Today is World Internet Day. Congratulations on everything related to web browsing and online activities.
We decided to look back and answer a question: “How has the Internet changed foreign exchange trading?”.
The market with an average daily trading volume of US$5 trillion
In recent years, foreign exchange transactions have expanded rapidly. In the first 10 years of this century, the scale of foreign exchange transactions has exploded and has now become a market with an average daily trading volume of US$5 trillion. The biggest driving force behind the rapid increase in market liquidity is undoubtedly the Internet. The same tool allows countless happy users to watch videos of cats and dogs playing in the comfort of their beds. It can now also help housewives, retirees, college students, and professional traders obtain this major wealth opportunity.
Once upon a time…
So how did it all start? Give you a crash course in history. Traditionally, foreign exchange transactions are carried out by investment banks on the trading floor and on the phone. Think of those scenes on Wall Street that are eager to make money, and you will understand. The birth of the Internet in 1982 gave birth to the development of electronic trading systems. Now, in the late 80s and early 90s, these electronic trading systems have quickly become popular, which means that investment banks and hedge funds, etc. can now get quotes from their computer screens, without the need to be on the trading floor! With the popularity of electronic transactions, many of these trading floors were eventually eliminated, and foreign exchange transactions were almost completely transferred from the trading floor to the screen.
1. Making changes
Although many traders are struggling to master this new technology while regretting the sudden change in their world, this change has also brought some positive effects. For the first time in history, ordinary people can conduct foreign exchange transactions through an online platform provided by a broker. These retail traders composed of ordinary people can now trade the global foreign exchange market on their bed, of course before being distracted by emojis and cute puppy videos.
Although many traders are struggling to master this new technology while regretting the sudden change in their world, this change has also brought some positive effects. For the first time in history, ordinary people can conduct foreign exchange transactions through an online platform provided by a broker. These retail traders composed of ordinary people can now trade the global foreign exchange market on their bed. Before emoji and cute puppy videos became a pastime.
3. Easy to enter
As we mentioned earlier, one of the biggest attractions of online foreign exchange trading is that it can be carried out almost anywhere, as long as you have access to the Internet. This provides retail traders with the opportunity to make money at home. The ultimate goal of most retail traders is to be able to make enough money to quit and trade full-time at home. I know what you are thinking, “How can I give up the 2 hours of commuting time a day? I like to be squeezed on the bus, then the train…then the train…then the bus again.”—— I believe you can handle it.
In recent years, technological advances have made it easier for people to obtain this convenience from other sources. While online trading used to mean sitting in front of a desktop computer and listening to the dull sound of electricity, laptops meant that people could trade anytime, anywhere, and work in cafes with struggling novelists and Internet trolls. The recent emergence of mobile trading and tablet trading means that traders can keep an eye on the market at any time. This makes it easier for traders to grasp the opportunities provided by the foreign exchange market every day.
5. Easy to learn
The development of the Internet has also made it easier to learn foreign exchange trading. Once upon a time, learning to trade meant buying large, heavy and expensive textbooks, hoping that my desire for cash would outweigh boredom and eye strain. Now, you can not only learn how to “shape up like Kim Kardashian” or “cook the perfect steak”, you can also watch trading tutorials online, and even learn interactive trading courses on the Internet. This makes the process of learning to trade faster and faster, and it no longer makes people so annoying.
6. Automated trading programs
The Internet has also created another incredible attraction for trading, which is automated trading programs. Now, although some of you undoubtedly desire to have the knowledge and skills needed to become a good trader, I know that some of you just want to make money, make money fast. Online traders can even prepare a so-called EA system synchronized with their online brokerage system to realize automatic trading. When they walk on a tree-lined, quiet street and look at all the big houses they want to buy, they can monitor this information with a tablet computer. You can even have a virtual dedicated server to ensure that EA is always connected!
You can clearly see that, like most things, with the exception of human attention span and social interaction, technology makes trading better. On a crowded trading floor, trading is no longer an aggressive, sweaty, and torn-throat activity. Only elites will participate. Now anyone with a bank account and internet connection can conduct transactions. The online industry itself continues to grow every day, and I look forward to what technology can do for the next digital wave. Happy traders!
Please note that this information is for reference only and should not be regarded as investment advice. Transactions in the financial market are very risky.