From the time you wake up to take a look at the market’s performance overnight to the time you check how the market is set to open the next day before going to bed, technology plays a critical role. There’s no doubt that technology has ushered in significant advancements in the way we do things.
These advancements have significantly been evident in the way traders trade. For instance, technology initiated the development of the online based MT4, which enables Forex traders to trade from any operating system or browser.
Additionally, advanced technology has enabled traders to operate and maintain a competitive edge in the cutthroat financial and Forex environment. In this article, you’ll get an insight into how technology is changing the way traders trade. These ways include the following:
1. Ease of access
Technology is making it possible for more people to access trading. Back in the day, trading was only present to institutional traders. However, with advancements in technology, retail and private traders can now participate in the industry. Typically, trading is now streamlined thanks to technology. Now, any trader at any location with access to an internet connection can carry out any trade they wish.
2. Light-speed trading
Gone are the days where you would wait for days for a trading transaction to complete or even get news from stock exchange firms. Currently, a trader in New York can quickly access emerging news from the Tokyo Forex exchange firm if they wish. This is all thanks to the flexibility of broadband internet. Nonetheless, a trader using 4G mobile technology can quickly access their assets while out and about.
3. Use of mobile-trading apps
High-speed internet goes hand-in-hand with mobile trading applications. Not only are the mobile trading apps easy to access, but also they provide trading tools to traders that would only be accessed through a portal on a personal computer. These mobile-trading apps are very efficient for traders interested in adopting short-term positions like CFD holdings or Forex traders.
4. 24-hour access
One cannot talk about how technology is changing the way traders trade without talking about time. And an excellent example is the Forex markets. In the past, traders had a limit on the trading time based on the trader’s geographical region. Well, this no longer the case. Now, when the markets in Europe close, the markets in Asia are open and running. Through this, traders have a virtual trading platform for 24 hours a day.
5. Adoption of crowdsourcing-style investing
Due to technology, it’s much easier for traders to publicize their mission statements as well as entice potential buyers through the internet. With this ability, traders can venture into a lucrative space at an early stage. The crowdsourcing-style investing has scrapped off the need for traders having to attain high levels for them to start trading big. With technology, they can carry out their trade to any buyer they wish. Additionally, this style of investing open doors to a vast market.
6. A competitive landscape
Technology has made trading a more competitive landscape than ever before. It’s because customers are always looking forward to better services and offerings. Traders making their trades online now need to add and create more features for them to attract more buyers. For instance, a trader using the latest charting app for his or her clients is likely to have more buyers due to the enhanced and interactive charting apps available.
7. A quick and automated execution
Like any other industry that benefits from efficient automation, the Forex market is witnessing the massive effect of automation in several scenarios. A quick and automated execution for traders in the Forex market has dropped the need for having a dealer intervention. This therefore, means fast execution of trades and little to no chance of missing out on traders.
Since technology became entrenched in the trading world, there have been no signs of it slowing down. Soon, we will start witnessing the incorporation of artificial intelligence in trading. As technology progress, trading will continue to be redefined, and this will be beneficial to traders.