The growth of the forex market has been steady throughout the last decade or so, particularly during the last five years. In 2016, for example, the market’s daily International trading volumes were approximately $5.1 trillion, increasing to $6.6 trillion by the end of 2020, according to Bloomberg.
This growth has been primarily driven by technological advancement and innovation, from mobile capability and trading platforms to the emergence of online seminars, technical indicators, and forex signals.
We’ll explore the impact of innovation further below while asking how technology has helped develop the forex trading industry.
1. The Use of Mobile Trading Apps
The smartphone penetration rate in the UK reached 72% in 2020, while around 92% of people in the United Arab Emirates will be using any mobile phones and smartphones in 2020.
Developers in the financial marketplace have capitalized on this by creating a diverse range of mobile trading apps, creating a scenario where investors can now access the 24-hour forex space and time their order execution more effectively.
This also enables investors to target specific trade periods during the typical 24-hour day. For example, there are several time-frames during which different geographic trading sessions overlap, creating peaks in volatility that can translate into increased gains and profitability.
2. The Emergence of Online Learning Resources and Educational Tools
With the advent of online trading platforms, we’ve also seen an uptick in the number of virtual learning resources and educational tools available to traders.
This has further helped to bridge the gap between part-time traders and established institutional investors by affording the former access to expert-led seminars and real-time news resources that can help to inform investment strategies across the board.
On a similar note, innovation has also created the concept known colloquially as “social trading,” through which investors can operate as part of a community and essentially copy trades from expert traders and more seasoned operators.
This can improve profitability for novice traders from the outset while enabling them to learn on the job and become more efficient in their core strategies.
3. The Use of Messaging Services to Receive Forex Signals
We’ve also seen the development and widespread use of forex signals in the digital age, referring to ‘suggestions’ for entering a trade on a specific currency pair at a predetermined price and time.
While a human analyst can generate this signal, it’s now more likely to come from an automated forex robot, creating insightful, efficient, and real-time suggestions that are highly valuable to traders.
What’s more, real-time SMS messaging services can also deliver such suggestions in a quick and time-effective manner, enabling anyone with a smartphone to receive live updates and tailor their international trading efforts accordingly.
While using a forex signal may usually command a fee, this will be nominal and a relatively small price to pay if you can rely on increased profits over time.
4. Facebook Trading Groups
Had technology not been around, it would have been difficult for traders to establish themselves, but now this is not the case. There is a boost in international trading because of technology, and Facebook is playing an equal part.
For instance – several Facebook groups have active members related to trading. These people join Facebook groups to catch the live Signals and make a profit out of forex trading.
While it is true that the signals offered may not be accurate, but still, these groups are helping traders in one way or the other. Because of these groups, there is a boost in forex trade, all because of technology.
5. YouTube Trading Videos
Elon Musk does not believe in a college degree because he thinks that a person can learn and everything through Facebook and YouTube. People are getting more literate these days about the matters that are related to international trading.
Now people are willing to learn, and they make use of YouTube to learn more about trading. With a boost in covid cases, more and more people are staying home, and some of them are learning a great deal out of YouTube.
We all know that YouTube is the product of technology, and it is creating a boost in mobile trading because of the learning platform that provides in the form of videos.
The fact cannot be denied that international trading has its value, but it is also true that technology is creating a boost in trading because of the many platforms.