A large number of technologies have been developed by the financial services industry over the years to help customers with a wide range of jobs and transactions. The fintech industry is one of the fastest growing in the world. Compared to typical financial services, this one offers more convenience and security.
There will be a total of $158,014.3 million in fintech revenue worldwide by 2023, according to Business Research Company. More than half of banks and credit unions in the United States believe that working with fintech companies is essential.
Over time, technological advancements affect our daily lives and many areas. Fintech is no exception here. Thanks to the evolution of technology, many things are becoming easier. This is also reflected in the case of Forex trading, which is closely related to the Fintech industry. Almost every fintech innovation has a dramatic effect on FX.
How Fintech Helps FX Trading Become More Efficient
Approximately $5.3 trillion is generated daily by the global forex market, reflecting the ever-increasing volume of financial transactions. The changing economy of a particular country causes daily – and often twice daily – fluctuations in exchange rates. The 2008 financial crisis nearly wiped out the economy, but corporate investors were able to avoid bankruptcy by exchanging their currencies.
For regular investors, the global forex market has become an advantage rather than a burden thanks to advances in technology. Financial Service Providers – also known as Forex Brokers, offer traders the ability to use sophisticated charts and tools.
Because of this, the competition between them has increased significantly, which has led major forex brokers, like XM, to offer several bonuses to their clients. Nowadays, traders including beginners can take advantage of XM’s no deposit bonus promotion and make their trading process more efficient. Finance and technology have combined to form the term “fintech”, which refers to the introduction and integration of technology into financial trading and liquidity. Given its ubiquity, it’s almost hard to keep tech out of finance.
Fintech not only helps consumers understand trading demands but also provides currency forecasts to keep them updated. Moreover, it has aided the decision-making of millions of consumers without the need for a forex broker. Almost a decade ago, Forex trading was still considered experimental and only available to large institutional investors and well-funded forex firms. But now, thanks to Fintech, anyone can trade currencies on the forex market, regardless of their financial background or education. Fintech, with its real-time currency conversion, comprehensive guide and self-analysis tool, is probably the reason. As a result, consumers were able to make more confident shopping selections.
Impact of Fintech on Forex Trading
To engage in forex trading, you will need a bank account. Forex software is required before you can start trading in the global forex market, which requires you to open an account and find a forex broker. Even if you have a forex broker handling your trades, you still need to have some control over your account.
Fintech has allowed each account owner to view all information about different transactions in the form of minute-by-minute data receipts, removing transparency inside shared or linked accounts.
Fintech simplified real-time Forex trading since anyone with a standardized but anonymous internet connection could trade currencies with the volatility of values. The availability of the Internet has made real-time trading possible, and the spot market is constantly updated and improved due to currency fluctuations. Mobile data and Fintech software allow real-time trading on your mobile, even while sitting in a public vehicle.
Forex traders and brokers can use Fintech to gain deeper knowledge of the forex software they use, as well as extract analytical data about their interests and preferences in the global forex market. This data is sometimes misinterpreted due to its dynamic, professional and technological nature. Fintech, on the other hand, has enabled non-technical consumers to study analytics in depth and initiate dynamic currency trading globally. Over the next few years, more solutions and efforts will be devoted to forex trading around the world. Given the current state of the economy and the growing reliance on centralized systems, it’s time to make real-time forex trading more accessible.