Over the course of the last three decades, the course of the financial market has been altered considerably by the advent of technology. While the same thing can be said of additional markets and business sectors, however, the financial environment remains unique as it is here where technological innovation has completely changed traditional job descriptions and the challenges facing investors.
Above all else, it is the role of financial brokers that has encountered the most significant level of change. Once represented by financial professionals who had the knowledge and capacity to connect traders with their market of choice, they now operate almost solely online and essentially provide a support service platform which empowers individual investors to strategize and execute orders.
The Changing Face of Financial Brokerage Firms and the Role of Technology
So how exactly has that nature of financial brokerage firms evolved with the advent of technology? Essentially, financial brokers once played a pivotal role in allowing investors to make effective real time transactions, by taking instruction over the phone or in later years by utilising Electronic Communication Networks (ECN's). They would provide an active and corporeal link between investors and their preferred market, and help to translate their client's requests into actionable transactions and ultimately profitable decisions.
The advent of technology has changed this, however, first gradually and with increasing momentum since the turn of the century. This is because designers and innovators throughout the world have taken the time to develop online trading platforms, from which investors can access the markets, analyse real-time data and execute trades. Given the sophistication and convenience that these Cloud-based systems provide, they have proved to be a revolution among traders and forced brokerage firms to focus on educating investors, delivering platforms of their own and providing advanced technical support to their client's.
How do Brokerage Firms Fulfil their Current Role?
So how exactly do online brokerage firms justify their place in the contemporary marketplace? They have primarily achieved this aim by partnering with technical experts and web-space developers, in order to assist in the creation of independent trading platforms. Not only have they therefore found a relevant and purposeful way to redefine the service that they offer, however, but they have also managed to evolve this and empower investors like never before. Take the development of mobile trading platforms such as the mt5 eCN, for example, which offer advanced technical indicators and analytical tools to traders in both online and offline settings.
This emphasis on empowering live and real-time trading has also translated into the additional services that online brokerage firms provide. In addition to the development of online trading platforms, many have also strived to innovate an entire suite of accompanying features, such as newsrooms and audio-visual mediums that relay breaking news stories and economic trends as they unfold. This is particularly useful for traders regardless of their investment vehicle, as events in the wider economy are known to trigger significant changes in the financial markets.