Technology and the internet’s impact on financial trading
Financial trading is not what it was like 20 years ago and that’s all thanks to the internet.
The world of financial trading has undergone a lot of changes in the past few years, especially with the rapid advancement of technology in the digital age and the internet’s continuing rise. No longer do investors wishing to trade commodities, precious metals or currencies have to call up a broker to arrange it, as technology has made it possible to make financial trades from anywhere in the world (with an internet connection).
It has made trading a lot easier and more accessible, which has helped the forex market become the most liquid and traded in the world. There are many ways it has impacted all financial markets and continues to make it better for investors.
It takes just 16 microseconds to make a share trade with certain technology, which is literally quicker than the blink of an eye. Compare this to the world of share trading a few decades ago, when the majority of the action happened on the floor of a stock exchange which understandably took a lot longer.
Quicker trading has meant that people can make investments instantly based on their predictions and events in the real world. It has also changed the platform for trading, with the vast majority done through complex networks of computer systems.
Trading all kinds of financial assets, from stocks and shares to currencies, has never been easier than in the modern day. The number of people trading has increased hugely thanks to the internet and ease of access to trading platforms.
This has consequently resulted in an increased market volatility, due to a larger volume of trading and larger swings. For a lot of new traders, they will stick with the herd mentality of all following the same tips that leads to such swings, which is why spread betting with ETX Capital is a good idea.
Along with a lot more competition regarding desktop trading platforms, almost every broker has developed a mobile and tablet app. This has made it possible to make financial trades from almost anywhere, be it on the bus to work, the train on a business trip or simply the sofa at home.
Another way of making it easier to trade, it has opened up the practice to a much wider market. It has changed the way full-time financial traders work as well, with less of a need to work from an office or go down to the stock exchange. With more people trading by themselves it has also reduced the number of professional traders.
The Financial Times used to be the source for the latest and best quality financial news and analysis. While it still is highly revered, the internet has provided a platform for a lot more financial news websites and informational sources to appear.
People can get the latest updates to the financial markets direct to their phone, to inform their next trades for example. It has opened up the competition and allowed people to learn the art of investment thanks to the countless guides available online, along with analysis, news, reports and other financial information that can be found.
Technology is continuing to evolve, with new apps being developed all the time and internet connections getting even faster. There are many ways it is predicted to bring more change to financial trading in the next decade or so. From changes to the markets themselves, to the way people trade and the kinds of traders that exist, it is likely to continue adapting to the challenges and opportunities the digital age presents.
Stay on top of all the changes to financial trading and you should be able to make the most of all the future technologies and opportunities it brings up.