Is big data about to revolutionise financial market trading?

If you are new to the concept of big data, you are missing out on a technological phenomenon that has had a seminal impact on the business world.

There are some sectors and industries in which it has yet to fully realise its potential, however, with the financial marketplace offering a relevant case in point. Make no mistake; big data has the potential to revolutionise financial market trading across the globe, a bit like AI in financial trading. In terms of driving compliance and empowering investors to make informed, real-time decisions.

Big data may finally be about to impact the financial market, however, at a time when the global economic and geopolitical climate remains precariously balanced. Here’s how:

How can big data enhance financial trading?

From an investor perspective, the use of big data improves financial trading methodology and the quality of your decision-making. The latter point is particularly important, as the application of big data and intricate data sets makes it far easier to identify market correlations and behaviour. This, in turn, helps traders to make truly informed decisions, so long as they can apply their knowledge and interpret this in a way that suits their strategy.

Interestingly, brokers play a significant role in this process, as how they present data will have a direct impact on a trader’s ability to analyse and apply this in real-time. The presentation of visual data is also key, as intuitive charts and icons offer a quick and clear insight into data sets and empower investors that operate in liquid markets. Online brokerage firms do this particularly well, and in this respect are already helping their clients to leverage big data.

Brokers will also play a seminal role when it comes to integrating big data seamlessly into their platforms. We have already seen examples of this in the form of machine learning and automated trading algorithms, which can guide client strategies and underpin pivotal features such as stop losses. This is continuing to create an immersive trading experience that minimises risk while leveraging data to protect client assets.

The last word: Compliance and the continued support role of brokers

There is a clear theme developing here, as big data is being integrated directly into online trading platforms to streamline the experience for investors. This reaffirms the role of an online broker as a support network for traders, and one that focuses on the collation, presentation and deployment of big data sets for the benefit of clients. Even educational and analytical tools are beginning to benefit from big data, while clients also have access to increasingly detailed and reliable reporting tools.

This brings us neatly onto compliance, which has been a source of controversy among traders during the last decade. Big data will undoubtedly help clients in this respect, as the drive to collate information and present this will compel brokers to invest heavily in their infrastructure and compliance with key data laws. This places far less of an emphasis on individual clients, allowing them to focus on their own strategies and investment goals.