How Advancement of Technology has Played a Vital Role in the Financial Trading World
Furtherance in technology has revitalized many areas in the business world. Among the areas that have significantly transformed as a result of advancement in technology is financial trading. Through technology, financial traders have moved from trading in pits to trading over the internet. Thanks to technology, all a stock trader needs is a computer and an internet connection to arrange and close up trades. Even though it has not been an easy ride towards achieving this milestone, we must admit that financial trading would not have been this great were it not for technology.
Technological advancement has led to the introduction of trading apps which have taken financial trading a notch higher. Such trading apps include MetaTrader 4 web trader and RobinHood. MT4 web trader offers a lot of advantages to financial traders. First and foremost, it is very friendly to the users and has a tutorial guide that has enabled financial traders to navigate easily within the financial market. It also has quite a remarkable flexibility as it can support various currencies globally and this translates into greater command in the financial market. Lastly, it has advanced communication tools through which a trader can communicate with other traders and brokers.
RobinHood, on the other hand, has enabled traders with a low amount of capital to equally succeed in the financial market by helping them lower their overhead fees. It is also an epitome of flexibility as traders can trade conveniently regardless of time or geographical constraints. This trading software and many others can easily be downloaded and incorporated into phones such that they can be used at one’s convenience.
Technology has speeded up trades
Faster trade means more returns and more returns mean more profit. The financial trading world has been equipped with high-speed computers that help financial traders to broker a deal in a heartbeat. This is something that the human mind would never have done on its own. The introduction of trading algorithms has also improved the thinking of traders in terms of speed and quality of decisions. Traders are now in a better position to decide which stocks to buy and which ones to sell. Through algorithms, safe investment has been made possible as trading patterns can be accurately calculated. Algorithms have also been used to determine timing, prices, and routing of orders thus saving the time financial traders would have used to do the same. Faster trading would not be complete without 4G internet. Thanks to the high-speed 4G internet, a trader in Beijing can track the market trends in financial markets as far as New York or even London.
Technology has facilitated better access to information
Financial trading in the past was quite hard because information regarding the markets and their trends could not be easily accessed. However, with this new technological era, traders cannot help but wake up with smiles on their faces as this information has been availed at their doorsteps. From financial publications such as the Financial Times to financial websites to SEC filings, information can be easily accessed. Traders do not even need a computer to access this information as they can get it at the convenience of their phones. As a result of better access to information on financial markets, financial trading has become a more competitive venture. Traders have been given a chance of learning and perfecting the art of investment thus increasing their competitive ability. This access to unprecedented information has also gone a long way in helping traders plan their trading ahead of time.
Technology has widened the market
Access to a large pool of information has enabled financial traders to access an even larger market. With a larger market, traders have the opportunity to access more people with whom they can trade with. Feedback is also possible and this enables traders to incorporate the opinion of their customers into their products for better service delivery. Better service delivery translates to happier customers and happy customers translate to increased profits.
Even though the journey to a fully technologically equipped era has not yet ended, financial traders continue to reap the numerous benefits of using technology in their day to day trades.
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