Technological innovations have shaped global commerce, including trade. But, the swift advancement of digital technologies in current times has created a path for significant change in international trade. The trading sector has been affected by all these changes and one of the biggest revolutions in this sector has been the integration of the internet, especially the spread of mobile tech.
Nowadays, technological developments have made the trading sector change a lot. One of the main verticals of growth has been forex trading, fueled by smartphones. The Forex market changed a lot. And when it comes to this, mobile is the new thing, and it’s all about apps. The explosion of apps on the market enabled by smartphones has completely changed the way the forex trading sector works. The advent of online Forex trading has turned a simple smartphone into an efficient trading tool.
From the invention of steamships, railways, and the telegraph, which were the fuel to the first industrial revolution, to the advent of containerization, and to the rise of the internet, technological innovations have transformed the way we consume, communicate, produce and trade. And the trading sector has also been part of this evolution.
The advancement of trading
We don’t have to go back a lot of years to understand how the trading sector has evolved. Let’s go back around a decade: in that time, the most dominant trading organizations provided the shared quote on the EUR/USD currency pair on a four-digit account along with a spread of solely three seeds. This is a reality that nowadays seems really far away. With the assistance of tech and the new mobile trading features, we can now trade the same currency pair on a five-digit account along with a spread of 0.2 seeds. This means efficiency for the traders.
This is just an example of the fast pace the trading sector has evolved. And digitalization in trading platforms is already a reality-making success, changing who trades and how we trade. If prior to trading platforms, the trading market was only accessible to just a few, today this sector is accessible to almost everyone.
Digitalization of trading platforms
Technological advancement in the trading market is offering a lot of opportunities to improve scale efficiencies, flexibility, and minimize complexity in the operations of the market.
From companies offering their clients an ongoing evaluation of acquiescence risk by integrating machine learning technology with big data processing power and high speed to the investors that offer top stock recommendations for each day at the click of a button. Also, technology is democratizing trading: investors don’t need to depend on experts as trading strategies can be taken with the assistance of data science and this also sorts out the challenges of investment.
Every day new technologies emerge, transforming the way investors in the trading sector think and invest. One of the biggest revolutions in this sector has been the integration of the internet. What does connectivity mean? That everyone, everywhere only needs access to the internet and a computer or smartphone to start trading. Those with interest in this area can find detailed information online on everything they need to know, explanations for the terminology used, and even information in demo accounts.
But this is only the smallest of changes. Digitalization of the trading sector has been at the lead of the moderate advancement of trading platforms. Since 2010, when the app-based trading platforms started to launch, the trading sector has provided services and facilities to a larger group of investors.
As said before, when it comes to mobile trading, it’s all about the apps. The explosion of apps on the market has really changed the trading sector. They are available for iPhone and Android with features and options that investors love. They are in great demand not only by expert traders but also by new ones that can have the challenge of choosing the best trading platforms in the market.
It is expected that the social trading platform market will grow from 2.22 billion dollars in 2021 to 3.77 billion dollars in 2028. So, the potential is huge.
Why is mobile trading becoming popular?
But why is mobile trading having this success? First, is the increased penetration of smartphones, along with the availability of cheaper data plans. Smartphones nowadays are a popular platform for investors to trade. They can be used everywhere, every time, so have the flexibility that investors love.
Secondly, technology has allowed mobile trading to have new and valuable products and features. Of course, these features differentiate among products, but most used trading apps have every feature that an experienced or new investor might require to make appropriate investment decisions. Also, some companies possess installed regarding investment products: it is possible to purchase part of a share, or stock and not restricted to an entire share.
Security is also fundamental. Investors worry about the safety and security of their cash and investments. Mobile apps allow traders to view their investments from anywhere and at any time they wish to.
It’s obvious that a huge number of people find mobile trading very attractive as the latest apps provide them with ease of trading. So, mobile tech has largely contributed to the change and growth of the trading sector.