Trading currencies is not something that has existed for only five years. In fact, it is a practice that has been with us for a very long time. For instance, even people in 3,000 B.C. used to exchange currencies, back when money first started being used and people would travel to different places.
But things evolved a lot over time, and even in the last years, technology has changed Forex trading. It’s now one of the most thriving markets and will develop even more in the future, considering how technology reaches new milestones.
But how has technology changed Forex trading until this day? Let’s find out!
The start of the evolution
Back in the 1980s, the technology revolution started. Electronic trading platforms emerged, and they allowed investors to use a dedicated network in order to place orders. But even though this was useful in foreign exchange operations, they were not able to give a trader live price points, nor deal with any order that fast.
But in the 1990s, trading systems evolved thanks to the Internet. As such, they became more complex, including a lot of algorithms, live market prices, real-time execution of orders, and so on. Only people working in different stock exchanges or brokers had access to these, though. For the next 10 years, the focus was on making different portals to allow easy online access.
Automated trading robots
What is Forex trading? If you go to an ordinary person and ask this question, they would probably imagine a person simply sitting in front of a computer and doing these trades all the time. But in reality, a lot of the trades are done by automated programs.
Expert Advisors are the automated robots that help make this possible, and they started managing trading activities thanks to the development of MetaQuotes Language 4. That’s how they were created. They are able to analyze all the data on the market and thus perform the trades. They work continuously and more precisely compared to a human.
Trading freedom
Not only is it much easier to access the market nowadays thanks to advanced technology, but it is also more convenient to trade wherever you want. You don’t need a computer to trade anymore. That being said, traders can use their smartphones or tablets to look at the market whenever they wish, making trading more pleasant, to begin with. This freedom didn’t exist back in the day.
Easier access
Apart from being easier to trade and keep an eye on the market wherever you are, technology also gives more people the chance to start trading. Basically, you only need an Internet connection and a bank account, and you can use an online broker to trade. So, you have the opportunity to make money from home, which is very appealing when you need some extra cash.
Forex trading has changed a lot thanks to tech development. Many processes can be automated, you have different mobile banking companies offering Forex trading, and you also have more freedom to trade wherever you are. Given the rapid evolution of technology, in the future, things will get even better for Forex trading.