Technology is important for every industry and every company whether small or large. The technology change is dynamic and every industry needs to opt for this change for surviving in the industry. Many changes have taken place in every sector due to changes in technology. One such change is the use of Artificial Intelligence in the tasks that were earlier done manually with human expertise. All the tasks that were not so important but consumed a lot of time are now been performed with the help of Artificial Intelligence-based software.
In terms of the Financial Industry, there has been a lot of changes in terms of technology. This industry has changed all of its operations and automated a lot of tasks. All the parties that are important in the financial industry (e.g; security exchange, banks, brokers etc.) have used the technology optimally to their advantage. Brokers in the financial industry have opted for the use of AI-based technology for different things and services.
Some of the uses of technology that best brokers in India have used for providing better services are:
- Trading software: All the trading software that is owned by the brokers are based on machine learning algorithms. High-Frequency Trading is meant to be done with the help of this software so that investors cost gets minimized and order is placed at the required price. There are many different kinds of orders that the investors can place with the use of this software. Orders like IOC (immediate or Cancel) orders, Intraday order, stop-loss orders, limit order, etc. can be placed with the help of machine learning-based trading software.
- Technical analysis: Many other functions are provided by this software. One such function is technical analysis. This function can be performed by looking at the charts of an index or stocks. A variety of charts are available for every stock that is listed on the exchange. The few available charts are candlestick charts, Eliot wave charts, trendlines, etc. Interpretation can be done with the help of these charts for future performance.
- Calculation of prices: Many brokers have software that is used by them to calculate the prices of different stocks, options and even futures. This helps in knowing whether a particular stock or option is undervalued or overvalued. The different methods of valuation are already built into the model. E.g Black Scholes Merton Model.
- Easy Interface: The interface of the software is very user friendly so that even a common person with minimum or no technical knowledge of algorithm can operate the trading application easily. This software allows the investors to buy and sell the stock on their own without any expertise which saves their additional charges.
All the discount brokers have started providing software to their customers, so that they can place their trade by themselves. The trend of placing the order on the phone to the broker is no longer the only way for trading. One such company is wisdom capital that follows both the ways, i.e; placing orders on the phone and also providing software to the customers for self trading.