How Technology has Created a Truly Global Forex Market

Published on 5 January 2018 by Raffick Marday

Technology has Created a Global Forex Market

From the Brexit vote to the election of Donald Trump as U.S. President, there’s no doubt that the world has been gripped by populist sentiments during the last 18 months.

While this may have railed against the concept of globalism, however, we continue to live in an interconnected world that is surrounded by far few borders than in previous generations. Technological advancement has played a seminal role in this shift, by allowing for real-time, remote communication and connecting countries as part of a global marketplace.

This is particularly evident in the forex market, where technology has afforded direct access to independent and part-time traders across the globe. Here’s how:

Forex and the Interconnected World – How has Technology Empowered Traders?

Historically, forex trading was largely exclusive to large institutions and established, third-party brokers. This changed with the technological revolution, however, which broke down many of the traditional barriers to entry by making in-depth analytical tools, vast data sets and back-testing capabilities available to an international audience.

This is best embodied by contemporary trading platforms like Oanda, which are globally accessible and connect traders as part of an electronic network. Platforms of this type have levelled the playing field for new, inexperienced and part-time traders, by offering each user access to the same live and historical data sets. Similarly, traders from across the globe can leverage the platform’s ever-changing range of analytical tools, making it easier to identify trends, refine strategies and execute informed orders.

With the advent of affiliated mobile apps, the forex market has become even more interconnected and reflective of a truly globalised industry. After all, a number of mobile trading apps even allow users to access the market without a viable Internet connection, making it possible to place orders and analyse data regardless of where they are in the world. This is the very definition of direct access trading, while it also means that global location is no longer a determining factor when looking to crack the forex market.

The Bottom Line – Why Globalisation Will Continue to Drive Forex Trading

Trading platforms are often renowned for their ease of use and accessibility, but we rarely celebrate them for the role that they have played in delivering high-demand services and data to a global audience.

Without the advent of online and mobile trading platforms, the lucrative forex market would have remained inaccessible to the vast majority of aspiring investors. Traders would certainly be unable to access to the type of detailed and relevant data sets that can drive informed decision making, particularly in real-time.

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