Forex trading is seeing new members join the market every single second. In 2014, the world had roughly 4 million traders. Nowadays, in 2021, that number has grown to almost ten million! It goes without saying that the trading world is evolving fast, given that one could trade stocks, for example, since the 80s-90s.
Naturally, this increase was possible only thanks to the technological advancements of both the online world and trading platforms. In 2021, investing $10 in a stock, currency, or cryptocurrency is as easy as unlocking your phone and tapping your screen a couple of times.
On top of that, as it can be seen in this directory, there are more than enough brokers to accommodate the increasing trader community. But is technology keeping up?
This particular type of trading is already more than just popular. In fact, quite a lot of people started trading just because they have the opportunity to simply copy or mirror the strategies and trades of professional traders.
Naturally, even though beginner traders don’t learn much via this type of trading, it still allows them to interact more with the community instead of spending all day watching charts.
On the other hand, it is also likely that social trading will soon evolve to become fully automated. Depending on what traders and brokers want, social and copy trading might go as far as to find the best trader to copy with a single button click – and that’s it!
When it comes to artificial intelligence, most traders expect it to… well, to engage in trades on its own, without any trader input whatsoever. But trading AI doesn’t work like that – at least not yet.
Trading AI refers mainly to improvements in predictive analysis in machine learning that better try to predict the market for traders. This would allow traders to focus less on research and more on trading strategies to maximize profit. At the moment, AI does little in terms of actual trading forecasts.
Usually, algorithms in the trading world are used to automate trading. This means that a trader would simply set up some filters and let the platform trade for them while they’re relaxing or working.
At the moment, these algorithms are a rather “basic” technology. They can buy and sell whenever a currency reaches a certain price.
In the future, people expect these algorithms to be able to predict growth trends – as well as downward trends – and make purchases or sales of currency early on, once again, to maximize profit.
Still, even now as it stands however, trading algorithms are quite complex and can help a trader streamline their trading strategy like never before.
The Bottom Line
As you can see, the future of Forex trading is not about fully automated trading. Instead, it’s about allowing the trader to focus more on creating strategies based on maximum potential returns and less on market analysis.
Of course, they’d still have to watch the market but would not have to constantly check it and be on their toes all day long. On the other hand, it’s still likely that, in the future, the world of Forex trading would revolve around those traders with immense capital that are willing to spend more to control the markets.
Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.