Robo Trading Cash and Investment Management

Robo Trading Global Business

The word Robo Trading firstly came out from some world famous financial institutions such as New York and London Stock Exchanges. In the future there may be an increasing trend for robo trading all over the world. So far, around 75% of financial activities on the New York Stock Exchange and Nasdaq are done by robo trading and computer programs. It seems that robo trading is having a profound effect on the investment world, from global hedge funds to personal cash management. Powerful tools at our fingertips could help us manage personal portfolio of investments, often at much lower cost than finding traditional brokers. According to a recent report from the UK Financial Conduct Authority, online financial advice play a dominant role in decreasing wealth management costs.

Robo Trading

Robo Trading Challenges

The use of robo trading could be very challenging for advisers, for example, Royal Bank of Scotland (RBS) announced that they would cut over hundreds of advisers to be replaced by robo trading technology. It is true that computers can trade multiple times in just a few seconds. A large number of financial and wealth management companies are erecting line-of-site Robo Trading networks of microwave relays. The network will convey financial information across the world. Information is power, you’ll win if you got more data or statistics. Robo trading offers financial companies this great advantage. Researchers believed that the public would hoard information, and search an edge in investing that method in case if data is scarce. Rodo trading technology can do tons of data a adviser could never analyse.

 

Robo Trading

Robo Trading Final Thoughts

Some researchers fear that a more likely situation is that in the future all these self-learning Robo Trading technology accessing all the available data and leading to stagnation in the world financial market. Actually US authorities has already found some people who was using rodo trading software to trade part-time from their own houses. Well the best and worst scenarios are getting closer and closer. However, this view was rejected by a number of financial researchers. Rodo trading puts needed liquidity into the market to decrease costs. It is kind of waste of time and talents to train mathematicians and destabilises world financial market in ways no regulators can understands.

Robo Trading

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