Ways to use technology to invest.
Can be Done Online
Before the emergence of computers and the internet, there was floor trading and investors also used to call live brokers to make a trade. Although some people still engage in this form of trading today, it can now be done online in the convenience of your own home. The internet has also brought about the emergence of crowdfunding websites which enables investors to trade their shares with one another. Investors are also now able to sell down or increase their stakes in shares bought on crowdfunding websites which is a major development from the era of telephone trading thanks to technology.
Can be Automated
Twenty years ago, it was likely that very few people could imagine the level of automation presently in the investing world. For instance, automated investment services such as betterment robo advisor which gives financial advice are becoming increasingly popular. Robo technology often includes features such as tax-loss harvesting, socially responsible investing, and other relevant tools and calculators which make the investment process more seamless. Robo advisor services also differ in terms of cost, custody, account types, investments, taxes, and stocks which means there are also a variety of packages to meet each individual investor’s needs. One of the most interesting benefits of robo advisors is probably that they need little or no human supervision which means you no longer need to be an expert to invest.
Is More Effective
As a result of the development of software, trading can now be done more effectively. Trading software can be used for market analysis, testing and order execution. To start with, in terms of market analysis, the software enables you to view and customize price charts as well as display price quotes. In terms of testing, this feature is beneficial as it enables you to test trading systems. Lastly, the software provides you with at least one order-entry interface, and in some instances, you can experience certain levels of trade automation. Trading software usually tends to be sold as a package or leased by brokers in case you can’t afford it. Overall, it has been able to make trading more effective by making it faster, easier to analyze, and far more automated.
Once upon a time, investing was an exclusive practice limited to only those that could afford it and that was conversant in trading. It was a foreign concept to many before the emergence of the internet, and increased access to information. However, technology has not only made trading easier, but it has also become more accessible to your average person.