HOW DIGITISATION HAS TRANSFORMED THE FOREX MARKET
Fintech has revolutionised the way we interact with financial products and forex trading is no exception
Thirty years ago , investing and trading was the preserve of a few select individuals on Wall Street . Today , consumers can trade thousands of commodities quickly and easily from the comfort of their homes . This transformation has been keenly felt in forex trading . For consumers , the advantages are fairly obvious and straightforward . Log on to any of the major digital investment platforms and chances are you ’ ll be offered a range of currencies to trade , alongside the usual staple of stocks and shares , cryptocurrencies and commodities .
For investment bankers and brokers , the change is more significant . Digital transformation has reduced friction for forex traders , making trades more efficient and cost-effective . It has also spawned a series of new technologies , built on the back of artificial intelligence ( AI ) and machine-learning , that can – among other things – help to improve risk management .
David Mountain , EVP – Strategy , M & A , Analytics and Product for UK-based Crown Agents Bank , explains : “ Digital transformation and fintech has already had a huge , positive impact on the forex market , with more progress still to come . The adoption of new technologies creates greater efficiencies within the FX process , reduces the costs , speeds settlement and improves transparency . In turn , this has increased competition in the market and is driving further innovation .
40 April 2022