The Development of Trading Technologies

11810580_s

Financial trading is one of the most lucrative fields. As long as a company is able to provide a trader with a value that results in profits, a trader is likely to compensate the company for its services. It is a pure win-win. In this article we are going to take a look at the most recent developments in trading technologies.

Back in the day, financial trading has been done purely offline. Traders were using their voice to buy and sell assets that are worth millions, if not billions. Then the whole industry was facilitated by the introduction of the telephone lines. However, the Internet has certainly made trading much more developed. Today there are many fields in which financial trading progresses, but we will take a look at the four most interesting ones.

Trading Advisors

Also known as Robo Advisors, automated recommendations for trading decisions are actually one of the most recent innovations in the financial technologies. These products are designed to be used by a bank for one main reason – regulation. While a bank’s employee cannot give any advice to its clients in most of the cases due to a possible conflict of interest, a regulator has no problems with algorithms that are used to recommend the trading directions, entry and exit points. It is forecasted that the largest share of the investment tips will be actually given by robo advisors in less than 10 years from now

Execution

Due to the recent developments in regulation, especially in Europe (MIFID II), brokers are now required to make even more significant efforts to actually execute traders’ orders as fast and as transparent as possible. This is why ECN trading becomes very important, and this is especially true in the retail FX sector. Those of us who enjoy trading currencies online have often heard the brokers using some three magic letters – ECN. What does it mean? ECN stands for the electronic communication network, and, it is considered to be a superior type of way the brokers fill orders on the FX market. There are quite a few brokers that claim to be ECN, yet in reality they are nothing even close. If you are struggling to find one, we suggest you to see here for the top ECN forex brokers. There are not so many brokers offering this type of execution nowadays, yet this will be changed by 2018.

Mobile Platforms

Such platforms as Robinhood currently provide a nearly free access to stock trading. The best thing here is that the platform is only offered on mobile devices. Perhaps this type of software is quite ahead of its time as it mostly targets the millennials, it’s future definitely seems bright. There has been also quite some importance placed on the mobile trading platforms by a number of brokers that work with all types of financial assets, starting from currencies and going as far as regular oil contracts.

Social Trading

Last but not least, many companies have realised the importance of social networks in our lives. Such platforms as twitter and Facebook certainly take up a large share of our time and it is obvious that people are comfortable using similar interfaces. These social networks, perhaps, have given a birth to something that is called social trading – a set of platforms that combine social elements with trading. Instead of liking somebody’s post an investor is expected to copy his trade. Such platforms also allow real-time communication, analysis and feedback.

No comments.

Leave a Reply

*