In the next few years, it's a near certainty that those from all walks of life and income brackets can reap major benefits from algorithmic trading (AT) software. Already, the advanced technology of AT has turned what was once a highly specialized niche into a wide-open arena in which almost any diligent trader can aim to earn a substantial profit by closely following the markets. As technology continues to march forward, the rest of the decade has the potential to be a major growth era for AT in all its many forms.
That goes for newcomers who dabble in the stock market for an hour or so per week, as well as experienced investors who make a part-time or full-time career out of buying and selling securities of all kinds. Why is the AT field entering a golden age of massive growth? There are dozens of reasons, but chief among them is the widespread availability of automated buying and selling. In addition, consumer-level participants can take advantage of low-cost algorithmic products for their favorite asset classes, like crypto, stocks, forex, and many more.
Today's platforms are not only user-friendly, but they also offer a staggering array of educational resources and on platform training modules like no risk demo accounts and interactive simulators. Participation rates expand every month as many discover that they can put some of their capital at risk for a potential profit. Brokerage commissions, fees, and all other categories of costs associated with trading have come way down. In many instances, individuals can set up accounts and begin playing the markets within minutes and with little or no investment.
The fact that global markets trade 24/7 has led to even greater participation by everyday investors and working adults all over the world. As AT software moves into a dominant position among retail investors and trading enthusiasts, the years between 2023 and 2030 are destined for massive growth. Consider the following reasons behind the phenomenon of AT software popularity in the 2020s.
Auto-Trade + Algorithmic Software = Huge Market Growth
The synergistic combination of auto-trading and algorithmic products is at the heart of the latest market growth in the online brokerage sector. Consumers like the idea of setting their accounts to automatic status, but they still want the sophistication and power of AT packages. Among the world's top online platforms, nearly all now offer both auto-trade and capabilities. Since 2020, the rapid increase in the number of first-time traders is due to the wide menu of automated functions that free users from having to stare at their screens for hours at a time.
User-Friendly Platforms
For non-professional traders who have account balances in the normal range, which typically means several thousand dollars or less, user-friendly platforms are the reason AT software is here to stay. Those who download metatrader 5 can use a long list of AT features without having to write any code, create programs, or even understand how the software works. The easy access to sophisticated trading functionality is the hallmark of AT's popularity.
Anyone Can Go Global
Account holders who want to diversify their portfolios by adding assets from multiple nations can do so via standard online trading platforms. That way, in addition to holding multiple types of assets, users can further enhance the variety within their accounts by gaining access to multiple international exchanges and nation-specific markets. Participation in AT keeps expanding for many reasons, but the ability to go global for the average trader is one of the central components of the golden age for AT.
Low Costs, Fees, and Commissions Means More Retail Activity
One of the fundamental laws of basic economics is that when prices of products and services go down, demand goes up. That's certainly been the case during the past 10 years regarding AT-related software and services. Brokers now entice new customers with the prospect of trading almost commission-free. Plus, to sweeten the pot, platform, and firm owners throw in low fees for add-ons and enhancements.
In 2023, most of the top brokerage sites offer zero balance or very low opening accounts, a generous number of free transactions during the first month, and more. For account holders who maintain reasonable balances, it's usually possible to get access to AT products and services at no cost. Many platforms offer access to proprietary apps with hundreds of advanced algorithmic features. That kind of availability lets beginners set accounts to auto trade while they learn to monitor the action in real-time. Advanced users can write their own code or use ready-made AT software programs to tweak their buying and selling strategies.
