How has technology impacted on online trading?
The advent of technological advancement has been almost impossible to ignore during the last two decades, with digital and mobile innovations having a seismic impact on a host of industries and marketplaces.
Few sectors embody this better than the financial markets, which have seen technology have a seminal impact on brokerage firms, investors and the sheer range of asset classes available in the digital age.
In this article, we’ll appraise the impact of technology in the financial marketplace and ask which innovations have had the biggest influence.
The Rise of Virtual Trading Platforms
Perhaps the biggest development of this space has been the emergence of online and mobile trading technology, which has increased the market’s accessibility and changed the way in which investors leverage their capital.
It has driven an evolution of the traditional brokerage service in the UK, which is now focused primarily on technological development and customer service as opposed to the actual facilitation of trades.
In simple terms, online trading platforms serve as an interconnected, real-time marketplace, in which users can access live data and comprehensive analytical tools before placing orders independently. The platforms themselves are hosted by virtual brokerage services like ATC Brokers, who leverage both the expertise of experienced investors and software developers to create the ultimate user experience.
The same principle can be applied to mobile trading apps, which boast responsive design and enable investors to access their trading accounts through a smartphone or tablet. The use of advanced interactive technology has also made it possible for traders to customize the way in which data is presented through their interface, which in turn increases the speed with which data can be processed, analyzed and applied.
In even more recent times, we’ve also seen online brokerage firms integrate artificial intelligence (AI) into their platforms. As well as providing more effective and real-time customer service, AI has also been used to help automate high-frequency trades and underpin popular risk-management features like stop losses (which allow you to create predetermined thresholds at which positions are closed and losses are curtailed).
The Last Word
The application of AI is interesting, as this will arguably the biggest impact on the virtual and mobile trading platforms of the future.
Advanced machine learning capabilities will certainly be deployed to help traders identify more obscure patterns and historical trends, particularly those that are invisible to the human eye. It will also enable platforms to leverage AI as a way of processing huge swathes of data online and across social media, which can then be used to help inform the decisions of individual traders.
This will definitely be an exciting space to watch in the future, as trading technology continues to evolve to provide investors with a more satisfying and ultimately rewarding experience online.