The connection between Forex and technology is an obvious one. Because of the characteristics of currency trading, it’s normal to assume that technology can help investors perfect their strategies and make the most of the money they put in this trading method. Because forex trading is highly dependant on socio-economic, political, and natural events, like disasters, the market is extremely volatile. Besides, it is also open around the clock. In this context, being tied to a desktop 24/7 was practically impossible.
forex trading
Image by Alejandro Guerrero from Pixabay
However, mobile technology seems to be rapidly changing the way traders carry their activity and how they respond to the highly volatile currency trading environment. Back in the day, wireless technology has been a major game-changer for these players. With increased flexibility offered by smart mobile devices and wireless Internet connection, traders can achieve today more than they were able to in the past. And because the changes brought by technology to the industry are enormous, let’s dive deeper into those.
Increased mobility
We mentioned previously that one of the biggest perks brought by technology to currency trading was the extra mobility it has offered to traders all over the world. Traders can now monitor currency prices and changes in pip regardless of their location, as long as they have a decent Internet connection. Smart mobile devices have taken care of the rest. These two have contributed to wider adoption of this trading method. Facile internet connection has also contributed to the globalization factor. In its presence, borders have been erased, thanks to mobile technology and Internet connection.
At least in developed countries, and geographic regions, like the US and Europe, currency traders have been advantaged by these developments enormously. Because these regions have always had higher penetration rates of novel technological developments, traders have enjoyed higher levels of mobility and flexibility.
However, traders in Asia and Africa are quickly coming from behind. Because these technologies and smart devices have become more affordable over the years to a vaster audience, traders from countries that were traditionally known a little behind are coming to take a slice from the huge Forex market as well. And most importantly, they can play in the hot forex market as well. Today, you can find reliable New Zealand Forex brokers, forex brokers in the US or Asia with extreme ease.
Improvements brought by social media
Thanks to social media platforms, traders today can enjoy novel trading methods, too. We are talking about copy trading, a method that has appeared thanks to the rise of online communities. Facebook, for instance, is only one of the multiple places where experienced traders expose their methods and allow others to copy those.
Besides, these communities allow traders to share market insights and developments instantly, to ask questions and get pertinent answers to problems and dilemmas they have.
Online apps, the Internet, and instantaneous connections have helped traders to perfect their methods and build successful trading portfolios. Traders today enjoy impressive resources and tools that help them improve their market insights and education levels in terms of trading methods.
But, let’s get back a little to copy trading because it is one of the biggest evolvements aided by technology and social media use.
So, what is copy trading? This is a relatively new forex trading method used by beginner investors to match up the success of experienced ones. As opposed to social trading, in copy trading, the investor has the option to copy every move and operation executed by the advanced investor. There are specialised brokers that abide by strict regulations and stick to strict transparency rules. These transactions take place on specialised copy trading platforms, although, in the beginning, this investment method was handled at a more basic level. All parties involved used the comment or chat section of different social media platforms, in the past.
So, what’s next in terms of technology and forex trading?
But is forex trading still due to be changed by novel technologies? Well, of course, it is. Only think of 4G and 5G technology and you will see the immense potential that technology has to change how forex operations are carried. Although 4G technology has only brought minor changes to the industry, this cannot be said about 5G technology. Because 5G technology is primarily focused on the transfer of data and impressive download speeds, we should expect to see the whole Forex trading world turned upside down.
In this context, 5G technology can reduce significantly the necessary time for ping servers to respond, and will make traders make better and informed decisions faster.
While areas on the world like Europe and the US will enjoy all the perks offered by 5G technologies, developing countries will have the opportunity to implement and adopt consistently technologies. These countries and regions will be the ones that will support the development of the forex market in the following years.
Game-chancing innovations will always appear and they all have the potential of changing forex trading is handled. Although, in the past, the overall opinion on this investment method was that only experienced ones can tackle it, today, thanks to the huge technological expansion that we have been witnessing over the past couple of years everybody can become a forex trader. Social trading, copy trading, all these make it possible. Even if you have little-to-none experience in the area, no matter how small your investment portfolio is, you can get educated by others, you can get valuable insights and use these to your advantage. But, as you will eventually discover, our success depends on how reliable and professional the broker you choose is.