There’s no doubt that the forex market has grown exponentially throughout the digital age, with this entity now boasting a cumulative value that’s more than 2.5-times the value of the world’s GDP.
Given this and a daily trading volume of around $6.6 trillion, the forex market is clearly more popular than ever before. This is largely thanks to the accessibility of the contemporary market, which has benefitted from a sustained technological advancement over the last 20 years or so.
But how exactly has technology changed the forex market? Here are some of the key changes and innovations that have shaped the market’s evolution over time.
The Rise of Online and Mobile Trading Apps
Perhaps the single biggest innovation to impact on forex trading is the rise of online trading platforms, and the subsequent emergence of mobile alternatives such as the MetaTrader 4.
One of the key benefits of this is that it has enabled constant, real-time access to the marketplace, which is crucial when you consider that the forex market is open for 24 hours each day across three distinct trading sessions (namely North America, Europe and Asia-Pacific).
So, you can use online and mobile trading platforms to execute an optimal trading strategy, and one that’s capable of capitalising on the numerous price fluctuations that take place each day.
The Emergence of Online Learning Resources
When the market was largely exclusive to professional and institutional traders, there was little demand for accessible learning resources.
After all, the forex market and similar entities were almost completely inaccessible to aspiring or part-time traders, so there was little point in learning about the fundamentals of the market or its underlying rules.
However, as forex trading has become increasingly accessible, investors have been able to access a diverse range of learning resources online.
These include free to access websites such as Investopedia.com, alongside paid courses and seminars that can be booked through different service providers. Trading platforms themselves are also home to a number of in-built learning resources, along with comprehensive analytical tools and technical indicators.
Messaging Services and Forex Signals
While algorithmic trading has certainly helped to revolutionise the forex space, this has also had a more precise impact on concepts such as risk management and initial trading decisions.
For example, modern trading platforms now run real-time forex signals, which are part of a wider messaging and communication service that suggests possible trades on currency pairs.
While this often incurs a fee, it’s also highly accurate information that’s driven by detailed algorithms, so it may offer a viable pathway to additional profits and more successful trades over time.
This is particularly important for novice traders, who often need a little additional guidance and insight to help them on their way.