Thanks to modern technology, the world of online trading has opened up more opportunities for the average investor than ever before. This has led many individuals to enter into this potentially lucrative marketplace. With the advent of smartphones, accessing specific positions and executing trades in record-breaking times is likewise a reality. However, there is no doubt that the environment can be tricky for those who may be new to the market. Taking advantage of the latest technological innovations is therefore critical for success in today’s world. What are some interesting advancements in regards to online trading and how may these impact the trader for years into the future?
We touched upon this subject in the last paragraph and it is prudent to examine the influence of these handy devices even further. As of 2016, it is estimated and an incredible 2.16 individuals access their smartphones on a daily basis (1). Modern trading platforms have taken this statistic into account and through dedicated applications, investors can now access the very same systems that would have only been available to a personal computer in the past. There are several reasons why this is important. First, those involved with open positions need to be able to retrieve data within seconds when necessary. Secondly, mobile phones provide nearly universal access to international indices and the Forex marketplace. Remote devices are therefore able to provide an enhanced sense of flexibility.
Security is an understandable concern for any trader. Personal and financial data need to be protected at all times. In the past, it was not entirely uncommon for certain unscrupulous companies to breach privacy agreements or for a portal to be hacked. Whether this was to obtain details for third-party marketing purposes or there had been more nefarious intentions, the threat was very real. Modern trading sites such as CMC Markets employ a type of encryption known as Secure Sockets Layer (SSL). This is actually some of the same software that banks utilise to keep the details of their clients safe. Thus, the risk of theft or loss of personal data has been dramatically reduced.
Social Trading Systems
There has always been a steep learning curve associated with online trading. This is obviously important due to the fact that success will only arise as a result of hard work and experience. Unfortunately, such a scenario could be daunting for some would-be investors. This is why the advent of what is known as “social trading” is worth mentioning.
Social trading is a method to learn from the experiences of those who have been in the markets for longer periods of time (2). Many sites now offer live forums where investors can speak with one another as well as observe the trades of industry professionals. Not only is this an excellent way to achieve a competitive edge, but common mistakes may very well be avoided. We should also note that social trading systems are still evolving, as they are new to the industry. It is perfectly reasonable to assume that major trading portals will offer specific mobile applications dedicated to this cutting-edge tool.
It should be clear to see that recent advancements within the digital world have enabled online trading to take centre stage in terms of investments. This industry can now be accessed by nearly anyone and with a bit of hard work, sustainable wealth could very well be around the next financial corner. It will be intriguing to see what the future may hold for such a burgeoning sector.