The Changing Face of Forex Brokers: How Technology has altered the Market

Posted by Deb | Guest Post | Sunday 7 October 2012 1:38 pm

 

The Changing Face of Forex Brokers: How Technology has altered the Market

 

If you were to list the individual changes that technological advancement has triggered within the financial market, then you would be committing to a long and extremely time consuming process. In fact, it is futile to summarise the impact of technology with a list of individual changes, as this would not do justice to the sheer scope of the transformation that we have seen in the financial markets over the last decade.

 

The Role of the Broker: A Constantly Changing Entity

 

With this rapid and unchecked evolution in mind, it is the traditional role of the forex broker that has experienced the most significant change. Once integral parts of the order execution process, brokers have seen the importance of their roles diminish greatly in the advent of technological innovation and sophisticated software development.  Most crucially, the design of cloud based trading platforms has enabled users to affect their own instantaneous orders, while relying on incorporated analytical tools to aid the decision making process.

 

With traditional forex brokers being increasingly sidelined by technological advancement, brokerage firms have been forced to react to maintain their own status within the market. Subsequently, many have redefined themselves as online brokerage companies, and employed the services of software experts to help them create their own unique trading platforms. By also providing technology based and educational support to traders who open an online account with them, they have at least managed to reaffirm their place within a changing market place.

 

End of the Road for Traditional Old School Forex Brokers?

 

So where does leave those equipped with traditional brokering skills and qualifications? Well the good news is that the successful transition of leading brokerage firms has sustained a steady supply of employment opportunities, so that it is still possible to find relevant work within the industry.

 

What has changed, however, is the nature of the role, with employers demanding a far broader range of IT skills from individuals who would like to work within the sector. This relates to the fact that online traders will often require system or network support as opposed to direct brokerage assistance, which renders the skill set of traditional forex brokers something as an unnecessary luxury for firms.

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