Predictions for the Future of FX Trading

on Mar 30, 2016
Updated: Sep 16, 2019

There is no doubt that the world of Forex trading has substantially evolved over the past few years. 50 years ago, countries, banks, and big financial institutions maintained an exclusive club for forex trading and it was unthinkable that an individual will want to trade Forex on their own. With the advent of proprietary technology alongside the presence of streamlined trading tools, traders can now enjoy more technological benefits than ever before.

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Interestingly, change is the only constant in life and the forex trading market has undergone some massive changes in the last 50 years – more changes are underway. Now experts envision some changes in the future FX trading. Below are 5 predictions for the future of forex and how the predictions might affect the average investor.
1. Big Data
There has been much talk revolving around the use of big data within the Forex markets and other financial markets. Big data offers a predictive quality that provides a comprehensive understanding to traders when viewing a few discrete variables. Big data provides access to the big picture by accessing and analyzing huge volume of data with alarming accuracy.

Institutional traders already use proprietary technology to use big data in-house but experts are predicting that all traders will soon have access to big data. With big data, brokers are able to predict the future actions of a trader or an index with a high degree of accuracy. This can help to moderate the inherent risks that naturally occur alongside liquidity.

2. Mobile Trading Access

The era of mobile Forex trading is now upon us as smartphone and tablets become powerfully compact computing devices. Many experts have highlighted this trend and if anything, remote investing is set dominate the financial world within a few short years.

Some analysts have even gone as far to claim that smartphones and dedicated mobile applications will outstrip traditional forms of static electronic investing. This is the primary reason why CMC Markets has developed streamlined systems to aid in this process. There is no doubt that e-commerce is here to stay – and apps might be new generation of brokers in the market.

3. The Adoption of Social Trading

Another buzz phrase that has been mentioned in many reputable articles is the notion of social trading circles. As the world of social media now dominates the lives of billions of individuals from around the world, online brokers have understandably begun to capitalize the power of social consciousness.

With social trading, novice traders learn best practices in the market and mimic the trades of the pros. More so, forums and other interactive content will enhance existing educational instruments. 2016 is set to be a red-letter year in terms of the impact that social media trading will have upon the world of Forex trading. Further information on social trading can be found at

4. Global Connectivity

One massive advantage of the Forex markets is the fact that you can trade forex 24/7 globally because the market is always open. The global nature of forex has been strengthened over the past few years thanks to even higher levels of connectivity provided by cheaper and faster access to the Internet. Some analysts believe that global connectivity will dramatically impact the presence of emerging markets (such as those in Africa and Asia) in the global forex market.

The real question is however, is whether or not the presence of new trades for Africa and Asia will add to the liquidity of the marketplace. Nonetheless, it would be interesting to see how the presence of new traders affect the sense of stability or volatility in the market. FX market will witness an even greater number of investors from around the world enter into lucrative online brokerages in the coming years.

5. Personal Investment Advisors for all Traders

High net worth individuals enjoy some perks that are out of reach for the average trader or investor. If you have deep pockets, brokers will go out of their ways to provide you with a full-time personal investment advisor that will scour the markets to provide you with information on trading opportunities that are tailored to your specifications.

Now, some of the events occurring at the intersection of technology and finance suggest that all traders will be able to afford a personal investment advisor in the next couple of year – except that your advisor might be an AI powered chatbot. A typical trading scenario will have you say something like “Hey Alice, I’m worried about the Brexit, can you adjust by GBP trades to lower my risks?’ And a possible response will be ” Okay, I have set stop loss on all GBP trades to lock in current gains.”

The AI personal investment advisor might be smart enough to make decisions without waiting for you to give an instruction. The AI will analyze your decisions in previous times and it will make educated decisions when similar events occur even though you are not physically present to monitor the market or the trades.

Final Words…

The aforementioned 5 predictions should be taken seriously by those who hope to keep abreast of the Forex industry. It is important that FX traders evolve with the markets instead of being stuck in the ancient way of doing things.

In the final analysis, when these predictions happen, the process of trading forex would have been revolutionized and democratized to provide all traders with an even playing ground. Whether you like it or not, the most profitable FX trades will be determined more by having the fastest trading algorithm than by using the oldest market fundamentals.


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