Custom Search 1

How technology is bringing trading to the masses

GROWTH: Financial trading

THERE WAS a time when trading on the markets was completely out of the question for most people. This type of investing was seen as being complex, time-consuming and requiring a fair degree of specialist knowledge.

What has changed since then that has allowed more people to invest in this way? The truth is that the emergence of new technology has been a huge factor in bring trading into the lives of far more people than ever before. In what way have recent changes affected how we can now trade?

The number and different types of people that trade

Trading on the markets used to be restricted to professional investors and other people who had spent a lot of time studying the markets. Trying to do this without the necessary experience and knowledge was a dangerous game. Added to this was the fact that it was considered to be difficult to get started in this type of investing.

This is the first major change that has become noticeable thanks to new technology. It is now calculated that there are 61 million financial traders in the US. This compares with just three and a half million traders when online trading was first offered in 1994. It is also interesting to note that a growth rate of 26% was reported in stock and commodity traders between 2006 and 2016.

What is more difficult to quantify is the change in the type of person that now trades. However, given the overall rise in the number of traders it seems safe to suggest that the total now includes a wider spread of the overall population than it did before. It's no longer necessary to be one of the world’s most famous investors in order to try and make money from the markets.

What does the future hold?

The upwards trend laid out earlier seems set to continue as further technological innovations help to make trading easier to get started on. On this note, mobile trading applications such as the IG Trading app for Android devices are now available, allowing even beginner investors to analyse trends and trade on different markets. Since 32% of the world’s population now uses smartphones, it is likely that more and more people start investing wherever they are by using their mobile devices.

As with many other industries, it is also believed that new blockchain technology may help to introduce decentralised options. For instance, the Stuttgart Börse is the second biggest stock exchange in Germany and it recently released plans for a blockchain platform covering ICOs and cryptocurrency trading.

It seems clear that the appeal of investing in different financial instruments is stronger than ever before. Of course, the difference in the modern, digital age is that it is now possible to use the latest technology in order to do this more comfortably and with a greater deal of flexibility.

The basics of investing haven’t really changed all that much over the years. Yet, the fact that we can now trade using cutting-edge technology has revolutionised the industry and has given a lot more people the chance to start trading on their own terms.

Read every story in our hardcopy newspaper for free by downloading the app.

Facebook Comments