The world is aware of technological advancements and how they are changing (if not completely revolutionizing) major industries. This is particularly apparent in the industry of trading. After all, it’s not all that long ago when trading, in the traditional sense, could only be executed by financial professionals.
But thanks to various improvements in technology, just about anyone can now be a trader. It doesn’t matter whether you are young or old, educated or not educated, and even if you are rich or broke. The trading industry is firmly open for business as long as you’ve got a laptop or a tablet/smartphone and an internet connection.
Yet what are these revolutionary improvements we speak of? And in what ways have such improvements changed the game? Let’s take a look.
Trading Is Now More Accessible Than Ever
When we say that ‘trading is more accessible than ever,’ what we really mean is that it has never been easier to gain exposure to financial markets. As touched upon previously, the only requirements these days are an internet connection and a supported device (smartphones, tablets, laptops, etc.). Provided that you tick these boxes, you can become a trader within a matter of minutes.
Gone are the days when you had to set up accounts with investment banks or brokerage firms to trade securities. In fact, you can completely bypass such entities these days, which is commonly the route of choice for younger traders. But what does this mean for the trading industry?
It means that there are more retail traders engaged in the buying or selling of various securities, of course. More traders mean more money flowing through the markets, and it’s the availability of trading apps that is fueling the trend.
The Ability to Copy Seasoned Traders
Did you know that over 80% of retail traders lose money? When you see such statistics, the apprehension that some people feel towards trading seems perfectly justified. However, what if there was a suitable piece of technology out there that would help you to avoid the 80% group?
Once again, it’s a technology that serves as the savior — enter social trading by eToro. We are referencing eToro here as this platform has the largest social trading network in the world. And the magic behind eToro’s success lies in the simple concept of novice traders being able to copy the trades of more experienced users.
Basically, the introduction of social trading technology has reduced the barrier to entry that potential traders have felt in the past. After all, trading can be confusing, and it’s tough to navigate the markets while producing a profit. However, social trading allows users to see how others have performed and quite literally copy their trades.
So theoretically, your trading performance will match the more experienced trader that you’ve chosen to follow.
Access to a Huge Range of Financial Products to Trade
In years gone by, some of the more specialized investment categories, such as CFDs, futures, options, commodities, and others were reserved for professional traders only. And yes, you’ve guessed it — technology has also transformed this trading niche by bundling such investments and making them available through standard trading accounts.
However, no specialized/speculative investment class has benefited from such advancements quite like the cryptocurrency market. This market has exploded in popularity ever since the first big Bitcoin bubble gained global attention back in 2017. And today, younger traders look to Bitcoin investments as a way to outperform other asset classes, such as stocks and bonds.
With this said, despite the surge in popularity seen in 2017, it still wasn’t amazingly straightforward to invest in cryptocurrency. Of course, that’s not so true anymore. The major trading apps obviously realized that by failing to incorporate crypto and other specialist investments into their offerings, they would miss out on a massive piece of the trading pie.
So naturally, leading platforms have made the necessary adjustments to be competitive.
Conclusion — Technology and Trading, a Match Made in Heaven
By highlighting just three key impacts of technology and its relation to trading, it’s clear that this relationship is a positive one. And we truly believe that the more technology improves in the trading world, the better the industry will be as a whole.
