As society continues to make technological advances that have an increasing impact on our day to day existence, it stands to reason that such progression will also greatly influence the forex trading industry.
In the modern world, speed and convenience are becoming the major watchwords across several fields including finance, food and communications, all of which are seemingly constantly being improved by the ever-evolving developments in technology.
But how will such rapid progress affect forex trading, which has become increasingly popular over recent years as traders gain greater access to a wider range of information?
The possibilities are endless with 5G
Promising download speeds of up to 20 times faster than what is currently on the market, 5G is the next step in terms of mobile internet connectivity, offering wider coverage and increased stability of connection.
As with many technological advances, the new opportunities provided once 5G is widely available cannot yet be imagined, but we can be safe in our prediction that its emergence will have a positive impact for the users of forex platforms such as OANDA.
Regular traders may only require 4G connectivity to complete the majority of their trades, but those who deal at a higher frequency are set to benefit from the greater speeds when it comes to opening and closing positions.
Blockchain’s continuing evolvement
Several of the big players in the blockchain industry are searching for ways to make the technology as widely available as possible, with much of the development aimed at cryptocurrencies and security.
With blockchain continuing to grow, its technology is increasingly likely to be used by major banks and financial institutions, therefore changing the way these companies trade in currency and making the forex industry more efficient.
As blockchain is not owned by a single entity, the availability of its recorded information to a wider range of businesses is increased, including to smaller traders and start-ups, who can subsequently trade directly rather than through banks or institutions.
Automated trading improvements
Additionally, automated trading systems –set up by the trader to work within pre-programmed rulesbefore monitoring and then executing trades– are constantly being improved, which helps to minimise emotional trading and allows for a greater diversity of trades.
And the full advancement of technology is yet to extend its reach across the entire planet, meaning there are many developing nations where the scope for growth is massive. These countries and their currencies could soon become important factors in the forex industry.