How Technology Has Changed Investing
There is no denying that technology has changed the way we go about our daily lives. From how we do our shopping to banking, technology has had an impact on it all. It has also had a significant impact on the way that we invest our money, which is something we are going to look at in further detail in this blog post. Read on to discover more about the different ways that technology has changed investing.
The impact of computer algorithms – There is only one place to begin, and this is with the introduction of robo-advisors and the computer algorithms that have come with them in recent years. You can read this Blooom review for more information on such a platform. These platforms have been designed to ensure that people make better investment decisions. They are getting more and more intelligent all of the time too thanks to the use of algorithms.
Big data – Big data, which involves datasets being collected and analysed on a massive scale, is now at the core of investment. Big data plays a critical role in terms of managing and regulating financial markets. There are also agencies that utilise this data so that they can make sure they catch any illegal trading and monitor activity.
High-frequency trading – Also known as HFT, this is a form of automated trading. It is categorised by advanced algorithms, which we have already spoken about, as well as short-term horizons and near instantaneous execution.
Social media – Social media has also had a huge impact on investing because it has become a treasure trove of data. Needless to say, separating the good data from the bad is a pivotal part of this.
Online trading – Of course, it would not be right to talk about tech and investing without mentioning online trading. Online trading turned the industry on its head because it changed the role of a broker. Before online trading platforms became so proliferated, investors would actually call up their broker in order to place a trade. These days are long gone.
Terminals – Last but not least, another way that investing has changed due to tech is through terminals. These were first introduced around 60 years or so ago, so they are not a new invention. However, today’s terminals are so advanced, offering cloud-based software that can be uploaded onto any type of device. This means investors have a secure network so they can access everything they need, including having the ability to chat with clients and competitors, execute trades, read the market news, and assess real-time pricing.
As you can see, there are many different ways that technology has changed the face of investing. From the computerised trading terminals that are used today to the robo-advisors investors use to make their decisions; there is no denying that technology has had a dramatic impact on the investment sector.