How innovating tech is disrupting the currency markets
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Humans have been trading commodities and currencies while hoping to profit, for thousands of years. But it wasn’t until the 1970s that forex trading as we know it really took off. Over the last 50 years, there have been huge advances in technology – the internet, handheld devices, and artificial intelligence to name just a few. All of these have had a big impact on the way the forex industry works.
Algorithmic guides
Forex trading signals have long been used to help and provide guidance to traders. These ‘signals’ provide trading suggestions including exit and entry prices, meaning the trader doesn’t have to spend a lot of time conducting an in-depth analysis. These signals are generated in two ways. Previously they were created through human analysis, for example, a seasoned forex trader with significant experience in the markets. These are not so common in the online world and are becoming rarer and rarer. Speaking of crypto signals, the Universal Crypto Signals is the leading crypto signals channel nowadays. They provide you with the most accurate crypto trading signals, making a very good profit.
Thankfully, technology has stepped in to provide a better and more accurate solution. Algorithmic forex trading signals are generated through the use of complex algorithms that analyze huge swathes of past and present data to predict what may happen in the short-term future. Often, they use a combination of AI and machine learning to predict technical indicators. Not only are they more accurate, but they cost the forex brokers less meaning the trader also gets a better deal.
Mobile trading
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Forex trading used to take place in physical offices with traders contacting the broker by phone or even fax. This was slow and cumbersome but thankfully, times have changed. While traders can still liaise with an actual broker (nowadays via messaging and email), they can also conduct trading themselves from a smartphone, tablet, or PC.
Either by way of an application downloaded to the device, or through in-browser trading, the entire process has become much simpler. Besides, traders can look at graphs, forecasting graphics and tools, and conduct research while enjoying fast internet and even faster device processing speeds.
Crypto emergence
In 2020, it’s not just a fiat currency that is available for traders. More and more platforms are offering traders the ability to trade in cryptocurrency as well. Cryptocurrency has been around for over a decade but has only come to real prominence in the last few years.
Popular coins such as Bitcoin, Ether, Litecoin, and Ripple are used widely to pay for goods and services, as well as to trade. Existing forex apps are allowing traders to trade crypto-fiat, fiat-crypto, or crypto-crypto, as well as fiat-fiat. There are also standalone crypto trading platforms springing up every day. With transactions taking place on the blockchain, traders enjoy the security and the thrill of trading with innovative technology.
AI
As we mentioned before, AI is being used in algorithmic trading but it has also been utilized for automatic forex trading. Traders set the parameters for trading including whether to buy or sell a currency pair at any certain time. The bot then carries out the trades as per the criteria without any need for human interference. This technology is great as it reduces the risk of emotional trading and human error. It also means the trader doesn’t have to sit by the trading platform constantly.
Things have progressed significantly in the last 50 years. So much so, one has to wonder where we will be in another 50 years’ time!
