Role of AI in enhancing the customer experience in Forex trading

Role of AI in enhancing the customer experience in Forex trading

Salaried professionals, high-net-worth individuals, and independent investors are looking for ways to maximize the impact of their investments. In that scenario, the forex market is attractive. As forex trading houses and wealth managers try to tap into this vein of interest, they have to consider how to make the process of forex trading less arcane, mysterious, and intimidating for these emerging traders. This post is about how a much-talked-about technology could help make that happen.

In the forex market, the price of currencies fluctuates rapidly based on various economic and political factors like inflation rate, growth index, change of government, employment indicators, etc. Understanding the vagaries of the forex market and building a good buy and sell strategy after learning from these market trends is what makes the game profitable for traders. Such a successful forex strategy takes into consideration all benefits as well as the risks. Of course, this requires a lot of effort, experience, and effort. Traders need to expend energy into understanding the market, predicting future trends, and investing accordingly. With the advent of AI, this process of predicting the future forex market has become easier using forex-trading algorithms.

Now, before we go into the details of how this algorithm-enabled trading is easier, let us understand what this forex-trading algorithm is?

A forex-trading algorithm is essentially a set of specific rules designed by computers to help perform specific tasks like finding the ideal time for forex trading or determining the price or quantity that determines trades in financial market trading. This automation is designed by leveraging the power of Artificial Intelligence. Such algorithmic trading is also called automated trading or black-box trading. The trades made by using this AI algorithm can generate profits at a speed and frequency that is far beyond what is possible by a human trader. The algorithms take into consideration various factors like time, price of shares, current political and financial scenarios and predict the future market to execute optimized trading. Apart from the profit opportunities for traders, algorithm-based trading also makes the market more liquid and systematic. It also reduces the scope of human error and eliminates the impact of the personal emotions of the traders at that time.

Trillions of forex trades are already being done by AI. In fact, AI has transformed the way forex trade works.

But what about the impact AI has on the customers of forex trading houses? 

Sure enough, AI has enhanced the customer experience in forex trading many folds. Here’s how AI is changing the existing forex trading system.

  1. Predictive analytics for recommendations: AI is being used by trading houses to recommend investment options to customers. Various predictive analytics tools study a huge amount of financial data that is already available with Investment Banking firms. Predictive analytics uses existing trade data to predict market fluctuations. It can analyze massive amounts of data faster than humans and makes fewer mistakes. These predictions are done by intelligent and self-learning algorithms (AI) providing the right information. This helps traders to recommend fail-safe and profitable investments to their customers. Hence it reduces the risk of failures in forex trading for customers and traders and lowers the resistance to entry.
  2. Seamless 24*7 accessibility: The two most important factors for traders are access to data and connectivity. Traders need to constantly receive and add data into the system so that the relevant actions can be taken. They use multiple devices to do their research, collect data, and develop their trading strategy. Customers need access to that data without being overwhelmed by the volume. They need the right data presented to them at the right time. On the sale side too, the traders need to constantly communicate with their customers. AI technology enables these systems to maintain data quality, keep data updated, and make only the relevant data accessible at the right time. A lot of forex traders prefer using their mobile for research as well as for trading. AI enables easy and seamless connectivity from all types of smart devices which empower traders to generate more useful leads with better conversion rates. AI can help forex brokers provide their customers with a smoother, cleaner, and more immersive user experience across devices.
  3. Automated and Faster customer experience: AI has driven in the age of innovation of virtual assistants and chatbots. With the maturing of these technologies, many technical and IT issues faced by sellers are getting resolved without actual human intervention. This helps forex traders use the available systems better. It lowers the usage barriers and makes the systems more accessible. It also helps automates on-time communications, alerts, notifications, and schedules thus increasing the efficiency of the sellers.
  4. RealTime data processing and effective lead management: The amount of data available in the context of this space is huge. That brings with it the increased degree of difficulty in managing the data. AI brings speed and consistency to data management. Traders can see the activity charts and data relevance and take the best decisions based on the insights generated from real-time data processing. For the trading house that is looking to acquire new customers and onboard them, lead scoring and distribution can also be automated using AI. AI learns the way every employee manages leads and distributes them accordingly. This allows the employees to connect with the prospective trader at just the right time. Of course, this helps the trading house acquire more customers but for the customers, it’s the opportunity to engage only when they are ready and not sooner.

AI is already playing a role in helping traders make better trades. But the advent of AI in the field of forex is also enabling the entry of new traders by making it easier for them to trade. All that while providing them with a better customer experience.