Online trading is one the rise and thanks to a constant stream of innovative technology, it’s never been easier to profit from the world’s financial markets than it is today. Compared to only a few decades ago, when forex and stock trading was exclusively for the rich and educated, online trading is now available to anyone with a computer or even a smartphone.
In the following article, we’ll discuss some of the ways that technology has changed the way we trade online and provide pointers on how you can get started as well.
1. Access to More Markets Than Ever Before
Besides making trading available to everyone, modern online brokers have also give everyday people access to more markets than ever before.
Traditionally, trading has been associated with the foreign exchange market as well as traditional securities such as stocks and commodities. But the industry has changed and today you can trade almost anything you want.
For example, your average online broker can be used to trade everything from forex, stocks, and commodities, to more unique markets such as cryptocurrencies. This is done in many ways, with the most popular being a derivative class called Contract for Difference or CFDs which allows you to profit from market movements without owning the underlying asset.
There are many benefits to speculating using CFDs, for example, access to more markets than through your regular stockbroker, the option of using leverage and margins to maximize your exposure, as well as the ability to quickly switch between long and short positions, to mention a few.
Note that CFD trading is not allowed in the US meaning Americans have to stick with traditional investments or forex and cryptocurrency trading.
2. Mobile Trading for Everyone
Another amazing development that’s happened over the last few years is the rise of mobile trading solutions. In the past, all forms of trading and investments were done over the phone and later also through online and desktop platforms.
However, in the last couple of years, brokers from all over the world have worked hard on optimizing mobile versions of their platforms. In turn, this means that anyone with a smartphone can open a trading account and start analyzing assets, opening and closing positions, and everything else needed to succeed as a trader.
Now, most mobile platforms are still somewhat limited compared to their desktop counterparts, and since you can’t use several screens at once, analytic work is not as accessible. In other words, mobile trading is mostly for retail hobby traders and not professional day traders.
In addition, all the top stockbrokers have great investment apps and companies such as Robinhood allow you to handle a complete stock portfolio using only your smartphone or tablet.
Lastly, as with most leading industries today, automation has helped take trading to the next level.
There is a range of excellent trading robots that can be used to trade without your constant input. All you have to do is set your requirements for when the software should open and close your positions, and then you let the trading robot do all the work.
These solutions are perfect for people with limited spare time to spend on trading as well as people who are just getting started and need all the help they can need to make a profit.
There is also a multitude of newly launched apps that can be used for small, everyday investments in professionally-managed portfolios. Some of these apps require you to actively invest as little as a dollar per day or even per week, while others can be connected to a debit or credit card to automatically invest your spare change every time the said card is used for purchase.
The investment and trading industry has experienced substantial growth over the last couple of years and no signs are showing that this trend would slow down or stop. In other words, while it’s easier than ever to use technology to make a profit of the world’s financial markets, we should expect it to become even easier within the near future.