How Has Technology Impacted Financial Traders?

We now live in a world where you can execute a trade in as little as sixteen microseconds. By comparison, the blink of a human eye takes 300 milliseconds, and 1,000 microseconds make up just one millisecond. So, by any standards, that’s quick, and it shows how far technology in trading has advanced over the past decade. In this post, we take a look at the technology behind trading as well as how it has impacted upon the jobs of financial traders.

Trading is No Longer a Hollywood Drama

We’ve all seen Hollywood blockbusters such as The Wolf of Wall Street. As such, it’s hard to get the image of suited traders stood on in the Stock Exchange, waving papers and shouting “BUY!” as loudly as possible, out of our minds. 

However, this is now a million miles away from how 99% of people carry out trades. Most trades are now executed through complex computer systems, with high-speed fibre-optic cables communicating between trading systems and computers.

This means that central locations such as almost all traders no longer require the New York Stock Exchange and other similar institutions. Instead, a financial trader can sit and execute their trades from home. All they require is an internet connection and access to a trading platform. Then, they can trade from wherever, whenever they wish.

Apps and Mobile are the Future of Forex Trading

However, even being locked to a desktop in the office or at home looks as though it will soon be a thing of the past. That’s because apps and mobile trading appear to be the future.

Now, most brokers have apps or mobile trading software, which has completely revolutionised the trading industry. This is because, thanks to advances in mobile data, and the almost ubiquitous nature of smartphones, people can now trade almost anywhere, so they never miss an opportunity to trade, and never have to rely on other people.

Put simply, if your broker doesn’t allow you access to mobile trading, it’s time to look elsewhere.

More Accessible than Ever

Although the rise of new technologies and the emergence of mobile data and mobile trading have undoubtedly boosted accessibility to the markets, nothing has done more to open up trading to the masses rather than just the privileged elite than the internet.

As well as facilitating trades taking place, the internet has also become a learning centre for aspiring and new traders, providing free information that used to cost thousands. Now, thanks largely to sites like Investopedia, you can learn about trading in your own time. Plus, thanks to social media sites like Facebook and Twitter, you can follow industry leaders, learn tips and meet like-minded individuals.

Trading has revolutionised the lives of traders over the past decade. What do you think the next decade holds?