It’s estimated that almost 10 million people worldwide now trade forex online every day. As a result, it’s no wonder that over $6 trillion is traded on the market daily.
With so much money changing hands so quickly, speed is of the essence in online forex trading. With this in mind, let’s take a look at the modern technology that powers the platforms used to execute trades. But first, we’ll assess what traders expect from modern trading platforms.
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What Traders Expect from Modern Trading Platforms
Whether they’re trading on web or mobile, users are looking for fast trade execution, fully-integrated trading tools that help them assess the market, enhanced mobile trading experiences for on-the-go analysis, and customizable charts where they can assess their strategy. Fortunately, from integrated tools to customizable chart views, trading platforms are enhancing the user experience and making trading more accessible than ever before.
As platform providers switch from Flash or Java-based trading platforms to HTML5 versions, they’re able to further integrate tools and features into their platforms that help improve the trading experience. Plus, they’re able to secure their platforms using many of the security features banking apps use.
With this in mind, let’s take a look at what modern technology looks like in the trading world, focusing particularly on three technologies that are empowering traders of all experience levels.
What Modern Technology Looks Like in the Trading World
Expert Advisors
In the modern world, it’s estimated that under half of all traders are watching a particular chart on a screen. Instead, the majority of traders now use Expert Advisors. These programs monitor market activity on behalf of a trader. In doing so, they precisely analyze market movements and execute trades far quicker than humans would be able to, meaning individual traders can stay ahead of the market on a second-by-second basis.
Apps and App Support
The advancement of 4G and 5G mobile networks has led to the growing prevalence of trading apps, which allow investors to trade on the go and never miss a trade.
However, although most providers now offer app-based trading platforms, the level of customer support often varies. For this reason, you should choose a CFD broker who has good app support. You’ll usually find that the best CFD broker for your needs will be highly rated by traders and will offer support functions such as live chats, problem-solving guides, and multiple deposit and withdrawal options.
Geolocation Tracking
Improving technology also means that brokers have improved their geolocation tracking technology. This means that they’re able to offer their traders a better execution speed and lower latency.
Now, trades can be executed in around 0.2 seconds. This is because brokers have several servers in different geographical locations. When executing a trade, a trader will be directed to the appropriate (closest) server, which speeds up the process when compared with running things centrally.
In 2020, trading platforms are faster, more customizable, and more supportive than ever before. As we look to the future, it appears certain that the trading and charting tools offered to traders will only expand further. Similarly, speed will also increase, and we may be looking at as little as one microsecond execution times. Watch this space.
