The foreign exchange (FX) industry attracts major focus as the largest financial asset group in the world with over $5 trillion a day in trading. FX trading volumes are dominated by institutional participants such as global conglomerates, investment banks and cross-border banks.
Despite being a market for the ‘big boys’, FX, or forex as it is known in the retail sector, is an easily traded asset, which results in the retail market now accounting for over $250 billion in daily volumes, surpassing the total global stock trading activity.
Creating the opportunity for a diverse group of forex participants to enter the market is a wide selection of trading platforms and products. It has become increasingly common to see a broker offer a sophisticated data-intensive high-frequency trading platform alongside an image focused system for beginners.
Existing and future industry platforms and technology will be on display during the upcoming London Summit hosted by Forex Magnates. Start-ups and veteran companies will be showcasing their new, state-of-the-art products for the first time on the Innovation Stage.
At last year’s Forex Magnates London Summit, newly presented products included app-based trading platform, Tradable; Darwinex’s innovative trade ranking and money management solution and Seer Trading, a complex event-processing (CEP) algorithmic trading system.
A New Class of Traders
Among recent platforms that highlight the future of trading is Flick a Trade, a mobile app created by Cygnecode and Traide, a technical analysis focused platform created by Inovance Technologies which uses machine learning algorithms at its core.
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Available for iOS and Android, the Flick a Trade app is a gamified version with a cutting edge design interface designed to appeal to new traders. It contains a powerful server-side system rivaling that of major trading platforms. Features include a liquidity matching engine, risk management, multi-currency accounts and payment processing.
Speaking about Flick a Trade to Forex Magnates, Cynecode’s founders explained, “Our goal is to reach out to a whole new breed of market participants – currently a substantially underserved market segment – which we call the ‘casual real money gamers’.”
The Ultron of Forex Trading
In contrast to Flick a Trade’s market release is Inovance’s Traide which exited from its private demo last week. Traide applies a sophisticated machine learning algorithm technology know-how into play for trading the markets.
At its base level, traders use a simple user interface to enter technical analysis indicators. The platform then back tests to analyze which combinations of these indicators provide the best trading opportunities. This information can then be converted in seconds to create ready-to-use code to trade the markets automatically.
Justin Cahoon, Director of Business Operations at Inovance explained, “Traders have a much better chance of finding a successful strategy by using Traide’s Machine learning algorithm to find strategies than using conventional analysis.”
What Does the Future of Trading Hold?
Traide and Flick a Trade represent polar opposites of financial products created for a unique, yet diverse market. The only question that remains is how will it be traded in the future. We will be addressing that very question tomorrow at the Forex Magnates London Summit.