even with the opening of exchanges in other major cities in the United States. Apart from the Civil War years and the Great Depression years, the NYSE has been the leading stock exchange since then. With other exchanges being opened in other countries like Britain, France, Germany, Japan, Hong Kong, Canada and Australia, the NYSE continues to be the leader in the stocks and forex business.

NYSE 1850

NYSE in 1850’s. The trading was carried out in very in modest circumstances.


In 1971, a big thing happened. It was the formation of the NASDAQ. It was formed by the National Association of Securities Dealers, NASD, to offer its own shares separately from the NYSE. This forced the NTSE to change somewhat, but the NASDAQ forged on. Unlike the NYSE which is in a physical location, the NASDAQ trades virtually through networked computers. It is this exchange that brought forth computerized trading.

Computerized trading and trading systems

The NASDAQ, now run by the Financial Industry Regulatory Authority (FINRA) which is what NASD converted to became the birth of automatic trading. This development prompted the NYSE to change its trading systems too. The 1970s then became the time that trading stocks became fully computerized with the NYSE adopting the DOT (designated order turnaround) system where stock orders were transferred to the trading posts electronically before they were traded. This system was soon developed to the SuperDOT.

At this time, the NASDAQ continued to trade electronically and soon, it became the new normal and it eliminated a lot of paperwork and manual processes.

Apple2 trading system

Apple II computer was introduced in 1977. It was one of the first computers which were widely used by Wall Street broker firms.

Trading Systems

Trading systems are a fairly new phenomenon compared to stocks trading. When Richard Donchian founded the Futures Inc. in 1949, he did not know that he was laying the groundwork for a trading system that would spread all over the world. It was one of a very few commodity funds that were held by a public entity. It was Futures and the other entities that formulated a system of rules that would regulate the purchasing and sales of trading signals which would help traders determine how the values of commodities would swing over time.

At that time, computers were only the product of fertile minds and sci-fi. This means that most of the generation of signals was done by hand and other manual processes. The signals were then posted on a chart by hand and ticker tape. Despite these stuttering steps, trading systems were born and there was no looking back. The processes improved as technological advancements were adopted into their systems.

The use of trading systems became mainstream in the 1980s when traders adopted the rule based systems to trade commodities and currencies. Traders like John Henry and Richard Dennis championed this mode and soon it caught on. Soon, aided by the advancements in trading systems, it became a lot easier for retail commodities and currency traders to use the same systems. They could use the computers which were becoming commonplace to synthesize data to come up with signals. These signals would be sent to the broker who made the trades. These trades would be for the whole day as there was no way to transmit them in real time.

John W. Henry Richard Dennis

John W. Henry and Richard Dennis were pioneers of automated computer trading. They are both very rich men nowadays. Forbes estimated that net worth of John Henry as of November 2015 to be US$2.2 billion.

The late 90s things changed again. Now, the internet was here and individual traders could now generate their own signals, and transmit them in real-time to their brokers. This expanded trading because of the immediacy factor. Around this time, Globex, a computerized exchange went live. Traders could use this exchange to avoid the trading floor completely. Their computers now generated the signals and executed the trades directly in the Globex exchange.

The trading systems as we know them today began when one trader, Walter Gallwas a partner in a brokerage firm requested his client, a man named Jack Telford for some assistance. Telford had developed a program he named TradeStation that could be used to assist in trading commodities and futures. Gallwas asked if Telford could consider that for a fee, Gallwas’ other clients could use TradeStation’s signals. When Telford agreed, the trading systems that are so commonplace were born.

stock exchange trading volume

Currently in total over 60 trillion € are traded in stock exchanges all over the world. PCs and trading software has become a necessity for everyone who wants to earn as much money as possible.

The situation today

Most of the conveniences you enjoy today have been facilitated by the internet; its growth and widespread use and the opportunities it creates day after day. Trading has now become almost totally automated with traders and brokers never having to meet to execute a trade. With binary options gaining popularity and especially so the automated version, trading today is completely different from what was commonplace in the 1980s.

