Technology’s impact on the Forex industry

The rise of technology has led the world to a better quality of life and helped different industries evolve. One such industry is Forex. Fintech companies are fighting for their spot in the limelight by inventing more and more cutting-edge tech solutions to answer to the growing demands of the market.

With more and more FX brokerages willing to redirect their IT demands to external fintech companies, rather than continue keeping everything in-house, the FX technology industry will keep on flourishing in years to come.  

One of the main trends guiding this evolution is the rising level of demand for tech solutions caused by new market regulations, focused on finding new ways to tackle liquidity issues and make back-office support more cost-efficient.

Fintech solutions have to be architected to fit current business requirements and to grow together with the market. New enhancements must be delivered seamlessly and be constantly aligned with business KPIs, while also remaining affordable.

Another big trend rapidly evolving is mobile internet technology. With the FX market open 24/7, traders are becoming more and more interested in being able to take action at any time of day, without having access to a computer. Most FX brokerages have already started investing in mobile solutions that would allow their traders to access their member’s area from any location and through any device.

The flexibility and mobility these solutions provide have received a massive positive reaction from traders worldwide, who now have access to real-time industry news, market events and educational materials wherever they go.

Social media has also played a part in the growth of the FX community, allowing traders worldwide to share insights and experiences with each other. New traders can now learn tips and tricks from experienced influential experts by simply following them on Twitter or Facebook, thus forming a powerful online knowledge base to help them become more confident in their trading.

With the creation of solutions like Metatrader, traders’ strategies have become more accurate, while the invention of supercomputers has allowed HFT (high-frequency trading) to become a reality.  Electronic trading now takes up 70% of daily turnover, compared to 30% ten years ago.

The development of new fintech solutions is a never-ending process which offers endless opportunities for the Forex industry. In the future, the need will be to focus on providing multi-asset, high-quality solutions that will be flexible, mobile and walk hand-in-hand with the evolving FX market.

 

Author: Nadia Ivanova, PR & Digital Marketing Manager at Qobo Group Ltd