Recently, one of the more active readers here asked me if they should be looking for an expensive Forex EA, or a cheap Forex EA. It came to mind, that this is a question I’ve been asked many times over the years, so I figured I would put together a full article to look at both sides of the equation, in order to answer it thoroughly.
In this article, I will be analyzing expert advisor pricing, multiple systems in the market on both sides of the ledger, and what the general consensus is from the community.
Defining Expensive vs Cheap
In order to truly understand what is an expensive Forex EA, you first have to determine where the median is, and at what points a Forex EA could also be considered cheap. Considering I’ve reviewed over 1000 different Forex robots over the years, I feel very qualified to make this determination.
- Expensive: Over $300
- Average: $200
- Cheap: $120 and under
The 3 categories above are expensive, average and cheap. It’s my belief that expensive EA’s are systems being sold for over $300, average priced EA’s go for around $200, and cheap EA’s are sold for $120 in under. Now that we have a specific guideline for what is cheap and what is expensive, we can dig into the details of this topic a little further.
Myth: Expensive EA’s Are Better
There is a common misconception that plagues society in general, and that’s the thought that if something cost more, it must be better. This trend is certainly prevalent in the Forex robot marketplace as well, with many Forex traders believing that the higher the price, the better the trading strategy.
This certainly isn’t the case.
In fact, many developers will use price as a marketing tactic in order to make their expert advisor come across as a premium service. This is frequently the case with marketers that will even claim that their software is usually sold for $1000, or their package is worth $1000, but for a limited time you can get it for $300. The reason marketers do this, it is quite simple. If they advertise their product is expensive, traders will frequently believe that it’s better than it is.
When it comes to expensive systems, just make sure that the developer has verified trading results that proves that their product can earn as much is the product costs. Frequently, we see developers selling their software for $600, when the most they’ve ever made from it is $150. Don’t purchase a system that the vendor can’t prove that you can earn back your initial investment for that product.
Myth: Cheap EA’s Don’t Work
Another myth, and one that’s very impactful in the Forex expert advisor market is the belief that cheap EA’s just don’t work. While it is apparent that many $99 products are worthless, there are some that continue to perform, like Forex Steam. Steam hit the market over 8 years ago, and continues to provide a valuable service to over 3000 clients. This group feels that the $120 price point is perfect for them, because it allows for every level of trader to gain access to the software, which helps them with word-of-mouth marketing. They feel that the more clients they have, the more wins they can produce for those clients, and then reach an even larger market.
The point is, every expert advisor developers different, and every marketing team has a different plan to acquire more customers.
The Sweet Spot: Average Priced EA’s
As far as I’m concerned, the sweet spot for Forex expert advisors is around the $200 mark. This is exactly where the #1 rated Forex Fury sits, and it’s definitely my favorite system in this market.
I have found in my thousands of reviews that expensive EA’s and cheap EA’s are more likely to fail, but robots that sit in this sweet spot have the highest likelihood of success.
Obviously these are general guidelines, and they are going to dictate your success one way or another. At the end of the day, you still have to do your research, and make sure that the expert advisor you choose suits your personal trading needs. I hope that this article helped you understand the differences between cheap and expensive Forex expert advisors, so that you don’t fall into the common misguided traps of Internet marketers.
Buy the system you believe will perform well, not the one that costs the most.