As the world is reshaping itself gradually, enhancing and advancing the technology is the need of the hour. One cannot contradict the efficiency of technology in the field of trading. It is quite apparent how the financial market has grown so well by using many different ways. The rules-based automation benefited the trading firms. However, there is a long way to go now and forward.
2019, ended up by providing many advanced trading technologies. By using those, businesses were able to grab more opportunities. From problems to solutions, streamlining the processes, cost reductions, and better customer services/ experiences, the whole ball of wax has complemented trading. The economic calendar of the ongoing year and upcoming years is waiting for amazing technological improvements so that the capability of shaping and intensifying the business to the next levels can be increased.
The Trading Technology
The number of competitors in the market is increasing day by day. Consequently, the whole trading market is facing the challenges. But to establish things in a more appropriate manner, technology has entered as the most powerful tool. The boost up of trading companies lies in flexibility that is related or combined, capabilities of innovative technology, big data, and competitive employment. These are trusted solutions to facilitate, optimize, and streamline the trading world.
Some of the essential trading technology trends that are useful in trading in 2020 are:
- Artificial Intelligence
AI has now become ‘ a must-have’ element of all capital markets globally. Research shows that a significant proportion of trading companies have made it a permanent part of their trading technology, and others are just in the process of implementing the usage of artificial intelligence. In addition to this, a greater percentage is yet to properly integrate artificial intelligence or machine learning in their companies within five years.
- Cyber Security
It is essential to have a proper Risk management team. However, the trade is in dire need to have cyber securities installed as a lasting solution for the financial markets. Because the larger the company is, the bigger is the network system. Therefore, to protect all the networks along with the data, programs and devices from unauthorized access, attacks, or damages, this is important to secure everything beforehand.
- 5th Generation of Wireless Communication Technologies (5G)
Using the latest wireless technology for communication purposes is necessary for trading companies. Because trade is not limited to a certain area or country, it has driven its way out to the whole world, in spite of its initiating point (country). The speedy network connection is not only a source of the internet, and it is a way to stay alert and active in the trading world.
- Trading Strategies
Trading companies must focus on the execution of strategies for creating and utilizing opportunities. Utilization of performance analytics or Execution Management Systems (EMS) back the companies in many ways because these are actually impactful.
- Use of Cryptocurrency
In the growing world, the fastest ways of payment methods are important. The advantages of using cryptocurrency i.e., Bitcoin, are countless. It will help the companies to utilize the technologies for broadening the financial market. Brokers that accept Bitcoin will surely appreciate it working a long way together. Brokers and exchanges of cryptocurrency provide a wide variety of blockchains to support businesses.
- Cloud Computing
Another very useful technology for the trading community. Many companies who are not yet using this tool are in process to utilize this tool in grabbing more connections with the customers all around the world.
- Data Analytics Platforms
The companies take full advantage by applying data analytics to their accumulated data on platforms that provide customized benefits. These solutions help the users to bring the data in relevant usage within the existing system.
The bottom line
The technology enhancement is a never-ending process of the era. The upcoming trends and progressing developments in 2020 and beyond are imperative. Therefore, the technological challenges and their solutions in terms of innovations are on board. To satisfy customer’s needs and expectations, the trading market must use the advanced versions of the technology. And this usage of the latest technology in trade makes it easy to maintain the demand in the evolving market.