Technology drives an inclusive trading market

February 9, 2021 at 11:42 PM

INFINOX Managing Director, Jay Mawji, explains that technological advancements have allowed everyday people the opportunity to trade without breaking the bank, and highlights key takeaways of what clients should be looking for in an online trading partner. 

Gone are the days of being in the know and wheeling and dealing with the stressed out stock trader on the floor during the Wall Street boom era. Today, trading is accessible to anyone with disposable income, young or old. 

Putting this into context, it has recently been reported that millennials make up as much as 60% of the 15 million online traders across the globe. This number reflects the rise of the Fourth Industrial Revolution and how technology has become intrinsic in many of our daily lives. Millennials are the first of the digital natives amongst generations, and in the world of trading, the natural progression was for it to move from solely being entrenched in the physical world, to moving into the digital realm – bringing along with it many new opportunities. 

Much has changed in the financial trading industry with the advent of technology. Technology opened the market up to everyday people, and allowed them to reap the rewards that come with responsible and regulated trading, comprising what Mawji refers to as the 3 A’s: accessibility, accountability, and affordability.

Why Start Trading Now?

Today, technological advancements have allowed us the accessibility to trade from any location imaginable, provided that there’s an adequate internet connection. As such, the digitisation of the industry was an important step forward to ensure its progression to one that is open to a larger demographic than before, and not just stock brokers on the trading floor.

Further, in a digital world, clients can hold brokers accountable for pricing, execution, and services; creating a more trusting environment where clients will feel more confident in participating. Lastly, the digitisation of the industry has presented a more affordable option to trading, and instead of spending hundreds of thousands and needing to know someone in the trading industry in the days gone by, today all that is needed is an investment around $100 and access to the internet. 

By far some of the most significant technological innovations that have been introduced to online trading include tools associated with pricing, charting, and order logs. However, one which we have seen becoming ever-more prevalent given the App Generation that we live in is the concept of mobile trading, allowing one to purchase and trade financial instruments from anywhere and at anytime from the convenience of their mobile device. 

However with these digital progressions, regulations and the ability to understand clients will always be the biggest ramification to the evolution of these technologies. Regulators have to constantly adapt and adjust regulation to dictate how firms and their market solutions should operate, while taking into account how clients are protected. And while this can at times slow down regulatory advancements, it allows trading partners the opportunity to slow down and pay greater attention to where we can adapt and provide even greater solutions to clients.

Find the Best Broker For You

When looking to partner with an online trading provider, traders should look for one that not only provides customer care, but one that is regulated in the relevant jurisdiction and focuses on aspects such as pricing, and trading technologies. Additionally, traders should consider the providers’ server reliability and execution speed. 

It’s important to consider that in order to be a successful trader, you should be regularly educating yourself on trading best practises, including being attentive to the trends and the various associated risks involved. While there are numerous resources such as tutorials, applications, guides and videos readily available on the internet, be cognizant that consuming this fast information doesn’t always lead to success, with true trading power and knowledge coming from experience. 

It’s therefore important to partner with a broker that has its finger on the pulse of the digital evolution, while still maintaining the human touch that will enable a trustworthy relationship between broker and trader. 

This is because as technology has grown, malpractice has evolved to take advantage of digital opportunities. The rise of the digital age has resulted in an information overload and often a lot of this information is made up of unqualified opinions and regurgitated statements.

Top Tips For Selecting A Broker

In order to find the right broker, it is crucial to conduct research on the company and the regulations that they abide by. The best place to do so would be the Securities Exchange of the Bahamas (SCB) who keeps an up-to-date register of all firms and their business activities.

Secondly, traders must recognise the investment risk versus reward, and take into account that it should be a balanced approach between the two, while being aware that if it is too good to be true, it usually is. Be wary of schemes that are too easy to open an account, too easy to deposit, too easy to trade, and too easy to make money. This is a clear sign of limited regulations and processes. 

While the advent of technology has undoubtedly been instrumental in the progression of the industry, we must be aware of the fact that at the heart of the industry lies the client, and that technology’s impact on the industry is truly down to how the client digests it. This highlights that even in a digital world, human value is still key to success. 

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