How modern technology has changed the trading world

July 12, 2022

Traditionally, investors used over-the-phone stockbrokers to place trades, meaning they were tied to certain times and third parties. However, online trading has created an easier way to trade the markets, allowing increasing numbers of investors to get involved.

Online trading is the buying and selling of commodities such as stocks, currency, NFTs and cryptocurrency through a digital platform. It’s even easy for beginners to invest, with an array of platforms and online tutorials readily available. Those new to the world of trading can practice their skills with free demo accounts before making the leap to using real-life cash.

Traders can also take part in both long and short-term options, all at the touch of a button, whether on their laptop or smartphone.

What are the benefits of technology in trading?

Aside from aspects such as real-time trades and convenience, online investors can take control of their own portfolio and build up their trading skills and knowledge at their own pace. As many online trade platforms are free, the overall cost is low and there are no third-party charges or complexities to deal with. There’s also greater access to a wider range of markets, making it easier to expand a portfolio with options such as forex trading, with a variety of currencies, stocks and cryptocurrency.

With much more analytical data that’s accessible by anyone, it’s easier than ever to get clued up on charts and statistics as well as take advantage of a variety of trading tools. Plus, day trading options allow those just starting out to invest with minimal risk.

The influence of artificial intelligence and blockchain

Much of the appeal of online trading is the decrease in risk which is, in part, due to artificial intelligence taking over the role of humans and lowering the chance of error. Companies are also using advanced technology to create machine-based learning through blockchains, leading to higher transactional security due to the decentralised network.

Automatic trades can be set up due to AI, resulting in less time being spent sat a computer screen, waiting for stocks or currencies to rise or fall before investing.

This use of technology has also allowed the creation of new markets, opening up the door to other types of digital trading such as cryptocurrencies and even NFTs. For the average person this would have been unheard of a few years ago but now almost anyone can open up an account and trade their preferred stock or currency.

Apps designed specifically for smart phones mean traders can invest on the go, rather than have to wait until they’re sat back at their desk with every chart in front of them.