Up until the latter years of the 20th century, forex trading was considered an elitist activity, that was only accessible to a small group of people. Trading relied on over-the-phone and face to face orders, all placed with an intermediary broker who would then find a counterpart through an exchange market and then execute traders’ orders. Today’s forex trading landscape is very different, more people are trading, and the need for brokers is diminishing each day.
In recent years the sector has advanced rapidly, new trading systems and apps are emerging as the forex trading of currencies and commodities continue to gain popularity.
The forex market structure has changed due to the broadening participation in the industry, as highlighted by the increasing number of forex brokers and trading apps such as Metatrader 4 in the space. Additionally, the market execution has also changed, where regulatory hurdles and technology advancements show a more competitive market than ever. However, with the right trading partner on the place, the opportunities remain spectacular for something more significant.
Use of mobile-trading apps
Forex trading has seen a shift toward mobile trading, with mobile trading apps becoming increasing each day popularly. For example, traders can leverage social trading and forex signal directly inside an MT4 trading platform. Also, a new trader will be looking for an experienced mentor with well-developed trading systems and proving track record offered by mobile apps such as Metatrader 4. Social technology plays a significant role in allowing a forex trader to piggyback on the success of others at low cost and reduces barriers to getting started compared to managed Forex accounts.
Ease of access
Technology has increased ease of entry in the forex market highly attributed to the rising number of execution platforms and services as described above. Technological advancement has reduced forex trading costs, increased transactions speed and improved transparency driving more people to join the sector.
Technology advancement in some ways has democratized trading, allowing more people to invest. According to Modern Trader report, issued by Brokers Notes, the number of active online forex traders exceeds 9.5 million and, in the UK, alone there are more than 250 thousand active traders. The electronic trading activity has played a significant role, now accounting around 70 percent of daily turnover compared with to 30 percent a decade ago.
Light-speed forex trading
A decade ago, a trader waited for days for a trading transaction to complete and in most cases get news from a broker. Today, a forex trader in New York can easily access emerging news from the Tokyo Forex exchange news in a grasp. This is made possible by flexible broadband internet roll over globally. Late last years a high percentage of countries launched the use of 4G mobile technology that allows quick access of information and assesses while out and about. High-speed internet connection allows the use of fantastic forex trading Desktop, Mobile and Web apps.
Forex Crowdsourcing-Style Investing
The internet has allowed traders to publicize their mission statement looking to entice potential buyers.
Additionally, forex traders could explore and venture into more lucrative space at an early stage, unlike in the past owing to crowdsourcing style investment. Adoption of crowdsourcing-style investing has ruled out the need for individuals to attain high levels to start trading big money. With a reliable internet connection and top of the grid system and trading apps such as an MT4 mobile trading app, a trader can transact with any buyer they wish with a click of a button. Moreover, the crowdsourcing system creates more opportunities in the forex market.
A competitive forex landscapes
In recent years, technology advancement has made trading a more ambitious undertaking than ever before. This is highly attributed to better customer services an offering through technology. For example, traders making their transaction online using Metatrader 4 are obligated to add and create more features in a quest to attract more buyers worldwide. Still, a trader using the advanced charting apps for clients is highly likely to have more clients owing to the highly enhanced and interactive apps available on the market.
A quick and automated execution
Forex sector has primarily benefited from efficient automation. The market has witnessed a massive effect of automation in several trading scenarios. Using top-notch trading apps with quick and automated execution, the traders can rule out the need for having a dealer intervention. This allows fast performance of forex transitions with little to no chance of missing out on traders.
Technology has brought about profound changes in the way traders operate as seen above. Amazing forex trading apps are introducing new market dynamics that intensely change the way we trade and affect the future valuation and performance of forex. A trader needs to keep up with the technology, understand the impact and embrace the pace of the change to succeed in this sector. An excellent trading platform to use is an MT4 trading platform.