No matter the era, investment has always been closely tied to technology. With better tech, communication and analysis have continued to improve, raising potential profits to new heights. It’s in the digital age, however, where the most profound and rapid developments have occurred. With these technologies, many components of investment are unrecognisable from where they were just a few short decades ago.
Artificial Intelligence
Some of the most valuable companies in the world make their money as investment brokers. Often portrayed as an exciting and high-risk world thanks to major filmmakers, the brokers in these companies operate through a collective understanding of patterns and odds. Sometimes brokers will have information that others don’t, and other times they’ll follow gut feelings to provide their clients with positive or negative results. Of course, these all rely primarily on the ideas of people.
The human brain is a powerful thing, but it’s far from perfect. We’re prone to bias and errors in judgement, and can miss important data because we can’t keep up with everything at once. Machines don’t have the same issues we do, which is why artificial intelligence has proven an effective tool for both recognising patterns and buying stock.
Taking in millions of data points and being instantly able to compute complex trends has made AI a powerful tool for the biggest and richest investment firms. Faster than us, and in some cases more accurate, AI’s advantages in this realm are growing by the day. Of course, machines aren’t perfect either, offering their own shortcomings compared to the human brain. For this reason, the best approach appears to be a combination of human and machine learning, at least for now.
Investment Apps and Websites
Operating on the other side of the availability spectrum are the investment apps and websites for mobile and computer use. Rather than catering exclusively to the biggest established names, the profound changes delivered by these technologies opened the floor to millions of new investors.
A list of the best Forex brokers UK shows how far this tech extends beyond the traditional investment broker sphere. Using these apps, users can trade with no commission, low minimum deposits, and with rapid execution. Opening the floor and avoiding big companies gives users of these newer systems flexibility beyond what older systems could offer, with all the potential that implies.
Expert Advice
Tying into the last point, the growth of individual traders has also led to the necessity for expert advice. While this has always existed thanks to brokers, the internet’s communication systems have made understanding easier than ever. Whether by using online forums or updates from Twitter feeds in the know, better communication and analysis tech illustrates another step forward no savvy investor could do without.
With the digital age adding so much to the investment landscape, there’s no more putting the genie back in the bottle. The only real questions remaining are how far could the next generation of artificial intelligence could take us, and how will mobile apps and online advice reflect the coming changes. What we know for sure is that there’s never been an easier time to get involved, for those willing to put in their due diligence.
