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The technological revolution is nothing new in the world of financial trading, with the digital age having ushered in virtual brokerage sites and brought real-time order facilitation to novice and part-time traders.
However, trading technology has evolved far beyond mere trading platforms, with a number of transferable technologies and innovations also impacting the way in which investors access and navigate various marketplaces.
In this post, we’ll explore these innovations in further detail while asking how they’ve impacted the forex and similar marketplaces.
Improved Internet Connectivity and Lower Latency Levels
We’re now entering the age of 5G connectivity, which is starting to revolutionize mobile Internet technology while optimizing the efficiency of real-time trading across the board.
In short, better signals translate into superior coverage and quicker upload (and download) speeds, making it easier to start forex trading by finding an online broker and instantly access your investment account.
Such speeds are measured by network latency, which describes how long it takes for data between its source and final destination. To put this into context, 5G technology has reduced average latency to just 1 millisecond, whereas the corresponding number of the preceding 4G was 200 milliseconds.
This has definitely created a more level playing field, from which part-time traders can achieve the same penetration levels as institutional investors.
Increased Mobile Penetration and Mobile Trading
The smartphone revolution really began with the launch of the iconic iPhone back in 2007, with this having precipitated rising rates of mobile Internet penetration over the course of the subsequent 14 years.
As of January 2021, the total number of active mobile Internet users was estimated at a staggering 65.32 million in the UK, with this equating to a whopping 96% of the overall population.
This has created widespread and real-time access to the world’s financial markets, especially through popular and easy-to-use trading platforms such as the MetaTrader 4.
As a result, it’s now easier to trade multiple assets and marketplaces through a single, customizable interface, and one that allows you to execute informed and insightful orders in real-time.
App Development and Market-Focused Platforms
On the subject of the MetaTrader 4 (MT4), this desktop and mobile app was launched in 2005 by the innovative MetaQuotes brand. This platform was designed specifically for forex trading, while it remains the standard-bearer in this market to this day.
However, 2010 saw the release of the MetaTrader 5 (MT5), which utilizes a different and upgraded programming language that’s ideally suited to a more diverse range of assets such as equities and commodities.
This is an important and ongoing evolution and one that has empowered traders to benefit from targeted apps that feature relevant analytical tools, technical indicators, and chart types.
This trend is also prevalent across a range of alternative apps, so you have the opportunity to compare the market in detail before determining which platform is best for you.
Photo by Nataliya Vaitkevich from Pexels