With a market that's open 24 hours on weekdays to allow investors across the globe to trade, irrespective of time zones, it's safe to say that forex is the largest and most liquid financial market on a global scale. In the ‘90s, screen-based forex-trading was the common practice since it was adopted by Wall Street-style traders. These clamoring markets and blinking screens have now been replaced by fast computers and lightning-fast internet connections.
Some apps and platforms offer an array of services, from market analysis to what's trending. Today, technology has become fundamental for trading, and the key technologies are computers, fast internet access, and software and mobility solutions. These technologies make it easy for investors to trade remotely, as per their convenience.
Let's look at why technology is transforming the forex market.
Not too long ago, terms like "forex-trading" conjured images of Wall Street brokers crunching numbers and throwing around incomprehensible jargon while referring to confusing screens with bright, flashing lights. Thankfully, technology has demystified forex trading and has made it accessible to larger audiences. With the help of online tutorials and comprehensive blogs, one can get a deeper insight into the workings of trading. There are multiple apps and platforms that make it easy for passionate individuals to trade from anywhere. This means that one can even trade on a part-time basis, giving more people further incentive to make a mark in the world of trading. The fact that markets are open 24 hours a day on weekdays means that people can trade from wherever they are, irrespective of time zones.
Platforms like ours enable fintech companies and personal wealth managers to control, analyze, monitor, and support advisory networks while ensuring complete regulatory compliance. This means easy trading for consumers since technology does all the time-consuming tasks such as analyzing and predicting market trends, gathering and deconstructing data, and managing the funds and sales. This means that wealth managers can focus on what matters – crafting data-driven strategies for building their clients' wealth.
Technology has paved the way for customer enablement across industries, and technology such as chatbots and virtual assistants have made customer support a lot easier. The security aspect of forex trading is also very important, which is why our platform provides unique solutions such as biometric detections for secure logins. Other ways in which these platforms use technology to streamline the customer experience is with daily and monthly automated reports, e-KYC integrations for quick account opening, and intuitive dashboards that provide real-time statistics.
Leveraging technology to provide a better customer experience may well become a key differentiator for forex broking houses looking to expand their customer base. High Net Worth Individuals with the interest and the cash to start trading will, in all likelihood, have been exposed to the best systems and solutions out there in every other sphere of their life. These are the folks who want to get their work done without wasting time figuring out confusing interfaces and procedures. They care deeply about security but want it to be unobtrusive. They expect great customer service but are able and willing to find their own way to achieve their end objectives. Technology must come together seamlessly to provide these customers the experience they expect, or rather, demand. It’s either that or watch them move on to other broking houses who can demonstrate that they can provide such an experience.
Artificial Intelligence is transforming almost every industry, and trading is no different. AI promises to transform the trading business with predictive analysis. Traders can use predictive analytics to craft better strategies based on existing market trends and data. This means that the cumbersome and mentally taxing aspects of trading can be left to technology so that traders have more time to strategize and plan their next move instead of wasting hours manually studying and predicting trends based on data. Besides AI, 5G is also stepping up and is going to make trading a whole lot faster and easier. It increases access to trading platforms and, hence, to the markets.
As technology continues to improve, it will continue to empower industries such as forex trading. A study published in Flipscience journal indicated that over 43% of traders today belong to the tech-savvy millennial generation. This is the generation that is embracing technological advancements with open arms.
The ease with which customers can trade today will decide the success of a broking house in customer acquisition and retention. Smart use of technology can make forex trading more accessible and stickier. That’s a great business case for embracing technology any day of the week.