Today, with the rise in usage of smartphones and other smart devices, traders do not necessarily have to trade at their PCs at home or in offices; they can now do their trades on the go. Smart coders have developed smart Applications which have made it possible to execute trades and access trading accounts from hand held devices. This can be done anywhere from anywhere, just as long as there is an internet signal.

Looking back at where trading in stocks, commodities and forex has come from, you cannot fail to admire the human spirit and its desire to better archaic systems to better things. What now does the future of trading and trading systems hold? Only time will tell.

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References And Further Reading

  1. Robot traders can prevent extreme events in complex stock markets: Nicolas Suhadolnik, Jaqueson Galimberti, Sergio Da Silva
  2. Wikipedia: Automated trading system
  3. A hybrid approach for automated trading systems: Wong, R.K. ; Dept. of Comput. Sci., Hong Kong Univ., Hong Kong ; Ng, P.N.
  4. Electronic trading in on-line delivered content: Loebbecke, C. ; Copenhagen Bus. Sch., Frederiksberg, Denmark
  5. The ethics of robot servitude: Stephen Petersen
  6. Automated trading agents verses virtual humans: An evolutionary game-theoretic comparison of two double-auction market designs: Steve Phelps, Simon Parsons and Peter McBurney
  7. Centralized versus decentralized computing: organizational considerations and management options: John Leslie King
  8. Stock Options Expensing AND Corporate GovernanceDeshmukh, Sanjay; Howe, Keith M; Luft, Car.
  9. The Separation Plot: A New Visual Method for Evaluating the Fit of Binary ModelsBrian GreenhillMichael D. Ward and Audrey Sacks
  10. Electronic trading on futures exchanges (1998): by Asani Sarkar , Michelle Tozzi
  11. The Winning Robots from the 1993 Robot Competition: AI Magazine Volume 14 Number 4 (1993)
  12. Automated trading with boosting and expert weighting by Germán Creamer & Yoav Freund
  13. From pit to electronic trading: Impact on price volatility of U.S. Treasury futures by Lucjan T. Orlowski
  14. Designing safe, profitable automated stock trading agents using evolutionary algorithms: Harish Subramanian, Subramanian Ramamoorthy, Peter Stone and Benjamin J. Kuipers.
  15. Optimization of Automated Trading System’s Interaction with Market Environment: Petr Tucnik
  16. Expensing stock options: a fair-value approach: Kaplan RS, Palepu KG
  17. Binary Economics of Louis Kelso: The Promise of Universal Capitalism: RHA Ashford
  18. Robot See, Robot Do : An Overview of Robot Imitation Paul Bakker and Yasuo Kuniyoshi
  19. The Impact of Electronic Trading Technology: Richard Holowczak, Leslie Boni, Kevin Callahan, Alfred Eskandar, James Leman, Robert McCooey, and Joseph Wald
  20. Electronic Trading Environments for Web 3.0: John Debenham and Simeon Simoff
  21. Economic Agents for Automated Trading by Chris Preist
  22. Artificial Attachment: Will a robot ever pass Ainsworth’s Strange Situation Test ?:  Frederic Kaplan
  23. Adoption of electronic options trading at the ISE: Weber, B.W. ; London Bus. Sch., UK
  24. A note on the impact of options on stock return volatilityNicolas P.B. Bollen
  25. Portfolio of Automated Trading Systems: Complexity and Learning Set Size Issues: Sarunas Raudys
  26. A case study in developing Web services for capital markets: Rabhi, F.A.,Dabous, F.T. ; Yu, H. ; Benatallah, B. ; Lee, Y.K.
  27. Using Real Options Analysis for Evaluating Uncertain Investments in Information Technology: Insights from the ICIS 2001 Debate: Tallon, Kauffman,  Lucas, Whinston and Zhu
  28. Real Options Pricing and Organizations: The Contingent Risks of Extended Theoretical Domains_Bruce Kogut and Nalin Kulatilaka
  29. Robot Ethics: Ronald C. Arkin
  30. Explaining Executive Compensation: Managerial Power versus the Perceived Cost of Stock Options: Kevin J. Murphy

Written by Michael Allen

Updated on 4-26-2016