Previously, there were days when boisterous and agitated traders moving around at the New York Stock Exchange shouted out orders to one another creating a raucous situation. But times have changed now, thanks to the advancements in technology. There are digital stock exchanges where trading occurs digitally and high-tech trading can be carried out with no shouting thereby providing the investors with better ways of buying stocks and researching.
Now that we know that technology has had a clear impact on the way we trade these days, we have to know the ways in which technology has set an impact on the life of traders. Here are few ways in which tech has changed the stock trading industry.
1. Easy access to the financial assets
Once we asked several industry experts and players, they all agreed on the fact that trading has become more accessible after the intervention of technology. Previously, trading was something that was only available to the bigger players but thanks to technology that it has opened up opportunities for both retail and private traders who can now participate in your industry. The experts are of the opinion that technology has streamlined trading and has opened doors for the masses. It has given them several tools that can be used both by the professionals and the non-professionals. The improved transparency and ease of access that you get on digital trading platforms also appeal to a wide customer base.
2. Researching on different stocks has become easier
As per what the Securities and Exchange Commission says, the investors nowadays have unlimited access to detail information on stocks and companies. If you wish to know about a company before buying its stock, you just Google about the company to know their profit, return and background in detail. The financial planners can also tell you about the recent developments of the clients to track the performance of their stocks. Traders and investors will remain better informed about a specific stock due to the instant sharing of all sorts of information.
3. High frequency trading
With the onset of electronic trading, there has been an encouragement of high-frequency trading. People using this kind of trading will sell and buy stocks on the same days and they will even be able to execute an entire buy and sell cycle within few minutes. This actually gave birth to day trading but at the same time the best impact is felt on the institutional investors who initiate various trades.
4. Smaller operators are getting space
Experts also added that with the onset of white-label providers who use the platform of someone else is a result of new technology. This makes it easier for the smaller providers and operators to set a shop and provide people with services like trading platforms.
Therefore now that you know the ways in which technology has changed the entire trading and investment industry, you should take them into account if you’re a trader who is striving hard to create your own niche in the industry.
Pamela
