What the future holds for online trading


Every year, there are new changes, developments, opportunities, and crises in every sector. And with the advancement in technology that has been witnessed in the 21st, it is clear that we are no longer in a world where what happens in one region or part of the planet has no impact on other regions or states. In fact, it’s quite the opposite. The ability to progress financially or economically is dependent on global infrastructure, so if something affects the Chinese market, its impact must be felt in virtually all markets globally to some degree.

That’s why when it comes to online trading, there’s a complex correlation and interplay of a plethora of factors ranging from economics, politics, to environmental factors. Other more prosaic factors such as how a given sector is doing or demand of certain products and services in a given location also come into play. Taking all these into account, it is significant to figure out what the future holds for online trading in a bid to establish how things might change for traders, businesses, and other industry stakeholders.

Impact on consumers

In the past few years, there has been a tremendous growth in mobile data streaming and the benefits that it accrue to consumers. Internet browsing is now widely available to consumers in a variety of mobile devices and the trend is likely to advance in future. In fact, when it comes to online trading in particular, a wide array of trading platforms are now accessible by smartphones, tablets, and other portable devices. In future, more downloadable trading applications are expected not only to be developed but to replace desktop software that are currently being used in analysing market trends and making trading decisions.

In future, new financial instruments are also expected to be developed. It’s already witnessed in assets like credit swaps (CDS’s) and collateral debt obligations (CDO’s). The creation of new trading systems will in turn result into the development of new asset classes which will broaden traders’ investment portfolios and complicate investment strategies. Currency pairs, options, commodities, debt products and other assets will be packaged in more creative ways giving traders easy access to a broader investment base.

Impact on Institutional Investors

For institutional firms such as asset management companies, investment banks, and brokerage agencies like CMC markets, the advances in technology will open new ways and types of trading strategies. They will be in a position to use more sophisticated algorithms to decipher market trends and take advantage of the market pricing inefficiencies and profit from tiny discrepancies that aren’t currently possible. In fact, quantum computing is going to be widely adopted by these firms to handle a wide range of computational encryptions and market expectations.

Redefining Global Boundaries

Globalisation simply implies that companies never exist in a vacuum anymore. The price of doing any form of online trading is slowly melding into a global equilibrium which is in turn having a significant impact on aspects like labour costs and currency valuations. In future, there will be an influx of investors which will further complicate financial and valuation models making software-based online trading more prevalent. More foreign companies are expected to be integrated into everyday portfolios and there will be increased volatility in the financial markets.

Regulatory catch-up

The online trading industry has not been impacted by regulations as much as other sectors of the global economy. However, that’s slowly changing. In future, we expect to see more regulations, the first one, which will hopefully supported by many brokers is reducing the leverage levels used in various online trading platforms. To be sincere, leverage of 1:100 or 1:200 is simply not sustainable—there are many systemic vulnerabilities. One way of dealing with it is reducing the leverage levels through investor protection policies and regulations.


Forecasting for the next 3 to 4 decades, we cannot ignore the fact the online trading industry will witness a lot of positive changes as well as an equal share of hurdles and instabilities. Some of the potential factors that are likely to impact this industry include cyber security, national security, climate change, pandemics, dynamic regulatory requirements both locally and internationally, political changes, and economic crises among other factors.


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