Reeling in the Years: Trading Then vs Modern Day Trading
Reeling in the Years: Trading Then vs Modern Day Trading
Discussion Points:
- A look at trading then and trading in the 21st Century
- Forex accessibility in modern trading
- The evolution of tech and its impact on the financial markets
Raise your hand if your goal is to live life on your own terms.
If you’re anything like us at AIKO Markets, you have made financial independence one of your top objectives. That’s where the trading lifestyle comes in. However, the possibility to trade from anywhere is a relatively recent occurrence. Today we’re taking a little trip down the trading memory lane to see how the industry has changed and what this means to traders worldwide.
Trading is as old as humanity itself. Forex trading was important for ancient civilizations as it is a vital component of modern day societies. Forex trading as we know it today dates back to the 1970s when the US made it possible for its currency to be floated freely. This free-floating system was subsequently replaced in the 1980s, and during this period that the idea of brokers and traders became part of the public imagination. We all probably have the mental image of a trader in a 1980s-style suit striding along with a briefcase in one of the principal financial cities in the world. This has, however, changed dramatically over the years. Let’s have a look at forex trading then and forex trading now.
The Trading Elite
Forex trading in the 1980s and early 1990s was essentially an activity that very few could do. Information was not readily available and it was practically impossible to get an accurate price without a multitude of trainers and brokers. As a result, Forex trading wasn’t something that any individual could do. The process was largely restricted to financial institutions. This is also the reason why activity in the Forex markets was slow during this period.
Trading Tech
Nowadays traders have access to start-of-the-art tools in comparison to the technology back in the day. However, this was all about to change with the invention of the internet.
The widespread availability of this revolutionary technological framework meant that information could be shared more efficiently. The possibility of having data available in real-time spearheaded the creation of trading platforms by both banks and commercial brokers. This was the first step towards the widely available forex trading as we know it today.
Power to the People
Despite its relatively slow start, today, forex is the largest financial market in the world. Indeed, the forex market is worth more than two quadrillions. The different forex markets in the different time zones effectively mean that it is possible to trade 24 a day. It also means that anyone with a good internet connection can trade from anywhere in the world. It is no longer necessary to have an institutional back-up to trade forex but it is now something that anyone can try their hand at. In fact, a recent survey found that 72% of Forex traders didn’t have any previous trading experience.
The trading lifestyle is something that will become increasingly normal. As more and more individuals pursue financial goals that are not solely dependant on 9 to 5 jobs, trading may be the ideal solution for many. Although very different from today’s system, the 1980s and the early 1990s provided the foundation on which current currency trading operates.
So, while the history of trading can be described as a colorful one, the future of trading promises to be characterized by equally (if not more) vivid hues. AIKO Markets is at the forefront of trading innovation, giving you the opportunity to benefit from the future today.
Ready to start making history with us? Sign up today!