If you want to understand the size of the financial marketplace, consider this: forex trading drives an estimated $5.3 trillion worth of transactions every single day. This is just a single facet of the market, remember, and one that contributes to a vast and diverse entity that has been empowered by technological advancement.
This is best reflected by the rise of online trading platforms, which continue to drive a growing percentage of the total transactions completed in the market. The evolution of this technology has continued at pace, while it will also continue to do so in the years ahead.
3 Trends That Will Dictate the Future for Online Trading Platforms
With this in mind, let’s take a look at the seminal trends that will dictate the online trading platforms of the future:
- We Will See the Continued Rise of Dedicated Mobile Apps
Historically, traders were required to access a stand-alone website or download software packages in order to trade online, but this is no longer the case in the modern age.
In fact, thanks to the rise of dedicated trading apps, investors can now access a host of assets on the move and through their mobile device, all while leveraging a single, easy to navigate interface. This has helped investors to execute more effective trades in real-time, which is particularly beneficial in volatile and fast-moving markets like the foreign exchange.
A rising number of trading apps can also be accessed without a viable Internet connection, which enables investors to operate regardless of their precise physical location.
- Platforms Will Evolve to Provide Multi-asset Brokerage Services
The trend for high-frequency trading is prominent in the financial marketplace, and this has had a profound affect on the demands of investors. More specifically, there has been a rise in demand for powerful, multi-asset brokerage services, which enable traders to access a high volume of instruments across numerous asset classes.
This will continue at pace in the future, as platforms (and their affiliated apps) evolve to cover a wider range of markets and derivatives. Underpinned by advanced technology and algorithms, they will also be predisposed to high-frequency trading and increasingly capable of processing multiple orders simultaneously.
- Social Trading Will Become Increasingly Popular
If you are unfamiliar with social trading, this term refers the execution of orders that rely in the wisdom, insight and collection knowledge of the global trading crowd. Leveraging a basic social networking model, this method connects novice traders to experienced and successful investors, enabling them to learn from their words and endeavours.
Similar to the emerging concept of automated trading, this removes some of the burden from novice investors and allows them to enhance their strategies in an informed manner.
While there are numerous influencers that you can target through social trading, modern investors are increasingly inclined to follow renowned traders who have established themselves as opinion leaders in specific markets. By mirroring their positions and strategies, traders have a unique opportunity to profit even in a strained and depreciating climate.
This is certainly a popular practice, and one that will become increasingly popular in the years ahead. In fact, it is estimated that up to 25% of all traders will engage in some form of social trading during the next five years, and this figure is likely to increase further beyond this point.