How Has the Forex Industry Benefitted from Technology?

The forex market has evolved at a rapid rate over the course of the last two decades or so, with an estimated $5.3 trillion now traded every single day through this entity. This evolution has undoubtedly been driven by technological advancement and innovation, with many of the barriers to entry that once surrounded the forex market having now being removed forever. But how exactly has the forex market benefited from technological advancement, and why should individual traders care? Let’s find out!

Ease of Access

Before the digital age, the forex market was almost exclusively available to corporations and large institutional players.

However, the advent of innovation and the emergence of online brokerage platforms such as ATFX has reversed this trend completely, opening up the forex market to private and retail traders from across the globe. As a result, even part-time and day traders now have access to professional analytical tools and detailed industry insight, so long as they have an Internet connection and a small amount of capital with which to get started. These tools also make it easy for traders to track movements in a 24-hour marketplace, whilst managing their portfolios with the minimum of fuss.

Faster and Automated Execution of Transactions

As with most industries, the forex market has seen a rise in the use of automation as technology has continued to improve. Make no mistake; automation is now impacting on various layers of the foreign exchange, from back office applications to the dealing desk and the implementation of risk management measures such as stop losses. In terms of order execution, this means that traders can now open a higher volume of positions within a short space of time, enabling them to capitalise on real-time developments and deploy their capital as they see fit.

Monitoring from Anywhere

As we’ve already touched upon, the forex market is open for 24 hours a day and five days a week, as trading activity unfolds across the separate sessions.

Historically, it would have been impossible for individual or part-time traders to monitor the market’s various price movements, restricting opportunity in terms of global trading. However, the advent of mobile technology and software such as the MetaTrader platforms has changed this forever, creating a scenario where traders can easily access their portfolio details from anywhere and at any time of the day or night. This represents a seismic shift, and one that has revolutionised forex trading in the digital age. It has also made it easier for traders to generate a profit, as they’re no longer restricted in terms of trading hours or market accessibility.