How Has Technology Changed Accessibility to the Forex Market?

Latest News

While daily forex trading volumes may have depreciated over the course of the last 18 months, there is no doubt that the foreign exchange remains more accessible to individual investors than ever before.

At the last count, an estimated $5.1 trillion is traded each day on the forex market, down from a peak of $6 trillion in January 2013. A growing percentage of this capital is traded by part-time and independent investors, who have been empowered to buy and sell and currency in one of the world’s most volatile marketplaces.

This evolution has been largely driven by technological advancement, but how exactly has this made the forex market more accessible?

Removing Barriers to Entry: Technology and the Forex Market

A little over 20 years ago, the forex market was almost exclusively traded by large corporations and experienced investors. This was thanks to the numerous barriers that once surrounded the market, from the cost of executing trades to the expertise and access to technology that was required to make informed decisions.

In the two decades since, however, technological advancement and its numerous innovations have gradually removed these barriers and made the market accessible to anyone with a desire to trade currency. At the same time, the market has diversified to enable alternative methods of trading currency (and similar derivatives), creating a scenario where even novice investors can easily access the foreign exchange and execute orders efficiently.

The Role of Online Trading Platforms

At the heart of this evolution and diversification is the classic online trading platform, which has simultaneously provided investors with real-time access to the financial markets and empowered them to execute effective strategies. Make no mistake; these platforms have combined various technologies and algorithms to provide the ultimate resource for independent traders, regardless of their means, philosophy or their underlying objectives.

To understand this further, let’s take a look at contemporary online trading platforms such as ETX Capital. These outlets enable traders to access the forex market through various methods, with spread betting arguably the best and most popular example. Additionally, they allow for live trades and real-time analysis, while news feeds announce breaking developments as they unfold. This is crucial in a market such as the foreign exchange, where prices can shift significantly and remain constantly vulnerable to macroeconomic trends.

The Last Word

If technology has revolutionised financial trading and access to the forex market, it is online trading platforms that embody this change. Whether you consider the ease with which investors can access the market through these platforms or the comprehensive and diverse range of analytical tools that they provide, they have helped millions to profit in a sector that was one the preserve of global corporations and experienced investors.